# Just took delivery - Excess Wear & Tear Addendum



## mde83 (May 16, 2005)

I just took delivery of my 2016 X3 35i. I am liking the vehicle so far.

I turned in my 2013 535i M-Sport 2 payments early as the dealer did a discretionary pull ahead. There were so many problems that cropped up in my deal as it went along. I have other threads on here about my issues with Ally when I was trying to include a GMC Terrain trade in on this deal. Ended up keeping the GMC for my daughter to drive until the lease ends.

On the pre-inspection for my 535i, lease manager said the car needed 2 rear tires. I should have expected that as it was an M-Sport with 19" RFT's that has 16k miles on them. The lease manager and my CA referred me to this local place to buy a couple of used tires that would pass the inspection. That turned into a complete nightmare because the place damaged one of my wheels, then claimed it was pre-existing damage. Luckily the damage was not enough for the lease manager to charge me. But it ticked me off to no end that this sh1thole would treat someone so bad especially knowing who I was referred by. They get a lot of business from my dealership. 

Fast forward to the final inspection, the two used tires they put on the car were even worse then the ones I had on the car before that. They were on the wear indicator/strips. I could not believe it. I was expecting to turn in my 535i and take delivery on my X3. I could not bear the thought of dealing with this tire place again as I nearly has a fist fight with the manager when they damaged my wheel and would not own up. Luckily, my CA came to the rescue and called the place and reemed them out, then actually took my 535i down there while I was in signing the lease papers on the X3 and had them put two good tires on there. Then they signed off on my turn in. Love my CA for this!!! But I was totally stressed by the whole experience.

So, when the F&I guy sat me down to sign the paperwork for my new lease, I bought the "excess wear and tear addendum". I know this goes by different names at different places. But for $772 I have $7500 worth of excess wear and tear insurance for the end of my lease. So I figure if the tires wont pass when I turn it in, I don't have to worry about it. 

I guess the question is for dealers and non-dealers, is this "insurance" or "coverage" a good idea? Or a ripoff in some way? Was the price I paid too high? I made sure to ask the F&I guy over and over again if the wheels and tires were covered under this, meaning curb rash and/or bald tires and he said yes, claiming that he and all the employees there always get this coverage on their own leased BMW's.

I have 60 days to cancel the policy with a full refund. This is why I am asking. 

Thanks!


----------



## rkinra (Dec 4, 2006)

If it covers your tires, then I think it's totally worth it. I'd get it on my next vehicle for $775.


----------



## ard (Jul 1, 2009)

I cant read the policy from where i am sitting.

Did you????????

Or are you more of a vebral guy, just go with what the CA and finance manager SAY?

There are significant restrictions on what these kinds of polciies cover- some have a certain number of "things" or 'events'..so 4 tires is 4 'things'.


----------



## Ninong (May 20, 2014)

mde83 said:


> So, when the F&I guy sat me down to sign the paperwork for my new lease, I bought the "excess wear and tear addendum". I know this goes by different names at different places. But for $772 I have $7500 worth of excess wear and tear insurance for the end of my lease. So I figure if the tires wont pass when I turn it in, I don't have to worry about it.
> 
> I guess the question is for dealers and non-dealers, is this "insurance" or "coverage" a good idea? Or a ripoff in some way? Was the price I paid too high? I made sure to ask the F&I guy over and over again if the wheels and tires were covered under this, meaning curb rash and/or bald tires and he said yes, claiming that he and all the employees there always get this coverage on their own leased BMW's.
> 
> ...


Glad you survived your lease turn-in experience in one piece without getting arrested for assault and battery. 

Here's the bottom line on any of those extra coverages such as the one you just purchased. For starters, others on this forum have reported paying more than you paid. Second, don't forget that you're paying for ease of mind just as much as anything else. Of course they're taking in more money than they're paying out or they wouldn't be able to offer it. That's how all "insurance" works. Some people come out ahead, others don't Everybody involved makes a profit on it. All insurance is like that. If it wasn't profitable, they wouldn't be selling it and the company writing it would stop writing it.

This is like someone asking if they should purchase tire and wheel insurance. That's another strictly personal decision. Everyone who ever bought it and made out okay on it will jump up and post about how great it was in their experience. All of those who didn't recover as much as they paid for it will just keep quiet. 

Considering how stressful your last experience was maybe you should just leave this coverage in place. It may help keep your blood pressure in check.


----------



## sampatel1 (Sep 8, 2015)

*Just took delivery - Excess Wear & Tear Addendum*



Ninong said:


> Glad you survived your lease turn-in experience in one piece without getting arrested for assault and battery.
> 
> Here's the bottom line on any of those extra coverages such as the one you just purchased. For starters, others on this forum have reported paying more than you paid. Second, don't forget that you're paying for ease of mind just as much as anything else. Of course they're taking in more money than they're paying out or they wouldn't be able to offer it. That's how all "insurance" works. Some people come out ahead, others don't Everybody involved makes a profit on it. All insurance is like that. If it wasn't profitable, they wouldn't be selling it and the company writing it would stop writing it.
> 
> ...


Ninong (with all due respect), if this policy covers tires, it's definitely a good idea. At the end of the lease, if you have put ok 18-20K miles on your car, you HAVE to change the tires and it's not optional. That itself will cover the $775 and plus you now have the remaining funds (out of $7500) for any other issues.
On the other hand Tire and Wheel policy has a ridiculous upfront cost and is normally a hit and miss (especially if you have 18" wheels) as those will rarely have any issues plus you have other cheaper options such as Discount Tire policy etc.


----------



## Ninong (May 20, 2014)

sampatel1 said:


> Ninong (with all due respect), if this policy covers tires, it's definitely a good idea. At the end of the lease, if you have put ok 18-20K miles on your car, you HAVE to change the tires and it's not optional. That itself will cover the $775 and plus you now have the remaining funds (out of $7500) for any other issues.
> On the other hand Tire and Wheel policy has a ridiculous upfront cost and is normally a hit and miss (especially if you have 18" wheels) as those will rarely have any issues plus you have other cheaper options such as Discount Tire policy etc.


I agree with you. It's a good idea! 

Just remember this, in spite of all your rationalization of how good an idea it is, they're making money on it! So not everyone comes out ahead. Most people do not come out ahead; but I think everybody should buy it and the dealership should hire you as their spokesperson.


----------



## ard (Jul 1, 2009)

sampatel1 said:


> Ninong (with all due respect), if this policy covers tires, it's definitely a good idea. At the end of the lease, if you have put ok 18-20K miles on your car, you HAVE to change the tires and it's not optional. That itself will cover the $775 and plus you now have the remaining funds (out of $7500) for any other issues.
> On the other hand Tire and Wheel policy has a ridiculous upfront cost and is normally a hit and miss (especially if you have 18" wheels) as those will rarely have any issues plus you have other cheaper options such as Discount Tire policy etc.


Omg

What if you need tires 8k BEFORE turn in?!?!?

Then you turn in w brand new tires and the insurance is useless!

It is not 'definitely' a good idea.


----------



## mde83 (May 16, 2005)

Thanks for the comments everyone. I will try to address a couple of the specific ones.

YES, I read the policy, and NO it does NOT exclude tires and wheels. ARD - I was not asking what my contract covers. I was asking if the dealer folk around here truly think these policies are ok, and if maybe they actually buy them for their own vehicles. Every dealer sells them. 

I think i bought the policy to avoid the possibility of what happened with my current lease turn in, mostly tire replacements and the odd dent or ding. I remember on my 535i, probably 1000 miles into that lease I curbed the right front wheel. I was sick enough about the fact that I damaged my new baby, but the thought of what that could possibly mean at lease turn in stuck with me well after that.

As for the comment about what if I need tires 8000 miles before turn in. In that case, insurance or no, I would have to buy new tires. I have a 36,000 mile lease on my new X3, and knowing me I will put around 25,000 miles on the vehicle during the next three years. Based on the research I have done around here and the "other" forum, 25000 seems to be an average life span of the 18" RFT's on the F25. 

I understand that the insurance companies will make money. But I am not trying to win a bet, I just want peace of mind here so IF two of my tires are at the wear indicators at lease turn in or IF I have curb rash on one or two wheels or IF I have a scratch or a ding, I don't have to get all twisted up like I did with this last lease turn in.

With this thread as well as others I create, the secondary purpose is to discuss it so that someone else coming on here will gain from what was said.


----------



## jjrandorin (May 8, 2013)

If it helps at all, the 2013 BMWs I had were my first luxury cars ever, and first leases ever. I purchased both the tire and wheel, and the lease turn in (it was 5k lease turn in damage waiver). I made sure that these were BMW offered, NOT specific to the dealership. Some Tire and wheel insurance is not BMW offered. Why does that matter? Because when it came to lease turn in, I called BMW FS to make sure I had the coverage on there I remembered purchasing. BMW FS saw it on both cars as I remembered purchasing.

When Lease turn in time came, I needed rear tires on both vehicles. I also had a little damage on my 335 around the fog light, where a truck had kicked up a metal box in the road 2 weeks before (ugg... almost 3 years with no issues at all and 2 weeks before turn in, this damage). 

Anyway, Lease inspection on the 335 was 2 tires + that damage around the fog light. on the wifes AH5 was 2 tires. 2 Separate dealers, and they were able to submit directly to BMW FS and see the approval as it was a BMW policy.

Even with the 2 tires and the damage on my 335, I still lost money on both policies relative to what I paid ( which was significantly more than you paid). This time I did 7 MSDs so I consider myself " self insure d" on these charges, as any lease end damage would come out of that money (thats why they are security deposits lol).

I am not a dealer, just a regular guy, but the piece of mind might be worth it for you. If you put down MSDs however, you would be effectively insuring yourself twice (IMO).


----------



## ard (Jul 1, 2009)

mde83 said:


> Thanks for the comments everyone. I will try to address a couple of the specific ones.
> 
> YES, I read the policy, and NO it does NOT exclude tires and wheels. ARD - I was not asking what my contract covers. I was asking if the dealer folk around here truly think these policies are ok, and if maybe they actually buy them for their own vehicles. Every dealer sells them.
> 
> ...


If you are scared with the exposure and dont like the uncertainty, then but the PEACE OF MIND (as Nimong put it).

If you can handle damage, self insure and manage your used tires, you will likely be ahead.

(I cant understand how you were surprised that the twn 'new used' tires were under the limit- did you not LOOK at the tires you were buying before they mounted them? This is not that hard....)

Dealer and the people that post here are of the mindset that ALL the financial products they sell are good and represent a solid deal for the customer. You cannot put a price on peace of mind, right? Its a great deal- even if you lose money, the peace of mind is invaluable.



Here's the thing with tires...its like the retnal car fuel purchase option... that insurnace is great if you will be at the limit within 5k of turn in. Any sooner and you will be buying new tires and giving that to BMW. IT IS IMPOSSIBLE TO ACCRUATELY PREDICT. Lets say you have a less than perfect alignment from BMW with that new car, you will NOT get 25k. So, sitting there now, how IS that alignemnt? What mileage will YOU get? Not others, your car? (And the standard BMW alignment is not optimized for tire life, but thats a whole nuther story).

Again, many people get anxious about car stuff- these are perfect consumers for these products BMW provides to squeeze more $$$ from them. From a sales perspective it is much better to sell to emotions and fears than to logic and value.

:angel:


----------



## mde83 (May 16, 2005)

LOL. Yes I actually did look at the new used tires the place put on. The tread toward the outside of the tires was quite deep yet what I did not notice was the center of the tires were on the wear indicators. Like the person who had them first over inflated them. 

No excuse for not inspecting the tires more carefully other than the chaos that ensued when I noticed the wheel they damaged, and the argument and near fist fight that followed. I guess I was too upset to notice. But lesson learned there.

I am going to keep the coverage I bought. Not because I am a consumer that knows little about cars. Trust me I know quite a bit having built and raced both oval track race cars and a drag car. But that was almost 25 years ago. But knowing I won't have a repeat of the latest lease turn in is worth the price tag.


----------



## Ninong (May 20, 2014)

mde83 said:


> I understand that the insurance companies will make money. But I am not trying to win a bet, I just want peace of mind here so IF two of my tires are at the wear indicators at lease turn in or IF I have curb rash on one or two wheels or IF I have a scratch or a ding, I don't have to get all twisted up like I did with this last lease turn in.


This is exactly the right attitude to have when considering something like this! You understand it perfectly. 

Then the only question becomes one of price. I can't help you there because I'm not current but I have read comments by others who paid more that you for the same thing. Assuming one of these products is fairly priced and not grossly inflated, you can assume that 60% of the selling price is going into the reserve for claims, 20% is going to the carrier as profit and 20% is going to the seller (dealership) as profit. Again, that's assuming it's not grossly inflated.

Some people come out ahead and others (most) do not. Everybody should have the peace of mind of knowing they won't have to deal with that. That's the same way I would approach BMW's wheel and tire insurance coverage. Each individual has to assess his own driving experiences (what wheels and tires does he have and what are the road conditions, etc.) and know that if he messes up one of this wheels/tires, he won't be the one stuck with the decision of whether he should replace one or both, etc.


----------



## mde83 (May 16, 2005)

Yeah I agree. For me I don't need insurance like the wheel and tire one so much against the money it would cost to replace a wheel and tire if I hit a pothole. The money is not an issue for me, the stress, time and aggravation dealing with lease turn in issues is my worry...


----------



## sampatel1 (Sep 8, 2015)

*Just took delivery - Excess Wear & Tear Addendum*

$772 for $7500 (about 10% of cost) is definitely worth the deal. You said you will drive 25000 miles so you definitely need new tires (or used ones with enough tread). Those tires (if purchased old) and the mounting/installation itself will run you into $400 at least and if new then I guess over $800-$900
Now, here is another thing you can do, if you had any other dent or anything minor during the next 3 years, claim the money from the Insurance company, don't fix the same (as far as I know it is legal - But double check) and then turn in your minorly damaged car at lease return. The $7500 should easily cover the costs to fix those minor things and you could pocket anywhere from $1000 to $7000 that was paid by your insurance after the minor damages.


----------



## [email protected] BMW (Aug 2, 2010)

$772 is cheap!!!. I'll tell you this, no one on this forum is going to help you with that bill for excess wear and tear if you get one. Good move.... I have written on this forum many times about the benefit of this protection. I have it on both of my cars. I see $1,000-$2,500 in lease end damages on a regular basis here in LA.


----------



## erdoran (Feb 29, 2008)

Greg, what's full price on that coverage? And does it cover excess mileage as well, or just the tires & cosmetic stuff that adds up?


----------



## mde83 (May 16, 2005)

[email protected] BMW said:


> $772 is cheap!!!. I'll tell you this, no one on this forum is going to help you with that bill for excess wear and tear if you get one. Good move.... I have written on this forum many times about the benefit of this protection. I have it on both of my cars. I see $1,000-$2,500 in lease end damages on a regular basis here in LA.


Thanks Greg. The thing about $2,500 in lease end damages being the norm is exactly what my F&I guy said after I already signed the papers to buy it. He said he and most other employees that lease BMW's get that coverage. I thought it sounded cheap too. I remember the same coverage being quoted at something like $1,600-$2,000 when I leased my 535i, which was why I turned it down, thinking that I always take good care of my cars, not realizing the other things besides neglect that can bite you in the rear.



erdoran said:


> Greg, what's full price on that coverage? And does it cover excess mileage as well, or just the tires & cosmetic stuff that adds up?


I know my addendum does NOT cover excess mileage, modifications, etc...


----------



## jjrandorin (May 8, 2013)

erdoran said:


> Greg, what's full price on that coverage? And does it cover excess mileage as well, or just the tires & cosmetic stuff that adds up?


The Finance person who tried to sell me that coverage told me that excess mileage is not covered.

It covers things like low tread on tires, any body damage etc. If it was offered to me at $775 I would have definitely taken it.

I am not surprised that the BMW employees take it. I used to work for Best Buy 12-15 years ago, and every employee bought the service plan they are always pushing on EVERYTHING.... because employees got a 90 percent (!) discount on it.

I would imagine that BMW employees get a hefty discount on the insurance too, but no idea how much. I can tell you that , if you purchased the BMW coverage, I was quoted $1595 as a discounted rate on my 435 by one dealer.and $1200 for it by another dealer for my wifes X5.

$775 sounds VERY cheap, so you got a great deal.


----------



## [email protected] BMW (Aug 2, 2010)

I would say the average price is around $1,275


----------



## [email protected] (Jan 12, 2016)

Is the protection plan provided by BMW or third party? Is there a big difference between one provided by BMW vs. third party. I got a quote from the FS when picked up my car yesterday for ~$950 which cover up to $7,500 in damage at lease end, which seems similar to what you have here. They said it's from third party. And the plan only covers for lease end, which means it will not cover for repaid during the the lease. Since this is my first lease, I am not sure how much damage I would expect at lease end. I have had 3 cars over the last 5 years and none had any scratch or dents. But you never know as things may happen, that's why you need an insurance.


----------

