View Full Version : Group buys for tire insurance, extended warranty and maintenance
10-18-2010, 10:46 AM
There are three BMW warranty/ insurance products that many of us would like to purchase: tire insurance, extended warranty (Platinum, 7 yrs) and extended maintenance. Without arguing the merits (as a former E39 M5 owner who kept his car for 11 years, I can attest to the value of these policies, but others may feel differently), would there be some dealer reading these posts who would offer a group buy? These policies supposedly carry a pretty good margin - and once purchased, they can be used at any BMW dealer, I believe.
10-18-2010, 10:53 AM
I think this would be beneficial to many. Why don't you post it in the ask a dealer forum and see if you get any dealers interest.
10-18-2010, 11:02 AM
Good idea. Just did.
10-18-2010, 11:50 AM
Would be interested as well
10-18-2010, 01:10 PM
Would be interested as well
I would also like to see the data
10-18-2010, 02:19 PM
No need to limit this to just the F10, either. I would be interested in the tire insurance for the X5D.
10-19-2010, 12:58 AM
I recommend reading this. Good advice if you want to buy an extended warranty:
Buying a Car Extended Warranty
July 14, 2009 by TFB
A family member asked me to help him buy an extended warranty for his car. I got the enviable job because the extended warranty costs a lot of money (over $1,000) and I have the reputation in the family for getting good value for money.
Is an extended warranty on a car "worth it"? The standard advice you hear about extended warranties is that they are not worth it. I disagree. I must say it depends. It depends on what price you pay and what you get for that price. The coverage is worth something. If you pay a low enough price for the right coverage, you can make the extended warranty "worth it."
Let me begin with what NOT to do when you buy an extended warranty.
1. Donít buy it from the dealership at the same time when you are buying a new car. New cars are covered by bumper-to-bumper manufacturerís warranty, typically for at least 3 years or 36,000 miles. The extended warranty kicks in only after the manufacturerís warranty runs out.
You have plenty of time to see how the car holds up while itís covered by the manufacturerís warranty. If it looks like itís rock solid, you donít have to buy an extended warranty. If after 2-1/2 years you think you are not going to keep the car for long, you donít have to buy an extended warranty. The extra time for making decisions and the opportunity for observation have value. Donít give up that value.
Also, when you are buying a new car, you get only one offer for the extended warranty. Thereís little chance to shop. You donít know if the dealership is offering the extended warranty at a fair price or not. If you buy the extended warranty together with your new car, chances are you will overpay by a lot.
2. Donít buy an extended warranty plan unless itís backed by the manufacturer and honored by all dealerships. There are extended warranty plans offered by third parties. I think the chances of getting a repair covered by the manufacturer is a lot higher than getting it covered by a 3rd party because the manufacturer is usually interested in building some loyalty from the owners. I have no scientific proof for this. Itís just my opinion.
Most (all?) car manufacturers have their own extended warranty plans. They call them by different names, for example:
GM Protection Plan (GMPP)
Ford Extended Service Plan (Ford ESP)
Toyota Vehicle Service Agreement (Toyota VSA)
You just have to remember to shop for the extended warranty when your manufacturerís warranty is about to run out.
Now, how do you shop for an extended warranty if you decide to buy one?
3. Shop from any dealership, including out-of-state dealerships. All dealerships of the same manufacturer are authorized to sell the same extended warranty to all customers. The dealership is not on the hook for the warranty. The manufacturer is. You donít have to buy it from the same dealership where you bought your car. Your donít have to buy it from a dealership in your local area either.
Extended warranties have a high markup in the MSRP. Never pay MSRP. The markup on the extended warranty is pure profit because the dealership does not have to do anything to it until thereís a sale. They just fill out some forms and collect the sales markup. If an out-of-state dealership has a willing customer calling them, ready to buy, they will much more likely offer a good price, because they know the customer is shopping for price and only a good price will get the sale. A quick sale for $100-200 profit is so easy.
4. Shop by phone, not online. Yes, the old fashioned telephone. You are unlikely to find really good deals online, because the manufacturer discourages posting discounted prices online. One "rouge" dealership ruins the fat profit for everybody. If you call and make an offer that still gives the dealership a reasonable profit, they will gladly accept the easy profit.
For the kind of extended warranty I was asked to shop for, I came to the conclusion that the cost to the dealership is 50% of MSRP. I got quotes for the same plan from three dealerships. Based on the 50% of MSRP number, here are their markups:
<table border=1><tr><td></td><td>Quote Ė 50% of MSRP</td></tr><tr><td>Dealership #1, local</td><td>$700</td></tr><tr><td>Dealership #2, online</td><td>$500</td></tr><tr><td>Dealership #3, out of state, by phone</td><td>$200</td></tr></table>
You see the difference?
I sent my family member to dealership #3. Everybody is happy. Heís happy to have peace of mind and he saved at least $300. The dealership got an easy $200 profit. All Iíve got is this blog post.
10-19-2010, 07:30 AM
I am in for Tire Insurance. As said in the above post its good to wait out on the extended warranty/ maintenance as we have 4 yrs before we figure out if we need one.
On the tire insurance, so far the quote I have from my dealer is $1495 for 5 yrs (not a great one compared to others posted in the forum)
10-19-2010, 07:57 AM
OK...I just called my dealer and got the quote for 3yr tire coverage as well - its $1295 for 3 yrs ! Its darn expensive. Need to check with other dealers.
10-19-2010, 08:03 AM
I'd possibly be interested in tire insurance during my lease term, if they offer a three-year policy.
10-23-2010, 10:10 PM
Hey guys, no need for a group buy.......too complicated... I will get deals for anyone on this forum, (since we are paying to advertise we should try and get some business). Please contact me directly and I will get you a resonable price. I can offer the BMW maintenance, extended warranty from BMW and our 3rd party vendor Warranty Solutions. My contact info. is below.
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