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-   -   Extended Warranties: CPO vs Compass vs EasyCare (http://www.bimmerfest.com/forums/showthread.php?t=633558)

liquidg 07-16-2012 08:56 PM

Extended Warranties: CPO vs Compass vs EasyCare
 
First time poster ... very useful site, appreciate all the enthusiasm of the regular posters. That said, I'm a little confused regarding extended warranty options.

I was told by my local BMW dealership that I may not be eligible for an extended warranty because my vehical has a branded title (in CA, I live in IL). I purchased the vehicle from a non-BMW affiliated dealer, knowing at the time of purchase of the issue on the title (original owner had to have service on the vehicle for the same issue 3 times in the same month).

So, I'm wondering if (1) the local dealer just doesn't want to offer me any extended warranty (their service department has been questionable over the past) and (2) if I'm better off going with a non-BMW warranty provider such as EasyCare or Compass?

For context, I have a 2008 X5, have had the vehicle for 2 years and have put <10k miles on it during that time (I just broke 20k miles).

Any advice? I've searched the forums, and there seems to be a consensus around going with a CPO extended warranty over a 3rd party product, but I haven't come across any posts regarding extended warranties and branded titles.

Thanks in advance for everyone's help ... this is a bit of a time-sensitive request (original manufacturer warranty expires in 4 weeks).

RockChips 07-16-2012 09:37 PM

i'm in a similar position

ard 07-17-2012 12:54 AM

1. It is a fact that BMW warranty will not apply in CERTAIN circumstances:

Quote:

This warranty shall be null and void if the
Vehicle Identification Number (VIN) has been
altered or cannot be read, if the odometer has
been replaced or altered and the true mileage
cannot be determined, if the vehicle has been
declared a total loss or sold for salvage
purposes, or if the vehicle has been used in
any competitive event.
You are not clear in terms of WHAT "brand" is on your title....

2. BE AWARE that other warrantors may have similar exclusions and ASKING them is a poor way to become informed. You must ask to see the actual policy. Not the brochure. I actually say "I want the document that does NOT SAY "see the ___ for more details"...when you get to the final document it will NOT say that.

3. I dont have a cpo or BMW extended warranty handy- so you should read those too. #1 is from the original new car warranty.

4. Once you pass the 4 year mark, you may be VERY limited in choices.

jashearer 07-17-2012 02:28 AM

I wonder how a lemon ****back works in this case, as that seems what the OP is asking.

For the manufacturer to resell a vehicle after they repurchased it due to lemon laws I would think they would have to bring the vehicle back to a state where they could still offer a warranty on it.

I have a buddy who ran into a similar issue on a CTS-V that he even had a hard time getting the dealer to do normal warranty work after he purchased it with a lemon law ding on the title.

Jay

liquidg 07-17-2012 07:35 AM

@ard ... appreciate the response. Fortunately, the vehicle was not a total loss or sold for salvage (else I would not have considered it). I'm not aware if CA lemon laws are more strict than in IL, but the information disclosed to me at the time of purchase had to deal with a "high battery drain message" that the original owner reported. The dealer bought-back the vehicle, and "replaced the footwell module and re-programmed the control units with CAS" (which I assume to be a relatively straight-forward repair).

That said, my local (IL) dealer appears to be giving me the run-around. They mentioned that they could submit an extended warranty request to BMW, but that they anticipate it will be denied. Since I've had issues dealing with them in the past, I've reached out to other dealers to receive a quote (I'm under the impression that I cannot go to BMW directly).

Assuming that my options via BMW are limited, I'm hoping yourself (or others on the forum) have experience with 3rd party warranty providers and could comment (specifically on EasyCare and Compass).

@jashearer ... you are correct regarding the 'state' of the vehicle before offering it for re-sale. The aforementioned fix was made, all routine maintenance performed, and the original manufacturer warranty kept in-tact.

Would appreciate to hear what route your friend ended up going with this CTS-V (given similar circumstances). End of day, I have no preference between BMW versus a 3rd party warranty provider, assuming that the policy coverage/limitations are comparable and one of my local dealers will honor the coverage.

And of course, I welcome any other suggestions :)

jashearer 07-17-2012 02:16 PM

He sold the cts-v v1 and ended up buying a v2 due to warranty coverage issues, but he didn't fight hard enough in my opinion.

If you have original warranty it would seem likely that BMW would sell you an extension, check the ask a dealer sub forum or a forum sponsor.

Keep us informed.

Jay

liquidg 07-17-2012 02:28 PM

@Jashearer ... thanks for the heads up. Since I have a few weeks before the original manufacturer warranty expires, I will be performing my due diligence.

From what I have gathered so far, I am *not* eligible for a CPO (expected as much) given the branded title - regardless of the reason behind the brand.

That said, I am still eligible for a BMW extended and/or maintenance plan. I am looking primarily at the extended plans, as I do not put enough miles on the vehicle to justify the maintenance offering.

Also, it appears that dealers in particular locales work with different 3rd-party warranty providers. In the Midwest, EasyCare and Compass seem big ... on the West Coast, Wells and Zurich appear to be popular.

I haven't yet gone through and compared the T&C's of the BMW offered plan versus those from 3rd-parties that dealers have quoted me (that's an activity for this evening). Once I do, I'll share what I learn and solicit feedback from the forum.

ard 07-17-2012 07:13 PM

Quote:

Originally Posted by liquidg (Post 6956155)
@ard ... appreciate the response. Fortunately, the vehicle was not a total loss or sold for salvage (else I would not have considered it). I'm not aware if CA lemon laws are more strict than in IL, but the information disclosed to me at the time of purchase had to deal with a "high battery drain message" that the original owner reported. The dealer bought-back the vehicle, and "replaced the footwell module and re-programmed the control units with CAS" (which I assume to be a relatively straight-forward repair).

That said, my local (IL) dealer appears to be giving me the run-around. They mentioned that they could submit an extended warranty request to BMW, but that they anticipate it will be denied. Since I've had issues dealing with them in the past, I've reached out to other dealers to receive a quote (I'm under the impression that I cannot go to BMW directly).
:)

IMO the new car warranty WILL cover your car, AND the BMW backed extended warranty as well.

But lets examine why the dealer is giving you a run around....first, are they offering a "better" warranty that they can sell you?

I would be $100 they are.

Guess what? They make $300 on the BMW warranty, and they make $1500 on the third party warranty.

So guess what they will say is better?

CALL ONE OF THE SPONSORS 9or email or pm them).... buy from them.

liquidg 07-17-2012 08:11 PM

@ard ... appreciate your perspective on this as always.

From conversations with three separate dealerships (all in different states for that matter), I am not eligible for a CPO extended warranty. Through BMW, I am eligible for a Gold or Platinum extended warranty (the coverage details between the two I am still researching).

As far as third party coverages, one dealership has offered me coverage through Compass (which American Guardian administers), another through Warranty Solutions (via Wells Fargo), and a third through Zurich Financial. All appear to offer comparable products to BMW's Gold/Platinum offerings.

Thank you for the recommendation to contact one of the PMs/Forum Sponsors (the thought never crossed my mind). I feel foolish asking, but how do I go about figuring out who the PMs/sponsors are (and their respective contact information)??

adgrant 07-17-2012 08:57 PM

Quote:

Originally Posted by liquidg (Post 6957570)
@ard ... appreciate your perspective on this as always.

From conversations with three separate dealerships (all in different states for that matter), I am not eligible for a CPO extended warranty. Through BMW, I am eligible for a Gold or Platinum extended warranty (the coverage details between the two I am still researching).

As far as third party coverages, one dealership has offered me coverage through Compass (which American Guardian administers), another through Warranty Solutions (via Wells Fargo), and a third through Zurich Financial. All appear to offer comparable products to BMW's Gold/Platinum offerings.

Thank you for the recommendation to contact one of the PMs/Forum Sponsors (the thought never crossed my mind). I feel foolish asking, but how do I go about figuring out who the PMs/sponsors are (and their respective contact information)??

The CPO warranty is apparently similar to the Gold extended warranty.

ard 07-17-2012 11:50 PM

Quote:

Originally Posted by liquidg (Post 6957570)
@ard ... appreciate your perspective on this as always.

From conversations with three separate dealerships (all in different states for that matter), I am not eligible for a CPO extended warranty. Through BMW, I am eligible for a Gold or Platinum extended warranty (the coverage details between the two I am still researching).

As far as third party coverages, one dealership has offered me coverage through Compass (which American Guardian administers), another through Warranty Solutions (via Wells Fargo), and a third through Zurich Financial. All appear to offer comparable products to BMW's Gold/Platinum offerings.

Thank you for the recommendation to contact one of the PMs/Forum Sponsors (the thought never crossed my mind). I feel foolish asking, but how do I go about figuring out who the PMs/sponsors are (and their respective contact information)??

The CPO warranty is- as pointed out by adgrant- precisely the BMW Gold plan. The only way to get a cpo is for the dealer to buy your car, enroll it in the CPO program, then sell it to you. So that is why you cannot (practically) do a CPO.

The gold is not a bad plan, but there can be a good number of things that will not be covered. Audio and navigation are two examples. I'd price both, then go from there.

I think there is a sponsor listing somewhere. One guy (damnit, I forget who) has been quoting maintenance and warranties. As always, be cool dealing with them- don't blab about your deal. ;)

Here is the impossibility if evaluating extended warranties:

1. Nobody gives you the POLICY. All you get are summaries and overviews. They MAY give you one if you demand.

2. To get around the legal conundrum wherein they cannot sell you something without telling you what you are buying (ie they cannot sell a policy and not let you read it) so they give you 30 days to cancel after they give you a copy after you've paid. But by then you've shelled out 3-4k...I guess you need to buy three warranties at $4k each and return the once you don't want.

3. The language in the policy is subject to BROAD interpretation. You can compare two warranties and have identical language, but one administrator is under orders to 'cut down on claims this month' will deny.

4. People do not understand this business- companies use established names and secure sounding names- wells fargo, zurich, etc. But here is an important fact- the entity that is holding the financial bag- who ultimately pays, may be a small company or collection of investors, sometimes called a Risk Retention Group. So while the name may be good and hte administrator good, the policy can run out of money and disappear.


Back in the day Easy CAre was Ford. No brainer, they'd be there. This is why I really like a manufacturers backed policy- they will not go away, there is huge corporate exposure and they will do the right thing.

(Interestingly this is the same philosophy I have on aftermarket wheels- I want a manufacturer that has a lot to lose if the wheels fail. All these fly by night companies with an internet storefront selling Chinese sweatshop goods simply have no skin in the game to drive quality....but I digress)


A

liquidg 07-19-2012 09:36 AM

I consider myself fortunate that I received sample policy copies for both BMW's Gold/Platinum coverage as well as the third party packages via Zurich and Wells Fargo.

Completely agree with your 2nd and 3rd points. Your 4th caused me to pause and research the Zurich and Wells plans further ... fortunately, both are ultimately fiscally responsible to back their claims (though technically, they've setup legal entities to protect their total exposure). End of day, I'm not too worried that they're going under.

From comparing the BMW versus 3rd party packages, the one's from Zurich and Wells are much more cost effective, and longer in duration (an additional 2 or 3 years via BMW vs 5 years through Zurich or Wells). Hence, I'm leaning towards a third party package.

Between the two, I'm still undecided (Zurich vs Wells). Compass and EasyCare are not out of the running either, though the dealer rep quoting me a Compass package is taking an inexplicably long time to do so (e.g., 2 days in, still no quote).

For those forum members who have experience with 3rd party packages, any advice? Obvious considerations of what coverages are included/excluded, as well as price ... but aside from those, I'm interested in learning more about the ease (or pain) of filing a claim through any of the aforementioned providers.

webexam3 08-02-2012 12:00 AM

Buying a used X5 on Ebay - HELP!
 
Hi folks, I'm seriously considering buying a 2009 X5 from a used car dealer on Ebay. The car still has the original factory warranty till April 2013. I definitely want to buy extended warranty on this car, but how do I know if I will be qualified for the official BMW Extended Vehicle Protection plan? I heard from some people that you have to be the original owner of the car in order to buy extended warranty from BMW, is this true???

As a side question... should I order a mechanic to go check out this car before I buy? Thinking about using "Inspect My Ride" service through EBay. Please help! I've never bought a car on EBay before.

Thanks in advance for any advice you can share!

Prometheus 08-02-2012 01:48 AM

I wouldn't buy a BMW through eBay unless it is given a full inspection. Why is owner selling? Don't buy before you get it checked out.

ard 08-02-2012 08:56 AM

I would not consummate the deal on eBay UNLESS I had a signed document/contract from the seller with every detail, expectation, condition clarified in writing.

I don't know about the inspect my ride, but I'd be concerned it is superficial... Better to find a local mechanic you can talk to first

The deal should be contingent on YOUR impersonal inspection, AND your each antics inspect, with any deposit fully refundable.

All in writing, any deposit with a credit card

A


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