Warranty and Maintenance Markup?
 

Does anyone know what the dealer markup on BMW Extended Warranties and the Maintenance Upgrade are? Thanks!

Back in 2009 I toyed with the idea of buying an extended maintenance policy for my 2006 E60 530. I did my homework and learned a lot from the various forums. One thing that came out was BMW dealers could charge what ever they wanted to. There is no set price. Some of the prices were in the $3,000 range. Most were in the low $2,000 range with a few in the high teens.

I won't debate if they are a good purchase or not. That has been beaten to death. I decided to go ahead and buy one. I called several local BMW dealers in the Los Angeles area and found the wide range of prices as I mentioned above. One was $1,695 plus tax. Nice try, there is no tax on these policies.

In my search, I came across a posting that recommended United BMW of Gwinnett in Duluth Georgia. The Internet Sales Manager, Justin Hoisington, handles the sales of the extended maintenance policy for the dealer.

I sent him and email with the year (2006), Model (530I) and mileage (33,000) and he quickly emailed me back a price of $1,695. I sent him the key with a credit card authorization form that he emailed me and it was a done deal. I have no affiliation with Mr. Hoisington besides being a satisfied customer. I am not even sure he is still working with BMW.

Here is his information;

Justin Hoisington
Internet Sales Manager
707 622-8251 direct line
478.918.7093 mobile
jhoisington@penskeautomotive.com
United BMW of Gwinnett
3264 Commerce Ave.
Duluth, GA 30096
www.gwinnettbmw.com
770.476.8800 main line
770.623.8933 fax

Thank you for your thorough and prompt reply, Chuck.

By chance, do you recall the "MSRP" on the particular policy you purchased? And it was a BMW branded policy, correct?

Thanks!

I spent $1,695 for the BMW extended maintenance. It takes it out for five years and 100,000 miles. I am not sure if there is a MSRP for that. They may have one, but I am not sure. It seems each dealership sets their own price.

The other side of it is the extended warranty. On that one I elected to go with Mercury Insurance based on my SA recommendation. BMW CPO and other extended warranties do not cover some electronics or the iDrive. Mercury does.

I have bought two from them; one for my 2006 530I for $2200 zero deductible for 5 years 75,000 miles. Another for my daughters 2007 328I for $1900 zero deductible for 5 years 100,000 miles.

Email Damien Trombetta at damien.Trombetta@alliedsolutions.net. Good luck.

Damien Trombetta
Auto Warranty Specialist
Allied Solutions Insurance Services, LLC
800-826-9384 x 23319
800-447-9395 Fax
949-257-7515 Cell

Okay; thanks!

What has been your experience filing claims with Mercury?

Would you give an example how Mercury came through for you?

I can't help you there. No claims were filed on the BMWs. My daughter used Mercury for the extended warranty on her 2007 Chevy Suburban. She has used it several times without issue; window regulators, starter and DVD player.

Mercury is thousands less than the equvalent platinum BMW warranty.

Is this an exception to the rule that one gets what one pays for??

I don't think so. I think BMW is relying on customers being comfortable buying their product and paying a premium for it. BMW CPO doesn't cover iDrive where as Mercury does.

With a BMW, should I expect a co-pay with Mercury? They may not pay BMW nor independent shop rates.

Mercury starts upon purchase, not continue from with the 4/50 BMW standard warranty ends. What is your recommendation?

I would always prefer the BMW trained techs, since they actually get updates. Mercury may for you to go outside of a BMW dealer which is a roll of the dice. IMO