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Old 01-25-2005, 09:34 AM
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cwsqbm cwsqbm is offline
Dreaming of Track Days
Location: Somewhere in the aether
 
Join Date: Aug 2004
Posts: 10,090
Mein Auto: ED'd 330Ci / E30 325i
Quote:
Originally Posted by jerrykdc
I think in some respects BMW is putting its money where its mouth is in this regard as they are offering the maintenance and warranty to 100K. Other companies are also offering warranties to 100K and my Honda Pilot extended warranty to 6 YRS 100K cost me $1100 so they are not figuring that I will need an engine rebuild before that time.
Warranties are just like insurance. Let me give an example. Lets say 10% (1 of ten) of the cars, following manufactuer's recommendations, will need a new $5000 engine after 100k, and they charge $1000 per car for the warranty. On average, they collect $10k (ten cars worth) for every $5k engine. Hence, they make $5k, and the deal makes sense to them.

However, would you do something to your car if it had a 10% chance of not making it to 100k? I view oil changes (I plan to do my BMW at 7500 mile intervals or six month which ever comes first) as cheap insurance as oil degradation. Just because the oil passes spec at 15k miles doesn't mean its as good as it could be.
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