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Old 02-01-2013, 05:32 AM
mjposner mjposner is offline
Officially Welcomed to the 'Fest
Location: West Palm Beach
 
Join Date: Dec 2006
Posts: 167
Mein Auto: BMW M
Everyones analysis like this "CPO (or any other warranty) is for the provider to make money... thats the bottom line, else they won't be offering it." is wrong. What they do is spread the risk over a large group so that overall, the costs of repair do not exceed the cost of the coverage. They also have hits and misses, as it is a guess (past performance does not guarantee future performance). At the individual level it is a much trickier analysis. Do you trade certainty (XX dollars for Y years) with risk (repairs may be less or more than XX in the same YY period). Given BMW's complicated design, high cost of parts and labor and the likelihood of at least one major item failing in YYY years, I personally opted for the extended warranty.

As an aside, I bought a 2004 Audi Allroad in 08, one owner, full service, clean carfax and only 35k miles. in 1.5 years and 17k miles it had over $17,500 in required repairs. All but $1k covered by my extended warranty.

Check out my car blog: http://carfisheye.blogspot.com/
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