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Old 02-01-2013, 06:07 AM
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bimmerzone bimmerzone is offline
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Location: West Chester PA
 
Join Date: Jul 2005
Posts: 580
Mein Auto: E63 650i
your point is exactly right too... While they are in it to make money, it like everyone chipping in a little into a pool of cash, and whoever needs it from a "catastrophic issue" gets to take cash out of the pool, and not suffer a major financial blow. (again just like any other insurance)





Quote:
Originally Posted by mjposner View Post
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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