07 550i New Owner - Warranty Dilema

Hi Everyone, I hate to ask this since I have been reading threads on this board for a few days, but I do have questions regarding extended warranty and maintenance. My husband and I just purchased a 2007 550i with 54k miles. The car has been well maintained and has not had any issues to date. The car however did not qualify for CPO simply because we bought it 3rd party and not from a BMW dealership. I've been researching aftermarket warranties and it seems hit or miss. We live in the DC Metropolitan Area and I have called 2 separate BMW dealers to find out what they offer as far as warranties. Neither recommended the BMW warranty as we would only qualify for the Powertrain Plus with our current mileage. This is what they offered.

First dealer recommended:
- JM&A - Platinum Exclusion Plan
- 4yrs/48k miles
- $100 deductible
- $4664

Second dealership recommended:
- Resource Automotive (The Warranty Group) - Exclusion Plan
- 3yr/36k miles
- Don't recall the deductible on this one
- $3945

We bought the car from the finance manager at a Jaguar dealership my brother works at. He said if we were interested he could get us the 3rd party warranty they sell which is:
- Continental Warranty Inc - Gold Exclusion Plan
- 4yrs/48k miles
- 0 deductible
- $2500

We also have the option of purchasing Route 66 Extended Warranty through Pentagon Federal. They also have an exclusion plan for $1895.

We are strongly considering just purchasing the extended maintenance and taking our chances on repairs. My fear with doing that though is that I know it is extremely costly to repair these vehicles.

Does anyone have any personal dealings with any of these companies or is there another company you would recommend? Or if you are in the DC area is there a dealer you would recommend we contact for another option?

Thanks in advance for the input.

I'm of the opinion that BMW's should be maintained properly, not according to the marketing weenies. The effect of that increased maintenance cost is a decrease in overall out of warranty costs. Additional warranties are sold because overall, they are profitable. Warranty salesmen prey on the fears of huge out of pocket expenses.

If it was my money (and this is what I do) I spend additional money on maintenance (5K oil changes, 30K tranny and diff fluid changes, biannual coolant changes and brake fluid changes, replace the oolant system at 100K miles etc....) and then I take my chances on big expenses.

I've owned BMW's for over 20 years and believe this is is the most cost effective way if one is to keep the car for any extended amount of time.

Hello,

I agree with investing a little more into the preventative side of the deal to avoid (some) costly repairs.

TRS550 - since you mentioned diff and tranny fluid changes, do you happen to have a manual? I was considering doing my diff and trans change but haven't seen a DIY posted here or in e60.net. The diff looks pretty obvious but the manual trans, I'd have to look around.

Joshua

Originally Posted by klgibso

Hi Everyone, I hate to ask this since I have been reading threads on this board for a few days, but I do have questions regarding extended warranty and maintenance. My husband and I just purchased a 2007 550i with 54k miles. The car has been well maintained and has not had any issues to date. The car however did not qualify for CPO simply because we bought it 3rd party and not from a BMW dealership. I've been researching aftermarket warranties and it seems hit or miss. We live in the DC Metropolitan Area and I have called 2 separate BMW dealers to find out what they offer as far as warranties. Neither recommended the BMW warranty as we would only qualify for the Powertrain Plus with our current mileage. This is what they offered.

First dealer recommended:
- JM&A - Platinum Exclusion Plan
- 4yrs/48k miles
- $100 deductible
- $4664

Second dealership recommended:
- Resource Automotive (The Warranty Group) - Exclusion Plan
- 3yr/36k miles
- Don't recall the deductible on this one
- $3945

We bought the car from the finance manager at a Jaguar dealership my brother works at. He said if we were interested he could get us the 3rd party warranty they sell which is:
- Continental Warranty Inc - Gold Exclusion Plan
- 4yrs/48k miles
- 0 deductible
- $2500

We also have the option of purchasing Route 66 Extended Warranty through Pentagon Federal. They also have an exclusion plan for $1895.

We are strongly considering just purchasing the extended maintenance and taking our chances on repairs. My fear with doing that though is that I know it is extremely costly to repair these vehicles.

Does anyone have any personal dealings with any of these companies or is there another company you would recommend? Or if you are in the DC area is there a dealer you would recommend we contact for another option?

Thanks in advance for the input.

We have a continental for our Range Rover Sport and its been great so far. Cannot be beat price-wise, no deductible, and it's the warranty that my dealer uses to CPO their cars since LR went to a 1 yr/12k plan which is a joke.

Originally Posted by bloomjbmw

Hello,

I agree with investing a little more into the preventative side of the deal to avoid (some) costly repairs.

TRS550 - since you mentioned diff and tranny fluid changes, do you happen to have a manual? I was considering doing my diff and trans change but haven't seen a DIY posted here or in e60.net. The diff looks pretty obvious but the manual trans, I'd have to look around.

Joshua

Yes, my 550 has a 6 speed so tranny fluid changes are a snap, same way with the diff. There is no drain plug on either so you have to suck out the old fluid rather than drain it. My Indy did both for me for $120.

Originally Posted by bloomjbmw

Hello,

I agree with investing a little more into the preventative side of the deal to avoid (some) costly repairs.

TRS550 - since you mentioned diff and tranny fluid changes, do you happen to have a manual? I was considering doing my diff and trans change but haven't seen a DIY posted here or in e60.net. The diff looks pretty obvious but the manual trans, I'd have to look around.

Joshua

OT - Have you tried looking in Bentley's Publishing? The manual trannies are easier, except for the clutch bleeding which is more like bleeding brakes. Drain at the bottom and fill until it over flows through the fill hole... much like rear end fluid changes. Not sure what model car you have though. The Bentley's manual at approx $150 is a good start...

I do my own maintenance above and beyond BMW's, or any other car I've ever owned, requirements... much like TRS50, just a little less frequent.

I ADVISE THAT READERS OF THIS POST AND OF THIS FORUM SHOULD NOT PURCHASE A VEHICLE FROM UNITED BMW ROSWELL GEORGIA OR ANY AFFILIATED UNITED AUTO DEALER OWNED BY PENSKE.

I ADVISE FURTHER THAT YOU SHOULD NOT PURCHASE AN EXTENDED WARRANTY FROM ANY OF THE FOLLOWING COMPANIES, WHICH ARE ALIASES FOR THE SAME PENSKE-OWNED COMPANY:

• "THE WARRANTY GROUP"


• "THE WG"


• "RESOURCE AUTOMOTIVE"


• "UNITED AUTO CARE"


• "CONSUMER PROGRAM ADMINISTRATORS"

I FURTHER ADVISE THAT – SHOULD YOU EVER DO BUSINESS WITH ANY PENSKE COMPANY – YOU SHOULD BE VERY CAUTIOUS SO AS NOT TO SUFFER THE SAME POOR TREATMENT AS DESCRIBED BELOW.

Here are the facts of my experience with United Auto Care and United BMW, both Penske companies.* You should read for yourself before taking the risk of doing business with any of these Penske companies.

January 19, 2010: I test drove a used 2004 BMW M3 convertible at United BMW of Roswell – a Penske company.* After the test drive, I fell in love with the vehicle which is the epitome of "The Ultimate Driving Machine."* Upon returning home that evening, I performed extensive research on the vehicle, and found many great reviews confirming that the BMW M3 is one of the most favored sports cars available anywhere!

However, one finding caused me great concern: the hydraulic oil pump for the automatic transmission had been known to experience premature failure; sometimes as early as 40,000 miles.

The following day, I spoke with United BMW's used car salesman to discuss my concerns about the oil pump defect with this vehicle.* The salesman reiterated at that time that the vehicle was being offered "as is," but that the vehicle had been thoroughly inspected and that there were "no problems with the transmission."* At that time, the salesman also suggested that I could purchase an extended warranty that "would cover any transmission problems should they occur in the next 36,000 miles." I informed the United BMW salesman that – if the warranty policy was reasonably priced, I would still consider purchasing the vehicle with the extended warranty.

January 20: I returned to the United BMW dealership to discuss my concerns with the salesman, and to discuss the extended warranty.* At that time, the salesman informed me that the extended warranty by United Auto Care – also a sister company owned by Penske "would definitely cover any problems with the transmission oil pump".* *At a cost of $3,000 for the Hi-Tech coverage option, the extended warranty seemed like an excessive cost for the coverage, but the salesman indicated that – if there were to be a problem with the transmission, "the repair would cost even more than the $3,000 warranty premium."* I was amazed at that statement, but after much discussion, I agreed to purchase the vehicle complete with the $3,000 additional extended warranty program as peace-of-mind for this potential transmission problem.

It will become apparent later in the story, why it is important to note that this Penske United BMW used car salesman had a verified history of misrepresenting the vehicles that he sold.* When he sold the vehicle to me, he informed me that the vehicle was equipped with Bluetooth hands-free mobile phone connection.* Only after the vehicle was purchased, did we discover that the vehicle did not – in fact – have Bluetooth capabilities.

When I informed the salesman of my dissatisfaction with his misrepresentation, he informed me that "I'm sorry.* I was wrong and there is nothing I can do about it."* It was later determined by United BMW that the salesman had – in fact – misrepresented the vehicle as being equipped with Bluetooth.

Fast forward 3 months….

I began to notice a vibration in the transmission during start off from first gear.* I brought the vehicle to United BMW, informing them of the vibration in the transmission.* United BMW was unable to identify the problem, and had no idea as to what might be the cause of the problem.* Over the course of the next two years, I brought the vehicle to United BMW no fewer than five different times requesting that they identify the cause of the problem.

It ultimately became clear that United BMW had no competence for troubleshooting this transmission problem.* It was clear that they had no understanding of how the vehicle operated, and that they were not competent to perform inspection, troubleshooting, or repairs to this vehicle.

After two years of tolerating the poor performance of the LEMON that Penske United BMW sold me, I finally drove the vehicle to an independent repair facility (indy).* My indy was quickly able to recommend inspection of the flywheel, which is a common cause of this particular symptom.* Although the flywheel is a "covered component" according to the extended warranty, United Auto Care refused to pay for the cost of troubleshooting.* I, therefore, authorized my indy to tear down the transmission at my cost to perform the inspection and troubleshooting process.

Upon inspection, United Auto Care's inspector confirmed that "the flywheel showed abnormal wear, and needed to be replaced."

This is where the TOTAL HELL of PENSKE and UNITED AUTO CARE begins:

I called my indy to check status of the repair, to which he responded "The warranty company is denying your claim.* They are saying that this is not a covered failure."

I contacted the warranty company, and after spending several hours on hold and speaking to a variety of different "claims representatives," I finally was able to escalate my case to a supervisor – Mr. Andrew LaPorte – who continued to argue with me that the flywheel was not a covered item.* I proceeded to question Mr. LaPorte as to why he was denying coverage for an item that is explicitly covered in my contract. *After extensive argument, during which I caught Mr. LaPorte lying about the flywheel "not being a covered component," he finally conceded to "machine the damaged flywheel" instead of replacing it; even though this was NOT an approved BMW procedure.* It is unacceptable that Mr. LaPorte should pressure me into accepting an inadequate and dangerous repair that is not approved by BMW safety specifications.

During reassembly of the transmission, it was discovered that the automatic transmission oil pump had also failed.

November 2: While I was traveling in Asia for business, the indy initiated an additional claim to the warranty company to repair the failed automatic transmission oil pump.

Upon my return from Asia on Nov 9, I discovered that the warranty company still had not processed the claim for the oil pump, and that my vehicle repairs had not been completed.

November 15: My indy informed me that "the warranty company is requiring that we move the vehicle to United BMW."

November 16: I called the warranty company and spoke with George, who informed me that "United Auto Care is not going to spend money to send an inspector to the repair facility.* We want the car moved to United BMW (another Penske-owned facility)."* I informed George that United BMW had already had the vehicle more than five different times, and that they had failed on multiple occasions to identify the problems with the vehicle, and that they were not competent to solve this problem.* George agreed that my indy could send documentation to the warranty company to clarify the problem in lieu of moving the vehicle.* Upon receipt of the information, they would send an inspector to the repair facility to confirm the problem and authorize the repair.

November 20: After compiling the necessary information, my indy sent the required documentation to the warranty company.

Over the ensuing two weeks, I traveled for business in Europe and Asia; during which time I received no communications from the warranty company (it's important to note that at NO TIME throughout this entire debacle did the warranty company EVER communicate with me without my having to call them).* Since I had never heard any information to the contrary, I merely assumed that the claim had been approved and that the repair was underway.

December 3: MORE THAN FOUR WEEKS AFTER THE CLAIM HAD BEEN INITIATED – I discovered from my Indy that United Auto Care still had NOT EVEN SENT AN ADJUSTER to process the claim.

December 4: I called United Auto Care again.* After being put on hold again for a very long time, I finally was able to speak with George.* I asked George why United Auto Care had still not processed the claim after more than a month had passed, and we had compiled and sent the information they requested.* George informed me that he did not see the notes in my file, and could not answer why they had not processed the claim.* George informed me that he would call my Indy.* To which I responded, "No.* I will go to the repair facility and we will call United Auto Care together."* I informed George that I was tired of being put off and jerked around by United Auto Care, and that I was losing my patience.

December 6: I traveled to my Indy where, together, we again called United Auto Care.* We spoke with Henry, who said "Oh. Yes.* I see that the problem is the SMG hydraulic oil pump.* We will authorize that repair, but we need to negotiate the labor hours, and the labor rate."* After several minutes of Henry negotiating the labor costs (to a level significantly below that of Penske's own United BMW service facility), Henry informed us that "OK, we will approve the repair, but I need to research the availability and price for the parts.* I will call the repair facility back today to confirm parts availability."

I was finally satisfied – after six weeks of being jerked around by United Auto Care – that I was finally going to get my car back after being without it for nearly two months.

December 17: Again after traveling out of town for business – I checked in with my Indy for the status of the repair.* To which, I was told "The warranty company has now declined the claim.* They want the car moved to another facility."

"OH MY GAWD….ARE YOU KIDDING?!?* These guys at Penske are really jerking me around!" I told him.

I immediately called United Auto Care again.* This time, I spoke again with Mr. *Andrew LaPorte.* Andrew told me that "We want the car moved to United BMW."

THESE GUYS AT UNITED AUTO CARE ARE EITHER TOTALLY INCOMPETENT, OR THEY ARE TRAINED TO FRUSTRATE THEIR CLIENTS INTO SUBMISSION SO THEY DON'T HAVE TO PAY A CLAIM.

I informed Mr. LaPorte that United Auto Care had already jerked me around for two months, and now – after already authorizing the repair on Dec 6, they are telling me again that they want the vehicle moved.* This…. after we had already resolved that issue more than a month ago on November 16, and I am still paying for alternate transportation at $250+ per week.*

At this point, I became understandably quite irritated.* I explained the history of United Auto Care's unacceptable handling of this claim, and explained to him that I felt like I was in the middle of the movie "Groundhog Day."* Everything just keeps getting repeated, and nothing gets done.

"PLEASE.* DO YOUR JOB AND SEND A CLAIMS ADJUSTER TO THE REPAIR FACILITY.* UNITED AUTO CARE HAS BEEN JERKING ME AROUND FOR TWO MONTHS!" I told him.

December 17: Mr. LaPorte agreed that United Auto Care would FINALLY (after jerking me around since November 2) send an adjuster to the Indy repair facility to confirm the repair.

December 18: *A United Auto Care inspector visited my indy.* The inspector confirmed that "yes, the transmission hydraulic oil pump is failed, and this is a covered repair."

Shortly thereafter, a United Auto Care representative contacted my Indy and informed him that "Yes we will authorize this as a covered repair," and proceeded – once again (as they had previously done on 12/6) – to negotiate labor hours and the hourly labor cost rate.* United Auto Care then informed my Indy – as they had previously done once before on 12/6 – that "we need to get our parts department to locate the part and we will let you know how to obtain the part."

December 18 – 12:32 PM: United Auto Care sent email stating that "Warranty Group has secured an estimate of $1951.67 for the SMG pump. You may choose to match this amount, source a part for this amount, or have us ship the part to you".

December 18 – 1:15 PM: *I received a call from my Indy informing me that "the warranty company has approved everything, and we're just waiting for the part.* We will have your car repaired and ready for you this Friday."

December 19 – 8:30 AM: *I received another call from my Indy telling me that "another guy – Willy from the warranty company called me and told me that the repair claim is being denied."

So….here I am….two months later….after being totally lied to by United BMW about the extended warranty policy that "will cover any transmission problems" that I have with this LEMON THAT UNITED BMW SOLD me.

December 19: *I was again forced to call United Auto Care, and I spoke with Stephanie.* I immediately requested that Stephanie transfer me to Andrew LaPorte.* She informed me that I had to explain the problem AGAIN to her before she could transfer me.* After another wasted hour, I was transferred to Mr. LaPorte's voicemail.

Mr. LaPorte called me that afternoon, and informed me that "the SMG pump is not a covered component."* I reminded Mr. LaPorte that he had made the same misrepresentation two months previously about the flywheel, and that the Penske dealer who had sold me the vehicle had explicitly sold me the $3,000 add-on extended warranty in case this common problem occurred.* In typical United Auto Care fashion – and as he had done previously – Mr. LaPorte proceeded to argue with me that the component was not covered.

I finally told Mr. LaPorte that I had no more tolerance for their abuse and mistreatment, and that my patience had run out.* I informed him that "If United Auto Care does not authorize this repair – as they had already done TWICE and reneged previously – that I would share the facts of their mistreatment with the motoring public.* That is why you are now reading this now.

December 21: Mr. LaPorte had the gumption – after jerking me around already for two months – to send me an email stating that "you will receive a formal response within 15 days."

January 7, 2013: Another 17 days has passed, and still no response from Mr. LaPorte or anybody from this pitful bunch of disrespectful morons.

So….on January 8 – nearly three months after the claim was initiated, I am forced – once again – to contact Penske's warranty company to ask them the status.

January 8, 2013: Frank Polyak – Complaint Resolution Specialist – responds to my email, stating that "our senior management has determined that our decision to deny coverage was correct and justified."* The warranty company did not – at any time – make reference to the multiple reneged repair approvals made, nor did they comment on, or apologize for, the thousands of dollars in costs I incurred for alternative transportation during their delays, stalling, and reneged repair authorizations.


I will leave it to you to decide….but my recommendation – as I stated at the beginning of this story – is this:

I ADVISE THAT YOU SHOULD BE EXTREMELY CAUTIOUS ABOUT EVER PURCHASING ANY VEHICLE FROM UNITED BMW OR ANY AFFILIATED UNITED AUTO DEALER OWNED BY PENSKE

I ADVISE THAT READERS OF THIS POST AND OF THIS FORUM SHOULD NEVER PURCHASE AN EXTENDED WARRANTY FROM ANY OF THE COMPANIES LISTED BELOW, WHICH ARE ALL ALIASES FOR THE SAME PENSKE-OWNED COMPANY:

• "THE WARRANTY GROUP"


• "THE WG"


• "RESOURCE AUTOMOTIVE"


• "UNITED AUTO CARE"


• "CONSUMER PROGRAM ADMINISTRATORS"

I ADVISE THAT YOU USE EXTREME CAUTION IF EVER YOU DO BUSINESS WITH ANY PENSKE COMPANY FOR ANY REASON.

Wow,.crazy read...

I wonder if a rep from the warranty company is going to respond and deny everything to try to make it look like nothing wrong was done.

Wow that's crazy, and the WG come up in searches as one of the best.

Sorry to hear, and to the OP read the fine print check BBB for complains and such for whatever company you decided on. GL

Wow Schnout. Thank you for sharing. I was actually going to make a purchase from Roswell BMW this weekend. I'll have to look into the car deeper. thanks

I would be absolutely HEATED if that were me...

Originally Posted by Cattani

I would be absolutely HEATED if that were me...

@Cattani...Yes...HEATED to say the least. The worst part of all is that I completely missed the Autumn convertible mountain road driving season in Atlanta. It's...like...the only reason I live here.

Instead of cruising the mountain roads in my smokin' M3 vert with its (true) 1,000 Watt aftermarket sound system...

...I've been relegated to hitchhiking to work every day.

And my wife is pissed that I keep borrowing her car.

Originally Posted by dev1983

Wow Schnout. Thank you for sharing. I was actually going to make a purchase from Roswell BMW this weekend. I'll have to look into the car deeper. thanks

@dev1983: Yes. Buyer beware. There are other (non-Penske owned) BMW dealers in the area. You might be better served to give them a shot.

I'm still a huge fan of BMW, of course...just not the Penske-owned dealers (United, for example)

Originally Posted by etnav382

I wonder if a rep from the warranty company is going to respond and deny everything to try to make it look like nothing wrong was done.

@etnav382...the warranty company is pretty oblivious. Mostly a bunch of dunderheads, from what I can tell...based upon my exposure to them.

Wow, that sucks. But thank you for taking the time in providing a detailed explanation of the situation. A good shared learning for anyone interested in purchasing that product.

Originally Posted by DAI

Wow, that sucks. But thank you for taking the time in providing a detailed explanation of the situation. A good shared learning for anyone interested I'm purchasing that product.

Yeh @DAI. It's a bummer...thanks for reading...and thanks for your comment.

crazy read...but why is it buried in this unrelated thread?

and what Indy in ATL did you go? I have had great success with Mike at Top Tier up in Cumming, exit 13.

Originally Posted by SpartanGA

crazy read...but why is it buried in this unrelated thread?

@SpartanGA: It appeared to me that this thread was about extended warranties. I'm sort of new to the forum, so I may be in the wrong place. Can you send me a link to a more appropriate thread so I can post it there?

Thanks!

figured you would just started a new thread.

I forwarded this to my contact at United Roswell, will be curious if they respond.