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Old 01-03-2018, 10:00 AM
guyinacar guyinacar is offline
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Originally Posted by alexvej1 View Post
For lease it doesn’t makes sense...
That's most true for committed serial lessees, and BMW has many such people.

But consider lease buyouts, more typical from Honda and Toyota Financial (who are more generous in subverting, in my experience).

My BMW experience was that GEICO MBI was only available on a newish car still under OEM warranty, and that my (rather small) semi-annual payments will run in parallel to the OEM warranty. In other words, IIRC, I had to opt into MBI when the car had less than 15mo/15k. You can't opt into GEICO MBI when you're at 3y/30k, even if buying out your lease seems very attractive at the time because you love your car. GEICO will not attach MBI to such an "old" car, regardless of how you paid for it. This is how GEICO eliminates moral hazard.

The 7y/100k coverage doesn't kick in until after the 4y/50k OEM warranty expires, so BMW owns most of the early issues. Since I drive around 14k/yr, this has the net effect of doubling my OEM warranty, at a fraction of the price of the BMW extended warranty.

Of course GEICO has risks too. Presumably, they could remove the MBI product, change its terms in the out years, or drop the insured. Such is life.
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