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  #1  
Old 08-25-2019, 03:02 PM
joako joako is offline
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CPO Warranty Extension

I have a 2015 528 and the factory warranty ends in about a month. I talked with the selling dealer and they wanted about $4100 for a warranty extension. Does anyone know if this is the typical price and what's the lowest they could get it down to?
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  #2  
Old 08-25-2019, 03:23 PM
namelessman namelessman is online now
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$4100 is for a BMW extended warranty, correct? Is that a 7 years/100k miles platinum extended warranty on top of CPO warranty?
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  #3  
Old 08-25-2019, 04:25 PM
southcoastguy southcoastguy is offline
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That is a crazy price. How likely is it that you would have a repair that is more than that?
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  #4  
Old 08-26-2019, 08:50 AM
ard ard is offline
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Quote:
Originally Posted by joako View Post
I have a 2015 528 and the factory warranty ends in about a month. I talked with the selling dealer and they wanted about $4100 for a warranty extension. Does anyone know if this is the typical price and what's the lowest they could get it down to?
"Factory warranty"? Or "CPO warranty"?

Which warranty are they offering? Or just 'a warranty'? Or perhaps you really don't understand there are different warranties and different coverages and just asked for "an extended warranty"?

Your location is "House". In Australia? New Zealand? Canada? All of them use $.
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  #5  
Old 08-26-2019, 09:11 AM
1968BMW2800 1968BMW2800 is offline
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Disclaimer: As a new car smell addict, every time I've done the math, with an admitted bias toward any excuse to get a new car, keeping a good car a long time wins the numbers game. But driving something fresh and new wins with me anyway. I've never been one to challenge another person's risk management strategy -- peace of mind, for a price, is a calculation that is subjective.

assuming you were quoted BMW's suggested retail price for a BMW contract, then there may be as much as 20% gross dealer profit -- if they are padding the quote, then, obviously, there are more dollars in play. But, at 20%, that's only about $800 of negotiating room on price. So, call a few dealers and get quotes, making sure the quotes are for the same exact contract.

Once the fair market price for the contract is dermined, here are some items OP might wish to factor into the calculations for this problem:

age/mileage of car now
projected miles to be driven over the life of the extension
projected value of the car when any extension expires
what uncovered costs are on the horizon with or without the contract? tires, hoses, belts, radiator flush, whatever else...
how much do you like the car?
read the contract to confirm what's excluded, as well as what's covered -- that will tell you what your 4 grand is buying you, if it buys you anything you will end up needing.
where are you on the car now? How much have you paid into it so far for acquisition? What, if anything, is owed on the car? Payment amount, if any? For how much longer?
what would whatever equity in your current car, plus $4,000, buy you if you turn in your current ride and start fresh?

So, OP, how much use do you plan to squeeze out of your car and who pays for any repairs along the way?

The last BMW we kept for a long time was a 1989 5 series. It got passed around the family and finally died on a country road in northern California when the second water pump failed and by the time the negligent driver realized what was happening, the engine was cooked. That car was about 25 years old when it was sold for a grand to a mechanic who planned to part it out. Other than a couple of sets of tires, a couple of batteries, a brake job, the water pumps, and routine service, that $27,000 out-the-door Bimmer owed us nothing when it finally went out of service. And it would probably be running today if the person driving had bothered to note the temp before it was too late.
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  #6  
Old 08-26-2019, 10:32 AM
x986 x986 is offline
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Quote:
Originally Posted by ard View Post

"Your location is "House". In Australia? New Zealand? Canada? All of them use $.
Don't forget Mexico. While they don't use 'dollars', they do use $. And others?
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  #7  
Old 08-28-2019, 04:14 PM
joako joako is offline
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I'm in the United States. Currently have the original factory warranty expiring in about a month at which time the 1 year CPO kicks in, but the CPO has very many exclusions. I don't drive that much but I do keep my cars for a while. How much do I like my car? I don't hate it, but problem is I owed an E39 before this one. Would still be driving my 1998 528 it it wasn't totaled

Dealer quoted me was the BMW extension which I believe is up to 7 years from the original in service date, in other words gives me 2 years on top of the CPO. Doesn't seem worth the price and was trying to gauge what sort of mark-up they might have added.

I've also been researching and have seen some good reviews about Route 66 warranty and was quoted a hair under $2900 for coverage until 2024 including GPS/DVD/LCD/Stereo/Driver Assist/etc.
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  #8  
Old 08-28-2019, 05:14 PM
1968BMW2800 1968BMW2800 is offline
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Quote:
Originally Posted by joako View Post
I'm in the United States. Currently have the original factory warranty expiring in about a month at which time the 1 year CPO kicks in, but the CPO has very many exclusions. I don't drive that much but I do keep my cars for a while. How much do I like my car? I don't hate it, but problem is I owed an E39 before this one. Would still be driving my 1998 528 it it wasn't totaled

Dealer quoted me was the BMW extension which I believe is up to 7 years from the original in service date, in other words gives me 2 years on top of the CPO. Doesn't seem worth the price and was trying to gauge what sort of mark-up they might have added.

I've also been researching and have seen some good reviews about Route 66 warranty and was quoted a hair under $2900 for coverage until 2024 including GPS/DVD/LCD/Stereo/Driver Assist/etc.
The last time I faced this situation I was a few months away from the end of the CPO period. My mechanic gave me a list of the items that would likely require attention in the next couple of years, many of which would not be covered by any available warranty product at any reasonable price going forward. I contacted the dealer who sold me that CPO. He said as soon as the CPO ended the value of the car would drop significantly, whereas, within the CPO period, there was still solid value.

Instead of buying new tires and doing the belts and hoses, or risking the failure of the air suspension parts and so on, I turned that wonderful car in and converted the trade equity into a 2 year lease on an insane car that I had no business driving as a daily driver but loved every minute of it and then, when that lease ended and I hadn't killed myself speeding, I started fresh, and happy.

Life is short.
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  #9  
Old 08-28-2019, 06:01 PM
jjrandorin jjrandorin is offline
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Quote:
Originally Posted by joako View Post
I'm in the United States. Currently have the original factory warranty expiring in about a month at which time the 1 year CPO kicks in, but the CPO has very many exclusions. I don't drive that much but I do keep my cars for a while. How much do I like my car? I don't hate it, but problem is I owed an E39 before this one. Would still be driving my 1998 528 it it wasn't totaled

Dealer quoted me was the BMW extension which I believe is up to 7 years from the original in service date, in other words gives me 2 years on top of the CPO. Doesn't seem worth the price and was trying to gauge what sort of mark-up they might have added.

I've also been researching and have seen some good reviews about Route 66 warranty and was quoted a hair under $2900 for coverage until 2024 including GPS/DVD/LCD/Stereo/Driver Assist/etc.
On a genuine BMW Backed extended service plan (extended warranty) from what I remember there is 20% margin from MSRP on those. The thing is, you have to be sure you are looking at the "real" MSRP because, well its "m(S)rp (manufacturers SUGGESTED retail price). There is nothing that says the dealer has to give you the "real" MSRP.

They could (for an extreme not real example), show you some paperwork saying the MSRP for the longest BMW backed warranty was 10k, but because you are such a good customer they will give you a 50% discount, and it will be only 5k.

I am speaking ONLY of the BMW backed plans. Third party warranties through the dealer tend to have more markups, but it varies I believe. Dealers make more on those third party warranties, so sometimes they will push those (telling you its "better" than the BMW backed one).

If you can find the real MSRP like I said, I remember 20% as the dealers portion of the markup.

I am not sure exactly how to find the actual MSRP on the plans. I dont have access to that information and its not something I would call in favors to find out (one only gets so many of those...).
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  #10  
Old 09-02-2019, 08:37 AM
ard ard is offline
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Nobody has any real clue what the true dealer cost of any warrant plan really is... There is no MSRP that one can point to and say 'subtract 20%'

Dealers will quote fantastical numbers...whatever that think you will pay.

If OP is serious, he will actually pay attention to what is being quoted ( not 'I believe')...and will shop multiple dealers. DO NOT call the sales desk. Call and ask for the finance manager, leave a call back number if needed. Know which plan you want, don't waste their time. Quick deal, informed customer, quick$ for them.

Slow deal, ton of questions, multiple calls...they'll send you to a salesman who will tack on 1000.
__________________
Alignment here: The Definitive Alignment Thread

OE is Original Equipment aka 'BMW Original Parts' aka 'What you buy at the BMW dealer with a BMW label'

OEM is Original Equipment Manufacturer... EITHER the company that made the OE part or.... A part this is identical to the OE part, but is sold by the OEM under their own label


OEM is not what BMW sells


http://www.bimmerzone.com/category/T...ricks_OEM.html

https://www.turnermotorsport.com/t-OEvsOEM
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  #11  
Old 09-02-2019, 10:39 AM
namelessman namelessman is online now
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Quote:
Originally Posted by jjrandorin View Post
On a genuine BMW Backed extended service plan (extended warranty) from what I remember there is 20% margin from MSRP on those. The thing is, you have to be sure you are looking at the "real" MSRP because, well its "m(S)rp (manufacturers SUGGESTED retail price). There is nothing that says the dealer has to give you the "real" MSRP.
From the hints dropped by local F&Is, the margins of BMW extended warranties are not % of MSRP, but rather a fixed "offset", e.g. $600(or $800?) across all product codes. Just say the margin is $800. The invoice of a platinum 7 years/10000 miles, versus a powerrtain 7 years/70000 miles, will be the the listed MSRP minus $800.

Do note the key data shows the BMWNA MSRPs of all unexpired products, just ask your favorite SA to print that for you.
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