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Yankee
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Discussion Starter · #1 ·
Hi Folks,

I just upgraded to a 2011 335 xDrive 6-speed manual from a 2003 325xi 5-speed with 215K that I've had for ten years.

The dealer talked me into purchasing an aftermarket warranty and now I'm having second thoughts (I have 60 days to cancel according to the fine print). After reading the disclosure I realized that it won't cover the navigation system, which was one of the parts I was worried about having to repair down the road. The warranty is the "Exclusionary" version from GWC if that makes any difference. Is it worth it? I'm back to thinking that I should put the $2,700 back in the bank and save it for repairs that will crop up.

Any opinions?

Thanks a bunch - I really like the car...but I'm really going to miss my E46 once I sell it on Craigslist. :(

Laurie
 

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  1. Is it truly a 'warranty' (replaces broken components) or is it an 'extended service policy' (includes 'routine maintenance', or does it cover both (not likely, for the fee charged)?
  2. How many miles on the car now?
  3. How many more miles will you add to car during the covered period?
  4. What is included and excluded (even the BMW CPO does not cover Nav unless you pay more for Platinum level coverage)?
 

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I'd return the dealer-supplied aftermarket warranty and talk about getting one through a credit union. The dealer just wants to make a quick buck off you and will mark up their warranties substantially. Case in point:

I purchased a Route 66 Easy Street warranty (exclusionary) which has extended coverage for all electronics/nav as well as the turbo on my 2011 335i. I got a 5 year/100,000 total mile contract for just under $2400 through my credit union. So far I have had about $1800 in claims against it, and they have paid 100% of them with no hassle, it's been really nice.

The thing you have to understand about extended "warranties" is that basically they are insurance. The company is betting that you *won't* need $2400 or whatever in repairs over the life of the contract, and you are betting that you will. Actuarial science and basic economics says that they're more right than you are. Still, for the group of people who DO end up having more $$$ in repairs than they paid for the warranty, it feels pretty good.

For me, I think of it a bit differently. Yes, I could set aside $2400 into a savings account for repairs, and it is possible that I might not need all of it. It's also possible that my iDrive could fail or my turbo or tranny could fail and end up costing me double or triple what I have set aside. Instead, I financed a service contract into my loan. $2400/60mo =$40 a month. $40 a month is worth ensuring that I have a guaranteed working vehicle for the next several years. Not to mention that $40 a month also covers roadside assistance and rental/loaner car coverage as part of the warranty.
 

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Yankee
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313 Posts
Discussion Starter · #4 ·
Thank you Wilt and bad karma -

I never thought about looking at my credit union which I financed through - they did offer an extended warranty but at that point I wasn't interested. I'll definitely call them on Monday and check it out. I'm going to cancel the policy the dealer sold me.

Wilt - the car has 63K on it....and no...routine maintenance isn't covered. I do quite a few miles for work - so the 4 year policy would probably get me through about three years (if that).

Thank you both for taking the time to respond - you definitely helped me. :)
 

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Good luck! The good thing is you have a 2011, so most of the kinks of the E90 were more or less ironed out by then. The N55 doesn't suffer from wastegate rattle, I haven't heard of turbo failure. You may still have to contend with the ****ty water pump and HPFP, I just had my water pump replaced after a failure. Also, do you know if your VANOS recall has been performed?
 

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Wilt - the car has 63K on it....and no...routine maintenance isn't covered. I do quite a few miles for work - so the 4 year policy would probably get me through about three years (if that).
Assuming you add 15K per year, in 4 years you have 103K. The more likely component failures
water pump/thermostat, only 30% fail in that interval
valve cover gasket
oil filter housing gasket
maybe belt tensioner & pulley
maybe wheel bearings
maybe steering control arm/bushing
maybe fuel pump
ask yourself, Just how many of those things are covered?
 

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Yankee
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313 Posts
Discussion Starter · #7 ·
Good luck! The good thing is you have a 2011, so most of the kinks of the E90 were more or less ironed out by then. The N55 doesn't suffer from wastegate rattle, I haven't heard of turbo failure. You may still have to contend with the ****ty water pump and HPFP, I just had my water pump replaced after a failure. Also, do you know if your VANOS recall has been performed?
Whoops - In my research I thought the N55 didn't have the HPFP water pump issue - I didn't even ask. I missed the VANOS recall so I'll definitely look into it.

I waited so long to purchase a new vehicle that I though I had everything covered. :dunno:
 

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Yankee
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313 Posts
Discussion Starter · #8 ·
Assuming you add 15K per year, in 4 years you have 103K. The more likely component failures
water pump/thermostat, only 30% fail in that interval
valve cover gasket
oil filter housing gasket
maybe belt tensioner & pulley
maybe wheel bearings
maybe steering control arm/bushing
maybe fuel pump
ask yourself, Just how many of those things are covered?
That's just it....it doesn't cover "normal use" and "wear and tear" - so you're right....I'm glad I read the full disclosure and posted the question. I feel so much better about cancelling now. :)
 
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