[barl0]

hey guys,

I just passed the 49k mile mark and i need to make a decision very soon regarding my options on MY08 550i.

options:
a. pay the dealer extended warranty price tag of $3900.00 to take me to 3yr/100k
b. trade it in [sell it]
c. drive it and take my chances that it will cost me less than 3900 to keep driving it for as long as i can possibly afford the maintenance.

bonus: i purchased the extended maintenance plan when i bought the car

its my first bmw, and it has been one hell of a ride :thumbup: but, the value of the car will drop quite a bit after i pass the factory warranty mark, as i put alot of highway miles on this thing! [20k miles a year]

i would love to hear everyone's thoughts on the reliability, future cost to own issues, etc.

thanks guys!
barl0

 

[Dave @nz]

Hi, looking at the milage you have done since purchase I would be inclined to put the money towards an new BMW. Resale wont be as good in 12 months or 24 months time with the increase in milage (+20 or 40K miles).
Cheers, Dave.

 

[K75s88]

I bought an 04 530i knowing I was gonna put some mileage on her. I got tired of driving SUVs for a work vehicle. I felt I owed myself a more comfortable ride. Well long story short, I've had her for 5 years now with just routine maintenance. It know has 135k miles on it and drives like a dream, still bitchin lookin with the few mods I've done to it (more to come). Its paid for, its mine, and I love driving it, afterall it's meant to be driven and appreciated. It is the finest automobile I've ever owned. Good luck with your decision.

 

[Vax]

IMO you've already paid for the 3 most expensive years of owning the car. What do you think repairs could possibly run to counter the cost of new car payments? Repairs are a drop in the bucket compared to the first 2 years of depreciation. On the other side, the depreciation curve is a lot flatter on your vehicle over the next several years than it was when new. I think financially it pencils out to keep it if you love it and it's been trouble free.

Now, if you feel you need a new car every 3-4 years, then do that. You can easily justify that decision too, less risk with a new warranty. New car smell. Latest gadgetry. It's fun owning a new car. What is that worth to you?

Thankfully many are taking option 2 leaving some very nice deals out there for those that don't want to (or cant) justify huge depreciation hits the minute you drive off the lot.

 

[Robert A]

Put the $3,900 in a savings account and self-insure. Chances are that you won't go through all of it in three years.

hey guys,

I just passed the 49k mile mark and i need to make a decision very soon regarding my options on MY08 550i.

options:
a. pay the dealer extended warranty price tag of $3900.00 to take me to 3yr/100k
b. trade it in [sell it]
c. drive it and take my chances that it will cost me less than 3900 to keep driving it for as long as i can possibly afford the maintenance.

bonus: i purchased the extended maintenance plan when i bought the car

its my first bmw, and it has been one hell of a ride :thumbup: but, the value of the car will drop quite a bit after i pass the factory warranty mark, as i put alot of highway miles on this thing! [20k miles a year]

i would love to hear everyone's thoughts on the reliability, future cost to own issues, etc.

thanks guys!
barl0

 

[bobr2001]

Keep it and enjoy!

 

[gcollins]

I agree with bobr...keep it and enjoy it. If you take care of it (regular maintenance etc), it will last for quite some time. I had a 1998 540i for 11 years and finally got rid of it at 136K on it....I wanted to keep it but I also wanted a new car . The extra work done on it (besides regular maintenance) came and went...sometimes I would walk out paying 1K, then other times I would go a year or more with nothing going wrong. I ended up getting a 2008 535i and LOVE it! I'll be keeping this one 10 years or more as well (well, depending on HPFP LOL). I maintained by 540i religiously and it was a great car. Loved it and do miss it, but like my 535i more!

 

[kelhasna]

in my opinion buying the 3 year extended warranty is not the best idea because you will reach 100K miles in two years based on your driving. plus you have had the car since it was new and you know exactly how it is. if you had problems with during the first 2 years you have owned it then be prepared for some more, if not then jsut keep driving it. good luck

 

[cagoguy]

As others have said, you've already burned through the years of highest depreciation. Selling or trading (ie- REALLY giving money away) at this point would financially foolish. Especially since you have a new model year car that happens to have high mileage and no warranty (further depreciating it). If you pile on a lot of miles (like me) - it's best to keep the car for more than just a couple years.

(and this way you can wait for the F10 to be released and de-bugged before making an upgrade in a few years!)

Roll on with her!

Edit: oh- and skip the extended warranty. Find a good Indy mechanic that works on BMWs and it'll save you 50% or more on service/repairs.

 

[barl0]

great, i really do appreciate everyone's input. its a tough decision that we all have to endure at one point or another. as it is my first BMW, i thought it would be best to hear from the 'fest members! i think most of you are right in keeping the car and finding an indy to do the in between/expensive repairs. I do feel a bit more comfortable, since i have the extended maintenance plan to cover the other simple items till 100k.

 

[z06bigbird]

Keep the car. Repairs are less than car payments.

BTW, I am not convinced that you will be able to accomplish many electronic repairs at an indy dealer. These newer BMWs are so complex that the only people with proper diagnostic/repair tools are the dealers.

Indy dealers can do brakes, water pumps, shocks/struts, etc. But I suspect that many codes will require the dealer equipment.

 

[JT 550i SD]

buy the warranty

CIC computer failure...$1500+

catalytic converters.. $3000

02 sensors...$ who knows.

All I can say, I'd never own one of these without a warranty if it were available

 

[Dann902]

I recommend you keep the 550i as long as you can up to 100k miles since you have already bought into the extended maintenance and also you love this car. Plus, you'll save money by not making monthly payments if you bought a new car.

 

[Vax]

CIC computer failure...$1500+

catalytic converters.. $3000

02 sensors...$ who knows.

All I can say, I'd never own one of these without a warranty if it were available

See, that's the other side of the coin. You are betting everything goes wrong. I think if he had a lemon he'd already know it.

Here's another thought:

1st year depreciation $10k

2nd year depreciation $10k

3rd year depreciation $8k

Payments on a new 550i...$12k per year for 6 years? Guessing.

That's a boat load of $2-3k repairs.

 

[calpalmer]

IMO you've already paid for the 3 most expensive years of owning the car. What do you think repairs could possibly run to counter the cost of new car payments? Repairs are a drop in the bucket compared to the first 2 years of depreciation. On the other side, the depreciation curve is a lot flatter on your vehicle over the next several years than it was when new. I think financially it pencils out to keep it if you love it and it's been trouble free.

Now, if you feel you need a new car every 3-4 years, then do that. You can easily justify that decision too, less risk with a new warranty. New car smell. Latest gadgetry. It's fun owning a new car. What is that worth to you?

Thankfully many are taking option 2 leaving some very nice deals out there for those that don't want to (or cant) justify huge depreciation hits the minute you drive off the lot.

+1

I think rolling these cars every 3 or 4 years is another bubble that will burst at some point. Makes no economic (or environmental) sense, but affluence has enabled it.

 

[GolferEngineer]

I paid $3K+ about 2K miles before I hit the 50K mile mark for the extended warranty.
I took the car on a 3600 mile road trip and a week after we returned, I had to get the DS mode fixed.
It paid for about 1/2 the cost in the first visit.
Just yesterday the adaptive headlight warning came on but then disappeared - maybe a sign of things to come?
Also, with the dealer, I get free, unlimited loaners.

Just one more point on the curve.

 

[SeeYal]

Also,
1/ It is a 550i, less desirable in re-sale - big engine= big $$$ for poeple looking for pre-owned- they will be more likely look at 528... The others who can aford them would buy new...
2/ You really have a 2 years 50K miles car... this will bring down the re-sale/trade in value probably more down than the 3900 $ required for extended insurance... if you are going to loose the cash anyway... it is your decision where to put it...

I put my money where my mouth is... I will probably keep my 545 another 2 years... and I have extended warranty till 100K - I am at 65K now

my 2 cents...

 

[Elias]

I would keep the car, if you decide to sell it, now the buyer has 1,000 or less miles of warranty left, not much incentive to buy imo. The car is still young, like someone else said put the $3900 away in a fund and find yourself a BMW Indy shop with a great reputation and it will help your $3900 go even further. If you need help call your local BMWCCA chapter to help you find a great Indy shop. GL

 

[kgz]

I'm surprised nobody noticed the key driving point ... HIGHWAY MILES .. ! The way you are driving at constant speed after break in .. I'll only be surprised if the car doesn't outlive YOU!!

Of course keep it ... should there even be a discussion here ???? Unless of course you think buying new tires and gas for your car is more expensive than buying a new car.