Car Talk - Non S2000 General Motoring and Non S2000 Car Talk

Extended Warranty

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Old Mar 19, 2010 | 06:46 AM
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Default Extended Warranty

The three year warranty on my Z4 Coupe runs out at the end of this month and I'm currently debating whether or not to take up the extended warranty.

£427 for the year - that's the comprehensive policy with BMW Emergency Service included.

Worth the paper it's written on or not?

Just forked out this week for Inspection 1 service, brake fluid change, MOT, insurance renewal and a week's all inclusive in Tenerife so could do without it tbh!
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Old Mar 19, 2010 | 07:31 AM
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Difficult question. Obviously yes if you have to claim, no if you don't!

Of course it depends on the likelihood of something going wrong, or going wrong to the extent that it becomes detectable during that extra year. Something occuring after the EW expires is another big possibility. Cars are a complex blend of systems, and the seams do tend to split after 3 years. Things do go wrong over time, but the failure doesn't always manifest itself immediately.

However the underlying feeling for me about extended warranties is that they are an additional revenue stream. They are not provided because the dealer cares about you - or indeed your car - they are another vessel for making money and keeping their (rather than AN Other) mechanics busy in the process.

Another way to look at it is what is likely to go wrong that will cost more than £427?

It is your gamble. Personally I wouldn't bother on a popular car with reputable build quality. But please don't quote me on that!
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Old Mar 19, 2010 | 07:38 AM
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Originally Posted by integra_man,Mar 19 2010, 03:31 PM
It is your gamble. Personally I wouldn't bother on a popular car with reputable build quality. But please don't quote me on that!
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Old Mar 19, 2010 | 07:56 AM
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Personally I would. Break down would be about £15 a month over 12 months = £180 normally with the AA.

How much is an hours labour at your local BMW dealership? I know when we had out Mini, it was around £176 an hour inc VAT so all it would take it one or two little things over the year to go wrong/get diagnosed and its paid for itself.
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Old Mar 19, 2010 | 07:58 AM
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Of course the above applies if you are planning to continue using your local BMW dealer
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Old Mar 19, 2010 | 01:00 PM
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I have always wondered about this.

Why is it that mfr's warrantee runs in the early years?

Answer: nothing much is expected to go wrong. So they will do years 4 to 6.

So it is a revenue stream. Nothing more, coldly calculated.

Don't buy it. Simple.
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Old Mar 20, 2010 | 06:11 AM
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Even Hyundai/Kia et al. with their 7 year warranties have done their sums.

A 7 year warranty sounds great. Until you factor in that you have to endure 7 years of servicing and MOTs by them at their prices on their schedule in order not to invalidate, and you can't do a damn thing to it in terms of mods.
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Old Mar 20, 2010 | 10:02 AM
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Okay, after taking into consideration what's been said here and on the Z4 forum I think I'm gonna just leave the warranty and take breakdown cover from the AA or RAC.

Car has just been serviced and MOT'd and given a clean bill of health so fingers crossed it'll all be cool.

Gonna keep this car for at least another year I think
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