Extended Warranty: To buy or not to buy.

[Gamb1t]

OK our 2014 factory warranty is ending soon. Car has been a champ. Had a small issue with Comfort Access once that warranty took care of. I am a bit concern with the N20 timing chain issue.

Anyway in the republic of Trudeauville, the EW is around $3200+tax from BMW Canada.

We plan to keep the car for a number of years to come. On average we rack about 1000km a month.

Anyone here bought EW specifically on your X1? Thoughts?

[nicknaz]

On BMW I plan to own for a while, I definitely get some kind of mechanical breakdown insurance / extended warranty

I'd read the fine print to make sure it covers the turbo, gearbox and infotainment/in cab electronics too

[Alfisti]

Nope for 12k a year i'd sit tight.

[gbracerx1]

I have an extended BMW warranty as I bought it for insurance.

at 52k I have used it already for thermostat and brake item.

Its peace of mind.

[jinda]

I got mine because I had bad experience from previous car which is not a BMW. Car was in great condition and didnt give me any problem for the first 5 yrs (60k miles) from getting it brand new.

Then the issues conveniently surfaced after 5 yrs had elapsed and at 70k miles (after the drivetrain warranty). I spent about $4500 just owning the car for the whole 6th year in repairs before trading it.

So when I got a chance to buy a 3 yrs/100k miles extended warranty for $1900, I didn't think twice.

[4llr]

I got a new transmission for my X1 on extended warranty (bought by the original owner), so I gotta say it was worth it in my case

[kurtthewurt]

I purchased a 6y/100k platinum extended protection plan from my dealer when the car was about a year old. Cost about $4k I think. I've used it for about $2000 of out-of-warranty repairs (hit 50k mi last year), so the peace of mind is nice. It's just one major repair from paying for itself (though I hope it doesn't need it). Keep in mind it does not cover the cost of replacing the 2G combox modem if your vehicle stopped being compatible with connecteddrive.

[forteatwo]

Originally Posted by jinda

I got mine because I had bad experience from previous car which is not a BMW. Car was in great condition and didnt give me any problem for the first 5 yrs (60k miles) from getting it brand new.

Then the issues conveniently surfaced after 5 yrs had elapsed and at 70k miles (after the drivetrain warranty). I spent about $4500 just owning the car for the whole 6th year in repairs before trading it.

So when I got a chance to buy a 3 yrs/100k miles extended warranty for $1900, I didn't think twice.

Curious, what insurance company offers an EW at that price?

After my X1 warranty expired this spring I reviewed a number of EW's and decided to forego an EW given that I have had no problems over four years. Most were in the $3000 price range and had limited coverage once you read the fine print.

[x1GTA]

Since my X1 is not CPO, I went out looking for independant quotes. Most were in the ~$3k range ($200 deductible) for another 5 years.

Yes things can go wrong with cars. There is less chance of things going wrong if maintenance is reasonably done, and having an eye/ear for things out of spec.

The X1/N20 combo has some known bugs - but nothing so compelling for me to shell out $3k.

Outcomes:
1. Nothing major goes wrong, and I'm ahead 3k
2. Normal issues happen, and I break even
3. Major failure (such as timing chain) and I'm "behind" compared to paying for the warranty up front.


Considering the above outcomes, there is only one which is unfavourable. The probability of the unfavourable outcome is low (opinion).

Add on appropriate financial planning and self-insurance. Warranty for a maintained X1/N20 at that price doesn't make sense to me.


Everyone has different risk tolerance. To me, considering the above, warranty not worth it.

[Njerts]

Originally Posted by x1GTA

Since my X1 is not CPO, I went out looking for independant quotes. Most were in the ~$3k range ($200 deductible) for another 5 years.

Yes things can go wrong with cars. There is less chance of things going wrong if maintenance is reasonably done, and having an eye/ear for things out of spec.

The X1/N20 combo has some known bugs - but nothing so compelling for me to shell out $3k.

Outcomes:
1. Nothing major goes wrong, and I'm ahead 3k
2. Normal issues happen, and I break even
3. Major failure (such as timing chain) and I'm "behind" compared to paying for the warranty up front.


Considering the above outcomes, there is only one which is unfavourable. The probability of the unfavourable outcome is low (opinion).

Add on appropriate financial planning and self-insurance. Warranty for a maintained X1/N20 at that price doesn't make sense to me.


Everyone has different risk tolerance. To me, considering the above, warranty not worth it.

I agree. If you are one of the few unlucky ones that do run into the timing chain issue, it is not the end of the world.
From all research I have done on this, you get ample warning that there is something wrong, it does not "grenade" like I have heard someone described it before. It starts to whine long before something bad will happen.

It is not like on the diesel Jetta where the fuel pump eats itself and pass metal shavings throughout the fuel system for a $10000 bill without any warning.

[jinda]

Originally Posted by forteatwo

Curious, what insurance company offers an EW at that price?

I got it cheap because I bought it during the negotiation for the car. It was quoted for $2500 but got it down to $1900. Also the insurance can only be bought through the dealer, I can't buy it straight from the insurance company. And the insurance company is AutoSource of America.

[Vidgamer]

Originally Posted by Njerts

...you get ample warning that there is something wrong, it does not "grenade" like I have heard someone described it before. It starts to whine long before something bad will happen.

This makes me feel better.

It is not like on the diesel Jetta where the fuel pump eats itself and pass metal shavings throughout the fuel system for a $10000 bill without any warning.

Yeah, actually, I was driving a Golf TDI before this car, and, yeah, it could make you worry a bit. The odds were really low, but if you were part of the unlucky few, that's a big hit.

I guess I think of it is, if you can't afford to pay for something that breaks, then you should think about the insurance, but unless it's really unreliable, put me in the "I'll take my chances" camp. I usually have few, just minor, problems with cars until around 100K miles. I just know that I need to keep enough $$ around to pay for emergency repairs.