Extended Warranty Buyers Beware

[acthad]

Beware not needed....
UPDATE: Ended up keeping this GWC Extended warranty, and glad I did. I just got a claim for $4,100 approved with new parts at the BMW Dealer! So if you need a warranty GWC Extended can be bought at iCars Chicago in Skokie, IL through this non-franchise, independent used car dealer. Ask for Afrim. (The internet reviews are worthless for warranties you need to buy from a known source and make sure you get the exclusionary warranty that pays posted labor rate and covers the car bumper to bumper.)

Afrim Delisi
PRESIDENT

iCars Chicago
5125 Church St
Skokie, IL 60077

www.iCarsChicago.com
1-847-961-9200 Office
1-847-528-2753 Mobile (Best way to reach him)
1-847-961-9131 Fax
afrim@iCarsChicago.com


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So I just cancelled an extended warranty and thought I would share how I decided just in case anyone is else is on the fence about getting one. Aside from the usual BBB rating I was able to find reviews online. They had an A+ rating

But the way to check on mine was seeing in the reviews how they would not cover posted labor rate. My salesman said that they do so I called the claims department and gave them my service contract number and the looked it up . They said they only cover $75/hrs and only an hour of diagnosis. That put the final nail in the coffin for me to cancel. If it sounds too be good to be true then it is.

I had their exclusionary luxury with navigation protection product. So for the warranty cost there is still out of pocket costs and you have to use their shop sometimes a non dealer ie. Muffler and Brakes place. Claims take days, dealers don't like them. For big ticket items like motor and trans in the reviews it always got denied on technicalities. Also aftermarket/used parts are their first choice. It seems like success is based on how much profit is in the policy or age of the car.

My used car dealer told me to call their European shop that I do like (and may use in the future for non diy repair) for a review of my warranty. They said they paid well and the full claim on a much newer car. But I called the warranty company and spoke with claims they said the do not pay the posted labor rate.

So I am going to use the warranty money for maintenance and fix my navigation dvd. Found the dvd on ebay already for $150

ANY ways not going to worry and enjoy my e90.

[BaseM3]

What company where you with?

[acthad]

Will pm you.

[kscarrol]

If you don't want to post the company name, would mind sending it via PM to me...

[OneMmmm]

Could you PM me the company name as well? Thanks.

[Mvy]

Check the nav thread. If you have an 08 CCC the map is free on this forum.

[Wilsel]

I'll say it again. These companies are not in business because you get your money's worth. 99 out of 100 customers will not reap more in warranty repairs than they paid for the warranty. That's how they stay in business. I would advise everyone to take that money, and put it in a good mutual fund instead.

[acthad]

Originally Posted by Mvy

Check the nav thread. If you have an 08 CCC the map is free on this forum.

Thanks!

[acthad]

Agreed, lapse in judgement for me. lol

[acthad]

The dealer is making me go into the dealer to cancel it to make it harder on me BS Required live signature.

[Flying Ace]

sounds like a 3rd party warranty

[spiderspider]

I am considering cancelling mine as well as I'm within the 60 day period. Let us know how the cancellation process goes. Not sure if I should expect any hassle.

[vegaseric]

Sounds like reading the contract prior to purchasing the warranty is key.

[acthad]

Update
The account manager from the warranty company for the dealer called me and got my service contract fixed. Now they will cover up to $130/hr of labor and claim that I can use a bmw dealer. Basically they implied I get VIP status because of my dealer owner's connection with the warranty co.

They sent me claims for other M3s they covered it was less than 10 claims all smaller ones and one engine claim for $10 g's

So still deciding... but its only for 3yr/38k mi of coverage for $2,800 0 deductible
My E90 is not a DD and stored winters. It will only see 3k mi/yr and I don't drive it at 10 tenths

So still don't think it's worth it for ~9k mi of coverage

I would rather use the warranty cost as an emergency fund for the car.

[Disturbed]

Originally Posted by acthad

Update
The account manager from the warranty company for the dealer called me and got my service contract fixed. Now they will cover up to $130/hr of labor and claim that I can use a bmw dealer. Basically they implied I get VIP status because of my dealer owner's connection with the warranty co.

They sent me claims for other M3s they covered it was less than 10 claims all smaller ones and one engine claim for $10 g's

So still deciding... but its only for 3yr/38k mi of coverage for $2,800 0 deductible
My E90 is not a DD and stred winters. It will only see 3k mi/yr and I don't drive it at 10 tenths

So still don't think it's worth it for ~9k mi of coverage

I would rather use the warranty cost as an emergency fund for the car.

You can get another 5yr/100kmi for not much more money. It would be about $3500

[acthad]

Originally Posted by Disturbed

You can get another 5yr/100kmi for not much more money. It would be about $3500

I have high miles is the issue, I am at 90k they snuck me in at 89,962 mi for this warranty since 90k is the cutoff...

[Harry Da Hamster]

Originally Posted by Wilsel

I'll say it again. These companies are not in business because you get your money's worth. 99 out of 100 customers will not reap more in warranty repairs than they paid for the warranty. That's how they stay in business. I would advise everyone to take that money, and put it in a good mutual fund instead.

Without knowing the details, i would say that may not be true for some people. Extended warranties more than paid for themselves for me. Just make sure you're proactive with repairs. Prev car that i owned, i performed a PPI just before warranty expiration. It paid for a new A/C Evaporator. It had a minor leak and A/C temperature was not noticeable, but a leak is a leak. Prev car to that, it replaced two air bag suspension components, and a power seat motor assembly and it got me a nicer and newer Jag loaner vehicle for over one month. Extended warranties have more than paid for itself in my case even if factoring average return of a safe mutual fund.

[obe100]

dude, it's okay to post the company's name…..you're not bad mouthing them. Some may do as you and not read the agreement….which is mind boggling to me. At the very least, you should always ask about labor rates or any exclusions. I think it's safe to assume that everyone knows that dealerships are more expensive than indy shops; however, everyone may not be completely comfortable dealing with the latter.

[acthad]

Originally Posted by FNG

Without knowing the details, i would say that may not be true for some people. Prev car that i owned, i performed a PPI just before warranty expiration. It paid for a new A/C Evaporator. It had a minor leak and A/C temperature was not noticeable, but a leak is a leak. It more than paid for itself in my case even if factoring average return of a safe mutual fund.

My warranty wont cover leaks grrgghhh but broken evaporator - yes hopefully... so diff depending on great warranty vs 3rd party on older car - I think lol

The warranty sent me a list of M3 claims and 2 were for ac evaporators at $1,600-1,700 ea

[vegaseric]

Originally Posted by acthad

...The warranty sent me a list of M3 claims and 2 were for ac evaporators at $1,600-1,700 ea

That's really inexpensive for an A/C evaporator job. Mine was around $2500 from an indy.

If you're military or you have a family member who's in the armed forces or a veteran, check out the USAA/Assurant warranty. I believe they will issue warranties for cars up to 110K with no deductible.

[s85e90]

Jesus, you want to enlighten others you should put the name of the company up!

[briggs]

I guess pm me the company as well. Im buying an extended warranty in November when mine ends. It'll be from BMW.