What's the value of an extended warranty?

[dommmmyg]

Hi everyone,

I'm planning to sell my E90 M3 6MT in the next couple months (31k miles) and I'm interested to get a consensus as to whether I should cancel, and be prorated for the remaining term of the warranty, or transfer it to the next owner. (I chose to get the warranty instead of immediately doing the RB and TA)

Essentially, what do you guys think is the return, cents/dollar, on a BMW nationwide 'silver' coverage extended warranty for 34 months, and 35k miles?

Thanks!

[dommmmyg]

Warranty breakdown:

[Cyberdemon]

No real way to gauge what this is "Worth" to the next buyer. I had my car for 2 months and flip flopped on my opinion on warranties. I immediately ran out and got a warranty for $4k for 60k miles. But as I dug deeper and deeper into the problems what got me more worried is: warranties only cover breakdown, not preventative maintenence and if the RB's go, would I rather have a refurbished engine that was covered by a warranty (not to mention a car out of service for weeks), or would I rather just have the car still on the road? I decided to cancel it after a few months before it ever even went into effect since right now I'm driving so little due to Covid. It was clear $4k would cover a lot of preventative maintenence, plus bearings, plus TA's or any other things if I need them, and a lot of that work I could do myself to avoid having the car stuck in a shop.

If they'll refund you theres no reason to make a decision right now. Find out how much the pro-rated amount is worth and tell the next owner they can either get the remainder of the warranty, or you'll lower the sale price by that amount.

[dommmmyg]

Originally Posted by Cyberdemon

No real way to gauge what this is "Worth" to the next buyer. I had my car for 2 months and flip flopped on my opinion on warranties. I immediately ran out and got a warranty for $4k for 60k miles. But as I dug deeper and deeper into the problems what got me more worried is: warranties only cover breakdown, not preventative maintenence and if the RB's go, would I rather have a refurbished engine that was covered by a warranty (not to mention a car out of service for weeks), or would I rather just have the car still on the road? I decided to cancel it after a few months before it ever even went into effect since right now I'm driving so little due to Covid. It was clear $4k would cover a lot of preventative maintenence, plus bearings, plus TA's or any other things if I need them, and a lot of that work I could do myself to avoid having the car stuck in a shop.

If they'll refund you theres no reason to make a decision right now. Find out how much the pro-rated amount is worth and tell the next owner they can either get the remainder of the warranty, or you'll lower the sale price by that amount.

Appreciate the input!

[chocstraw]

This thread periodically comes up and I'll throw in my $.02

I've had two warranties on my BMWs, one on my 335i for 18k for like $1800, and my M3 thru carmax for $3200 w/ $300 deductible for 4yrs / 48000 miles.

My 335i paid out $9000
My M3 still has like 18k miles and it has covered:
Trans pan leak, trans fluid exchange, trans filters
Oil Pan after a lube tech stripped the threads. I asked for a helicoil / timesert, my shop got my warranty to replace it. I paid parts plus an extra 1-2 hours of labor to have RBs done while this was done.
Failed FRM3 unit
one failed throttle body actuator, soon to be 2
motor and transmission mounts
I'm anticipating getting a belt tensioner and valve covers done on it too.
+ SEVERAL fluids that have required draining during this process, I think mostly coolant, power steering, and oil.
I've never had an inspection or any pushback, and I run the car without cats. I just throw them in my trunk and my shop will put them back on if an inspector comes.
Additionally, my warranty offers a $40 stipend towards rental cars.

I'm really tight with my shop and they will often find other things that could use fixing (leaks, etc) and tell my warranty company that it needs to be done. I stop by my shop periodically because of this.

The biggest thing that isn't mentioned is peace of mind. I just do not care if anything goes wrong with this car, mechanically. It's just $250 (300 less 50 for using a 'preferred shop').

It ~should~ be worth a prorated value to the next owner, I'm never owning a car without a warranty again.

Originally Posted by Cyberdemon

If they'll refund you theres no reason to make a decision right now. Find out how much the pro-rated amount is worth and tell the next owner they can either get the remainder of the warranty, or you'll lower the sale price by that amount.

This is a good point and I'd rec listing it at the non-warranty cost, and including a bit in the title and at the end of the ad about an option for a 36k mile warranty for an additional undisclosed fee, then maybe even cite my experience with a warranty company. It has made owning this car that much more of a joy.

[Cyberdemon]

Originally Posted by chocstraw

This thread periodically comes up and I'll throw in my $.02

I've had two warranties on my BMWs, one on my 335i for 18k for like $1800, and my M3 thru carmax for $3200 w/ $300 deductible for 4yrs / 48000 miles.

My 335i paid out $9000
My M3 still has like 18k miles and it has covered:
Trans pan leak, trans fluid exchange, trans filters
Oil Pan after a lube tech stripped the threads. I asked for a helicoil / timesert, my shop got my warranty to replace it. I paid parts plus an extra 1-2 hours of labor to have RBs done while this was done.
Failed FRM3 unit
one failed throttle body actuator, soon to be 2
motor and transmission mounts
I'm anticipating getting a belt tensioner and valve covers done on it too.
+ SEVERAL fluids that have required draining during this process, I think mostly coolant, power steering, and oil.
I've never had an inspection or any pushback, and I run the car without cats. I just throw them in my trunk and my shop will put them back on if an inspector comes.
Additionally, my warranty offers a $40 stipend towards rental cars.

I'm really tight with my shop and they will often find other things that could use fixing (leaks, etc) and tell my warranty company that it needs to be done. I stop by my shop periodically because of this.

The biggest thing that isn't mentioned is peace of mind. I just do not care if anything goes wrong with this car, mechanically. It's just $250 (300 less 50 for using a 'preferred shop').

It ~should~ be worth a prorated value to the next owner, I'm never owning a car without a warranty again.



This is a good point and I'd rec listing it at the non-warranty cost, and including a bit in the title and at the end of the ad about an option for a 36k mile warranty for an additional undisclosed fee, then maybe even cite my experience with a warranty company. It has made owning this car that much more of a joy.

I went back and forth on this before deciding to walk away from my warranty (which I still may regret).

For example, replacing 1 throttle actuator might be a $1200 BMW Dealer repair cost, which with a $300 deductible would cost you $300, (plus whatever pro-rated amount of your $3200), DIY with a rebuilt or OE part would be somewhere between $400-600.

Valve gaskets weren't going to be covered under my specific policy, and rod bearings although covered seemed to really be in a "Gray" area of legal terminology with my warranty company.

In the end I decided I'd rather save the cash and do as much preventative work up front, and hope for the best down the road. I have a spreadsheet of every nickel that goes into the car, so time will tell if this decision pays off.

[Mimmer]

This is hard .. my 2 cent

Some people want it some don't. I would prefer have it at higher miles but brand new or lower under 55k I wouldn't stress it. If you getting close 70k and spending maintenance done it plays a big factor.

Some people don't even own the car long enough to run into possible issues and use the warranty ... more piece of mind.

Knock on wood but I have none. When mine expired they wanted sell me 4-6k warranty. I plugged in the numbers and was like unless I had a lemon or ran into a lot issues often prior be worth but I didn't. In all honesty it probably costed me almost as much what warranty would cost almost with what I've repaired minus labor ... I know warranties can cause headaches too or gray area... but I wouldn't change a thing. Learned about the car and some just want to get it fixed and save time.

I think just comes down to what they offer to repair and for how long and what miles your at.