Anyone have thoughts on extended warrantys for a 2005S?? Thru BMW / Mini or other providers?? Thanks, 30 days til factory warranty is out.

 

Most people will probably say that if you get one you get it through mini, anything else and warrenty companies will suck the life out of you by not covering the few things you will really want. but i havent ever used one just throwing up what i have seen.

 

Well I have to say BS to the last post. I did my research, and there are a number of companies offering extended warranty's. I went with warrantydirect.com. I added the warranty at 43,500, extended it to 100,000 or 4 additional years. Its bumper to bumper coverage (nothing covers maintenance) to include engine, drive train etc. It cost me $1500 and they allow you to pay that over 10 months. The reason I got it was I have a CVT. I specifically asked about transmission replacement and it's covered 100% with a $100 deductible. Its $7K for a new CVT, and now I sleep better at night. (I needed the CVT due to a bad hip.) Anyway, whatever you do ask for a complete contract BEFORE signing. Read and compare, what do they cover and what don't they cover. BMW's extended warranty sucks.

 

MINI/BMW do not sell extended warranties.

If you want a bumper to bumper extended warranty, you must get it from the aftermarket.

 

MINI sells an extension of the 3 year/36K mile scheduled maintenance to 6 years or 100K miles whichever comes first. I paid for mine $1,400 and have used it already (2005 MCS with 43K miles). All maintenance (oil changes, filters, brake pads, rotors, clutch assembly...Yes the clutch assembly, etc) are all covered until 100K miles.

All I have to do is drop the car at the dealer and they take care of the rest. Excellent value and highly recommended if:

You drive at least 15K miles per year

And...

If you plan to keep the car for 6 years or more.


This is not to be confused with a bumper to bumper extended warranty contract that covers for breakdowns on major vehicle components. Two different animals.

 

Oh well I do stand corrected and that is good!! Like i said in the post i was just putting down what i have heard and i havent done any research on it, but if thats what you got i would say its a very good deal!

 

"(nothing covers maintenance)" - actually I was able to extend the maintenance coverage through Mini. I have an 07 MCS Hardtop, that I bought as a certified pre-owned car. They extend the warranty on those to 6 years/100,000 (my car has 11,800 miles) as part of the CPO program. Also, they have an extended maintenance program which will cover maintenance to 6 years/100,000 miles, it basically extends the original 3yr/36,000 maintenance to 6/100,000. It covers brake linings (pads), rotors, clutch (that's why I bought it) external drive belts, wiper blades, etc. Just in case anyone was wondering.

 

There are many threads on here that discuss "extended" and after-market warranties.

I have generally said they are not worth it. But another member said he got his through AAA [American Automobile Association] and said it was a good warranty. I responded that I was not aware that AAA sold after-market warranties, but that I trust AAA products and recommendations. But I have yet to look into the AAA "warranty" in detail.

I am NOT aware of any after-market "warranty" that provides bumper to bumper coverage, similar or even close to a manufacturer's new vehicle warranty.

I am NOT aware of any manufacturer who sells an extension of an original new vehicle warranty. I wish they did. But they cannot because 1) generous warranties are expensive to comply with; 2) just about everyone would buy a manufacturer extended warranty if such provided true bumper to bumper coverage; and 3) manufacturers could not afford to warrant vehicles beyond industry standards.

If at the time of a new car purchase selling an extended manufacturer's warranty was profitable, you can bet car manufacturers would be in that business. But such contracts are not profitable, so manufacturers don't sell them. What is being sold at the dealerships is a "service contract." The company selling service contracts is not providing a warranty on anything. The company is simply saying that if the listed parts break or need repairs, they agree to fix such.

Which brings to mind another point. The service contracts are designed to pay out as few claims as possible. This is because the way companies who sell extended service contracts make money is to take in lots of premiums dollars, invest that money in other projects or instruments, and then to pay out as little as they can in claims. [They work the same way insurance companies do.]

I am aware that when buying a new MINI or other car, dealers attempt to sell "extended" warranties. The dealer's "F & I" person [finance and insurance] is the one who attempts to sell you the full range of products and financing, including after-market "warranties."

The F & I guy is person you see after the salesman does the initial writeup. "F & I" people are skilled salespeople who usually work on close to 100% commission, meaning their pay is dependent on what they sell you. Here in San Francisco a good F & I salesperson will make about $100 to $200 thousand a year.

Remember, the warranties they sell you are NOT true "extended" warranties because such contracts do NOT extend the new vehicle warranty; they are contracts to repair covered parts.

IMHO the FTC should regulate these companies starting with telling consumers that the agreements are not warranties, the agreements do NOT extend the manufacturer's warranty and prohibiting deceptive advertising [Most "extended warranties" are designed to look like you have great coverage, but if making a substantial claim, the contract is designed to deny coverage.]

The FTC should follow some States' example where they have banned the sale of certain extended "warranties," regulate the auto service contract industry, and prohibited referring to such agreements as a warranty, extended or otherwise.

Below is a Consumer Reports April 2008 annual auto issue article on such warranties. [I put it on my server.]

If you decide to get one, make damn sure it will cover the MINI CVT transmission replacement. That's at least a $6000 job and I suspect any "warranty" company whom you are paying only $1500 to $2500 for the warranty is going to want to avoid paying that size a claim.

How to avoid paying to replace a MINI CVT? While your "warranty" may say in bold print "TRANSMISSION" implying the transmission is covered, that word is usually followed by a small print statement on what parts are covered. For example, they provide a long list of parts that are covered and the words sound impressive. But those lists are designed by expert mechanics who determine ahead of time what will and will not fail and what listed parts sound impressive but will deny coverage. I submit that it would take an expert mechanic to figure out what is covered and not covered.

I have always said, if the entire transmission is covered , why not simply say that instead of inserting long lists of what parts are or are not covered. The reason they have those long lists is to escape paying a claim. At the time of buying the service contract, while intoxicated and excited about buying a new car, all the consumer sees is "Transmission" and assumes the contract covers the entire transmission. I suspect that 1/1000th of one percent of new car buyers understand what the contract says or provides, much less knowing which parts are which that are listed on the service contract.

The companies [and F & I salespeople] operate on fear to sell the "warranties." A $6000 to $8000 repair bill for a MINI tranny goes a long way to motivating people to buy these policies. But will the company cover it? I dunno, but I suspect not [despite what the salesperson will tell you in order to sell the contract. Besides, what is said on the showroom floor is not what controls on a claim, it's what is in writing, in the contract.]

The choice is yours. Some people will swear by them, many will say they are worthless and simply a con game by people peddling them.

http://www.ct.gov/AG/cwp/view.asp?A=2795&Q=411422

http://www.ripoffreport.com/reports/...Off0223373.htm

http://tinyurl.com/3lt3ph

http://www.heartinsanfrancisco.com/E...Warranties.pdf

http://www.heartinsanfrancisco.com/E...rantyFraud.pdf

http://www.consumeraffairs.com/news0..._warranty.html

 

AAA (1-800-323-4300) offers great coverage at areasonable price. Everything is covered by their Platinum Plan except normal wear items. It even covers all of the high tech gizmos, options and dealer installed MINI accessories., the stuff you should really be worried about.

They offer 3 plans: Platinum, Gold and Silver.
Silver covers basic drivetrain, suspension and steering. Don't bother with this one. If those component lasted a full 4 years, they'll last another 4.

The top of the line, Platinum covers the above plus A/C, power brakes(ABS), fuel system, cooling system, powertrain electronics (DSC, cruise, etc.), all convenience accessories (radio, GPS,power windows/locks, etc.), vehicle hardware (switches, lights and mounts, hinges, strikers, etc),DSC.

The Gold package is somewhere in between. I opted for the Platinum since everything that ever goes wrong with my MCS is only covered by that package.

 

Here is the AAA coverage he is citing to:

http://tinyurl.com/3ovnuj

 

Not to trash your endorsement of Warranty Direct, but see here:

http://tinyurl.com/3wsctq

I don't think that the ordinary person can understand what a "complete contract says." And it's the checkwriter whose interpretaion will ultimately control. One is at the mercy of the company who interprets the contract and will determine if a claim will be paid.

 

Federal Trade Commission tips:

http://www.heartinsanfrancisco.com/e...ontractFTC.pdf

 

I am currently researching this subject on NAM and MichaelSF's comments above are well presented and researched. Thanks!