I’m thinking about buying an extended warranty, but am still confused as to the differences. According to my buddy who works at a car dealership, he suggests getting a manufacturer’s extended warranty and not one through a third party. But, many of the third parties in my area say you can get your car serviced at a MINI dealership, so what is the difference?

Second, he says that the price of a warranty (or extended service plan as MINI calls it) is totally negotiable. I was quoted a $2400 price by my dealer, but have seen it as low as $1400 out-of-state. He suggested I offer $1400 and work up from there. How does that work? Can I buy an out-of-state warranty and have my MINI service my car?

Thank you in advance. My 2006 MCS is my first new car and I want to take care of it as best as I can.

~Rich

 

I just recently purchase an 05 MCS on Monday and was doing some serious research before purchasing my third party insurance. I wound up going with Alpha Warranty Services. They have an 'A' rating with the Better Business Bureau. I got my extended warranty through Carchex and was able to go to the office physically because I live in Maryland.

The dealer tried to offer me an extended warranty through Fidelity, which had an 'F' rating with the Better Business Bureau. These are some things that you might want to look out for when making your decision:

1. Make sure that you have both mechanical breakdown and wear and tear coverage. Most warranties only provide breakdown unless you request wear and tear.

2. Make sure that you are paying your deductible per visit and not per repair. This will save you hundreds of dollars.

3. Make sure that your warranty coverage begins when you purchase it and not from the vehicle's origination date.

4. Research the warranty company including the Better Business Bureau rating.

5. There are many coverages that won't protect you if your car is over 50,000 miles when you purchase it.

6. Look for a clause in the contract that states that wear and tear must occur before 50,000 miles or it will not be covered.

These are just a few things that I've found. I hope that this helps with your warranty purchase.

 

Mini offers two plans, though, right? There's a SERVICE plan which is the drivetrain and whatnot, and then there's the maintenance plan which covers all oil changes and fluid checks, etc. I think I was quoted at $2000 for a Service Plan which seems a bit pricey.

I paid around $900 for my previous car. As soon as the car wrapped up the factory warranty a couple problems occurred and cost $1500. The extended warranty more than paid for itself.

 

This is sage wisdom. With how many shady warranty companies there are out there, you must do your homework. Philly apparently has. Good work!

 

Thanks! I just like to protect my investments.

 

Yeah, I hear that and MINI repairs aren't cheap. So, I'm shopping around but I don't know that much about these service plans and don't want to buy one that covers wiper washer fluid and the air in my tires... and nothing else.

 

The chance of getting ripped off on an extended warranty is greater than the chances of having a major expense with your MINi that cost more than the warranty that MIGHT pay.

I'd say assume the risk and hope for the best...and if it would make you feel better, start a separate account to save money for possible needed repairs.

More fraud in extended warrantys than almost anything.

 

I purchased my '05 at a CarMax and wound up getting their extended warranty because I have a CVT tranny. It was $1599 for 6 years, doesn't cover "wear items". 2 weeks ago I turned on my A/C and it was just blowing warm air. I took it back to CarMax because the deductible is $50 per visit (not per item) at their place, $75 anywhere else. They had to replace the compressor and expansion valve. The car only has 16,750 miles on it. The bill would have been over $1300. Needless to say, I'm glad I got the extended warranty. I have over 4 years left on it. A footnote: I'm REAL picky with my car. As far as I know they did a good job. I can't tell they even took anything apart. (I don't know the name of the company that does their warranties.)

 

Is it possible to purchase the extended maintanance warranty if your MINI has more than 36,000 miles?

 

Really? That sucks. I'm going to do my research. I still want to get one. BTW, the peeps at MINI were emphatic about NOT calling it an extended warranty, but an extended service plan. Every time I said warranty, the guy corrected me. Every time.

 

That's probably what he was trying to sell you, something that extends the "service" warranty from 3 years/36,000 miles to 4 years/48,000 miles. No need for an extended warranty to get to 4 years/48,000 miles cause you already have that.

 

Yes. Most warranties have a cut off of 50,000 miles. There are some warranties that will not cover you after 30,000 miles, but in my research this is rare. Hope this helps.

 

Extended warranty = service plan. They're basically the same thing. Just make sure that your "service plan" :^) covers things that tend to go on the Mini. Power steering pump, transmission components, power window motor, etc.

 

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There's lots of threads and post in here about extended warranties, so I won't repeat what is in those posts.

The reason the kept correcting you is because there have been class action lawsuits and attorney general lawsuits over these things. One thing that law enforcement and the FTC frowns upon and prohibits is calling these things "extended warranties."

This is because the companies are not giving a warranty on anything. They are simply agreeing to service or repair the vehicle pursuant to the terms and conditions set forth in the contract.

Most of these warranties are designed to deny coverage for major repairs. Google "extended warranty complaint" and you will see all the horror stories.

Think about it, why would a company charge $2000 for a service contract with the understanding that to replace a MINI transmission will cost them $6,000, a clutch $2000+, etc.

To be sure, if there were no issues with these things, why is shopping for a good company such a hassle. It's a hassle because there are so many rip-off companies out there.

http://www.thecitizen.com/~citizen0/node/36486

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

 

So, this sounds more like insurance. I'm fine with that as long as MINI will agree to service my car. I guess the devil in the details. There seems to be like a shell game when they explain it to you. Even after hearing the lady explain it, I was still fuzzy as to what was covered.

 

Hooch- That explains it quite well. Thank you. I have decided to take my chance and NOT buy an extended anything. Looking through the things that go wrong with a MINI and what is covered by these companies, it just doesn't make sense. I still don't know what to do about preventive maintenance on a supercharger -- except put money away for the eventuality that is rather sure to come. That said, who has extra money these days. Plus, my local MINI club does not seem to want to hold a work day.

 

Just to clear a few things up. MINI offers only a "factory" or in other words, a MINI backed Extended Service Warranty which extends MINI service (oil changes, wiper blades, ect.) and anything the OBC says is due, from 3 years, 36,000 miles to 6 years, 100,000 miles, for around $1,200. This includes full coverage for the clutch and brakes (this being the only reason to consider it). MINI does NOT offer a factory backed Extended Warranty on anything else. The dealers WILL offer you a 3rd party "Extended Warranty" for around $2,400 or much more. The 3rd party warranty has a huge profit margin built in for the dealers so they are willing to negotiate on price. The factory backed extended service warranty is not negotiable. There's a lot of bad press about the 3rd party types these days so I'm setting aside what I would have paid for a 3rd pty warranty and will self insure myself on that. Just the cost of a brake job and the clutch assurance (even though the clutch may make it past 100,000 miles) made the MINI Extended Service Warranty a reasonable choice for me right before I hit 36,000 miles.

 

Hooch:

What was the outcome? Did you get the service plan? How much did you pay? Where did you see the service plan for $1400.00? My dealer wants $2200.00.

Thanks,

-Mike

 

If U do this, do it thru yr dealer, get one that can be honored by any MINI dealer. Mine uses GE, and it's good across America. That way, NO hassles--it may be more expensive, but third party XW's are TROUBLE. Also be forewarned that most XWarranties wont cover clutches becuase like brakes they are considered a "wear" item.

I also noticed BMW is sueing that US Fidelis scam for false claims about warranty services.

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