I was supposed to pick up my 2006 Mini Cooper today, however, Denver has received a few feet of snow and the roads are shut down. I spoke to my MA yesterday and he told me to peruse the Mini literature since I have the time, and reexamine the extended warrranty that is offered. Basically this extends the three year warranty from 3yr/36K mi to 4yr/50K mi; it is bumper to bumper coverage. The cost is $499. What has been the experience of owners in the 4th year? Is this program worth the asking cost?

Also, there is a multi shield 5 year plan which covers minor dent and door ding protection, windshield repair, tire and wheel coverage, plus roadside assistance for $550. Are the windshields on the 2006's problematic? My car will be kept in a garage and others cannot open their doors and ding my car.

I am aware of the profit center for the dealer with warranties, but sometimes they make sense. Thoughts on the above will be much appreciated. Thanks.

Jake

 

You’re in the Rocky Mountain region... Rocks!!!

Here in sunny Southern California where we do not have to sand the roads, I am on the 3rd windscreen in 7 Months from rocks... Make sure you get the lowest comprehensive deductible you can; it only cost me about $15 per year for $100 and well worth it...

 

Ootah,

You are suggesting carrying a lower deductable on comprehensive insurance rather than have this covered by the dealer Multi Shield 5 year plan. Is this correct? It certainly would be cheaper to have this covered under my auto comprehensive insurance. Three windshield replacements is a lot. I have only replaced one windshield (not a Mini) in all my years of driving. I do not understand why the Mini windscreen seems so easy to damage, however, it is a several hundred dollar repair and not one that I would like to incur.

I will talk to my insurance agent and find out the cost to reduce my deductable.

Thanks,
Jake

 

Was not offered such a plan by my MA, and you are correct as it would be cheaper over time with the dealer option. My main comment was that in your part of the world, you are far more likely to incur chipped windscreens.

 

Ask for a discount on the extended maintenance coverage -- I did, and I bought it for $399 instead of $499. If your MA won't give you a discount, buy it from another dealer who will. It doesn't matter which MINI dealer sells it to you, and you could do it all over the phone and mail.

 

Well I have an 03 and I am in year 4 still using my warranty, and I also want to go ahead and extend it if possible...

BEATNUT

 

extended warranties are always a rip-off to the consumer. And the advice to get low deductibles is not good either. I strongly encourage you to do some research on the topics (not just ask a question on a forum full of other people who made the same mistakes and didn't do their homework) and do the math yourself

 

I got the added year on the MINI warranty and I'm glad I did if only for my peace of mind back when I bought the car in early '03. Back then word was (on MINI2) that a brake job would be covered and that it was probably worth it. As it turns out, the brake job happened earlier, but I have had many little things taken care of this year that more than made up for the cost. Now if I had only driven my MINI just a bit more, I'd get my next scheduled maintenance covered, too, but that's not going to happen. I'll have this decision to make when I get my '08...I'll probably do it again. As for other extended warranty programs, I'd tend to agree with planeguy...I'm very wary.

 

Extended warranties aren't always a rip-off **in individual cases**, since there are many people that have more than gotten their money's worth out of them. My wife's uncle, for example, paid a few hundred dollars for one on a late-model (at the time) 3000GT VR-4. He ended up needing to get both turbos replaced, and the extended warranty covered it.

It's true that overall, companies take in more money by selling extended warranties than they have to pay out in claims, or they wouldn't offer them, but not everyone that buys one loses out in the deal.

Also, the thread title is misleading - the OP is referring to extending the "warranty", but I suspect he's really talking about extending the scheduled maintenance agreement, since the warranty is four years already. As for buying the fourth year of schedules maintenance, I've never gotten a good answer as to what scheduled services are likely to come due in the fourth year. To me, it sounds as if you'd be paying three or four hundred dollars more just to get one more oil change and maybe some brake pads.

 

Do a search on Warranty. See what issues people have had. Then only you can decide if its worth.

IMHO, yes. Normally, no.

See http://www.carnutgarage.com/warranty/Warranty_3.html

 

Just because you had some things covered does not mean you come out ahead in the end....

Something like 85% of extended warranties costs are in commisions and kickbacks to the "pushers"

Peace of mind.... is having an "emergency fund" that can handle ANY unexpected expenses...not just car ones
Peace of mind is a product you don't expect to fail in the first place.

Understand the contract explicitly, unless you are practiced in contract law.....this isn't you.....Therefore you have no clue what you paid for or what you will get except from the talk of the "pushers"

Extended warranties are not warranties at all.... they are "service contracts" in which you choose to definitely pay X amount now or montly just in case you ever need a repair of Y amount in the future.
http://www.newlifeautomotive.com/extendedwarranty.htm

 

Just to clarify, the warranty on MINIs is 4yr/50,000 miles. The service plan is 3yr/36,000 miles. It sounds like you are asking about extending the service coverage not the warranty.

 

When I bought my wife a (used) Jeep Grand Cherokee, the dealer offered and extended warrenty for $1000 or so - My wife **insisted** that we have it.

Over the course of four years

2X Steering racks
4X power steering pumps (one took out the radiator when it seized)
2X Water pumps (one from fragmentation damage when the pwer steering pump exploded.
1x GEARBOX
1x propshaft and back-axle assembly
1x Sunroof motor / runners / roof respray
numerous electrical 'issues'

I have no idea of the total costs of repairs covered by the warenty but I would guarentee that it is more than the $1000 I paid for the 'plan'

 

When you own a Cheep (I mean Jeep), then possibly the warrany is worth it. Ask me how I know... I have had several jeeps and my wifes 2000 Grand Cherokee has had its share of annoyances. I am hoping (fingers crossed) that she does not want another one. The 3rd party warranties that are offered are for the most part not worth it. Especially when you have to pay a $100 deductible each time.

In your case, it looks like you made out. I doubt the few repairs we have had on her Cheep have come to the $1200 spent + $400 for the 4 visits in deductibles...

 

My understanding of the warranty is consistent with Mishka's...you would be paying $500 to extend the service through the fourth year. There is one level 1 service that occurs during that interval...it runs about $100. If you need brakes (and you probably will) and they are in fact covered, then the price is not bad. Just my 2 cents.

 

KHD - Gearbox is a $3500 'fix'

The labor replacing the sunroof/motor/roof panel and paint was $2000

I think the PS pump is merely $200, but the tow charge, labor and rental car was 'sumstantial' at home I have the detailed breakdown of the breakdown costs and the repair 'estimates' I think it was about $15K over 4 years

 

In deciding whether an extended warranty (or even an extended service agreement) is worth it, you're basically doing an "expected cost" exercise. You have to figure out what things the warranty would cover, find out how much it would cost to make those repairs, and then estimate the likelihood of needing to perform those repairs during the extended portion of the agreement.

As a simple example, if you determine that it will cost $2000 to replace the transmission, and there's a 3% chance of having to replace the transmission during the extended period, then that's an expected cost of $2000 times 3%, or $60. Do that for all of the potential repairs that you feel have a likelihood of greater than 0%, and add them up. If that total expected cost is much greater than the cost of the warranty, it might be a good deal.

For new cars, the automakers have already done this - that's how they decide how to price the extended plans in the first place, and you can bet that the price of the plan is higher than the "expected cost", or else they would price the plans higher. So for a new car, I would recommend just using the regular warranty, and if the car proves troublesome during the course of the regular warranty, either sell it before the warranty expires, or purchase an extended plan at a later date, if you decide you really want to keep the car.

For a used car with an unknown history, or in the case of a model that has been shown over time to need expensive repairs after the factory warranty expires, an extended plan might be worthwhile, although you might be better off getting a different car in that case.

 

What would you get in the way of "brakes"? Just pads, or have people been getting rotors/calipers/etcetera replaced under the scheduled maintenance plan?

If you use the dealer for all of your service, *and* are fairly confident of needing pads and rotors during the extended period, *and* those replacements are in fact covered, then the extended service plan might be a good deal. We didn't get it for my wife's MINI, and we only have it for mine because MINI gave it to us free as part of the "double-VIN cabrio apology package".

 

Wow, good choice on the warranty then! I bet that makes you feel good . Please no more jeeps for me... please .

 

planeguy

I agree with you that under most circumstances the "extended warranty" is a rip off for the consumer; it just becomes a profit center for the dealership. However, some people have had horrible experiences with earlier models of the Mini, and under those circumstances, people who had extended warranties may have come out ahead. MAYBE. Hopefully, many of the problems that beset the earlier have been worked out, that is my understanding. There is an extended warranty offered by GE on my price sheet for 7yrs/100,000 mi/$50 deductible for $1933. for a new Mini Cooper.

riquiscott and Mishka

I was confusing the warranty and the maintenance program. On the price sheet I have the two are listed right below one another and it becomes easy to juxtapose the two even though they are quite different programs. After sorting out the two programs the full maintenance program for the 4th year does not make sense to me dollar wise. All this would cover would be a possible oil change and possibly brakes. I would think the cost for these services would be less than $499, especially if performed by a non-Mini garage.

 

planeguy,

I read your attachment on extended warranties, it is very scary! I believe the saying goes, "Buyer Beware." At the end of the attachment the person says, take the money you would spend for the contract and put it in a savings account for the work that will be needed. In the end you will come out ahead.

There is no doubt that there are people who have had massive things go wrong with their vehicles and for those who had extended warranties they came out ahead. However, as has been pointed out, the pricing of these contracts is predicated on most people not using them. For the lucky person who had the contract and things went wrong, then that person came out ahead. There is a risk factor, for how do you know if you will get a vehicle that does not suffer major repairs or major maintenance is needed? There is definitely a fear factor working here and is probably the main reason that the contracts are sold. What if I get unlucky? Then what?

Jake

 

Considering the factory warranty, the GE offering is really only a 3yr/50k mile extension. You have to predict whether you'll need $2000+ worth of repairs during that three-year extension. I personally wouldn't get it, but that's me. You can get a feel for the reliability of the car during the factory warranty period and decide from there if you want an extended warranty later (or just sell the car).

 

Right on

Well, I would certainly say it is not so much luck. As rare as a massive engine or transmission failure is on a modern car, between the 50k factory warranty and the 100k point where the 3rd party warantors leave you. Your car gives signs.....rattles, squeals, shudders, slips, smokes, stalls....etc, and other parts failing.....a pattern usually develops before major mechanical failure. Change cars before the failure, because even if the warranty fixes the car are you really going to keep it? and that goes back to the point of peace of mind is in the confidence of the product. So it is not so much the 1 or 2% chance of failure it is the chance of the chance you wont see this comming.

 

MaxN,

The worst vehicle I ever owned was a Jeep Grand Cherokee, the one with the wooden sides; IMHO, the best looking 4X4 ever done. While the car looked great, it was a mechanical disaster. You would think that after building this car for seventy five years they could get it right; that is not the case. I needed the car for business; that is the only way I could justify owing a car like this. I believe in being a good steward and this car was anything but. I finally got out of this car when it burned to the ground about a mile from my home on the way home from work. The volunteer fire department was several hundred yards away and I could watch them as they prepared to come to the rescue. By the time they got to the car, it was gone. I knew at least a dozen people who suffered the same fate with their Jeeps; a design flaw in the Grand Cherokee. The insurance company totaled the car and I replaced it with a much better vehicle at the time. Jeeps are just plain junk and I pity anyone who has the misfortune of owning one.

Jake

 

I would have bought a extended 5years/100k mile warrantee if MINI had one... I have an 06 MCSc and having a Oddesey that needed 2 transmission jobs(but I had a 100K/5yrs warrantee) I would have jumped on the chance to buy it... So by 35k mile or so I think I will go for an '08 and trade it in...