I was quoted today a price of $2,700 (rounded) for the extended warranty on a 07 MCS. It gives an additional 50K miles (100K total) or seven years which ever comes first. This seems very high?. In California, a new law was passed that says the dealer is the only one that can issue an extended warranty. On a side note, AAA Auto warranty is quoting around $1,100 to around $1,400 for a similar warranty. The kicker is that you have to use a friend or family members address out of state to apply and then put it in your address after the issuance date. The broker says he does 100's of these policies and there is no problem what so ever. This worries me though. Has anyone done this.
Thanks.

 

No problem whatsoever, ... outside the fraud he is committing.

 

I wouldn't get an extended warantee if it's not through the dealer. All second party warranty companies look for any reason NOT to honor the warranty. And I don't think I would get the dealer one either. They are mostly pure profit for the dealer.

 

and why would you need an extended warranty anyway - 50000miles should last for a couple of years and during this time you will find all the bugs in the system - usually the extended warranties have all kind of exclusions of what they cover anyway and you never see a dime back. Plus, for $2,700 plus a few years interest on the money you can replace pretty much anything on the car ...

 

Sounds like a major Scam 2 me

 

Asside from the insurance company weirdness, extended warranties are almost never worth it. Do some research before you potentially waste your hard earned money.

 

x2. Over the years, a few family members have gotten extended warranties, and only one was ever used, and it was for a power steering assembly that had to be replaced to the tune of $1,000 USD, vs. the warranty that was somewhere between $1,500-2,000 bucks. I doubt you'll have anything go out after 50K miles that 2,700 or less wouldn't cover. I'd go without it myself, but that's just me. Also read the terms of the extended warranty, they usually only cover major drivetrain issues, alot of the little stuff that can go out (like seals, clutch, wear and tear stuff, etc) is NOT covered, plus most ex. warranties have a deductible that you have to pay as well.

I don't like the sound of that warranty outside of the manufacturer either, too suspicious.

 

Stay away from the out of state route, what happens if you actually make a claim will they not ask how you got the extended warranty? I'm not sure if it's the same as up here but the "Mini Next" factory extended warranty up here in Canada is not just a powertrain one, it covers pretty much the same as the bumper to bumper, ask them to show you the paperwork, take the time to read the coverage etc. I did, but the person that usually sells the warranty is on a commission so you should be able to negotiate the price, if you could get it say for 50% off would you take it? That's up to you, good luck.

 

My philosophy is that, if you buy an extended warranty, you are paying for repairs up front, whether or not you ever need them. Look at the logic: The only way an extended warranty company can make money is if they charge more for the warranty than they will end up paying out for repairs. That means most people pay for repairs they never need when they buy an extended warranty. Having said that, I paid $40 for an extended warranty on a $300 mp3 player. It crapped out after a year and I got a new one free. But -- that was 40 bucks, not 1400.

 

Good advice. I was just concerned about repairs especially with some of the problems people are having. The 50K warranty for me will be up in two years. Thanks

 

So try to get a low year, high mileage warranty.

Everyone is speaking against the warranty but imagine if the transmission needed replaced... you are talking SEVERAL thousands of dollars.

It's liek an insurance policy. If you don't use it, it is money wasted. If you do need it, it can more than pay for itself. MINIs aren't known for japanese reliability.

 

Reminds me of a quote I saw in one of the car magazines.

PRO: British design.
CON: British manufacture.

 

Heaven:
The police are British
The cooks are French
The engineers are German
The administrators are Swiss
The lovers are Italian

Hell:
The police are German
The cooks are British
The engineers are Italian
The administrators are French
The lovers are Swiss

 

You just have to do an "expected cost" analysis. For instance, if the likelihood of a particular repair being needed is 20%, and the cost of the repair is $5000, then the expected cost is $1000. Repeat the process for each potential repair that has a likelihood or cost that's significantly above zero, and then add up the expected costs and compare it to the cost of the warranty. Don't forget that extended warranties usually have a deductible, and money NOT spent on an extended warranty can instead be placed in an interest-bearing account to be used for future repairs.

The automakers have already done the analysis for you, though - that's how they decide how much to charge for the extended warranty, and they're not about to lose money in the long run.

I'm not saying it's impossible to come out ahead after buying a $2700 extended warranty, but the likelihood of needing $3000 or more of warranty-covered repairs during the extended period is fairly low.

 

interesting forum

 

stay awayyyy from thos extended services because they are pure ripoffs. who knows what your going to be doing in a few years. You might have kept the car, sold it off or a number of things but you still have paid for that over priced warranty.