The Reason You Lose Money on Extended Warranties
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- Опубліковано 29 вер 2024
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If you can't repair minor stuff on a bmw or Mercedes do not buy one
Exactly!!!
She has cash pilled for the repairs. She had 25,000 cash. I think she is in good position!
@@moriahjohnthejohnsons718 Yes, and she's going to need that piled up cash pretty soon. Every cent of it! ROFLMAO! 😂
Part of my emergency fund is my personal extended warranty plan.
Also self insure my household appliances.
Never needed to use it yet in over 30 years so it just grows.
Wow your rich
What gets me is that people will gamble on the lottery or casino when the odds are many times against them. But when the odds are in their favor such as extended warranties they don’t want to chance it.
How could you possibly think it’s in your favor? Do you think the warranty companies do this because they’re nice guys?
@@tombiondi9969 I think he must sell warranties for a living.
You buy a Lexus without a warranty not a BMW.
Yes sir
Ya... Because Lexus doesn't have massive electrical flaws... Lexus is an overpriced Toyota with headaches. If you want to buy a higher end car buy one but don't get just some sloppy car in a frog suit.
@@markwestgate9734 that's a funny analogy...who or what is wearing the frog suit, the car or the driver?
sorry by 'funny' I don't mean odd; I mean haha.
Scott Prost-Domasky probably the driver Although a frog costume for a car might be fun
He is so right about extended warranties. I got a 2006 Impala in 2007, so I saved on cost there. I got the extended warranty which cost me $2000. I was told if I don't use it I would get it back in 5 years. If I did use it, even on a $1000 repair I would loose it. I never used it. 5 years later the company goes out of business and doesn't return my money. Total scam don't fall for it.
Wheres Scotty Kilmer when you really need'im.
I was just thinking that lol
Scotty has a video about extended warranties
If you follow both Ramsey and Kilmer and listen to their advice, you'll probably be alright in terms of living within your means. Not having car payments and owning 2 vehicles with less than 5k spent between them is so relieving and you'll be more proud of the ownership of a couple older vehicles than just driving a vehicle that is owned by the bank.
Rubbup your engine
Omg I was just thinking this as soon as she said "I bought a BMW" I could literally hear his laugh and his famous line of "those are just endless money pits, just throw the whole car away" reciting in my head 🤣🤣🤣🤣🤣 the fact that she said she already has $40,000.00 saved up for her car repairs is ridiculous, you're paying more on repairs than what the actual car is even worth ... I mean she practically laughed at herself when dave said "well at that point just buy another one lol" like use your head people 🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️
I once bought an extended warranty. When it came time to use it the company had magically went out of business. Probably reopened under a new name.
BMW= Breaking My Wallet
Buying a status symbol only to struggle to try to keep it running.
It really is a shame. BMW has really nailed it in terms of styling and performance (when they are not in the shop). You absolutely are a fool to ever own one of these cars outside of warranty unless you have DEEP pockets. Any extended warranty needs to a BMW certified warranty or it’s not worth the paper it’s printed on.
My buddy bought a used 5 series that had only 55K miles on it. He absolutely loved it when it wasn’t in the shop. Within a year he had to replace the brakes, water pump, serpentine belt, oxygen sensor, and front struts. In total he put over 6K in repairs to a vehicle with 55k miles on it. That was enough for him and he ended up trading it in on a truck.
I need to buy a really expensive car so I can automatically gain respect by the cool people and instantly get laid, of course they arent gonna know that will eat up 90% of my monthly budget and will be broke every week, and still living with my parents
hilarious.....lololol
Yes and no, only buy a bmw if you can afford to spend a few grand a year on repairs, while thats not always gonna be the cost, on average if you dont have enough money to afford the maintenance, dont buy a beamer
Its good to have lifetime warranty or extended warranty accompanied in a product in order to guarantee quality control, create maintain GDP as well as abilities of preservation of technical skills in most industries.
In my opinion extended warranty is good for high end cars such BMW,Mercedes etc. I have a 2014 bmw 335i Msport for couple years and I can tell you extended warranty covers other parts that a regular warranty wouldn’t cover. Knowing how expensive each parts cost for BMW and to repair as well. I had some minor issues after 2 years and Beamer fix it right away but without it I would be paying tons of money on it.
In Ontario Canada for example, an extended warranty that cost 5k the tax is 13% plus the interest on the finance. In the end you would pay 8k for that warranty.
Its better to put the 8k a side for repairs you may or may not need as oppose to pay up front for repairs you may or may not need.
She spent the $4000 on a new transmission after she talked to Dave.
I didn’t 😉 Still running with no issues
I spent an extra $1900 on an extended warranty on my 1 year old Impala. Glad I did, it paid for a $3500 repair a couple years later when the trans went out. The other place I buy warranties is my Dell computers; they have more than paid for themselves, several times over..
Give Honda some love. They are great cars and last forever.
I love my GMC too much
This is true
@@trumpenhammerofkek4821 Government Motor Corporation
Hecho en Mexico
Certified warranty on a Lexus is 6 years from day the car was originally sold with unlimited miles. You can extend that 1 to 5 additional years. If you buy a 3 year old certified Lexus and extend it out 5 years at a cost of $3700 you will have 8 years of bumper to bumper coverage with no limit on miles. It is backed by Lexus. It is also transferable. That car can be sold 6 years from now and the warranty will transfer one time. If it has 300,000 miles at the time of sale, the seller can get more money and the buyer will have 2 years remaining on the bumper to bumper warranty... still with unlimited miles.
How is that not a good deal?
I did really well with an extended warranty on my Ford Explorer. Cost me $1,800. Had to get 3 major repairs including a transmission rebuild and an ac compressor plus a few small things. In the end they paid out just over $5,000 total. Better move was to not buy an Exploder but I didn't know that yet. Warranty company was easy to deal with too, they came out and inspected the car before paying for the transmission but otherwise my mechanic called and told them what it would cost and they paid it, minus sales tax which I had to pay.
I've worked for an extended warranty administrator. RVs, Autos, motorcycles, snowmobiles, boilers, marine etc. There's no set policy on what the dealers can charge for the warranties and I was privy to what we charged the dealers and what they sold them for to their customers for. It's a reasonable assumption to think 1000% markup. Dealers roll this into the monthly payment and I know they tried not to disclose the amount to customers. I would routinely see a policy that costs dealers around 250 to 300 sold for 3000 or higher. Some were reasonably fair but not usually. Just say not interested and make sure that these policies aren't hidden on any purchase.
I think it'd be smart to buy an extended warranty if she bought a 328i/335i if she was planning on keeping it after the factory warranty ran out, no? I wouldnt buy it for a toyota or honda, but BMW? They're not the best when it comes to reliability. Excellent cars but too much technology to go wrong.
I used to have extended car warranty to cover my repairs. What a bunch of BS. You STILL have to pay 💰 more money 💴. RIP off liars!!!!
25k with warranty for a BMW? That's cheap
ROC ROC BMWs don't hold their resale that well! But I have to agree, it is a good deal.
True. They don't hold their value. However, not knowing anything about this particular vehicle one can not determine if it's a good deal.
It could be high mileage. This car could likely be bought for $20K cash.
Exactly. A 2014 M5 without high miles and in good shape and mechanically sound? Great deal. A 1998 BMW 323i with lots of miles and you bought it without having it checked out first? Not so good.
Whoops, I guess it pays to listen further in before posting :) though more details still needed to really value the car.
I agree with Dave on this one. He explains the math well but it's really even more simple than that. The warranty company has to make a profit so they need to take in more $ than they pay out so on average the purchaser of the warranty is paying more for the coverage then the company will payout for repairs. If you happen to have a large repair of a bunch of smaller ones you would be ahead of the game by buying the warranty but obviously thats the exception or the warranty company would be broke. Its much like a casino or an insurance company they need to take in more than they pay out or the math just doesn't work! AND you really need to look carefully at what you are buying. Most domestic vehicles come with a 3yr 36k mile bumper to bumper warranty and 5 yr 60K mile power-train warranty. The extended warranty is usually 60k bumper to bumper so essentially you are only extending the coverage for non power-train repairs for and additional 24k because the power-train is still covered by the regular warranty. Is that worth $1-2K?? Not likely. How many cars need a significant non power train repair in the first 60K miles?? Not many.
I just bought one thru gm directly 2500 covers power train n everything else for 8 yrs or 100k miles
I need piece of mind. in 2009 I bought a used certified vehicle with a 12 month warranty and The speedometer messed up, air bag sensor, electrical vamp that took a week (heated seat) If it wasn't covered it would have been too costly. With this new technology you need warranties every flat screen tv I owned had issues, the samsung conked out 3 months before the extended warranty expired. The vizio 1 1.2 year in. My LG oled 11 months in the control board had an HDMI port that went bad. These tv's were set it and forget it. connected to a UPS. The dealer rates are too expensive. Just to change a filter they want 100 plus. Piece of mind.
I will ask this; we are 2023 . We are driving around rolling computers, even if you get a basic model. Would you still say do not get an extended warranty.?
Dave Ramsey has all the statistics on ext. warranties, but how likely will the used BMW will be in the repair shop. There is no price for peace of mind, BMW are more expensive to fix. The caller made the right decision.
I NEVER buy extended warranties on anything. Historically, I would have never had to collect before the warranty ran out. Warranties are a gamble. You're betting you're going to collect; they're betting you're not. And they hold all the aces in the deck. Used cars will "always have a pre-existing condition" that will not be covered. With extended warranties, you are paying in advance for a repair that may never be needed or won't be covered for some reason. But they have your money and they're going to keep it. Look at all the stuff you have. Over 46 years, we've accumulated household appliances, cars, computers, TVs, DVD payers cell phones, etc. I have lots of tools for my volunteer work. My wife has two sewing machines, several musical instruments. I never purchased a home warranty either. I put that warranty premium into a subset of my emergency fund to cover repair or replacement of anything that needs service. I've yet to tap into that fund.
It's probably a off lease if she only payed 25K for it. I did rent a 2015 one and was impressed
Do not buy a used late model BMW without a warranty! One of my coworkers bought a used 60,000 mile 2012 X5 from the local BMW dealer for $20K. Within three months the engine blew. He didn't buy the $4K (before negotiation) warranty. The dealer wants $17K for a factory new engine or $12K to install a used one. He's going with a used warrantied engine installed by a local shop for about $10K. BMW's after about 2005 aren't the quality they once were. I'd skip the warranty on American and Japanese cars, but take it if you're buying a car from Europe. Not All service contracts are not all created equal. caveat emptor
GusMahn your 100 percent right she got some wrong advice this question should be answered by an auto tech ramsey should have suggested she do so bmws will empty your wallet
Don’t buy used bmw it screams I’m really poor just trying to look like I got something lol
$10,000 is still too much!
I agree gus. Exotic european brands are extrememly difficult and costly to repair. It's rarely something you could do yourself even if you have automotive knowledge. In fact you will often have to find a BMW or Mercedes specific mechanic. American and Asian cars on the other hand are much more straightforward, easier and less expensive to repair, because you dont need a brand specific expert. The Price and availability of parts is much better. I think thats a really good rule of thumb. Asian or AMerican, skip the warranty. European, get the warranty. Statistically the repairs will be much higher, and it also helps to insure against the higher initial price tag of most European cars.
Yup. Same thing. Friend bought a bmw 535xi with 40k miles and an extended warranty for $2500. First month, $1000 for complete brake system. 6 months later, water pump, $1800. Water pump again 6 months later $1800. Fuel pump $1200, failed to fix it, needed new fuel system computer with tow to BMW 120 mikes away, $1800. So he currently has $7400 in repairs for $2500. Not a mistake buying the extended warranty, just a mistake for buying a BMW.
I don’t agree. Buying an extended warranty is like buying insurance against the “unforeseen”. If you get it at a good price, it’s totally worth it. You can talk till the sun sets down about how great modern cars are but for that one unfortunate soul, it is going to cost thousands of dollars of repair bills!
I bought the extended warranty on my BMW. The ABS went out and the repair was $7,000. I saw the bill. So glad I had the extended warranty.
I would've lost over $20K had I bought extended warranty on all my new cars.
That made me feel better about owning a 2015 BMW 328i ... but I didn't pay cash for it and definitely bought more car than what was needed. I kind of still regret it, but the car is great... it's just that I don't make that kind of money to have one.
Buying a used European luxury car is never a good decision. If you must have one, this is one situation where you should lease a new car.
Dave I agree with most of your financial advise but as a veteran of this industry I can tell you BMW has one the worst loss ratio's by a wide margin and most administrators do not even offer warranties on European luxury flagship models for the most obvious reasons.
I feel like extended warranties make people think they saved money
definitely
For some people it does. The statistics say that they will lose money on about 10% of cars. So for those people whose cars break it does. The company wins either way essentially even if your particular car breaks down.
My route 66 warranty covered two major repairs that would have cost me money I didn't have... Only thing I pay was sales tax. No deductable.
If you buy an extended warranty on a used range rover, you will certainly save a lot of money.
The purpose of extended warranty on luxury car is mitigate risk. It’s smart finance decision for people who don’t want to get hit with an unexpected astronomical repair bill. Luxury car can be very expensive to repair compare to Ford or Honda. An engine replacement on a BMW or Mercedes performance model often cost $20k and above.
The warranty probably won't cover what goes wrong with an endless money pit BMW! 👎🏽
Every time I have bought an extended warranty it has saved me a ton of money!! I'll always buy one.
They are not in business to pay out more than they collect!
Love you @Dave
Buying a car that is well known to have issues (and knowing that even before purchasing) is a "dumb" decision. Yes. Skip the warranty and buy a better car. Jeez, thank God my wife finally woke up and realized a BMW is a waste.
If you want an excellent warranty because you drive a lot buy a Hyundai or KIA. 100,000 warranty... Rick Case here in South Florida doubles that warranty! By the way, BMW is not a reliable car... Comfortable, quick, luxurious, modern ✓
If there was such thing as coverage for your BMW for only $1000 you should jump on that opportunity every time. Parts and labor on that vehicle cost you more than $1000 for one mechanical breakdown. Sorry Dave but you’re totally wrong on this one bro. But then again what do I know I haven’t went bankrupt multiple times.
the real question is if it breaks can you cover the cost, if so you can take the risk.
And if you can't cover the cost in the first place, then don't get one. In this case, she makes 66k a year, so just get another car if it totally breaks down. Assuming all cars tend to break down at a 50 percent rate, why would you want to buy it? You'd lose half of what you pay for every car. Then added warranty would just ruin car businesses and you'd pay for all repairs needed. At that point, there be no warranties. On the other end, if all cars never breaks down, then you are literally down the price you paid for warranty. That's it, you lose money. On statistics, most cars don't break down, so most of the time you don't even use the worth of your warranty. If so, why pay for insurance if you don't need it? And when you do need it? Have backup cash to pay for it.
Jack Super Fly for the exact same reason you pay insurance for your house. Most houses never get flooded yet you pay for it. Why? Because the cost of such event is too high for most people so they cant take such a risk. Even tough you might never face that. Again the way the insurance company calculates its statistic is not the way an individual does it.
actually I feel I have to make philosophically clearer for you : what maths does not differentiate (because it cant) is probability versus possibility. You as an individual can only calculate the possibility because that the only data you have, the company can calculate the probability because of the numbers it has. you as a point , there is no way for you to guess if the curve of such events is going to intersect with you as a point, but you as a point are still a possibility. hope this is clearer.
Since it sounds like she got a used BMW that extended warranty may pay for itself. lol
Unfortunately I think she made a bad decision on getting a BMW and an extended warranty. Those vehicles are money pits and she might need a good portion of her $45k to keep replacing all that plastic garbage that they put in those things.
This is one of the times Dave is very wrong...I’m in the auto business and I spoke with 4 warranty reps about this and specifically on bmw they cost more money than every other brand and one company bmw cost more than every brand combined. They on average lose $ on bmw contracts but look at it as a cost of doing business to get the other ones...on bmw you are better off getting the warranty because they are garbage
In my opinion if you have to buy warranty on a car or electric device get ready to be stressed out with it.
She saved up 25K+44K on an income of 66K? Most impressive...I guess she can afford it but doesn't make much sense to me to buy an expensive vehicle if you don't make much...she might learn real soon that BMW oil changes are like $100...so I guess you could say I disagree with Dave saying you can/should buy a car up to half your salary...
So all insurance of any type is statisticly bad
You're insane if you think newer BMWs are the best BMWs ever made
I have to disagree with Dave here. Extended Warranties are a no brainer and extremely cheap insurance.
Try buying a bmw with a v8 twin turbo n63 engine and not get an extended even 3rd party warranty then the valve seals go out and ur 40hours if labor in debt or u could’ve paid 3k up front and it was covered
-do research if the car has known problems and how expensive they are bc what I mentioned above is a known issue with certain bmws and ur kind of sh*t out of luck if u weren’t informed enough to get a warranty after the factory warranty
As a car salesman let me just say, how dare you Dave...how dare you.
What kind of BMW do get for $25k total including extended warranty???
Must be a used BMW. Even the cheapest BMW is more than 25,000
65 people bought extended warranties.
Lol she’s gonna hate that new hot rod
The warranty on my car was the biggest rip-off of a purchase I've ever made
BMW are good cars until they brake and then the money dumping begins
Please please don't listen to him. It's a BMW! Just price haggle on the extended warranty.
If you bought a BMW you will probably need that warranty.
Garbage Car
have you owned a BMW? Dont think so
Dave is right.
Whenever I have asked about the warranty whenever I purchased a German car, people get suckered into buying one because they really can’t afford the car; I have never bought any of these warranties because they were very costly (I’d want the best coverage) and the repairs for these cars have always been much less than the cost of the warranty itself.
Man, not the 7 series I bought, but the warranty saved a buddy’s 6 series $3500 brake job from being billed to him
Hks 123 depends you get an m3 or 5 u would be nuts to drive without a warranty
Apparently Dave doesn’t watch Doug demuro and have never owned a vehicle made by Land Rover
Or Scotty Kilmer. BMW is not a GOOD CAR. It is not reliable and it is a money pit.
Yeah he keep saying these cars are good because they are new and have a lot of gadgets in them but they are rolling junk as much as they break.
I bought a 4x4 Toyota Pickup new in 1993 for $14,000...24 years later this past September I sold it for $4,000. Toyota's hold their value very well and it still ran and looked great.
14k in 1993 doesnt equate to 14k in 2017...
Jeremiah makaveli Yeah $14,000 in 1993 has the same buying power as about $23,000 in today's money. Also, 4,000 in today's money has the same buying power as 2300 in 1993.
Ok, but how will the BMW's value under a similar scenario hold up?
Really? Wow. I had a 2003 Toyota 4runner and i only got $2000 for it
Yours was apparently run into the ground and not taken care of.
the solution is simple. buy a Toyota Camry and drive it forever
Yuck...too bland.
@@brucefredrickson9677
claiming that something is "bland" is not an argument.
Wrong. Toyota’s break just like any other cars. It’s about chips and computers people, not the engine!!!
Just retired my first Camry at 310000 miles. Engine still runs like a top, CA lame emission laws put it out of commission.
Randy Force right, and what is it- 1999 or early 2000? Anything after 2008, and especially new cars now is not what they used to be. Ur transmission is computer controlled now. Ur electric break switch goes out and that’s a couple of grand for a tiny part and to replace it.
I was "suckered" into a extended warranty when I bought my 2013 Ford Escape. 4 years later, the transmission failed just after the original manufacturer's warranty expired. I am so glad I got "suckered" into buying that extension, saved me $4000.
Your problem is you bought a Ford, sorry. Buy a quality car like a Toyota and don't worry about the warranty. It will NOT break in 4 years. I got suckered into the extended warranty on the Toyota and not a problem ever.
@@chrismd00 it depends on what kind of Ford. The F and E truck and van series are some of the best vehicles in the world. Not even Toyota can make a better truck or van than Ford.
Chris Coyle smart move better to get a extended warranty and not have a expensive repair bill later
Ford’s make good quality vehicles. I think they’re the best you can buy. Toyota is going to start being trash soon because of CVT transmissions.
Buying a warranty is like putting a little bit of money on the side in case something breaks down. So you really didn't save 4k. Deduct the 4k from the price of the warranty.
Dave Ramsey and Scotty Kilmer need to sit down and chat.
Scotty will have Dave recommending 94 Celicas to all his future callers.
@scottykilmer
Yeah because Scotty Kilmer is right
Lol scotty kilmer needs to sit down with dave and have eric the car guy, south main auto, and flat rate master give them both a talk.
@1234 not true, I have seen him say a new BMW is a good car, and if you know anything about German cars u know BMW are electrical nightmares.
Her mistake was buying a money pit such as a BMW. They are not as high quality as they were 15 or 20 years ago. Just wait until she has to take it in for repairs...
BMW were never high quality. I have owned 3...1987, 1992, 1999. All were lemons. Never will I buy another Bimmer.
Want luxury... buy a Lexus! They are extremely fancy Toyota's after all!
@@DeathMammoth91 lexus are not cheap to repair in comparison to a toyota They also do not use toyota parts. It's a common minscomception
With $25000 you could’ve get a brand new Toyota camry and still have money left.
Yup. People have no idea how much maintenance cost on vehicles period smh
Extended warranties for Subaru’s, Toyotas, Hondas, are pretty useless as they are very reliable and don’t need it but for Chrysler, bmw and Mercedes you’re definitely gonna need it 😂
Any idea on Nissan? I just bought one brand new with the extended warranty 😬
Just toyota, Subaru and Honda are good without warranty all other companies buy it
@@HoaNguyen-th5ml buying a brand new car with extended warranty is even worse lol...it comes with manufacturer warranty up to maybe 3 to 5 years. Most people dont even keep their car that long
@@HoaNguyen-th5ml cvt havent got a great track record... nissan kind of went down hill in early 2000's when renault took over...
@@HoaNguyen-th5ml You did the right thing!! Nissans *_USED TO_* be reliable maybe 20 years ago. Today's Nissans are not reliable at all. You dodged a bullet buy buying the extended warranty. Personally, the only vehicle I would *NOT* buy an extended warranty is for a TOYOTA product (Toyota and Lexus).
Never, ever buy a extended warranty from a third party-even if it is "endorsed". They are an absolute ripoff. The finance man at the dealership will tell you stories (lies) for his and the dealership's benefit.
So where do you buy an extended warranty?
I’ve owned Acuras, BMWs, Hondas, Minis, and Toyotas. I had extended warranties on the BMW, Mini, and Toyota. The warranty saved me thousands on the BMW and Mini, the Toyota didn’t have a single repair. So I think it comes down to the brand as to whether you should or should not
Very wise young lady. Keep up the great work!
@SpankBuda that car trash
The thing is with BMW is you have to replace the blinker fluid ;)
Are you kidding me? BMW drivers don't use blinkers.
@@orochicc002 The blinkers don't work without fluid, most BMW owners don't even know how to check it.
Extended warranties are a gamble- sometimes you win- sometimes you lose. All it is, is insurance, so your paying for repairs up front, or repairs you'll never need.
not a gamble...odds are heavily in favor that they won't pay out for you
They don't always pay out either. It happened to me. If you have ever had to deal with the games an insurance adjuster has played when they do not want to pay on a covered item you will understand. It happened to me once with a company that was based in Illinois.
Dave just lost a bit of credit when he thinks BMW are a great car! If any car needed a warranty it’s this one!
lol you clearly have never owned one. They're solid cars that will be well over 300+ thousand miles if you maintain them. They're without a doubt expensive as far as standard maintenance in comparison to other cars, but they're great cars that are engaging and are also meant to be driven everyday and ran hard. Don't believe me - Take a look at the road and you will see all generations of BMW's (some 25 plus years).
Langdon King Yeah. Better off to buy the Japanese counterpart in a Honda or Toyota. Same levels of reliability and longevity for a lot less money. Repair costs are cheaper if that Honda or Toyota does need repair. Fact is, you have to spend 100,000 dollars or more on a BMW or Mercedes to get a really superior vehicle. But, people will spend thousands more just for the BMW or Mercedes name.
328 might be one of the only BMW I would buy.... i won't buy one if i go luxury im going acura or lexus... but i have eyed the 328... problem is they will no question cost more to repair. I would buy a 328 long before i would buy any FIAT/Chrysler or GM product... and before any ford also.
@@langdonking8833
Not anymore, disposable junk now
It's a BMW. It is going to break and it is going to break a LOT.
Mark of Excellence stereotypes aren't always accurate. One of the least reliable cars I've owned has been a GM, but doesn't mean they are all bad.
y2ksierra Actually, statistics show otherwise. General Motors leads in the top 10 for quality for 2017, while BMW is very low on the list. The common stereotype is that they are better cars. They are not and have not been since the late 80s. This is the same case with Mercedes-Benz.
I'm sure BMW has made one or two good cars over the years. But statistically speaking the majority of what they put out is extremely unreliable.
I should add that this is part of their business model. They do it on purpose. Have you ever taken a BMW for service? It is extremely expensive. That's where they make their money. It is meant to last for the life of the warranty and that is it.
Mark of Excellence I service all of my cars myself, so no I haven't. Taking a GM to the dealer won't exactly make you feel good either, nor is the dealership experience pleasant. They call them "stealerships" for a reason. If you think bmw are bad cars, or break down all the time, then it is your opinion, not a fact. Suggesting that any make or model "breaks down all the time" is simply not the case as cars of today are just about all reliable. Well, maybe except for alpha 😀
Alternatively, Used car warranties are spectacular. In my experience, a few hundred dollars on a 6 month- 2 year on a 5-10k used car can save thousands in getting minor/major issues fixed if you have a keen eye.
u must sell them
From my experience, there is always a loop hole, and they say it's not covered. it's all a scam, Warranties
Agree..I had a home warranty. AC broke in Houston in August. They covered the part $200 but not the mods it would cost to install it ($1100). I happened to know an HVAC guy that hooked me up for $800.
After that, NEVER AGAIN will I trust any warranty company.
Change your oil, don't beat your vehicle, you wont need a extended warranty.
@@mopar21
Ha, not a modern BMW....
@@raydavies6236 what do you drive?
You’ll need the warranty + with a plastic BMW !!!!
I get junk mail from these extended warranty companies who are trying to sell me coverage on my two year old Honda Accord with less than 25,000 on the odometer. What a scam.
jvolstad Did you purchase it from Best Buy? Lol
I'm not sure what they are thinking. I get junk mail offering an extended warranty on my cars, I have a 98 Toyota and 99 Honda.
Oh, those companies are relentless. I’ve gotten no less than ten “this is your final notice to purchase an extended warranty” from the same organization.
Lol
@j.denino57 even those are scams.
Count on it breaking down more often than your average vehicle, I would never buy a bmw.
You and many sane people! One has to be totally insane to buy a BMW (or Mercedes, or Audi, or VW etc.), unless you are insanely wealthy, and then you can justify that you are buying it for the "drive", "handling", "performance" and what not, as the constant breaking down and cost to fix it, would not matter then. Even then, I would only LEASE one till the warranty ran out!
BMW
Bill
Me
Whatever
When I buy electrical item...new TV, Washing Machine etc I would always take the extended warranty provided I could get a discount on the main item. I would usually get a discount because there is an incentive for the salesman to sell the warranty. I the U.K. under law you have 14 days to cancel no questions asked. I would then cancel the warranty as soon as I get home...so in that way I always found them useful.
That's called "scamming".
Dave she didn't buy a Honda!! Rough advice!!
bought a 10 year old vehicle for $16k. bought a 5 year 100k mile warranty for $2900. after 5 months needed a $300 repair, I only had to pay $100 deductible. the months later it needed a $1100 repair, I paid a $100 deductible. three months later it needed a $700 repair, I paid a $100 deductible. I have 3.5 years left on the warranty and I pray on a daily that the engine and transmission goes bad within the next couple of years.
Interesting. $3,200 total thus far to repair which is 20 percent of the asset. Small repairs appear costly. The first was 33 percent of cost, the second was 9 percent, the third was 14 percent. You're paying 14.2 percent/1.5 years ~ 9.5 percent/year. Compare those percentages to a blue chip stock that pays 4 percent per year. Unfortunately, the asset depreciates during this time. Sorry G.G.
I'll take Dave's advice on money anytime but I won't take his advice on cars. Those BMW are not reliable or good at all. Lexus are way better luxury cars.
Never buy the extended warranty. You don't know if you're going to sell your car at any time, and extended warranties do not pay for themselves when you sell it. You can buy the extended warranty AFTERWARD, like a few months before it expires (if necessary).
@SpankBuda Yeahh... I thought you'd put it together that I meant don't buy it at the beginning, because you don't know if you're going to need to sell it before the regular warranty expires, and that extra warranty will never take effect. You won't make it back on the sale so that is total money lost.
I've also heard him recommend Ford. :(
I’m kind of with everybody else on this one. Beemers are known to be money pits.
As Scotty Kilmer would say, those BMWs turn into money pits real fast.
🤣🤣🤣
in uk it's bob marley and the wankers
You better have the AWD one if you get REAL winters, and for a BMW, I would get an extended warranty "bumper to bumper " from BMW dealer specially cuz it's a used car. Good luck.
I went and looked at a Mercedes S550 and asked the salesman about a warranty and he said he doesn't recommend the one he sells LOL....
I wonder how many salesman feel that way but will never say that to a potential customer...
Honest person is always appreciate.
Cerron Pritchett That's an honest man. I have a 2007 Honda crv every time I go to the dealer for oil change or other repairs they always tell me I need something they wrote down the list that need to be done, it would cost, over $2000. I said how could that be, I have a very good maintenance records. So I had another guy checked my car, he said my car doesn't need anything, that the dealer mechanics were just trying to find something to scam me. He even told me he's being honest in fact he said he's too honest.
@@bb89670 Or he's not honest and is telling you to not repair things that need repaired so that way when they lead to a bigger more expensive problem you'll take it back to him thinking he's an honest mechanic and pay him to fix your car while you're just thinking it's a bad lemon car.
I'm just teasing, but everyone has an agenda, but I hope you did find a good honest mechanic because that would be priceless in value.
Jill, I'm on baby step #6, earning just over 100k... will you marry me?
Kyle, that's super awesome but I'd definitely need more information than that. ;)
Keep in mind that all of the statistics were “on average”. You should also take into consideration how much you will drive. I purchased a car with 35k miles, with an extended warranty until 109k miles or 4 years. I got to 109k miles in 3 years. The warranty cost me an additional $2,500. By the time the warranty was up, I had accumulated over $10,500 in repairs, ALL covered by the warranty. Do your research on which company the dealership is offering. Some are better than others, but do it on a case by case basis, don’t always look at average statistics
If you had $10500 in repairs between 35k miles and 109k miles then you have a terrible vehicle.
@Andrei MTM - and if that car was a Toyota Camry, you’d have put only about $700 in oil changes over the same period of time. The fact that you have to buy that kind of extended warranty in the first place speaks to the horrible reliability of these over priced cars. People are willing to shell out this kind of money for a badge on a car.
@@aeromedical6750 Exactly. That is precisely why my family of six all drive used Land Cruisers. Superb reliabiltiy, safefty, dependability and low cost to own.
@@richienell You are right Richie! I haven't had any more than that across 9 vehicles in 50 years.
The CPO Acuras now come with a 2 yea 100,000 mile bumper to bumper warranty. That would be good for a few people like you.
Life is full of gambles. Dave makes some very good points. The person selling you the warranty is getting a sizable commission, and this makes you wonder about the value of the warranty to you. When they push hard to sell it, including reducing the price when you decline, it makes you wonder. I say buy a car that is historically reliable and look for a CPO warranty if possible. Remember that the warranty is backed by a third party. Who knows what they will and will not actually cover.
Just negotiate warranty’s down to cost. They are pretty good deals
I work for a dealership and get a full warranty for 1500 or sp
Issue is most cars nowadays are built cheap n all have recalls or some long listing issues
I don't believe vehicles in need of $4k mechanical repairs within 5 years to be a "great car."
If its not a Japanese car then its worth getting an extended warranty
It's never a good idea. Japanese cars are so reliable they don't need it.
What about kia soul
So true
My God listening to these 2 talk was very painful.
People can’t help themselves. They always borrow to purchase their new car
Scotty Kilmer is spinning in his Toyota grave.
Yep
he's dead?
Joe Congdon buy the car as new as possible, them trade it in every 2 yeras. Don't keep a bmw as a daily driver as a long term car.
@@Neake22 I hope not :(
Wahhh....... Scotty's DEAD! When did this happen He must have been zombiefied, because I just saw one of his new videos the other day. He has been looking a little pale lately. He still is yellin' and wavin' his arms around though.
Ramsay, stop. I’m going to start giving advice on real estate. People need to stop giving advice concerning industries they don’t work in.
If you want an extended warranty, buy one on your own not from a dealer. You will save a lot of money, same thing with Gap insurance.
Spent 2k on a 7 year bumper to bumper... dealership has spent over 6k fixing it. I'd say it's worth it.
for you it turned out to be worth it. for every person that says it's worth it there are 7 that say it was a waste of money. that's how insurance work.... the idea is to charge you for something that you statistically will under consume.
even if you it was worth it for you they definitely overpriced the repairs so it looks for you as if you saved alot of money
I have an extended warranty on an Audi and I would have lost my a$$ without it. Not saying much about Audi as a manufacturer 😂
How much you pay for? Cause I do have a Audi to trying to get a extended warranty but I’m scared and from who u got a extended warranty?
I disagree with dave. I bought an extended warranty for 1200. 2 years later I had to get a transmission and odometer fix for 3000 that the warranty covered. It also paid for my rental while being fix. I think I made my 1200 worth while
I agree with Dave. Wondering why he recommends collision insurance. Using the same logic, wouldn't it make more sense to cover your own repairs?