I have a 2003 E46 M3, second owner, only 17,000 miles, but the car is out of warranty (except the 6 year/100,000 powertrain). The dealership wants 3 grand for 4 years; does that sound reasonable? AA Auto Warranty (an independent broker) will offer the "same" product for $1850. Does that seem too good to be true or does the dealer mark it up that much? Any words of wisdom?

I have never bought warranties in the past, but I have a feeling for this car it might be worth it. For my last car, a Porsche 993, I wished I had purchased some sort of plan.

So if anyone has experience with purchasing warranties either from the Dealer, or a 3rd party I'd love to hear your input. Also what to look out for in terms of coverage...

Thanks

Derek:buttrock

1. Most importantly, find out if your service department of choice will accept the aftermarket contract for repairs.

2. Find out what labor and parts rate the extended warranty will pay. Some have fine print that says they only pay up to $50.00 per hour or 25% over cost on parts, etc.

3. Some will even have fine print allowing them to use aftermarket parts or junkyard instead of OEM for repairs to save them money.

Most importantly, find out if your service department of choice will accept the aftermarket contract for repairs.
Good idea. I asked my local dealer who they used. Better to buy something that isn't going to cause you headaches if you need it.

Do a search for aftermarket warranty, they have been pretty extensively covered in other posts.

There are 2 schools of thought you will find regarding AW.
Get one, these cars cost a billion dollars if (when) they break
Or put the money you were going to spend in a savings account and use it is something major breaks.

I haven't bought one yet and am still on the fence as to whether I will. I still have 6 months to decide. IMO, these cars aren't any less reliable than any other car. AW won't cover normal wear and tear so you will still spend $2K-4K a year even with an AW on oil changes and inspections and tires etc.

If you are going to get an aftermarket warranty, make sure you get an exclusionary warranty. That means they list what is excluded in the contract like tires, brakes, etc. EVERYTHING not listed is covered. Yes, they are more expensive but anything less will be a waste of money IMO cause they will find a way not to cover the part you need.

Thanks for your thoughts. I can't find exclusionary warranties anywhere, and it's been hard to find a "wear and tear" warranty -vs- the mechanical breakdown warranty. (If you start asking details, they seem to cover nothing, and if they do,.... It really seems to be a pain in the .....


D

Disclaimer: I am not recommending these guys (or recommending agaist them) I have NO IDEA if they are any good...

I am just posting this link as an example of an exclusionary warranty. They were the first link that showed up when I googled auto warranty.

http://www.warrantydirect.com/compare_coverages.asp

Look at the ones with the red check in the "Exclusionary bumper-to-bumper coverage" box and hover over the check mark. They list what is excluded.

Thanks for the site - I'll give them a ring today.

Ya, I checked my files and they were the first ones I looked at as well, but they WILL NOT cover the M3. Go figure.
D

Disclaimer: I am not recommending these guys (or recommending agaist them) I have NO IDEA if they are any good...

I am just posting this link as an example of an exclusionary warranty. They were the first link that showed up when I googled auto warranty.

http://www.warrantydirect.com/compare_coverages.asp

Look at the ones with the red check in the "Exclusionary bumper-to-bumper coverage" box and hover over the check mark. They list what is excluded.

I've had several aftermarket warranties. Only one really paid off (warrantydirect on an X5). My friend "Good Hands Gary," a lifelong insurance agent, sez: "Never warranty anything small, like your microwave or your car. They wouldn't sell it if they didn't make money on it." But that's why warrantydirect WON'T cover the M3 -- which means a warranty from someone else might be a good bet.

This time I'm taking a pass. My guess is a lot of people thrash their M3s; hence, warrantydirect's wariness. I don't thrash my car, plus the e46 M3 was just listed as a Consumer Report used car "Best Buy." No other BMWs listed.

Face it, though, it's a crap shoot.