[dougiep]

Hi - Coming up on lease end of 2020 X5. I'm planning to purchase as she's been great and based on used car prices .. the negotiated lease-end purchase price is pretty attractive. She's got 45k miles and so has a little warranty left.

Two questions i'd love some advice on

1. Does anyone have experience negotiating off of the agreed to purchase price from the initial paperwork? It's seems pretty straightforward .. like I signed something 3 years ago agreeing to this price .. but in the back of my mind I'm hearing the "everything is negotiable" mantra.

2. Any recommendations on extended warranty and extended service plans?

I'm going to meet with the dealer folks next week to understand the options/cost more specifically ..but would just love any perspective if you've purchased .. or not purchased and wish you had, or whatever.

Thank you!

[TurtleBoy]

Welcome to the forum,

1. Not possible to do that anymore. Years ago you could.

2. Skip them. If for whatever reason you feel you need an extended service contract (commonly called an extended warranty) do not buy it from your dealer at time the time of purchase without first shopping around for one. It can be purchased at anytime prior to the original warranty running out. At that time just post and we can give recommendations for dealers to check with.

[Fahrfun]

https://joinyaa.com/guides/yaa-extended-warranty/

If you do decide on extended warranty (legally known as Vehicle Service Contract) the above source offers in depth information on that subject.

The most important aspect is to obtain and read the entire coverage document before signing up. The best coverage comes from an explicitly defined exclusionary policy… one in which the contract states only what it does not include. They also cost the most. Extended “warranties” are insurance policies which, like any other insurance, are fundamentally to profit the issuer. Else they’d be out of business fast. Note: last I checked, BMW “branded” extended service contracts were NOT exclusionary. Their most expensive one still did not cover some of the key components statistically most likely to go wrong. My BMW dealer also offered other policies from other issuers for that reason. Take some time and do the homework… always good advice.

[TurtleBoy]

Originally Posted by Fahrfun

Note: last I checked, BMW “branded” extended service contracts were NOT exclusionary. Their most expensive one still did not cover some of the key components statistically most likely to go wrong. My BMW dealer also offered other policies from other issuers for that reason. Take some time and do the homework… always good advice.

You will have to provide some specific examples as that has never been the case that I have seen. While not the same as the new vehicle warranty, the Platinum Extended Service Contract covers all major parts, electronics, etc.

[Fahrfun]

The above chart is a typical marketing chart. The hint is already given in the wording of the header to legally protect themselves in court: “…With comprehensive coverage on most major components…” in contrast to exclusionary coverage. To find out each component that their policy actually covers, OP should look for a copy of the policy itself. Start on the BMW website if they still offer the link, or search this forum. One member posted a while back that some air suspension part went out at just over 50k miles and a lot of discussion ensued on the subject from that incident. I read the contract that someone posted back then and saw that a few components in the engine, suspension and electronics that I wanted personally covered for the next 10 years from experience were not in there. It’s up to each individual to do their homework, educate themselves and make their choice. I’m simply advising the readers that a comprehensive coverage is the opposite of an exclusionary coverage and that each option considered needs to be reviewed at the contract document level.

[TurtleBoy]

Originally Posted by Fahrfun

The above chart is a typical marketing chart. The hint is already given in the wording of the header to legally protect themselves in court: “…With comprehensive coverage on most major components…” in contrast to exclusionary coverage. To find out each component that their policy actually covers, OP should look for a copy of the policy itself. Start on the BMW website if they still offer the link, or search this forum. One member posted a while back that some air suspension part went out at just over 50k miles and a lot of discussion ensued on the subject from that incident. I read the contract that someone posted back then and saw that a few components in the engine, suspension and electronics that I wanted personally covered for the next 10 years from experience were not in there.

Whatever you want to believe is fine but have never seen anyone have an issue getting something covered. The contract should definitely be looked at though for details. There is no extended service contract available for 10 years of coverage so that is moot.

[Fahrfun]

My exclusionary contract is 10yr/100k but is only offered at new purchase (it’s not bmw). On our latest Mercedes the dealer offered 10yr/100k exclusionary coverage through Zurich insurance. Now, for OPs purpose, on a used vehicle, he is likely to get only 5 to 6 year offerings typically (and needs to check with issuer what date it starts from) but I’ve seen mileage coverage up to 150k (again, not the BMW one). Also, OP should look at the BMW contract to verify who is actually underwriting it. Oftentimes, a manufacturer uses a third party insurer on these extended service contracts unless they actually want to be in the insurance business themselves. That’s all the time I can contribute today.

[TurtleBoy]

Originally Posted by Fahrfun

What’s up with you today?? We are here to help the OP and offer options to think about. My exclusionary contract is 10yr/100k but is only offered at new purchase (it’s not bmw). On our latest Mercedes the dealer offered 10yr/100k exclusionary coverage through Zurich insurance. Now, for OPs purpose, on a used vehicle, he is likely to get only 5 to 6 year offerings typically (and needs to check with issuer what date it starts from) but I’ve seen mileage coverage up to 150k (again, not the BMW one). Also, OP should look at the BMW contract to verify who is actually underwriting it. Oftentimes, a manufacturer uses a third party insurer on these extended service contracts unless they actually want to be in the insurance business themselves. That’s all the time I can contribute today.

Not sure what your question is concerning since I'm doing the same thing and said the contract should be reviewed for details. I never addressed what you had or what third party's offer, I specifically was talking about BMW's Extended Service Contract.

[Fahrfun]

Thanks for the clarification. In that spirit, my original reply to OP was meant to inform that the BMW extended “warranty” is not the only option available and for some people may not be the best or most cost effective option. I advise to compare various offerings and understand what’s in each actual contract to avoid potential disappointments later. I provided an educational link as a starting point to begin the due diligence process.

[TurtleBoy]

Originally Posted by Fahrfun

Thanks for the clarification. In that spirit, my original reply to OP was meant to inform that the BMW extended “warranty” is not the only option available and for some people may not be the best or most cost effective option. I advise to compare various offerings and understand what’s in each actual contract to avoid potential disappointments later. I provided an educational link as a starting point to begin the due diligence process.

Absolutely good information.

They should also make sure they look for aggregate totals and current value limitations.

[dougiep]

Hey TurtleBoy and Fahrfun

big big thanks for your insights and thoughtful replies. That's just the kind of feedback I was hoping to get as I evaluate options. Really appreciate you taking the time to respond.

[JK479]

Originally Posted by Fahrfun

Thanks for the clarification. In that spirit, my original reply to OP was meant to inform that the BMW extended “warranty” is not the only option available and for some people may not be the best or most cost effective option. I advise to compare various offerings and understand what’s in each actual contract to avoid potential disappointments later. I provided an educational link as a starting point to begin the due diligence process.

When you are in BMW service- it's a lot easier to get the car fixed with bmw's extended coverage verses Zurich or other warranties (Allstate is complete, worthless paper).

My advice- prepay the service and roll it into the loan. Air filters 200.00 front vents and 300.00 for example are covered on the major service after 50k. Prices could change in the future so you are locking in todays price.

[FCX5]

Originally Posted by Fahrfun

https://joinyaa.com/guides/yaa-extended-warranty/

If you do decide on extended warranty (legally known as Vehicle Service Contract) the above source offers in depth information on that subject.

The most important aspect is to obtain and read the entire coverage document before signing up. The best coverage comes from an explicitly defined exclusionary policy… one in which the contract states only what it does not include. They also cost the most. Extended “warranties” are insurance policies which, like any other insurance, are fundamentally to profit the issuer. Else they’d be out of business fast. Note: last I checked, BMW “branded” extended service contracts were NOT exclusionary. Their most expensive one still did not cover some of the key components statistically most likely to go wrong. My BMW dealer also offered other policies from other issuers for that reason. Take some time and do the homework… always good advice.

I have the CPO wrap on mine, which is similar to the Platinum that Turtle mentioned. Other than trim pieces, it covers everything major based on my experience. I have got this warranty multiple times now since I usually buy CPOs and never had a problem with BMW coming through.

But I agree, these are insurance policies. Buys you peace of mind…

[thereef510]

I'm in the same boat as you OP. leased a '20 40i, now you can't get many of the options that were in mine, with a much worse idrive version than the one I have. So I'm also buying it out, and skipping on any extended warranties.

[eelnoraa]

Originally Posted by JK479

When you are in BMW service- it's a lot easier to get the car fixed with bmw's extended coverage verses Zurich or other warranties (Allstate is complete, worthless paper).

My advice- prepay the service and roll it into the loan. Air filters 200.00 front vents and 300.00 for example are covered on the major service after 50k. Prices could change in the future so you are locking in todays price.

Why is air filter $200? OE air filter is like $20. Replacement is 5 min taking a few screw off the air box in engine bay.

Btw, prepaid maintenance plan is not extended warranty/service contract. Former covers factory recommended maintenance items. Latter covers repair for components broken down. Very different.

[swainbmw]

Originally Posted by dougiep

Hi - Coming up on lease end of 2020 X5. I'm planning to purchase as she's been great and based on used car prices .. the negotiated lease-end purchase price is pretty attractive. She's got 45k miles and so has a little warranty left.

Two questions i'd love some advice on

1. Does anyone have experience negotiating off of the agreed to purchase price from the initial paperwork? It's seems pretty straightforward .. like I signed something 3 years ago agreeing to this price .. but in the back of my mind I'm hearing the "everything is negotiable" mantra.

2. Any recommendations on extended warranty and extended service plans?

I'm going to meet with the dealer folks next week to understand the options/cost more specifically ..but would just love any perspective if you've purchased .. or not purchased and wish you had, or whatever.

Thank you!

Curious, what's the residual value ?

[JK479]

Good question- service gave me these rough quotes on air filters for the cabin. I think it’s legit…

[scsfll]

Originally Posted by TurtleBoy

You will have to provide some specific examples as that has never been the case that I have seen. While not the same as the new vehicle warranty, the Platinum Extended Service Contract covers all major parts, electronics, etc.

The Guibos is not covered by BMW Patiinum but by Alstate. $2k repair and common at60k miles on my '22 M550xi

[BitteEinBit]

Originally Posted by FCX5

I have the CPO wrap on mine, which is similar to the Platinum that Turtle mentioned. Other than trim pieces, it covers everything major based on my experience. I have got this warranty multiple times now since I usually buy CPOs and never had a problem with BMW coming through.

But I agree, these are insurance policies. Buys you peace of mind…

How much was the CPO Wrap?

[FCX5]

Originally Posted by BitteEinBit

How much was the CPO Wrap?

I got it from someone on this forum and it was $3000. So far it’s been very good for me mainly because I get loaner cars and my dealer (BMW of Fairfax) is awesome…It covers everything except for trim pieces.