Extended Warranty

[hopz]

I sold my K12RS partly to avoid what I consider to be a future with expensive repairs. (OK- not really, but it is a worry). I am loving my R12RT, but continue to read and hear about final drive failures- such as the 5 week Tour over on the Ride Tales section.

 

MY opportunity for extended warranty ends in about 3 weeks- so I feel like I need to make a decision.

 

What is the consensus on the issue? Get it- yes/no? Are there any reputable non-BMW providers? Experiences and stories are always welcomed.

 

Is the final drive thing a myth/urban legend or not?

 

Thanks, Bob

[SageRider]

Based on my 1100: Buy the warranty in a heart beat.

Based on my 1200: Who needs it.

Based on my overall BMW experience: Buy it. If you don't need it, it will be the best money you've ever wasted.

[marcopolo]

You asked whether the final drive thing is a myth, or urban legend. I'm the guy whose final drive failed on the five-week ride, so it wasn't a myth for me. That said, I'm not sure what, if anything, that proves. Only BMW knows the number of final drives that fail under warranty, and at what mileages, but of course like any manufacturer, they'll keep that info to themselves. I'm not sure anecdotal evidence proves anything, my experience included. I might not be so sanguine about it, if I were off the road for more than the two days I was, or if I had to pay the $2000.

[Tapatio]

Look at it like an investment. Take into consideration how much you ride, your mechanical abilities and how long you plan to keep your bike. I just purchased an extended warranty for about $900 because I commute daily and average about 15k per year making my 3 year/36k warranty absolete in 2.4 years. I have some mechanical skills but that only covers fluid changes and routine tune-ups. One major repair during my extended warranty period will easily cover my investment.

[pokorskij]

Who did you purchase the extended warranty from? For $900 how long and how many miles are covered.

 

Thanks

[bakerzdosen]

I bought one and my only regret is that I did it at the time of purchase. You can always buy one before your warranty expires, so there's no real benefit to buying early UNLESS they offer something in addition to the BMW factory warranty. Mine does (a menial motel allowance I believe) but it's not worth having purchased it a few years "early".

 

I bought mine just because I knew I'd put a bunch of miles on it. Mine is an additional 3 years (6 total) and unlimited miles.

[Mike05]

I'm new to the whole "Extended Warranty" question(s) but you raise a point I'm curious about:

 

Are you able to purchase an Extended Warranty after the initial (bike) purchase date? From....? BMW? Ask the Dealership where I bought the bike??

 

I'm in the final year of the standard warranty package and am more then a little curious as to options.

[Tapatio]

I purchased an extended 5 year/unlimited mile warranty through my BMW dealer (can't remember the carriers name right now). This particular carrier required that the bike be less than 1 year old with less than 12k miles. Essentially it will cover my bike for 2 years past the standard BMW warranty but it has the added benefit of unlimited miles. It is fully transferable in the event I sell the bike so it increases the resale value.

[Bullett]

Our dealer/salesman told us that we could purchase BMW's extended warranty anytime before the warranty period expired.

 

We did ask about whether it could be purchased later because he tried to sell it to us with our initial purchase and we were uncertain about shelling out the extra cash.

 

I haven't attempted to verify it.

[bakerzdosen]

Considering my dealer/salesman is the same as Bullett's, the info hasn't changed much in the past year.

[glockster]

I purchased mine through my local BMW dealer. It is underwritten by a company called, "Aftercare". I could have purchased it anytime, up until the factory warranty expired.

 

I added 3 years to the term. My bike's in service date was 12/31/04. The additional 3 years covers it until 12/31/2010.

 

It is unlimited in mileage. Cost was just under $1000. About a $1 a day for the additional coverage. I spend double that on coffee everyday. For me the peace of mind is well worth it.

[Twisties]

Well, here's the thing: You KNOW that the warranty is priced to make a profit, therefore it is obvious that the AVERAGE cost of repairs in the extended warranty period is less than the price of the warranty. Therefore the history of the specific model/product really doesn't enter into the decision too much. It sets the specifics, but doesn't alter the overall equation.

 

Then, the warranty is about managing risk. If the warranty's are going for $900-$1000 we can assume that the average cost of repair is less than that, my guess, $700 - $800 since they have to cover administrative, marketing, and repair costs, plus make a profit. I assume there is some risk for the warrantor in missing their cost to repair estimate, but we can assume that they have been doing this a while and are pretty good at it, or they would be out of business.

 

So if the average cost of repair in the extended warranty period is $750, your specific cost of repair could be anywhere from $0 to several thousand.

 

Are you willing to spend $1000 to ensure that you will not need to spend several thousand, knowing that the average is $750, and you could make out with $0?

 

The answer is as follows: The choice depends on your tolerance for risk. Clearly, without question, on average you will save money without the extended warranty. But the warranty makes sense if you can afford $1000, but would be hurt significantly by a several thousand dollar repair bill, e.g. you are averse to carrying that much risk.

 

Me, I have never bought one for anything and never regretted it (never paid the price with a costly repair). When I consider all of the extended warranty's I have turned down over the years, I am way, way, way ahead.

[Effjay]

<snip> Me, I have never bought one for anything and never regretted it (never paid the price with a costly repair). When I consider all of the extended warranty's I have turned down over the years, I am way, way, way ahead.

I tend to agree. My RT is just 3 months into BMW factory warranty, so I have a while to decide. I'm not too thrilled about the 3rd party insurance (not warranty). When I bought my 2004 FJR1300 in August 2003, I also bought the 4 year Yamaha extended warranty. Why? It cost me only $500 for 4 yrs additional coverage, it was Yamaha direct, not 3rd party -and- because the FJR has features unique at that time for the brand. I figured problems with the FI, ABS, electric windscreen, etc could easily exceed $500. Now the bike is for sale and has 1 year remaining of that extended warranty, which I'm hoping will help sell it at a fair price. BMW's bells-and-whistles are not new to the brand and I think the R series mechanicals are more sorted out that a single model such as an FJR where most everything is unique to that model. Time will tell what I choose to do 30+ months from now.

 

Jeff

[keithb]

Well this a slight hijack but applicable nonetheless. 3 years ago I bought an '03 4Runner with 25K miles on the clock and typically never buy extended warranties of any kind but I did on this occasion. The extended warranty cost me $800. Two months ago the A/C went on the fritz and I had a small leak in the timing chain cover. Take a guess what is cost to fix those items? Give up. Try $795. So now we are even on the initial outlay for the extended warranty. If anything happens to the vehicle within 2 years and 25K miles it is on the insurance companies dime.

[deejones]

I asked myself how much will I ride the bike in the next few years. I also considered if I wanted to keep the R1200ST. My answer was easy, I liked the bike. At 9months and 32k I called BMW of Charlotte from Denver Co.and took out the extended warrenty. At approximately 50k in the first year the rear end started leaking oil. The warrenty from Pinnacle covered. Just last week at 68900 miles the clutch started slipping due to a leaking seal. I had the seals and clutch replaced. The labor was covered due to faulty seals. I had to pay for the clutch.

My warrenty has already paid for itself and the bike is now a little over two years old. I'm happy I took out the extended warrenty. It was a good call for me.

I'd just ask yourself how much will you ride the machine? That should give you your answer. Best of luck on making your choice.

[motoguy128]

The extended warranty seems to make sense if you put on a lot of miles. But if you ride only about 6000-10,000/year, you don't seem to get much out of it. Your operating cost/mile, just goes up.

 

The real problem is that I need to ride more! Than I can justify an extended warranty.

[Ken H.]

<snip> Me, I have never bought one for anything and never regretted it (never paid the price with a costly repair). When I consider all of the extended warranty's I have turned down over the years, I am way, way, way ahead.

I tend to agree. <snip>

FWIW, all consumer advocate groups advise against them on all products. The odds are stacked heavily against you.

[motoguy128]

So then maybe the best advice could be to take the $1000 and invest it. Then maybe you'll have almost $1,500 4 or 5 years down the road if there is a failure after the factory warranty expires.

[russell_bynum]

<snip> Me, I have never bought one for anything and never regretted it (never paid the price with a costly repair). When I consider all of the extended warranty's I have turned down over the years, I am way, way, way ahead.

I tend to agree. <snip>

FWIW, all consumer advocate groups advise against them on all products. The odds are stacked heavily against you.

 

FWIW,

When we bought Lisa's BMW cage, we bought it "Certified Pre-owned"...which basically means it costs more than a similar used car, but it comes with a 100,000mile warranty.

 

With the repairs we've had done under the CPO warranty, we came out WELL ahead on that deal.

 

On my RT, it would have been a waste of money for me because nothing failed after the warranty period.

 

On Lisa's RS, the Motronic failed (a pretty rare failure), so and extended warranty would have just about paid for itself.

[awagnon]

FWIW, all consumer advocate groups advise against them on all products. The odds are stacked heavily against you.

 

True. It's like any insurance, the risks and costs are spread out between the buyers. However, for some, the certainty of paying $900 and having piece of mind that they won't have to pay two to three times that much for a repair is comforting. I bought one on my very first bike which I totaled six months later. To my surprise, the company gave me back a pro-rated amount of the cost. I probably would buy one with a 2005 or newer RT. Too many things to go wrong that I can't fix any more, and I don't want to worry about it.

[HexHead]

I'm new to the whole "Extended Warranty" question(s) but you raise a point I'm curious about:

 

Are you able to purchase an Extended Warranty after the initial (bike) purchase date? From....? BMW? Ask the Dealership where I bought the bike??

 

I'm in the final year of the standard warranty package and am more then a little curious as to options.

 

Yes you can buy them after the fact. But they are cheaper if you buy them within a short period after first buying the bike.

[dshogman]

Anyone have a website for the Pinnacle warranty??

Thanks.

[bobbybob]

One thing I haven't seen mentioned here: what are the *terms* of the ext. warranty? What are the *exclusions* and the *gotchas* ? I almost bought one for my FJR1300 until I took it home and read the fine print, and discovered that there were so many exclusions and mandates re. servicing, it was basically worthless....not anywhere close to a "bumper-to-bumper" warranty. When I told them never mind, they immediately knocked $300 off the price if I'd buy it. That kinda tells you again how worthless it was. How does the BMW warranty stack up?

[Limecreek]

I purchased one for my '02 RT and didn't use it.

 

I wish we had the failure rates by part subgroup for BMW motorcycles. With that data we could evaluate the risk of failure and then decide if the $600-$800 extended warranty policy is worth it.

 

A better idea would be to get our little community to band together and stock a few each of the major components that fail. We could offer our own protection plan and limit it to the parts we choose to carry and sell subscriptions for a much lower price. It would be a part swap only coverage. You would have to install it yourself or contract it out.

 

I'm over simplyfing what we could call our mechanical failure coop, but it could work.

 

To answer the original question --no don't buy the policy. Take the money and invest it; betting you will not need it for a repair. The anecdotal odds are in your favor.

[Don_Eilenberger]

One thing I haven't seen mentioned here: what are the *terms* of the ext. warranty? What are the *exclusions* and the *gotchas* ? I almost bought one for my FJR1300 until I took it home and read the fine print, and discovered that there were so many exclusions and mandates re. servicing, it was basically worthless....not anywhere close to a "bumper-to-bumper" warranty. When I told them never mind, they immediately knocked $300 off the price if I'd buy it. That kinda tells you again how worthless it was. How does the BMW warranty stack up?

I think the question still is - does BMW offer an extended warranty or is it simply dealers pimping some aftermarket warranty (which is all I've heard from dealers around me..)?

[Paul Mihalka]

There is no extended warranty from BMW, they are all from independent companies. If you are a high mileage rider, like running out of the factory warranty by mileage and not by time, a extended unlimited mileage warranty can be worthwhile even if it has it's limitations.

[Ben_Ricci]

I'm over simplyfing what we could call our mechanical failure coop, but it could work.

 

Now that's thinking outside the box. It probably would require a lot of effort to organize, launch and administer, but once it had legs, it would work. A maintenance co-op in general might be interesting, too.

[Don_Eilenberger]

There is no extended warranty from BMW, they are all from independent companies. If you are a high mileage rider, like running out of the factory warranty by mileage and not by time, a extended unlimited mileage warranty can be worthwhile even if it has it's limitations.

Paul, the rub with the independent companies - if the company stays in business (Google "WarrantyGold") - not every dealer's service department will accept a warranty company if the company has a history of being a PITA to work with or stingy and slow with payments.

 

At least with BMW cars - you can get an extended BMW warranty - which every dealer has to accept, and none of the foolishness with "inspection" before repairs.

 

The aftermarket warranty "can" have some value - but I wouldn't take it to the bank. Your best bet on buying one would be through the dealer you intend to have service the bike - at least they have some co-liability in the warranty payout.

[smiller]

The aftermarket warranty "can" have some value - but I wouldn't take it to the bank. Your best bet on buying one would be through the dealer you intend to have service the bike - at least they have some co-liability in the warranty payout.

This is a good point. In my experience you are totally dependent on the goodwill of the warranty company (and its financial health) if you expect an easy payout process. As Don noted the selling dealer may feel that he has some responsibility to help the process along, but other dealers and repair stations may not want to even mess with an extended warranty company because of past bad experiences. Bottom line, if you want to go with a non-affiliated extended warranty check the company out carefully in advance. It may be an interesting exercise to ask a dealer selling a third-party extended warranty whether they would accept one that they didn't sell or from a company that they hadn't dealt with before...

[woodnfly]

Just purchased my 07 RT a month ago along with a warranty from pinnacle,wish I had one on my 99 Rt, a month out of warranty and a 600.00 repair to the electrical/computer system.Aside from changeing fluids and valve adjustments todays bikes are full of surprises the ABS system alone can cost a bunch. For peace of mind and resale(mines transferable for 40.00) I feel an extended warranty is worth it.

[bimmers]

I had an external party extended warranty on my 740 and it for sure was worth it. My BMW dealer worked well with them (did not buy it through them) and no problems except that it expired two years "early". I thought the time started running when the BMW 4yr warranty ended but it started running when I bought it.

Nowadays almost any repair run into 1,000 bucks, unless it is something one can fix at home.

I ride about 5,000 miles a year and not very aggressively so we'll see what I will do in 18 months time when the 3 years are up.

on home electronics and such I would never buy it on computers always.