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Stu K

Extended Warranty- Worth it?

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Stu K

So after purchasing the 2015 RT and realizing the BMW warranty expires May of 2018, is it worth to purchase an extended warranty for $1700 for 3 years with $100 deductible. Thoughts?

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avu3

Who's warranty is it?

 

You're probably ok if it's an actual BMW warranty.

 

Aftermarket companies can be very unreliable and difficult to pay claims on. The only way I'd consider aftermarket is if

a) The service manager says they're really good to work with paying claims

2) You intend to get most to all of your service done at this dealership

iii) You feel confident this dealership will be in business throughout the period of your warranty.

 

The bike industry is generally not healthy. Bikes are not selling well. I'd have a real concern about a dealership, any dealership, getting sold or going out of business and I'd have a real hard time buying any aftermarket warranty because of that.

 

Edited by avu3

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Dennis Andress

Most of the 5 or 6 car and bike EWs my wife and I have bought were never used. One of them replaced the engine of my K12RS. Another one paid for a bunch of tranny work on my wife's high mileage K12RS. The work wasn't really needed, but was nice to have done when we sold the bike.

 

Think of an EW as a numbers game. First you have to put more than 36K miles on your bike, or keep it past 3 years. Then you have to ride it enough for something to fail.

 

On the other hand, I bought that K12RS used, with 30K on it. It came with an EW, which was a big motivator in my buying in.

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Bob H.
So after purchasing the 2015 RT and realizing the BMW warranty expires May of 2018, is it worth to purchase an extended warranty for $1700 for 3 years with $100 deductible. Thoughts?

I paid $1,150.00 for my extended warranty which is good for 84 months and unlimited miles, (14RT) and after a front universal joint failure on the drive shaft at around 74,000 miles my investment more than paid for itself. Definitely a good investment in my opinion .

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John in VA

I bought an extended warranty on my 06 RT. It paid for about $1000 in various repairs, including a failed fuel pump. A few months after that warranty expired, two seals failed as did the ABS module -- total $2800 out of my pocket. Ouch. Maybe that bike was just a miserable lemon but BMW parts are complex and some repairs are absurdly expensive so I'll never own a BMW without protection.

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Stu K

The warranty is not BMW, but per the dealer it is honored at BMW dealerships in the USA.

I will not be servicing it at that particular dealership, that was why nationwide service seemed like a good idea.

Thanks

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Stu K

sounds like you got good value for your money as mine would coast more and cover significantly less time...

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Stu K

That's kind of what worries me so I thought I'd ask the question to people more familiar with the bike then me...basically $50/month to protect against what if's....

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Stu K

I'm usually not a fan of extended warranty's but knowing how expensive repairs are, seems like this one may be worth hedging my bets on...decisions, decison....

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Bob H.
I'm usually not a fan of extended warranty's but knowing how expensive repairs are, seems like this one may be worth hedging my bets on...decisions, decison....

Stu, my extended warranty is through XtremeGard ServiceGuard Systems Inc. ,I purchased it through Hermy's BMW in Port Clinton ,PA where I bought my 14RT. If you haven't already purchased a plan I'd suggest you check into this company , good price and great coverage, of a $1,344.35 repair bill I only paid $124.68 to cover state sales tax on the part and my deductible.

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Stu K

I haven't purchased it yet. BMW warranty expires May of 2018. I cant remember the company but it wasn't XtremeGuard.

Thanks for the lead as I will definitely check into.

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John in VA

You have plenty of time left but you might want to get a phone quote on a Zurich warranty from Bob's BMW in Jessup, MD.

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RTinNC

Also check out RPM One. when I bought my new 2016 RT I got an added 5 years to my OEM 3 years with zero deductible for less than $1000!

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Stu K

Thank You!

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Stu K

Thanks...that seems like the best deal yet!

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Stu K

So I assume that it doesn't matter which dealer you bought your bike from when buying the extended warranty?

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realshelby
So I assume that it doesn't matter which dealer you bought your bike from when buying the extended warranty?

 

You don't have to buy extended service contracts through the bike dealer. They are the middle man. When buying non-BMW service contracts, going straight to the provider is often much cheaper.

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Stu K

Good to know, thank you!

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BanjoBoy

Buy More Warranty :grin:

 

 

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Marty Hill
Buy More Warranty :grin:

 

Buy More Warranty :grin:

 

 

Truly a classic comment!

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Dennis Andress
Buy More Warranty :grin:

 

Buy More Warranty :grin:

 

 

Truly a classic comment!

 

:wave: When will be out West again?

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Marty Hill

Hi D and L. Be next spring. Headed to Europe in a couple of weeks. After that, only south when it gets cold. Miss you both!

 

Marty

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RTinNC
So I assume that it doesn't matter which dealer you bought your bike from when buying the extended warranty?

 

It does not but I always buy through MY dealer since they are most likely the one who will be dealing with any claims and THEY have a relationship with the companies they sell. Not sure all carriers allow you to go direct but they may. BUT ... you can buy the contract from any dealer anywhere. If you get a better price than what your dealer offers I would go back to them and give them a chance to match the deal. Remember it is YOUR dealer who you want to build the relationship with as that will pay off in the end.

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Stu K

Thanks for the advice...makes sense. After the new year I will reach out to a couple companies that others have used and suggested and then go back to the dealer and see what they will/can/want to do.

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pm58590
On 8/18/2017 at 1:29 PM, Bob H. said:

I paid $1,150.00 for my extended warranty which is good for 84 months and unlimited miles, (14RT) and after a front universal joint failure on the drive shaft at around 74,000 miles my investment more than paid for itself. Definitely a good investment in my opinion .

Where did you get that warrantee?

 

pm58590@yahoo.com

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RTinNC
2 hours ago, pm58590 said:

Where did you get that warrantee?

 

pm58590@yahoo.com

e-mail sent 

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Janky59

I bit the bullet this weekend on a 5 year extension to my ‘18 RT. $2,133 to Riders Advantage thru Bob’s BMW.

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JamesW

If I felt I needed an extended warranty on a motorcycle I was contemplating purchasing I would think twice about making the buy in the first place.  This would go double for a new BMW.

 

Actually, I would never ever buy an extended warranty not in this lifetime on anything.  If I even remotely thought about needing an extended warranty I would not only walk but run as far as I could get from whatever the piece of crap is I was thinking of buying be it car bike or whatever.  This pretty much leaves a new BMW out of my future.

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John Ranalletta
32 minutes ago, JamesW said:

If I felt I needed an extended warranty on a motorcycle I was contemplating purchasing I would think twice about making the buy in the first place.  This would go double for a new BMW.

 

Actually, I would never ever buy an extended warranty not in this lifetime on anything.  If I even remotely thought about needing an extended warranty I would not only walk but run as far as I could get from whatever the piece of crap is I was thinking of buying be it car bike or whatever.  This pretty much leaves a new BMW out of my future.

 

I never buy extended warranties.  YMMV.  I figure a group of green-shade actuaries worked feverishly to calculate the odds of having to pay out on the warranty are very, very low; so, I'll place my bet with them.  Lightning could strike, but then, we ride motorcycles, right?

 

The exception might be the car owner who's nearly broke; who can afford the warranty but couldn't afford the repair.

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Hosstage

I'm not a fan of extended warranties. I had one once on a Jeep I owned, and used it once, to replace a u-joint, cost me $50 copay. Total bill was $75, so I saved myself $25 for a $750 policy.

I once bought a cheap CD player for $24 from Sears, the cashier asked if I wanted warranty for $6. Told her no, I'll take my chances. She seemed surprised that I would roll the dice like that.

If I buy a high dollar item, car, bike, appliance, and it won't last 5 or 7 years with some minor repairs, well then it is just plain a pos, and I will look elsewhere next time.

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Hosstage

That goes for home warranties as well, first appliance is only $10 a month, totally worth it!(?) Then add in the rest, I mean you can't afford not to! Pretty soon it's $50 or more a month, $600 a year. That buys a LOT of appliances and repairs over ten years.

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Hosstage
1 hour ago, John Ranalletta said:

 

 

The exception might be the car owner who's nearly broke; who can afford the warranty but couldn't afford the repair.

If they can afford the warranty, but can't afford the repair, they probably can't really afford the car in the first place.

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John Ranalletta
30 minutes ago, Hosstage said:

If they can afford the warranty, but can't afford the repair, they probably can't really afford the car in the first place.

 

Maybe, but there are lots of folks operating on a shoestring today and need a car for work.  I'm guessing they're not buying extended warranties with their scant cash.  

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Hosstage
1 hour ago, John Ranalletta said:

 

Maybe, but there are lots of folks operating on a shoestring today and need a car for work.  I'm guessing they're not buying extended warranties with their scant cash.  

Actually, they probably are buying warranties because it "only adds a few dollars to the monthly payment".

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JamesW
3 hours ago, John Ranalletta said:

 

I never buy extended warranties.  YMMV.  I figure a group of green-shade actuaries worked feverishly to calculate the odds of having to pay out on the warranty are very, very low; so, I'll place my bet with them.  Lightning could strike, but then, we ride motorcycles, right?

 

The exception might be the car owner who's nearly broke; who can afford the warranty but couldn't afford the repair.

 

John, I absolutely positively could not have said it better myself, agree 110%.  If I had a buck for every time I get a bogus phone call from some nerd trying to sell me an extended warranty on my 10 year old Mustang GT/CS I swear I could retire again.

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Skywagon

Janky59....There is no perfect answer to this...It's basically insurance on a machine.  If you don't get it and don't need it you are thousands ahead obviously.  If you do have a major issue out of warranty on a BMW it's usually quite expensive.  One of the members here had an alternator (rare) go out on his wethead out of warranty.  If memory serves me right the bill was $3500 or so.  The engine has to be removed to replace the alternator.

 

I don't buy extended warranty and across many vehicles and decades I am ahead.  I always debate it when I buy a new vehicle and in the end I've never done it.  I am on my 4th RT.  Three of them bought new, one bought with 12,000 mile on it.  I have never had a major repair on any of them.  I am religious about required maintenance.

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RandyShields

Most financial and insurance experts agree that extended warranties on any product are a bad investment.  First, they are designed to put a sizable commission component of the price in a dealer's pocket when purchased at the time of a product sale (ergo, why dealer's have "Ancillary Product" teams to sell add on products of all sorts (from tire/wheel coverage, fabric protection, and similar service contracts)).  Second, the likelihood of needing to tap the warranty is low, meaning the product is a cash cow for the seller.  The standard loss ratio for more traditional insurance products like life insurance is very close, so that most premiums are paid back for claims, leaving a small profit for the insurer.  Not so with extended warranties and like products (which are generally not regulated by the insurance commissioner of the state of the seller); and finally, some serious problems are not covered by the extended warranty, resulting in a claim denial or a fight that the consumer will probably lose.  Save your money and pay for any unexpected product problems out of your own pocket.  You will save money in the long run, and likely the short run.

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RTinNC

Much like oil threads and tire threads .... This debate continues on and on and the same arguments continue to be made.   I have never bought an extended warranty until my first BMW motorcycle.  Since then I have always bought an extended warranty when buying a new BMW.   The warranty amounts to literally pennies a day or mile ridden.  And it is insurance and much like the insurance I buy on my car or home I hope I never need it.  But when I do I like knowing it is there.  Much like the insurance on my car where I could buy the very minimal coverage and "self insure" any situation I might incur I chose to buy the highest liability coverage possible.  So my 8 year extended warranty on my motorcycle provides me 8 years of unlimited coverage and I do not have to worry about any part failure that can easily cost well over $1000.   In addition should I sell my motorcycle before the warranty expires I have 2 options 1) getting a refund not the unused portion or 2) selling my bike WITH the extended warranty and transferring it to the new owner.  While that won't necessarily get me more $$ for my motorcycle it certainly will make my motorcycle more attractive to a prospective buyer,  and I know that works as I have sold 2 motorcycles in the past where it was my extended warranty that attracted the buyer.  

 

When folks ask what warranty to buy I always tell them to work with their local dealer as they are the ones filing the claims and dealing with the Warranty company.   Over the years I have had only a few claims submitted and it was totally invisible to me.  The dealer did all the work and I paid zero.   If I just looked at what the warranty cost me for only the 5 years added to the OEM (they also pick up if you exceed the 36K miles) the cost per day is about 50 cents.   Or based on riding 10,000 miles a year the cost is less than $.02 a mile.   In addition of you buy it at the time you buy the motorcycle you can negotiate a really good deal and just about get it included in the price of the bike.  Of course YMMV. 

 

So long as you shop right and buy the right extended warranty most all of the bikes components are covered.   Buying or not buying an extended warranty is a personal choice and each rider makes his or her decision.   For me I prefer the peace of mind knowing I will never have an unexpected expense for any of my motorcycles. 

 

 

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Dave_in_TX

The markup on extended warranties is high so if you're willing to shop around or negotiate, you could save hundreds of dollars. I don't think extended warranties on motorcycles make sense for most people. I have had extended warranties on all my BMW motorcycles but that is because I tend to put high mileage on them averaging 25-30k miles per year. I have an extended warranty on my 2020 R1250GS purchased new last May and currently have over 23k miles on it. Based on past experience, I'll probably go through at least two sets of TPMS sensors (about $1000), so the difference is small enough that I feel it is worth it as insurance against something like a failed alternator or even failing switchgear.

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Ponch

1700? Put the money in the bank instead. If something goes wrong, you'll have something to cover it, if it doesn't, you have a down payment on your next bike. 

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RTinNC
On 4/10/2021 at 11:37 AM, Ponch said:

1700? Put the money in the bank instead. If something goes wrong, you'll have something to cover it, if it doesn't, you have a down payment on your next bike. 

I have never ever paid $1700 for an extended warranty not even close. 

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Ponch
1 hour ago, RTinNC said:

I have never ever paid $1700 for an extended warranty not even close. 

 

Unfortunately they are asking Stu K. I paid $355 for a 3 year extension on my 1600 Nomad. That was worth it. 

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RTinNC

Then I would shop around for sure since you can buy the extended warranty from any dealer

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szurszewski

A friend just bought a new left-over 2018 Triumph. The dealer offered a few extended warranties with the high end adding FOUR THOUSAND dollars. What? He declined ;)

 

 

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Ponch
37 minutes ago, szurszewski said:

A friend just bought a new left-over 2018 Triumph. The dealer offered a few extended warranties with the high end adding FOUR THOUSAND dollars. What? He declined ;)

 

 

 

What I think it comes down to is profit metrics. Every person that comes in for service represents a $ amount. Every sale that gets made represents a $ amount. So, They may want to make $2-3K on a sale and every person that comes in needs to average $600 a person. With a leftover that they probably had to discount a lot, they need to make that up in ADP or additional dealer profit. That can be with loans or service contracts. They will often charge higher/ridiculous doc fees and in some cases double dip, as with HD, the manufacturer reimburses the dealer for setup, yet many HD dealers charge for it as people are ignorant. With loans, there is the difference between buy and sell rate. A dealership may get a loan for someone at 2% and turn around and sell it at 6%. That's 4 points. Anyway, that's all I got. 

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szurszewski

My friend walked in with a bank check, so I’m sure they were keen to make some money on the warranty as they weren’t getting anything from financing. 

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Ponch
On 4/14/2021 at 10:17 AM, szurszewski said:

My friend walked in with a bank check, so I’m sure they were keen to make some money on the warranty as they weren’t getting anything from financing. 

 

Usually they won't give a deal on cash buys before that. The key to getting that good deal with cash is not disclosing payment to the very end and I mean in the F&I office, not sales. They will try to pump you for how you're paying for it before they commit to a price. It's a big game/scam. 

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Hosstage

I bought a bike at a dealer, got the price, went in to pay for it, and was told that is not the cash price, that is a finance price, cash was $1000 more. I was quite taken back, said fine, and paid it off the next day. A little extra credit building for me, no real earnings for them.

And no extended warranty.

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szurszewski
16 minutes ago, Hosstage said:

I bought a bike at a dealer, got the price, went in to pay for it, and was told that is not the cash price, that is a finance price, cash was $1000 more. I was quite taken back, said fine, and paid it off the next day. A little extra credit building for me, no real earnings for them.

And no extended warranty.

That way is only a loss for the shop if they get paid over time by the interest. If they just get an origination fee/kickback from the actual loan owner, it’s no difference to them when you pay it off. 

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Ponch
19 minutes ago, szurszewski said:

That way is only a loss for the shop if they get paid over time by the interest. If they just get an origination fee/kickback from the actual loan owner, it’s no difference to them when you pay it off. 

 

Actually they lose points if you pre pay it.  Sometimes a cash buyer would or should do that when they have two different prices. Take the loan and pay it off before a month is out. The only way they might be incentivized not to f with a cash deal is if they are down with their sales quotas and it's end of month/quarter/year. Even then they'll try to squeeze you. You have to go in with titanium balls. 

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