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I recently called my BMW dealer inquiring about an extended warranty for my 2002 which is due to expire in a few months. Heres what the finance manager told me:
  • BMW warranty is only available to the ORIGINAL owner (I'm the 2nd owner)
  • For non original owners they use a 3rd party provider www.sgiservices.com
  • For the top coverage "platinum" the cost for 5yrs/100k TOTAL mileage is approx $3800. No deductible, everything except wear and tire items are covered
why questions are:
  1. is the dealer correct that BMW warranty is good for original owners only?
  2. Does it seem odd that the dealer is using a 3rd party and couldnt I just go directly to them vs the dealer?
  3. Is $3800 "reasonable"?
many thanks in advance:thumbsup:
 

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kosmo said:
  1. is the dealer correct that BMW warranty is good for original owners only?
  2. Does it seem odd that the dealer is using a 3rd party and couldnt I just go directly to them vs the dealer?
  3. Is $3800 "reasonable"?
I'm presuming you meant that extending the original 4/50 factory warranty is available to the original purchaser only. Because the base 4/50 warranty goes with the car, not the owner. If he was trying to tell you that you're not eligible for 4/50 coverage as a second owner, then I'd quickly find another dealer....

3rd Party extended warrantees in recent years have been the ONLY option available from dealers. Only recently did BMWNA start getting back into the extended warranty business.

I bought mine a Warrantech RepairGuard Ultimate for roughly $3K about three years ago, so $3800 doesn't seem unreasonable now.

What's more important than the cost is (a) the financial stability of the insurer (just ask any WarrantyGold purchasers on the site!) and (b) your chosen dealerships willingness/ability to jump thru the hoops that your third party requires.

-Dave
 

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1. Yes
2. Looking at their website, SGI services is designed to "Maximize dealer profits" I'd bet they don't sell directly, and if they do at full retail pricing. Furthermore, I'd bet that there is a fourth or fifth party that actually underwrites the extended warranty.
3. 3800 is unreasonable in MY book. Unfortunately, that is around the going rate. Luckily you are not in CA. I would recommend AAA plans- much less risk of insolvency as compared to FlyByNight Inc. or whomwever underwrites SGI.


Keep in mind that when you are looking to buy a 3rd party warranty, the dealer will promise you that using 'their' plan will minimize any hassles in the future.

In a year, when you need the warranty, the dealer will blame the warranty company for (a) denials or (b) delays due to the 'not a BMW warranty'....

Just my pessimistic 2 cents...

A
 

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I am going thru the process of finding an extended warranty myself. I have contacted several local BMW dealers and the prices range from $2600 to $3600. One of the best that I have seen is thru Car-Care Connections, they cover 6 yrs/100,00 miles with zero deductible for $3200. They cover everything but wear and tear items. They will cover Nav and stereo and some of the lesser items not covered by others. Anyway, if anyone else has some good input of companies please let the Board know ASAP, well me anyway!!!:hihi: :typing:

Thanks and drive safe!!:M5launch: cherrsagai
 

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Just to clear the air, there is a wealth of info on these exact questions in this Board. Do a search and you will be amazed.


Many people I talk to (including those who are lawyers) get very little satisfaction from these 3rd party providers. Agreed, the key is your dealer's ability to take care of you when these things occur.

I bought my BMW NA (as the original owner) extended Maintenance and Warranty contracts a few months ago. Dealer was not even aware these were avail. The Warranty is a CPO deal. Maintenance, an extension of the existing program. Was not cheap either. The maintenance was around $1700 and the Warranty around $3300. Cutting a check for $5K for nothing for a few years down the road was not all that appealing but I felt it gives me piece of mind and if I should sell it early on (to get the new bad boy), well the buyer will enjoy the benefits (and pay the additional price I paid for their piece of mind - all from BMW, not a 3rd party).
 
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