Be extremely careful how your intended extended warranty contract is worded. I have a 3-year extended warranty contract on my 1994 740iL that I think I selected very carefully. I wanted one that would cover my Nikasil engine block if I ever had trouble with the sulfur contamination problem. Concerning the engine part of the contract, most contracts are worded something like they will cover the repair of a engine if damaged by a rotating lubricated internal part. A contract like that would never cover the replacement of a Nikasil engine block if it became necessary!