In Reply to: This would be an example: -more posted by Tom Oliver on January 13, 2000 at 16:34:19:
the person who takes $800 into a casino and comes out with $3600. You hit it lucky. But extended warranties stay around for the same reason casinos do. Most people don't beat the odds.
When I was younger and thought it a good idea, I bought an extended warranty on a Triumph TR7. If ever there was a car with decent odds of needing one, that was it! Well, I guess I got one of the better TR7's. Mostly it just had your usual Lucas gremlins with repair bills too small to meet the deductible. Then the rear end went out 2 months after the extended warranty expired!
: I bought a '93 325is 3 years ago, (since gone for a 96 328i), and there was a total of $3,600 in repair done during that timeframe. This including the computer that failed and had to be replaced which was over 1k by itself. I had taken out an extended warranty which cost my $800 for 3 years, 36k miles and for me, it paid for itself.
: : whose budget could get badly wounded by unexpected major car repairs, and who know that either he/she and/or spouse may not have the discipline to put that money aside and leave it alone for the several years that car will be kept. Those people should go ahead and get an extended warranty, especially if they are a chronic worrier about such things, and yes it is negotiable like just about everything else at a car dealer.
: : : Absolutely & people seem to forget if nothing real expensive does break (odds are pretty good it won't) then you get to KEEP all that money.
: : : This just reiterates the whole point of skipping the extended warranty, and investing that amount elsewhere. One can easily estimate the value using probabilities...That's how it's priced by the carrier: Deutsche Finance AG, subsidiary of Deutsche Bank AG if memory serves.
: : : Actually, since everyone's mileage varies, I think those people who DO buy it seem to overlook the fact that the cost of Extended Wty is negotiable - just like any other *option* sold at a dealer...There's no reason to pay full MSRP...As always, shop around.
: : : You know, re: this situation, I'm almost 100% sure that the timeframe for electing the Extended Wty is 12mos/10K mi. from date of original sale. Therefore, we must be discussing a "Certified Used BMW", correct?