Buy extended BMW CPO warranty or self-insure?

Rick Lee · Rick Lee's Garage

I have 84k miles on my 2018 530i and love, love, love this car. I've had one minor warranty repair done in just under two yrs of ownership. The five yr. in-service anniv. is coming up in a month, which is when the CPO warranty ends. I drive 30-35k miles per year. One yr extension is $2750 and two more yrs is $4000. I think you're all gonna tell me to self-insure, but just wondering what could justify forking out the money for either of these.

RANDY P · RANDY P's Garage

Nope. You're gonna need the cash for mandatory 100K maintenance anyhow...

Gogar · 03-02-2023, 03:55 PM

I think you need to be careful about what's covered in the extended warranty and then cross reference it with the known issues for that motor between now and 150k. I only have experience with one BMW but between 90 and 120k it's been manageable but there's always something going on.

Alan A · 03-02-2023, 04:24 PM

Does that one have the twin turbo that all go south at 120k setup?

Rick Lee · Rick Lee's Garage

It's the turbo, but I've not heard about them having engine problems at 120k or after. If it's ticking time bomb, then I might be better off trading in for something newer and with lots of warranty left. But, if I opt for two more yrs of CPO warranty, I'd want to drive it every single mile I need to drive to get the most out of that time. I just don't know. I've had pretty good luck with cars, not too many major repairs.

Steve Carlton · 03-02-2023, 04:28 PM

My operating assumption is whatever you do, it'll be the wrong choice.

Do a search to see if there's any BMW dealers discounting CPO extensions.

Alan A · 03-02-2023, 05:55 PM

Quote:

Originally Posted by Rick Lee

It's the turbo, but I've not heard about them having engine problems at 120k or after. If it's ticking time bomb, then I might be better off trading in for something newer and with lots of warranty left. But, if I opt for two more yrs of CPO warranty, I'd want to drive it every single mile I need to drive to get the most out of that time. I just don't know. I've had pretty good luck with cars, not too many major repairs.

Turbo issues, not engine.
Friend of mine had a 335 - turbos went bad at 110k. His mechanic said they all do. He bought it CPO and he had a warranty, so it cost him a couple of hundred instead of a couple of k. He still has the car with over 160k on it now.

So it’s an anecdotal response. But still a data point.

Rick Lee · Rick Lee's Garage

Mrs. Lee has an MB GLA 250 she's not in love with, but I really, really like. Maybe she'll find something else she likes and can use my car for a trade.

MBAtarga · 03-03-2023, 05:52 AM

Rick,
Would you want to consider a Fidelity warranty instead of CPO? I've got a contact that gives great discounts - I can PM you.

Rick Lee · Rick Lee's Garage

Quote:

Originally Posted by MBAtarga

Rick,
Would you want to consider a Fidelity warranty instead of CPO? I've got a contact that gives great discounts - I can PM you.

I'd definitely take a look. Please send along.

I've heard some dealers run deals or promos on warranties, so I need to start a post on Bimmerfest and see if anyone knows of such a deal. Still not sure I'll do this for even a lower price, but just trying to figure out how long I'll keep the car or how much self-funded repair pain I will want to risk.

aschen · 03-03-2023, 09:40 AM

Normally Id say no, but 35k miles per year may have a positive expected value.

Sooner or later · 03-03-2023, 09:47 AM

Quote:

Originally Posted by aschen

Normally Id say no, but 35k miles per year may have a positive expected value.

I agree

Steve Carlton · 03-03-2023, 10:34 AM

Quote:

Originally Posted by MBAtarga

Rick,
Would you want to consider a Fidelity warranty instead of CPO? I've got a contact that gives great discounts - I can PM you.

Fido warranties are good quality.

Rick- if you're going to put 70,000 miles on the car during the 2 year extension, $4,000 is a no brainer, especially if you can get it with a discount. What's the deductible, $50? Take a guess at what you'll spend out of pocket during those 70,000 years and subtract that from the $4,000, and there's your cost of piece of mind against a catastrophic failure. I would confirm it covers the turbos, though. I'm sure it does.

https://www.bmwusa.com/content/dam/bmwusa/common/certified-preowned/BMWCPOWhatIsNotCovered.pdf.asset.1658508607260.pdf

The other question is what will your car be worth with 150-160,000 miles on it. I'm sure you'll take a big hit there.

Rick Lee · Rick Lee's Garage

Quote:

Originally Posted by Steve Carlton

Fido warranties are good quality.

It was way more than the BMW extended CPO and with more restrictions. The everything included plan cost north of $20k. Not a typo. The bare bones drivetrain warranty with a $500 deductible was still over $5k and I'd hit the 48k mileage limit in about 18 mos. So IF I do this, it will likely be through BMW and I'm waiting on a quote from a dealer in CA known to discount this stuff. Route66 seems to have pretty good deals, but is only offered through some banks I don't have an account with. Might look into that, but probably not worth the legwork.

Steve Carlton · 03-03-2023, 11:43 AM

I wouldn't expect there to be a lot of room in a 2 year/unlimited mile CPO extension at $4,000. You could check the places mentioned here, but it might make sense politically if you can buy it from the dealer you would take the car to for service.

https://www.bmwblog.com/bmw-extended-warranty/

Rick Lee · Rick Lee's Garage

That CA dealer just got back to me - two yr BMW Platinum CPO extension, unlimited miles, no deductible for $3000. I think I'm going to do that.

Steve Carlton · 03-03-2023, 12:41 PM

You’ll come out way ahead.

A good time to sell the car will be with some time left on it.

Rick Lee · Rick Lee's Garage

I'm guessing drive the hell out of it for another 18 mos. and see where things are then. If the used vs. new market is wacky, then maybe trade up. If a major item has been replaced under warranty, maybe drive it until the wheels fall off. I really like the car and there's nothing on a newer one I care about except more warranty. I DIY all the maint. and small stuff.

Deschodt · 02:43 PM

IMO "self insure" is an outdated concept with the current price of cars, parts, and hourly charges. Compounded by encryption between modules (esp on BMWs) that requires using them or a really connected independent. IMO, a newish BMW, Audi, Range rover, you get the CPO extension or a solid insurance plan, pay now and sleep soundly.. it'll pay for itself twice over. Porsche I still may take the gamble (better reliability in my experience)

Rick Lee · Rick Lee's Garage

Oh man, get this. I bought the two year extended CPO warranty for $3k on Monday. Mileage that day was 85,025, which I emailed to them when they asked. The F&I lady from the dealership just called and said she could not get the order to upload. Turns out mileage cutoff is 85k and I was 25 miles over. She could not get BMW NA to make an exception, just refunded my Amex. Now what?