[IK6SPEED]

Originally Posted by N26Ghost

There are 3 values to consider. The price, the dealer cost and the amount I paid them. In this case, the distance between the price and what I paid them was large and ultimately less than the estimated regular maintenance of a single year of ownership. That being said, since you understand simple concepts, I am confident you can assess that the only one winning that day was me.

Because we all know that Dealerships have no incentive to sell an optional package at 15% under their cost as you have stated....and stay in business.

[KOWTOWN]

It's probably 15% under HIS cost, not theirs. As in, if he paid out of pocket for everyone of the equivalent maintenance things he is supposed to do throughout that time it would cost him 15% more

[N26Ghost]

Originally Posted by IK6SPEED

Because we all know that Dealerships have no incentive to sell an optional package at 15% under their cost as you have stated....and stay in business.

Dealerships always play the long game, specifically monthly, quarterly and each fiscal year. Their incentives and payouts are structured in this fashion. A loss on one sale has little effect on a dealership. The net profit is the goal. I acquired my vehicle sales license when I was 20 and sold Honda's for a while before enlisting in the Navy. If I lost on single sale within a month, it was undoubtedly offset by the 20/30 other sales I made and the numerous spiffs and bonuses I earned on top of it.

[IK6SPEED]

Originally Posted by N26Ghost

Dealerships always play the long game, specifically monthly, quarterly and each fiscal year. Their incentives and payouts are structured in this fashion. A loss on one sale has little effect on a dealership. The net profit is the goal. I acquired my vehicle sales license when I was 20 and sold Honda's for a while before enlisting in the Navy. If I lost on single sale within a month, it was undoubtedly offset by the 20/30 other sales I made and the numerous spiffs and bonuses I earned on top of it.

Again, maintenance packages do not have same incentives to Dealers.

Selling under Dealers Cost is a loss there. There isn’t funny money on that type of sale.

[Elvisfan]

Originally Posted by N26Ghost

Dealerships always play the long game, specifically monthly, quarterly and each fiscal year. Their incentives and payouts are structured in this fashion. A loss on one sale has little effect on a dealership. The net profit is the goal. I acquired my vehicle sales license when I was 20 and sold Honda's for a while before enlisting in the Navy. If I lost on single sale within a month, it was undoubtedly offset by the 20/30 other sales I made and the numerous spiffs and bonuses I earned on top of it.

The question remains. How do you know what their cost is?

[Kafkaesque328]

Originally Posted by Sea-Tac

No. Don't extend anything, especially, your wallet. I can say, I've been there and done that and I even bought the T-shirt. Forget EW for extended maintenance. BMW wins every time. Unless you have an exceptional version of the 3 in whatever configuration it is in, dump it at 75000. BMW's are not considered a high reliability cars by many BMW mechanics (I know 3 who are of this opinion) and repairs are excessive especially if you take your car to a BMW service center. Yes, they will keep your car going, but, again, at a hefty price.

I tend to agree. You're always better off putting your $4000 in some interest bearing savings vehicle and pay yourself first and have the money in case you need it vs. paying $4000 for an insurance policy. But, as you said, these aren't Toyotas in terms of high mileage reliability and they sell these warranties because people are scared to own BMWs out of warranty so they sell because of fear. Its a $4000 insurance policy.

But what if you need a new engine and its $15000? Then you my friend, have very bad luck. I also agree that if you just trade it in before you hit 100k miles or so, you 'should' be fine. And yes, the house always wins with extended warranties. Always.

[N26Ghost]

Originally Posted by Elvisfan

The question remains. How do you know what their cost is?

The finance manager was very transparent, as he was a friend and willing to turn all the screens in my direction during the financing discussion. More than willing to admit that this was certainly a favor and that the same treatment would not be likely for most other folks. Basically, the price was all over their literature. The dealer cost for each program was on the screen and we started there and negotiated down from there.

To say that losses in the finance department on programs are not offset by profits made on other sales just doesn't make sense. No two deals are the same and sometimes dealers do what is needed to close a deal, even when it occasionally costs them some coin.

[Sea-Tac]

Originally Posted by Kafkaesque328

I tend to agree. You're always better off putting your $4000 in some interest bearing savings vehicle and pay yourself first and have the money in case you need it vs. paying $4000 for an insurance policy. But, as you said, these aren't Toyotas in terms of high mileage reliability and they sell these warranties because people are scared to own BMWs out of warranty so they sell because of fear. Its a $4000 insurance policy.

But what if you need a new engine and its $15000? Then you my friend, have very bad luck. I also agree that if you just trade it in before you hit 100k miles or so, you 'should' be fine. And yes, the house always wins with extended warranties. Always.

I think that’s exactly the point and a good point at that - these warranties sell because people are afraid of these large repair bills.

[IK6SPEED]

Originally Posted by Elvisfan

The question remains. How do you know what their cost is?

Your question is irrelevant when directed at me and my position.

You should direct at other party.

Originally Posted by N26Ghost

I selected to prepay 3 years of additional maintenance coverage instead of extending the warranty. You may/may not need the warranty, you will absolutely need to keep on top of your maintenance. They wanted an absurd amount of money for this and after some negotiation, we settled on 15% under their cost as ours was the only car they were going to sell that day.

Originally Posted by KOWTOWN

It's probably 15% under HIS cost, not theirs. As in, if he paid out of pocket for everyone of the equivalent maintenance things he is supposed to do throughout that time it would cost him 15% more

Not what was stated.

[CalCarNut]

Maintenance contracts were a HUGE waste of money. I bought that vs an extended (idiot me) for my wife's X3. I got an oil change and wipers for the $2200 I paid. The reason I BOUGHT it was that the i-drive said the truck would need brakes within the time frame; so I did what N26Ghost did and analyzed it all...lol. I thought I was being 'smart'. We were basically screwed out of the $ because the i-drive version in 2012 SUCKS. 2 yrs later, the i-drive still says it'll need brakes in 3100 miles. A pad review shows 30/70% left even now. NEVER again will I purchase a maintenance contract. Extended Warranty, yes..if I plan on keeping the car long enough.

[Astone22]

A dealer is saying cost for 2 years of extended cpo is 2700 at their cost.

[IK6SPEED]

Originally Posted by Astone22

A dealer is saying cost for 2 years of extended cpo is 2700 at their cost.

Depends on car model and model year.

Also depends on when it is purchased as prices have gone up considerably over the past 18-24 months.

Price might also be dependent on equipment on car.

Stating a universal $2700 cost is incorrect.

[PNW2003]

I got a $2500 two year warranty with $100 deductible on a 911. I'm pretty sure I'm going to spend that in one year--easily.

[rsh0308]

Originally Posted by PNW2003

I got a $2500 two year warranty with $100 deductible on a 911. I'm pretty sure I'm going to spend that in one year--easily.

I got extended CPO wrap to 7 years for my F30 after my E90 died twice in a month and had several fixes including Eccentric Shaft Sensor and VCG cost me $1500 at 75k miles. Traded it in quickly after that for a horrible loss but I drive 90 miles/day and need a reliable (-ish) car.

Considered maintenance too at the time and may still add it on when I expire original factory plan. From my discussion with finance and my CA, the maintenance plan is also refundable at a prorated value if I were to trade my car in.

[Astone22]

Originally Posted by rsh0308

I got extended CPO wrap to 7 years for my F30 after my E90 died twice in a month and had several fixes including Eccentric Shaft Sensor and VCG cost me $1500 at 75k miles. Traded it in quickly after that for a horrible loss but I drive 90 miles/day and need a reliable (-ish) car.

Considered maintenance too at the time and may still add it on when I expire original factory plan. From my discussion with finance and my CA, the maintenance plan is also refundable at a prorated value if I were to trade my car in.

If you don't mind me asking what did the cpo wrap cost you?

[rsh0308]

Originally Posted by Astone22

If you don't mind me asking what did the cpo wrap cost you?

$3.7k. Probably overpaid for peace of mind but again I live 45 miles from work and can't miss days cause my car isn't running. With this and my BMW dealer 2 miles from my house, I can get loaners when it's in the shop.
I figure with the plan and the SULEV warranty I should be good to the 7 year mark, and then I'm immediately trading it in.