Quote:
Originally Posted by LogicalApex
For a third party insurer like Geico that makes a lot of sense to me. To look at their risk tables and opt to not insure a car for mechanical breakdown if they have a history of excessive claims or costs to repair making it impossible to profit off the deal. For BMW to do it though doesn't make a whole lot of sense to me.
Any increase risk that BMW would have seen across the model would apply just as cleanly to the cars they are selling the extended warranty on today as it would be if the car owner opted to purchase that insurance 3 years into their 4 year factory warranty. If it were an issue you'd expect BMW to revise extended warranty prices up for new buyers across the board or stop offering it on their cars (this one is highly unlikely even if they had massive losses due to an unreliable model shipping -- they'd offer buybacks before cancelling the program).
The OP suggested that the dealer felt they would need to pre-inspect the car before offering the warranty with the insinuation made that if the dealer spots a lot of problems they'll offer to not sell the warranty (and such buying today is safer because that inspection isn't needed). That seems extremely odd to me though since the car would still be under its factory bumper to bumper warranty. So the dealer would be expected to fix anything they saw to BMW specifications making it a moot point inspection.
Unless they aim to exclude coverage for stuff like accidents or damage caused by user modifications... But those are excluded from both the bumper to bumper warranty and any extended warranty anyway. So no need to waste time with an inspection.
My take... The dealer wants to sell the warranty today so is trying to add some element of "risk" to the buyer who decides to wait to hopefully force the buyer to convert to a sale today.
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Really? A dealer trying to pressure a car buyer into purchasing an extended warranty? Does that really happen? Do you mean that the dealerships are not acting in our best interests? Shocking!
More seriously, in the US a few days ago a large group of major multinational corporations said that they owed service not just to their stockholders but also to other stakeholders like employees and customers. Think it will ever roll down to dealerships?