Warranty value?

[jblaze21]

I'm considering purchasing a 2011 M3 that has the factory warranty that is transferable and good til August 2016. That's over 2 years of warranty I'd have.

I'm curious, how much is a warranty worth on a yearly basis? I've never purchased one before.

I'm wondering how much value this adds to the price and if it's worth it.

On a side note, if the car is under factory warranty, what does it cover? Everything? How much do people use these warranties?

Thanks in advance.

[jblaze21]

Anyone?

[jphughan]

Ok, right off the bat, something seems wrong here. A factory warranty good until August 2016 means the car wasn't put into service until August 2012. That is extremely unlikely for a 2011 model seeing as the 2011 model year ended around August 2011. So that car would have had to sit on the lot unsold for at least a year after it was produced, which I don't really see being realistic, especially on a hot car like an M3. I would get a dealer to verify the in-service date on the car to confirm that warranty expiration date.

But to answer your questions:

The factory warranty covers everything except the stuff you'd expect it not to cover, like normal wear and tear. If you really want the fine print, I'm sure some diligent Googling might turn up a PDF that spells everything out.

The E9x M3 has proven to be extremely reliable, but some people still want extended warranties because if something DOES go wrong, it's never cheap to fix on a BMW, especially an M car.

As for giving a per-year valuation on a factory warranty, I'm not sure how you expect anyone to do that. It's built into the cost of the car. For aftermarket warranties, figuring out the per-year value should be simple math. But you don't "purchase" a factory warranty, so there's no determining whether it's worth it. Every BMW has a factory warranty for 4 years / 50K miles that follows the car through however many owners it has in that time, at no charge to anyone.

[Kurt_OH]

Maybe an extended warranty?

Re: 2011 production dates: I have a 2011 E90 M3, and took Euro delivery November 7th, 2011. It didn't arrive in the US until January 2012. So I'd guess there are a few out there with warranty until 2016.

Re: value? Mostly peace of mind, unless something breaks.

[ZEEM3R]

A warranty will give you the piece of mind and let you sleep peacefully at night knowing you are covered. 3 weeks into getting my brand new 2013, a valve spring broke but it was all covered under warranty so I didn't worry. Everything is covered except the normal wear and tear.

[jphughan]

Originally Posted by Kurt_OH

Maybe an extended warranty?

Re: 2011 production dates: I have a 2011 E90 M3, and took Euro delivery November 7th, 2011. It didn't arrive in the US until January 2012. So I'd guess there are a few out there with warranty until 2016.

Re: value? Mostly peace of mind, unless something breaks.

Wow, I'm surprised your ED was a 2011 if you picked it up in November 2011. But even in your case, you picked it up in the US in January 2012, whereas the car the OP is looking at apparently didn't enter service until August 2012. So IF the warranty in question is in fact the original factory warranty, either this was originally an ED car produced late in 2011 and someone waited many, many months to pick it up in the US, or the car just was ordered as part of dealer inventory and sat around for a very long time.

Since neither of those seems especially likely, I'm guessing that the dealer is confusing "factory warranty" with "BMW warranty", i.e. CPO or their extended warranty (the latter of which isn't even managed directly by BMW). One of THOSE warranties ending in 2016 would definitely be possible if this was an earlier MY2011 car produced in mid-2010; the factory warranty would run out a few months from now, and then the extended warranty takes you to mid-2016. But if that's the case OP, neither BMW CPO nor BMW's extended warranty (which actually isn't even managed by BMW) nor any other extended warranty is quite as comprehensive in its coverage, so be aware of that. There are many, MANY threads comparing extended warranties to factory warranty coverage on these boards already, so I won't rehash it all here.

[Kurt_OH]

Originally Posted by jphughan

Wow, I'm surprised your ED was a 2011 if you picked it up in November 2011.

That was the last year for the E90 M3, so I suspect they let it run long since they had my order. I think there were a few more, but I was near the end. There's zero chance of me buying a new German car without Euro delivery. I've done it twice and had a blast both times.

But even in your case, you picked it up in the US in January 2012, whereas the car the OP is looking at apparently didn't enter service until August 2012. So IF the warranty in question is in fact the original factory warranty, either this was originally an ED car produced late in 2011 and someone waited many, many months to pick it up in the US, or the car just was ordered as part of dealer inventory and sat around for a very long time.

Since neither of those seems especially likely, I'm guessing that the dealer is confusing "factory warranty" with "BMW warranty", i.e. CPO or their extended warranty (the latter of which isn't even managed directly by BMW). One of THOSE warranties ending in 2016 would definitely be possible if this was an earlier MY2011 car produced in mid-2010; the factory warranty would run out a few months from now, and then the extended warranty takes you to mid-2016. But if that's the case OP, neither BMW CPO nor BMW's extended warranty (which actually isn't even managed by BMW) nor any other extended warranty is quite as comprehensive in its coverage, so be aware of that. There are many, MANY threads comparing extended warranties to factory warranty coverage on these boards already, so I won't rehash it all here.

We agree completely.

[socalm3lover]

Not to thread-jack, but is the in-service date for ED when you pick it up at the Welt, or when you receive it in the US. You become the legal owner at the Welt. The dealer facilitates the purchase, but ownership never passes through them.

John

[jphughan]

Originally Posted by socalm3lover

Not to thread-jack, but is the in-service date for ED when you pick it up at the Welt, or when you receive it in the US. You become the legal owner at the Welt. The dealer facilitates the purchase, but ownership never passes through them.

John

Warranty in-service starts with US delivery date because factory warranties are through the regional BMW company (i.e. BMWNA for the US), which is why some countries have different warranty policies. I'm not sure how a warranty issue that occurred during the ED period would be handled, but I'm also sure that BMW has already thought of that.