Piston Slap: The Case for an Extended Warranty

Rémi writes: Might be weak, but since you're asking for questions, here's mine. Just got a 2011 BMW 335d late last year (Diesel FTW!), love the car and torque so far and getting 35 mpg with it, but I am a bit afraid of the long term reliability of this extra complicated German engineering marvel. BMW is offering an extended warranty from 4 years/50K miles to 6 years/100K miles for about $2500. I am guessing they think they would come out ahead statistically, which would lead me to not pay for the extension, but I'd hate to be the statistical anomaly given the price of parts and labor… Hope this helps, and looking forward for the answer! Sajeev answers: I'm not entirely sure how any European manufacturer makes a profit on warranty work.  Maybe they don't, perhaps it's important to get a large sum of cash up front for use in other expenditures, in lieu of bank loans or perhaps to buy back stock when the time is right…or about a bazillion other actions in the corporate playbook. Perhaps your lump sum payment is far cheaper than getting money any other way…but that's just the Piston Slap guy over thinking the whole affair. And inappropriately channeling his inner Robert Farago. Granted this is not a 7-series and I don't know if your 3-er is loaded up with more fragile electronics than the average German whip, but I'd still say the safe money is on you buying that warranty.  Just remember one thing: warranties prices aren't set in stone.  Bid from a few different places to see who will sell it at a discount.  Don't expect 50% off, but try to get back a little commission from someone. Everyone wants to make a deal. Send your queries to sajeev@thetruthaboutcars.com. Spare no details and ask for a speedy resolution if you're in a hurry. from The Truth About Cars http://www.thetruthaboutcars.com

puts the internet to work for you. via task 680102