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Offline Ant

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Extended warranty??
« on: December 31, 2018, 12:56:58 AM »
Got an email from my friendly sales manager letting me know my factory 3 year/36K warranty expires in May 2019. To extend it for 3 years is $914 (US dollars). Is this worth it? I understand it's not a BMW extension but a second party?

Thanks in advance for opinions and thoughts.

Offline Gazk

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Re: Extended warranty??
« Reply #1 on: December 31, 2018, 01:23:12 PM »
Hay Ant, now that's a big question for sure, I\ we here in the UK only got a two year warranty as my XR is now over two years old I did not bother as I'll be changing out for a new one some time 2019.

I did look into it and decided that as the XR's don't seam to be suffering any major fallers not to take on an extended warranty.
After over thirty years behind the bars, I’ve still not done it all or seen it all.

Online Bree

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Re: Extended warranty??
« Reply #2 on: December 31, 2018, 01:37:05 PM »
Never been a great believer in extended warranties. The Main concern is the Small print, and what they cover. First and foremost it will not cover wear & tear. And its wear and tear, that will be the main problem when it get to three years old. Rather than Mechanical Failure. 
So is it worth the money, in my opinion, on the basis of what it will cover its a No.....     
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Offline wessie

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Re: Extended warranty??
« Reply #3 on: December 31, 2018, 02:15:29 PM »
*Originally Posted by Bree [+]
Never been a great believer in extended warranties. The Main concern is the Small print, and what they cover. First and foremost it will not cover wear & tear. And its wear and tear, that will be the main problem when it get to three years old. Rather than Mechanical Failure. 
So is it worth the money, in my opinion, on the basis of what it will cover its a No.....   

This is an insurance policy not a warranty so the underwriter is not going to offer the product if there is a net loss over the long run.

I have just done some rudimentary sums based on vehicle ownership. Cars since 1982, bikes since 1992. BMW currently charge over £300 per year to extend a warranty.
I have owned 6 bikes bought new and 6 cars bought new, so I have deducted the years when these would be covered by their makers' standard warranty.

That leaves me with 16 years of riding motorcycles with no warranty in place and 23 years of driving cars with no warranty in place. I have been lucky enough to not have a major failure on any of these vehicles. Some maintenance bills have been eye watering such as a cam belt change on a V6 Mazda MX6 but doing the maintenance at the required interval is partly why I have been this "lucky".

So, 39 years of vehicle use, adding bikes & cars, which, using a cost of £300 per year, would have cost me the equivalent of £11700 in today's money for insurance premiums (actual cash figures would be lower due to inflation of course). This figure would actually be higher as there have been a few years, like now, where I have 2 bikes in the garage out of warranty.

I call this self underwriting and whilst I have spent that £11700 on other stuff it is a notional pot of cash for any major repair in the future. This pot will grow by £600 next year when I do not cover either of my bikes. In the short term I would use a credit card to pay for a fix and then work out how to cover the cost of the credit card bill in a more efficient manner.

Before you question whether the insurance premium is worthwhile, you need to do like the insurance underwriter does. Look at the long term. You might get one horrible year that costs a packet, but average out the real value of extended "warranty" purchases over the decades you will ride & drive. I bet most people will be in a similar situation to me.

 

Offline Markymark11

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Re: Extended warranty??
« Reply #4 on: December 31, 2018, 04:22:09 PM »
I agree Wessie, in 41 years of riding bikes and maintaining them myself - I have come to the conclusion that extended warranties (and in fact most aftermarket warranties) in my opinion, are not worth the money. I have had occasional issues which have had to be paid for of course but I guarantee that in the long run I would be quids in.

On the rare occasions that I have tried for a warranty repair (I can only recall a couple) they were not covered. A window switch in a car - determined to be a wear and tear issue, and the same with a starter motor.

Recently I had a Kawasaki Versys 1000 which I would bet, never would have needed a major repair. I bought it new and in order to maintain the "un-needed" warranty I had to have it serviced at 600 miles 3500 miles and 7500 miles. It cost me nearly £500 to do 7500 miles on it just to keep the warranty happy. The lesson I have re-learned is that I should have bought a 1 year old and just done the work myself. Just my opinion of course  :002:


Offline Winger

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Re: Extended warranty??
« Reply #5 on: December 31, 2018, 04:25:39 PM »
BMW introduced the K series in September 2004 frankly it was an absolute under developed disgrace a period of their history that they have still yet to recover from.

The extended warranty was a product of that period in fact apart from the odd lucky individual boardering on financially impossible to survive without an extended warranty.

The system is very good despite it being a 3rd party there was never any paper work to be done and it could be manipulated any which way,I lost track of how many recalls I had on my K probably into double figures and while BMW were running around like headless chickens trying to solve all the mechanical F ups they had over the years the extended warranty keep’t the show on the road at the customers expense,I cannot even remember how much i’ve Had done to my K but in the time I ran it on an extended warranty it had 3 clutch’s and an ABS unit the bills ran into thousands.

That’s the history all based around the K series never even thought about such on my 1100s from the era before and certainly not on my X/R as luck would have it BM have learned or be it the hard way.

As for buying an X/R in 2019!! That’s the last thing i’d Be doing with the almost certainty of a Big Bang version in 2020 and probably a cheaper option when Yamaha bring similar to the fight.

As my K is no longer at the top of my motorcycle food chain I stopped the extended warranty 2 years ago and certainly came out well ahead of the game like most others.
« Last Edit: December 31, 2018, 04:29:35 PM by Winger »

Online Bree

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Re: Extended warranty??
« Reply #6 on: December 31, 2018, 06:21:45 PM »
Surely Recalls have got nothing to do with extended Warranties. ?   
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Offline Winger

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Re: Extended warranty??
« Reply #7 on: December 31, 2018, 06:40:03 PM »
Non what so ever but while BM were dragging your bike back every six months to change god knows what they still wouldn’t admit the bike was a design disaster and they wouldn’t take the rap for that and was either a case of you did or the warranty did.

The clutches that the warranty paid for were not recalls they were failures in design the the ABS unit was very simple they all do that sir and assumption that the warranty doesn’t Cover wear and tear is wrong it can be manipulated by the dealer.

Hence why the ramblings on here about buying extended warranty frankly has nothing to do with BM’s history of such,i’ve Never bought one in my life but it’s what you did to keep the show on the road because BM had no idea what they were doing and were modding parts on the hoof so instead of them holding their hands up and saying we’ve made a F up you had no choice.

The 1300 was as good as it got what did BM do in the end??? Walk away from the whole design concept and start again one of the great past times on the K forums was watching newbies turn up who clearly hadn’t got a pot to piss in try sort the situation out like you would with any other bike and it just didn’t work because of BM’s poor R+D.

Offline orbits

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Re: Extended warranty??
« Reply #8 on: December 31, 2018, 07:00:08 PM »
Speaking from first-hand experience with a BMW car, BMW were hard-over not interested in helping with a mechanical failure without a warranty being in place; that was on a just-out-of-warranty 'current model' car with full main-dealer history and ~20k miles under-average for its age.

Being objective...why would they? If they help out-of-warranty vehicles  - whether out by a day or by 10 years - then it simply de-values their aftermarket warranty products, because customers would assume they'd be helped anyway without buying extra products. But as a customer it's hard to be on the receiving end of such a no-compromise black/white view. That's the case for buying a follow-on warranty (though they are not all useful - see the wear n tear comments previously).

On the other hand I completely agree with Wessie; every single after market policy for cars / washing machines / electrical products etc that I've never purchased leaves me with the cash to underwrite things myself IF they ever fail. And that's the point; you might never need the warranty, but you will have spent the money. Even having been burned, I still don't really believe in aftermarket warranties.

Online Bree

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Re: Extended warranty??
« Reply #9 on: December 31, 2018, 07:07:38 PM »
As a simple rule of thumb, Curries / Pc world make more profit from Extended Warranties, than they do from the product.. I am sure that this is probably the case in all scenarios... 
Everything  Will Be Alright In The End, If Not Then Its Not The End.