BMW M Warranties 2006 +
Discussion
Anyone heard any news on this ? From what I've been told they are about to go through the roof. Seeing how my CD Changer has bust again I'll be popping into my dealer later. The guy who sorts my car will confirm the exact price but we are talking 1500 quid for a sub 60k miles M with a '100 quid warranty excess' each time you have work done.
Frightening.
Frightening.
The maths starts to mean they will actually drive business away ie indie garage at 1/3 of the labour charge plus cheaper parts can soon off set the cost risks related to Vanos and such like. Get an AA warranty for £50 pa and that will cover some other risks. This will hit residuals ? ie warranted cars still a premium but presume not so enticing if the renewal is so expensive.
Broccers said:
Anyone heard any news on this ? From what I've been told they are about to go through the roof. Seeing how my CD Changer has bust again I'll be popping into my dealer later. The guy who sorts my car will confirm the exact price but we are talking 1500 quid for a sub 60k miles M with a '100 quid warranty excess' each time you have work done.
Frightening.
Only one reason for this......too many costly claims on the M's.....
I have heard the following:
It will work thus (for 2006 renewals on): cars under 60,000 miles, the cost is £608 per year (a drop); cars over 60,000 miles add about another £70. Here's the good bit: £100 excess PER CLAIM/WARRANTY JOB, oh, unless you have an M3, then it's £250 - PER CLAIM/WARRANTY JOB! Batteries are NO LONGER covered, similarly exhaust systems. There may be some other exclusions too.
It will work thus (for 2006 renewals on): cars under 60,000 miles, the cost is £608 per year (a drop); cars over 60,000 miles add about another £70. Here's the good bit: £100 excess PER CLAIM/WARRANTY JOB, oh, unless you have an M3, then it's £250 - PER CLAIM/WARRANTY JOB! Batteries are NO LONGER covered, similarly exhaust systems. There may be some other exclusions too.
I'm not sure it's such good value now but don't really fancy owning the countries only CSL with no warrenty 
If other people start getting servicing done at simpson motorsport etc then I guess that might be the way to go, the money saved on any work and warrenty may well cover the extra depreciation?
I can see e46 prices taking a bit of a dive as a result of this, is the warrenty you get when you buy a secondhand car from BMW the same?
If other people start getting servicing done at simpson motorsport etc then I guess that might be the way to go, the money saved on any work and warrenty may well cover the extra depreciation? I can see e46 prices taking a bit of a dive as a result of this, is the warrenty you get when you buy a secondhand car from BMW the same?
Cars under 60k = £608
Cars 60k - 100k = £672
Cars over 100k = NOT covered
Excess of £100
///M Powered
Cars under 60k = £1050
Cars 60k - 100k = £1800
Cars over 100k = NOT covered
Excess of £250
Tons of exclusions on both types. Basically for non-///Ms it has dropped a bit - but it has shot up for anything with the ///M badge.
Interesting, we bought wifeys X5 on the understanding that we'd always be able to renew the warranty and keep it going until the car was at least ten years old. Six months on it's rapidly approaching 90k on the clock, and now they do this.
First I bin the M5 after finding it a bit dull after a Cerbera, and now this. Have BMW taken lessons from TVR on how to win friends and influence people?! Dear oh dear....
First I bin the M5 after finding it a bit dull after a Cerbera, and now this. Have BMW taken lessons from TVR on how to win friends and influence people?! Dear oh dear....
It's disappointing that BMW - one of the most profitable manufacturers - have to make customers pay for the lack of reliability of their M cars (at least relative to their original projections). I speak as someone who has owned an M3(E36),CSL and M5 (E39) in the past - all fortunately reasonably reliable, but those sort of premiums are excessive in my view.
By contrast, the extended warranty on my GT3 (25,000 miles, 2 years) was £800 - for an engine that costs upwards of £35k to replace.
Steve
By contrast, the extended warranty on my GT3 (25,000 miles, 2 years) was £800 - for an engine that costs upwards of £35k to replace.
Steve
Philrose said:
Cars under 60k = £608
Cars 60k - 100k = £672
Cars over 100k = NOT covered
Excess of £100
///M Powered
Cars under 60k = £1050
Cars 60k - 100k = £1800
Cars over 100k = NOT covered
Excess of £250
Tons of exclusions on both types. Basically for non-///Ms it has dropped a bit - but it has shot up for anything with the ///M badge.
I won't be renewing at that price - thats stealing money.
Anyone know any good independants in the Midlands?
It'll kill the residuals on M cars. very, very silly.
mondeoman said:
Cars under 60k = £608
Cars 60k - 100k = £672
Cars over 100k = NOT covered
Excess of £100
///M Powered
Cars under 60k = £1050
Cars 60k - 100k = £1800
Cars over 100k = NOT covered
Excess of £250
Tons of exclusions on both types. Basically for non-///Ms it has dropped a bit - but it has shot up for anything with the ///M badge.
I won't be renewing at that price - thats stealing money.
Anyone know any good independants in the Midlands?
It'll kill the residuals on M cars. very, very silly.
Which means there will be plenty of bargain M cars about for those of us who stay clear of main dealers.
Bargain M + Specialist Inspection = :smile:
Agree...this is going to cause residuals on M-cars to plummet!
When I was considering buying a second-hand E46 M3 from my local maindealer a couple of years ago the insurance quote I got was about £800/annum.
Now I think if I were to buy one AND add a minimum of £1050/annum (for a car with less than 60K miles); £1800/annum (if more than 60K miles) and above 100K miles "forget it!"...So, let me see, that's about £3000 before I've even turned a wheel? Then I have to factor in depreciation (which is going to be worse than ever now...see below), 'consumables, exclusions etc not covered by the warranty'...and if I do make any warranty claim at all I pay a £250 excess?!
Hmmmm...Well,yeah...Ok!let's forget it!
But then surely the whole strategy is to push people towards buying brand new cars ie. already covered by the new car warranty?
Call me cynical but isn't that simply in the interests of a new car manufacturer? If people keep buying reliable second-hand cars or cars that are covered by reasonably priced warranties then it doesn't serve their purpose as a manufacturer of new cars...does it? All symptomatic of a consumerist society were the drive is constantly to 'consume the new' rather than 'repair and maintain the old'?
I would suggest that the strategy behind those outrageous premiums is not simply to protect the company and dealerships against the cost of claims but a strategy to make the 'old' so unattractive as to steer consumers towards the 'new'?
Until now there is no doubt that M-Cars retaining a BMW warranty have at least commanded a premium (...some cars eg. M5, CSL difficult to sell without?). However, I would predict that this is now set to become a diluted phenomenon very quickly! Basically, this may happen within a year or so as the current crop of annual warranties expire and are not renewed. Warrantied cars will become few and far between...may command a bit more...but not a huge amount. With the remainder of cars 'unwarrantied', potential second-hand buyers will become 'scared' by the risk and prices will plummet!
I don't know how long the warranty is on a new M-Car? Three years? Anyway, if so I think within a 3 year period this effect will have percolated through to the residuals of ALL 'newish' second-hand M-cars? BMW will still manufacture and continue to sell new M-Cars successfully to the people who can afford them new...the M-brand is too strong for this to be affected too much I think? Do they really need to worry too much about second-hand M-Cars? I reckon probably not!
Call me cynical!
>> Edited by derin100 on Thursday 5th January 16:01
>> Edited by derin100 on Thursday 5th January 16:01
>> Edited by derin100 on Thursday 5th January 16:03
When I was considering buying a second-hand E46 M3 from my local maindealer a couple of years ago the insurance quote I got was about £800/annum.
Now I think if I were to buy one AND add a minimum of £1050/annum (for a car with less than 60K miles); £1800/annum (if more than 60K miles) and above 100K miles "forget it!"...So, let me see, that's about £3000 before I've even turned a wheel? Then I have to factor in depreciation (which is going to be worse than ever now...see below), 'consumables, exclusions etc not covered by the warranty'...and if I do make any warranty claim at all I pay a £250 excess?!
Hmmmm...Well,yeah...Ok!let's forget it!
But then surely the whole strategy is to push people towards buying brand new cars ie. already covered by the new car warranty?
Call me cynical but isn't that simply in the interests of a new car manufacturer? If people keep buying reliable second-hand cars or cars that are covered by reasonably priced warranties then it doesn't serve their purpose as a manufacturer of new cars...does it? All symptomatic of a consumerist society were the drive is constantly to 'consume the new' rather than 'repair and maintain the old'?
I would suggest that the strategy behind those outrageous premiums is not simply to protect the company and dealerships against the cost of claims but a strategy to make the 'old' so unattractive as to steer consumers towards the 'new'?
Until now there is no doubt that M-Cars retaining a BMW warranty have at least commanded a premium (...some cars eg. M5, CSL difficult to sell without?). However, I would predict that this is now set to become a diluted phenomenon very quickly! Basically, this may happen within a year or so as the current crop of annual warranties expire and are not renewed. Warrantied cars will become few and far between...may command a bit more...but not a huge amount. With the remainder of cars 'unwarrantied', potential second-hand buyers will become 'scared' by the risk and prices will plummet!
I don't know how long the warranty is on a new M-Car? Three years? Anyway, if so I think within a 3 year period this effect will have percolated through to the residuals of ALL 'newish' second-hand M-cars? BMW will still manufacture and continue to sell new M-Cars successfully to the people who can afford them new...the M-brand is too strong for this to be affected too much I think? Do they really need to worry too much about second-hand M-Cars? I reckon probably not!
Call me cynical!
>> Edited by derin100 on Thursday 5th January 16:01
>> Edited by derin100 on Thursday 5th January 16:01
>> Edited by derin100 on Thursday 5th January 16:03
A lot of people who buy new cars, even (or perhaps especially) M cars are buying them on finance, and relying on a decent residual when they come to sell to ensure the loan is paid off.
My guess is there will now be a bigger depreciation effect around where the manufacturer warranty runs out. That's got to at least affect the prices of 2YO Approved Used cars too, hasn't it ?
A large percentage of the E46 M3s in the country have had big end bearing shell replacement done by yer average dealer technicians
, what will BMW be doing with the fairly predictable crop of unwarrantied engine failures in a few years time when these cars have a few more miles on them? Concern about that issue is going to hammer E46 M3 residuals IMHO.
>> Edited by outnumbered on Thursday 5th January 16:50
My guess is there will now be a bigger depreciation effect around where the manufacturer warranty runs out. That's got to at least affect the prices of 2YO Approved Used cars too, hasn't it ?
A large percentage of the E46 M3s in the country have had big end bearing shell replacement done by yer average dealer technicians
, what will BMW be doing with the fairly predictable crop of unwarrantied engine failures in a few years time when these cars have a few more miles on them? Concern about that issue is going to hammer E46 M3 residuals IMHO. >> Edited by outnumbered on Thursday 5th January 16:50
I binned the warranty on my 540 last year when it shot up from 600 to 970. I complained at the time, but they weren't interested. Now its back down in the 600's i would pay for it again.
Having said that, i haven't had any problems with it in the last year, so I guess ive saved myself £1000...
>> Edited by eliot on Thursday 5th January 18:08
Having said that, i haven't had any problems with it in the last year, so I guess ive saved myself £1000...
>> Edited by eliot on Thursday 5th January 18:08
eliot said:
I binned the warranty on my 540 last year when it shot up from 600 to 970. I complained at the time, but they weren't interested. Now its back down in the 600's i would pay for it again.
Having said that, i haven't had any problems with it in the last year, so I guess ive saved myself £1000...
>> Edited by eliot on Thursday 5th January 18:08
except you can't! Once the warranty has lapsed it can never be renewed!
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