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I'm in the market for a used car in the 10-15k range. I have a few in mind but for the price I'm willing to pay they are usually high mileage (I like the infinity fx25-suv I know, 2009-Acura tl, G35). Obviously I also like BMWs and particularly the 3 series. I have found several within my price range and low miles-and I know the reason for the cheap price is unreliability and high maintenance, but the 2008 model 328i seems to be quite reliable based on research I've done.
Now, what I want to ask is this. Does it makes sense/is it wise to purchased a used BMW (one of the most reliable models and year) for a low price and purchasing an extended warranty? The cost of the car and the warranty are still within my budget, and it is a nice car and I will be covered if something breaks.
Question #2. Are aftermarket warranties a good idea in general? I don't really know how they work, all I know is they cover you for x number of miles or years (probably 3yrs, 30k miles right?) and they can cost anywhere from $1500-2500 (right?).
Aftermarket warranties work for those that sell them. Only a small percentage of their cost goes back out to settle claims. Sometimes nothing when the company goes bankrupt. Just buy a reliable car.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by Don in Austin
Aftermarket warranties work for those that sell them. Only a small percentage of their cost goes back out to settle claims. Sometimes nothing when the company goes bankrupt. Just buy a reliable car.
Don in Austin
I made that mistake twice. The extended warranty is a ripoff. Despite reading the fine print there will be some way for them to get out of paying. In most cases the warranty covers only problems caused by the failure of a part, not normal wear or factory defects. In other words, if your engine smokes due to bad rings, it won't be covered. If you get a check engine light and it turns out to be a crack in the head allowing coolant into a cylinder, they will send an examiner out to inspect it. If he determines it to be a factory defect that took 80,000 miles to start leaking, they won't pay it. In your situation it's far better to buy the car without the warranty and put $100/month into a savings account to help with unexpected repairs.
Former G35 owner. Don't buy one. Drivetrain wise, they are fairly reliable, but they start to nickel and dime you in the higher mileage. If yhou can DIY they aren't a big deal, but if you have to pay for repairs, it can be quite pricey.
As for extended warranties, I've found them to be mostly ripoffs. They look for ways out of covering the defect, and TBH it would be most effective to just put the cash into an account and pay for repairs out of it.
All extended warranties are not created equal. You can get a warranty on a CPO car that covers pretty much everything but wear parts and looks just like an OEM extended warranty on a new car. Can you buy an aftermarket extended warranty like that on a $10K car with a bunch of years and miles on it? Unlikely. If you read the fine print on the contract, it's unlikely to fully cover the things that will break.
I buy new and put the OEM 7/100k extended warranty on my cars. It bounds the ownership cost and I look at it as cheap mechanical insurance against something expensive going wrong. That can happen on any car. I've owned a couple cars where I didn't collect close to the warranty fee but, lifetime, I'm way ahead of the game. The best possible outcome is that I never collect but that's just like homeowners insurance. I sure hope my house doesn't burn to the ground but I still pay the insurance just in case. A 7/100K/$50 OEM Subaru bumper-2-bumper was $1,420 on my 2015 6-cylinder Outback. On a $35,000 car I plan to keep for that long, that's a pretty good value to me even if I don't ever collect on anything. With all the expensive electronics like adaptive cruise control cameras, remote power everything, a fancy head unit with NAV, and an AWD drive train with all those wear parts, it's pretty easy to have a $1,000+ failure. If it breaks, I let the dealer figure it out and it doesn't cost me more than the deductible.
I'm in the market for a used car in the 10-15k range.
That's a lot of CASH to spend on used and especially so if you're thinking about "unreliable"
Quote:
...what I want to ask is this. Does it makes sense/is it wise to purchased a used BMW
(one of the most reliable models and year) for a low price and purchasing an extended warranty?
If you need to ask this sort of Q... then a real (factory only) warranty and a newer car are REQUIRED.
I'd suggest you look for an "off lease" choice (make/model that suits you).
Make the best deal you can for LESS THAN the $15K you mentioned...
leaving you a $2000 or so purse to deal with the inevitable WHEN it happens
(eg the tires or brakes that pass inspection but will be due before long)
All extended warranties are not created equal. You can get a warranty on a CPO car that covers pretty much everything but wear parts and looks just like an OEM extended warranty on a new car. Can you buy an aftermarket extended warranty like that on a $10K car with a bunch of years and miles on it? Unlikely. If you read the fine print on the contract, it's unlikely to fully cover the things that will break.
I buy new and put the OEM 7/100k extended warranty on my cars. It bounds the ownership cost and I look at it as cheap mechanical insurance against something expensive going wrong. That can happen on any car. I've owned a couple cars where I didn't collect close to the warranty fee but, lifetime, I'm way ahead of the game. The best possible outcome is that I never collect but that's just like homeowners insurance. I sure hope my house doesn't burn to the ground but I still pay the insurance just in case. A 7/100K/$50 OEM Subaru bumper-2-bumper was $1,420 on my 2015 6-cylinder Outback. On a $35,000 car I plan to keep for that long, that's a pretty good value to me even if I don't ever collect on anything. With all the expensive electronics like adaptive cruise control cameras, remote power everything, a fancy head unit with NAV, and an AWD drive train with all those wear parts, it's pretty easy to have a $1,000+ failure. If it breaks, I let the dealer figure it out and it doesn't cost me more than the deductible.
This. Buy the warranty/contract only from the manufacturer. Nothing third party, that's just begging for trouble.
I have lifetime maxcare on my Jeep, but you can do 5/7 year plans for less. If the head unit on my Grand Cherokee dies, you lose more than just the radio - HVAC, Nav, radio, heated/cooled seats, phone, the works - it all runs through the touch panel. Runs something like 2 grand to replace and you *have* to use the same model from FCA - you cannot put in an aftermarket unit and you can't use a version lower than what you had. I'll pay for the extended warranty for stuff like that.
I'm in the market for a used car in the 10-15k range. I have a few in mind but for the price I'm willing to pay they are usually high mileage (I like the infinity fx25-suv I know, 2009-Acura tl, G35). Obviously I also like BMWs and particularly the 3 series. I have found several within my price range and low miles-and I know the reason for the cheap price is unreliability and high maintenance, but the 2008 model 328i seems to be quite reliable based on research I've done.
Now, what I want to ask is this. Does it makes sense/is it wise to purchased a used BMW (one of the most reliable models and year) for a low price and purchasing an extended warranty? The cost of the car and the warranty are still within my budget, and it is a nice car and I will be covered if something breaks.
Question #2. Are aftermarket warranties a good idea in general? I don't really know how they work, all I know is they cover you for x number of miles or years (probably 3yrs, 30k miles right?) and they can cost anywhere from $1500-2500 (right?).
Why not buy A NEW $15K car instead of a used (Possible) beater? New car warranty and reliability...
The extended warranty may have very fine print and require you to do certain things (Oil changes and such at exact intervals) you seem to be wanting a "Status Symbol" car. Why not wait till you can easily afford one?
I made that mistake twice. The extended warranty is a ripoff. Despite reading the fine print there will be some way for them to get out of paying. In most cases the warranty covers only problems caused by the failure of a part, not normal wear or factory defects. In other words, if your engine smokes due to bad rings, it won't be covered. If you get a check engine light and it turns out to be a crack in the head allowing coolant into a cylinder, they will send an examiner out to inspect it. If he determines it to be a factory defect that took 80,000 miles to start leaking, they won't pay it. In your situation it's far better to buy the car without the warranty and put $100/month into a savings account to help with unexpected repairs.
Many years ago I was selling cars for a very small usedcar lot / garage. They had a customer's car with an automatic trans problem. The inspector demanded that it be taken completely apart and all the parts be laid out.It took up garage space for a long time and I don't recall it ever getting settled.
It can be a good deal if that is really what you want. Just set aside $4,000 for repairs/maintenance. There is a reason BMWs are so cheap when they get a bit older. There are huge scheduled maintenance costs.
However, I bought a used truck with 70K miles on it. It cost $52,000 or so new. I paid $18,000 six years old. I hunted for a good deal and got it at $4000 - $8,000 below market price (probably $12,000 below what a dealer would sell it for). Thus, I arguably had $4,000 or more to put into repairs before I was even at a questionable deal.
It now has about 120K miles. Not conting normal wear items (tires, shocks, brake pads, oil changes), I have put about $1500 into it and it needs about $1500 now. On the other hand, I got a truck with features that I would not have been able to get otherwise.
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