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People who I consider good with their money (maybe I'm wrong?), lease German cars like Audi/BMW/Mercedes because they don't want the cost issues that happen maybe after 60k miles. These people have bought Lexus with no issues and didn't even buy an extended warranty.
Howver, rather than leasing these luxury Audis, BMWs, etc every 3 years, isn't it better to buy it without a loan and maybe get the 100k warranty (or not if you don't plan on keeping it). I just feel like changing the car every 3 years just to avoid German maintenance costs still ends up being more expensive than just buying the car and keeping it for a while.
Luxury imports (like BMW, Audis and some others) are expensive to maintain. Every repair somehow costs over $400, and the OEM parts are very high cost.
People who are really good with their money tend not to blow their money on depreciating assets every couple of years unless they have so much money it doesn't matter -or- unless they can lease and write off the lease as a biz expense.
People who I consider good with their money (maybe I'm wrong?), lease German cars like Audi/BMW/Mercedes because they don't want the cost issues that happen maybe after 60k miles. These people have bought Lexus with no issues and didn't even buy an extended warranty.
I own an 11 year old Honda Civic, purchased new and paid cash, never bought any "extended warranty" (which are big money-makers for dealers), and have never had any issues other than regular maintenance and replacing an AC compressor last year for $650.
BTW, the guys at the Honda dealership were pretty ticked off when I handed over a certified check for the cost of the car that I had agreed to previously and refused to purchase any "extended warranty." He actually said: "I'm sorry you brought that check." Hahahaha What he was "sorry" about is that I wasn't interested in buying an "extended warranty" on a reliable new car.
Good article below from Consumer Reports on why extended warranties can be a bad idea.
"Beware: A CR member survey showed that car owners typically paid more for the coverage than they got back in direct benefits. This isn’t surprising, because extended warranties make a lot of money for those who sell them."
“Extended warranties are a really horrible set of mathematics, and the reason people sell them is because they make a bundle on them in commissions.â€
I own an 11 year old Honda Civic, purchased new and paid cash, never bought any "extended warranty" (which are big money-makers for dealers), and have never had any issues other than regular maintenance and replacing an AC compressor last year for $650.
BTW, the guys at the Honda dealership were pretty ticked off when I handed over a certified check for the cost of the car that I had agreed to previously and refused to purchase any "extended warranty." He actually said: "I'm sorry you brought that check." Hahahaha What he was "sorry" about is that I wasn't interested in buying an "extended warranty" on a reliable new car.
Good article below from Consumer Reports on why extended warranties can be a bad idea.
"Beware: A CR member survey showed that car owners typically paid more for the coverage than they got back in direct benefits. This isn’t surprising, because extended warranties make a lot of money for those who sell them."
“Extended warranties are a really horrible set of mathematics, and the reason people sell them is because they make a bundle on them in commissions.â€
Yeah, I understand what you just said - I would never buy an extended warranty for a Honda, Toyota, Lexus or Acura. But people are hesitant about Germans cars without an extended warranty.
BTW, you can by Honda extended warranty through a dealer, online at less than half-price for what local dealer tries to get, and it's not even from Honda!
Yeah, I understand what you just said - I would never buy an extended warranty for a Honda, Toyota, Lexus or Acura. But people are hesitant about Germans cars without an extended warranty.
Back in the 80's, I bought a one year old BMW that came with a 60k extended warranty. A few months later, the gauges started acting up and a replacement circuit board fixed it. No cost to me, but the board cost over $800. So the warranty paid off, especially since the previous owner had paid for it.
Point is that an extended warranty is simply an insurance policy. And most people don't want to use it's benefits. Consider life insurance; no one wants to use that benefit. Same goes for auto and home insurance. But in the case of the extended auto warranty, nobody minds using the benefits. You come out ahead using more benefits. Sort of backward; that's why the warranty companies charge so much.
And yes, BMW's (and probably the other expensive European brands) are expensive to maintain.
Yes in Florida in fact they treat extended warranties as insurances and thus state regulations mandate that Florida residents cannot buy them online or even get a discount on them.
Yes in Florida in fact they treat extended warranties as insurances and thus state regulations mandate that Florida residents cannot buy them online or even get a discount on them.
So in FL, not only do you have $995 dealer doc fees ($599-699 here in NC, which is bad enough), but you can only buy an extended warranty at the price set by the dealer? I'd buy every vehicle out of state.
So in FL, not only do you have $995 dealer doc fees ($599-699 here in NC, which is bad enough), but you can only buy an extended warranty at the price set by the dealer? I'd buy every vehicle out of state.
Thanks for this - reading that, I would definitely buy out of state. If I don't buy recent used which is more my plan depending on the car on which I decide.
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. Especially a BMW. 
