Service plan - good / bad idea?

[m.a.g]

OK, so it is really stupid question but I figured I will ask here anyways.
But let me start from the beginning.
Last month I took my 2014 X6 5.0i to the dealership for maintenance. The car had 49,000 miles on it at that time, and my customer service advisor asked me if I wanted to extend the warranty. Yes, I put it in bold for a reason.
I really like this car and I guess I will keep it since there is nothing wrong with it, so I figured that is is good idea to do so, it paid $5,700 for extra 3 years / 100,000 miles, for the price it was totally worth it to me at that moment. My car is loaded with every possible package (M package, cold weather, premium sound, etc), just saying in case it is important.

So, the other day I got paperwork from BMW, regarding GOLD service contract I purchased. Yes, service contract. Not extended factory warranty as described by advisor. With tons of exclusions, no electrical, no navigation, no soft closing doors, no Active LED, no belts... I guess you guys know better then me.
I'm an engineer by education and by profession so I realize those plans are offered to make BMW money, not to save me money. I also realize major car components covered by those kind of service plans are statistically very unlikely to go bad under 100,000 miles covered.
Obviously it was my fault to just trust the advisor with this "extended warranty" and "everything covered, just no rattle, no light bulbs", but when BMW paperwork came I realized my mistake. I was also told I can cancel free of charge and have full amount refunded.

Now, the question is: should I cancel it and get money back?
This is my first BMW in United States, as you probably already figured out English is not my native language. I used to own and drive German cars in... Germany
Point is, it was kind of cheap to maintain and fix it back there.
Here, it is consider imported car, and by definition parts and service are more expensive, also I don't know any shop except dealership that could service my car (I live on Long Island, NY).
But still, when I read that service contract, all those covered items are something I never had problem with before. Never had turo go down in the car with less than 100,000 miles, never had transmission go down, etc.
And even if it does, I guess I will be able to fix it for $5700.
What do you guys think?

[DuSh]

What exactly is covered then, do you know, if yes, can you please list it briefly? I kinda agree with you that premium sound system lol won't go bad in 3 years. I also know that our 8 speed transmission is one of the best so far in reliability (for BMW that is lol), so that is unlikely to go bad in 3 years too.
However, I personally would worry only about N63TU engine, specifically it may start eating oil real bad - which means valve stem seals will need replacement and if that happens - that warranty will already pay for itself. Another electrical issue known to be somewhat common is a steering wheel column electric motor adjustment - it may stop working and replacing steering column is going to be very pricey too. Workaround is just to switch it off and don't use it.
Soft closer function - IMHO even if it will brake - it won't affect you in any way - you can still close doors manually lol. I researched x5/x6 50i before buying and there's not much in our cars that has tendency to brake - this generation is more reliable and most of quirks and issues were addressed, but it's always some minor things that may come up and bother you and require $$$ to fix
So it seems to me that it's up to you if you are willing to risk and save money or play safe and pay right away for warranty (that won't cover everything anyway). IMHO I personally can work myself on the car - I have garage and tools, so I would have chose to not pay that $5700 right away, but it's just me (have extensive experience fixing my e90 lol)

If you don't drive much and are not planning to keep car for longer than 3 years - you just might risk and skip it, but hey man, it's up to you to make that decision

P.S. Before you make final decision - try calling this aftermarket warranty provider company and find out rough estimate on your car for next 3 years. IMHO they were the best bar none in e90 world and many forum members recommended them as best warranty company: https://www.route66warranty.com/asp/index.asp

[sj22]

It really depends on what you paid and what it covers. For example if you need 4 pads and rotors and its covered, thats a major expense and will recoup part of your investment. But yes, please make sure you know what a service contract vs. extended warranty is.

[P1]

I don't think it's bad deal per se, as I am someone who enjoys peace of mind. I personally have the 5 year / 100K extended maintenance plan on my X5. However, are you sure you didn't buy the right thing? I thought there was only one type of extended service contract available. I've never heard of a Gold service contract. I have heard of a Gold extended warranty. I'm pretty sure you bought the right thing, especially looking at what you paid for it.

[m.a.g]

Originally Posted by DuSh

What exactly is covered then, do you know, if yes, can you please list it briefly?

I'm not sure if the link will work, but this is what it covers (look at GOLD plan):
http://test.resource.bmwusa.com/Pdf_...87fd99957.arox

Originally Posted by DuSh

However, I personally would worry only about N63TU engine, specifically it may start eating oil real bad - which means valve stem seals will need replacement and if that happens - that warranty will already pay for itself.

Now you made me think - my car needs a "fill-up" of oil ever 5000-7000 miles - computer shows that the oil level is too low. It's been less than 2K miles since last oil change and the oil level dropped from "max" to "in between" marker on the dashboard. I never had regular "change oil" message, before that happen I got "low oil level" and dealer would just change the oil anyways. Is this normal?

[m.a.g]

Originally Posted by P1et

I don't think it's bad deal per se, as I am someone who enjoys peace of mind. I personally have the 5 year / 100K extended maintenance plan on my X5. However, are you sure you didn't buy the right thing? I thought there was only one type of extended service contract available. I've never heard of a Gold service contract. I have heard of a Gold extended warranty. I'm pretty sure you bought the right thing, especially looking at what you paid for it.

Well, please take a look at the link I just posted. I guess BMW uses terms extended warranty / service contract interchangeably. As you see there is tons of exclusions. There is even more in the booklet I received, literally 2 pages of "items not covered" in very fine print.
It is not about peace of mind really, I knew I will be paying top $$$ to maintain this car (I drive maybe 15K per year), but I have feeling I will still be paying for repairs because things listed in that contract pretty much never go bad.

[m.a.g]

Originally Posted by sahiljain22

It really depends on what you paid and what it covers. For example if you need 4 pads and rotors and its covered, thats a major expense and will recoup part of your investment. But yes, please make sure you know what a service contract vs. extended warranty is.

It does not cover any of it - you with pads/rotors you are talking about maintenance contract - it cost about $1200 per year for my car and can be purchased every year for next year. At least that is what I was told. Actually they did change all pads / rotors at 49K for free so I have like 20K miles to go.

[P1]

Originally Posted by m.a.g

I'm not sure if the link will work, but this is what it covers (look at GOLD plan):
http://test.resource.bmwusa.com/Pdf_...87fd99957.arox

That's an extended warranty.

[DuSh]

Originally Posted by m.a.g

I'm not sure if the link will work, but this is what it covers (look at GOLD plan):
http://test.resource.bmwusa.com/Pdf_...87fd99957.arox



Now you made me think - my car needs a "fill-up" of oil ever 5000-7000 miles - computer shows that the oil level is too low. It's been less than 2K miles since last oil change and the oil level dropped from "max" to "in between" marker on the dashboard. I never had regular "change oil" message, before that happen I got "low oil level" and dealer would just change the oil anyways. Is this normal?

That's normal. I too add 2qt of oil in between oil changes from time to time - nothing to worry about. Abnormal is when you need to add oil every 700 miles or less - then it's valve stem seals requiring replacement. The issue is that N63TU is VERY HOT engine and every rubber/plastic tubing, pipes, hoses - they all deteriorate much quicker than let's say regular N55 engine. Cats in N63TU are right there under engine cover frying slowly everything around. They can get really hot like up to 2000F

There are solutions like replacing stock thermostat to a more "colder" version that will keep lower temperatures, but dealers don't know shit basically and they won't do it, so I guess it's not something you want to do if you are a stick to the letter warranty type of a guy

So IMHO - just buy a warranty and sleep better lol, but please do call to that Route66 company - trust me their warranty is 9 out of 10 and BMW warranty is maybe 5 at best

[m.a.g]

Originally Posted by DuSh

So IMHO - just buy a warranty and sleep better lol, but please do call to that Route66 company - trust me their warranty is 9 out of 10 and BMW warranty is maybe 5 at best

Well, like I said, I already have that GOLD extended service plan purchased from BMW. I guess I will not cancel it then (I think).
Just out or curiosity, why do you say Route66 is better than factory plan? I know nothing about cars, I just drive them, so I wonder what is that big difference (except of course better price on Route66, it less than half of the BMW plan).

[DuSh]

Originally Posted by m.a.g

Well, like I said, I already have that GOLD extended service plan purchased from BMW. I guess I will not cancel it then (I think).
Just out or curiosity, why do you say Route66 is better than factory plan? I know nothing about cars, I just drive them, so I wonder what is that big difference (except of course better price on Route66, it less than half of the BMW plan).

I can only compare with my previous e90 - Route66 had almost everything covered and they always paid for everything without a single word. Was heads above anything else. In your case it sounds like that GOLD plan of yours has a LOT of stuff excluded - that is exactly what I'm talking about. Route66 will cover almost everything, maybe except few things (and they can even cover those for additional price), while your GOLD plan covers nothing, except few stuff that most probably won't brake and it costs more. You don't have to be a rocket scientist to figure which one is better and a safer bet.
For me it's simple: I would call them and compare - if they are a lot better (I'm sure they are) then i would cancel GOLD plan while you can and go with Route66 - that's just what i would do if i wanted to have a warranty that will really cover stuff that may brake instead of giving you a turnaround saying it was not included in the plan

[m.a.g]

Originally Posted by DuSh

I can only compare with my previous e90 - Route66 had almost everything covered and they always paid for everything without a single word. Was heads above anything else. In your case it sounds like that GOLD plan of yours has a LOT of stuff excluded - that is exactly what I'm talking about. Route66 will cover almost everything, maybe except few things (and they can even cover those for additional price), while your GOLD plan covers nothing, except few stuff that most probably won't brake and it costs more. You don't have to be a rocket scientist to figure which one is better and a safer bet.
For me it's simple: I would call them and compare - if they are a lot better (I'm sure they are) then i would cancel GOLD plan while you can and go with Route66 - that's just what i would do if i wanted to have a warranty that will really cover stuff that may brake instead of giving you a turnaround saying it was not included in the plan

Crap, I wish I asked this question month ago... I'm 51K miles now and can't get the Route66 plan for "newer cars"... Anyway, tonight I will try to post what is EXCLUDED from Gold plan and what is INCLUDED in Route66 sample contract I got from them. Since I don't know much about the cars, maybe you can take a look and compare.