The first thing that you are going to want to do now that you have just paid a small fortune for your new m3 or x5 is to put an extended warranty on your new investment.
Now, in very few cases it is an excellent idea to buy extended warranty for car, and sometimes you just need to step back and resist the urge to do something stupid.
Why is getting an Extended warranty a bad thing?
When you buy your BMW it would have come with a whole lot of costs that you have budgeted for and a whole lot of potential costs that you won’t have budgeted for. For instance, when buying your BMW the BMW extended warranty cost will be one of these many potential costs that don’t benefit you in any way.
What to look out for:
- Hidden Costs – As mentioned before, there are hidden costs that you should think of as traps. You don’t have to step into these traps, but often you are pushed into these traps. For example;
When you go into buying your BMW you will find that there will be salespeople who will try and help you get the best deal possible and this isn’t a bad thing. However, most sales people will try and get the best deal possible that will suit both you and them.
This means that they will benefit by getting, even more, commission, and you end up paying more.
- Grey Areas in the vehicles warranty – Most BMW cars come with a stock standard warranty that will most likely have a few grey areas in the warranty that can veto the warranty. And the extended warranty is no different.
Before you sign anything make sure that you understand what can veto your warranty and clarify what grey areas need to be sorted out.
- Is the Warranty Transferable – This may seem like a stupid thing to check but it is not. It is always a good idea to check whether you can transfer your extended warranty to the new owner of your BMW if you ever choose to sell your car. This creates an excellent sales pitch.
- Can you go to any repair shop and get the car repaired? – It is vital that you find out if you can go to any dealer repairs shop, the reason being that if you travel on the road a lot it is extremely hard to go back home and get the car fixed if you break down 500km away.
- What warranty does your car come with? – This seems like a no-brainer, but it is always a good idea to see what your current warranty allows you to do.
The reasoning behind this is that it makes no sense to buy an extra 10 000km warranty if your car has a 3 year 100 000 year warranty.
It is always a good idea to see what your current warranty comes with so you don’t end up losing money.