Hey everyone!
My MCS AB/s should be coming in today!!!!!!! I will be picking it up on Saturday though, I can't getaway from work until then.
I was wondering if anybody had any tips on getting the extended warranties. Are they worth getting? And is there any other worthless things that the finance guy tries to make you buy, that I should look out for?
thanks in advance!!!
-Alex

 

Extended warranties are a personal thing. I bought a 100,000 mile extended warranty for my MCSa since I put about 36,000 miles per year on a car, which means the standard warranty is used up after a year. I have come to the conclusion that it is a part of the cost of a new car. Case in point: I purchased a 2003 Honda Accord with the extended warranty. Now the Accord is supposed to be a bullet-proof car, right? Wrong. I wound up replacing the transmission, twice. Never had to replace a transmission in a car before, ever. The transmission was acting up again, and since I was close to the end of the extended warranty, I decided enough was enough. I sold the car and bought the MINI, with an extended warranty. But make sure you get a reputable policy. There are definitely some rotten eggs out there.

 

When I went in to order my MINI I asked to talk to the finance guy. I asked him point blank what warranties were offered and how much each one cost. He was up front and honest. You should call them and get the heads up on the warranties so that you don't have to make a split second decision on Saturday.

 

I personally would skip the warranty... Instead, put the money you would spend on the warranty in an investment or savings account... If you need a repair after the warranty is over, you most likely will have enough money to cover it..If not, you are way ahead of the game...

 

Can someone list what the extended warranties are?

 

I always here finance advice like this. My question is, how many people actually do this? More than likely, the money is spent on something else or you really don't have the money and put it into the price of the car.
I'd use the money for Mods...

Personally, I don't get extended warranties. I don't put a lot of mileage on our cars.

 

I received a paper a few weeks ago from my MA. Here's what was offered.

Full Maintenance Program:
Extends 3yr/36000 mi free maint paid by Mini to Match factory 4yr/50000 mi bumper to bumper.
Cost: $499

Extended Warranty offered by GE:
Cooper S 7yr/100000 $2139.00
Cooper 7yr/100000 $1933.0

Lo Jack:
$499.00

Factory Alarm hardtop:
$459.00
Convertible Alarm:
$950

MultiShield 5yr plan:
Minor dent and Door dings fixed, winshield repair, tire/wheel coverage, plus roadside assistance.
$550.00

Paint protection:
Seals and protects paint, interior fabric/leather.
$369.00


Needless to say, I didn't go for any of these.

 

Do these extended warranties apply no matter which dealer you take it to, or only at the dealership from which you purchase them?

 

each dealer has his own providor. some may use the same insurance, but there are many out there. need to do just a little research on the company offered so that you are comfortable that *they* will last as long as your warranty. i got quotes from 4 different dealers. they ranged from 1850-2399 for a 7/100 with almost no exclusions, $100 deductable. three different insurance companies.

 

Just because most people lack any financial disipline does not mean that it is not the right thing to do. extended warranties are ripoffs

" So, when is it a good time to buy extended warranties? Never! Extended warranties are complete ripoffs. Consumer Reports conducted research on how often items break in their first year of ownership. The only item at all likely to break in that time frame is a computer. Everything else will most likely have no problems for the first five years. Why would you buy an insurance policy on something that is not likely to break? ........You're better off taking the money you would have spent on service contracts and putting it into a repair fund." .-Clark Howard

Note that extended warranties are really not warranties at all. They are actually service contracts sold at an extra cost that is typically quite profitable for the retailer. That's why so many retailers ask if you'd like to purchase an extended warranty when you buy something. In some cases, the retailer makes more profit on the extended warranty than on the product it sold you.

 

This is exactly what a mechanic friend who used to be a tech for BMW told me recently. He said the profit in the extended warranty programs was just HUGE for the dealerships.

 

We had such a bad experience the one time we bought an extended warranty, that I'll never do it again.

We discovered that the extended warranty is not from the factory. In addition, the warranty company made the dealer go through so many loops to justify a claim, that the service department was refusing to spend all the time making calls and providing documentation (they didn't sell them, that was new car sales, right . . . ). So, they passed the buck on to the owner, so I spent several days of high-stress phone calls with the warranty company. Finally they caved in (though we were without the car for several days after it was actually fixed because I figured I'd never get the money back once I actually paid the dealer). It was pretty clear to me that they were relying on the hassle factor to reduce claims they actually paid.

I figure that if your car is going to have expensive problems they will likely show up during the regular warranty period. Problems that occur later in a vehicle's life are kind of like those you have when you buy a used car--it's just part of the territory.

However, if you drive enough that your car will go out of warranty on miles quickly, it might be worth considering.

 

Also, if you do want the extended warranty check with your financial institution. My credit union sells extended warranties at lower rates than the dealer.

As someone else rightly pointed out, these are not extensions of the factory warranty. These are separate service contracts and you will be dealing with a separate business to process & approve your claims.

Extended warranties are almost always the highest profit item a retailer (from Circuit City to a car dealer) can (legally) sell. That doesn't mean they're always a bad deal... some cars it might be a good idea.

 

Any thoughts on the MINI offered Tire and Wheel 5-year warranty? It's $500. Worth it? How many run-flat tires or wheel rims are people finding they go through?

 

Save your money.

I wouldn't spend $500 on road hazard. That's more than the cost of one wheel and one runflat (assuming BOTH were destroyed) from the dealer, and about what a MINT set of FOUR stock wheels and run-flat tires run in the NAM marketplace.

just my $0.02, but I would do nothing, then wait for your tires to wear down and take that $500-$600 and spend it on four new non run-flat (i.e. regular) tires to improve the ride comfort and handling.

FWIW, four new run-flat tires just sold for around $250 in the marketplace.