Has anyone purchased extended warranties?

[FrankL]

I just purchased 2018 X5 with just under 40K. It is in pristine shape. I do have a good independent mechanic but I was thinking about an extended warranty. Has anyone had decent luck with extended warranty policies?

The dealer offered something that was expensive and only went out to 60K miles or something. Thank you.

[zx10guy]

If you plan on using your indie mechanic, it would be in your best interest to ask your mechanic if they work with any of these "extended warranty" companies or if he has any recommendations.

Many shops will not work with these extended warranty companies because of all the headaches involved. Many will tell you they will work on your car but it's on you to file the claim and work it out with the warranty company.

[JABCAT]

Save whatever money you'd spend on an extended warranty for when you actually need it. Or buy yourself some ramps and basic tools then learn how to maintain/fix your vehicle yourself.

[jefe2000]

These types of extended warranties can buy a lot of peace of mind. That shouldn’t be ignored.

However it’s also important to realize that providers don’t sell the extended warranties at a loss. These warranties are profit centers for the providers. So getting one of the warranties isn’t likely to save you money over your ownership of your X5. Again, you’re buying peace of mind, not an overall cheaper way to get your car repaired.

Another common approach is to take the cost of that extended warranty and sock it away in a high-interest bearing account somewhere. If you have the discipline to leave it there except for using it for repairs to the car, you’ll likely end up ahead financially, but maybe with less peace of mind along the way.

[Phillies8008]

Like any insurance it's a gamble – you might have a catastrophic repair that'll make it a no-brainer in hindsight, or you may never have enough repair expenses to justify the cost of the warranty. It really just depends on how risk-averse you are, how much of a DIY person you are, and your tolerance for repair costs.

I sometimes buy extended warranties because I'm definitely not a DIY guy, and for whatever reason I really, really hate surprise expenses. I mean, obviously no one likes them, but my personality is such that they just cause me a lot of stress and tension. Sometimes I prefer to just buy my way out of it, be that logical or not. It also depends on the car – if I were buying a Toyota, I'd never get a warranty. If I were buying a Jaguar (mmm... F-Type) I wouldn't own it without one.

On the warranties I've had, I'm probably about 50/50 on coming out ahead. YMMV.

It doesn't bother me in the slightest that warranty companies – unsurprisingly – make money on them. I mean, duh? I've never understood why people get so upset about it, honestly. Your home insurance provider makes money on the policy. Your auto insurance provider makes money on the policy. Your health insurance provider makes money on the policy. Every business makes money on what they sell (or at least they try to). I don't get why people find it so offensive that a car warranty provider would be doing the same. C'est la vie.