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While BMW’s standard new vehicle warranty covers a lot, it will not last forever. An extended warranty can help alleviate some of the worry associated with owning and maintaining your BMW – allowing for driving enjoyment and peace of mind. In this article, we review some of the best BMW extended warranty plans, their coverages, and expected costs.
In this article, we’ll look at the best extended warranties available for your new or pre-owned BMW. Additionally, we’ll take a quick look at what buying a Certified Pre-Owned BMW really means. By the end, you should have a firm grasp on how – and what – extended warranties can benefit you.
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Is an Extended Maintenance Warranty Worth It?
BMWs are beautiful and luxurious cars. Unfortunately, that entails luxury running costs. Even routine maintenance for a BMW can be considerably more expensive than some buyers are prepared for. And if you plan to keep your car for more than a couple years, it’s definitely a good idea to keep your BMW maintained by the experts. Deferred maintenance can eventually add up to huge repair costs.
Here are some examples of cost associated with repairs out of warranty:
2018 BMW 740i
- Brakes – all four corners: $2500
- Oil service: $129
- Fuel pump replacement: $2750
- Battery + alternator: $550 + $2980
2018 BMW X3 xDrive30i
- Brakes – all four corners: $1850
- Oil service: $119
- Fuel pump replacement: $1425
- Battery + alternator: $449 + $1675
2018 BMW 230i Coupe
- Brakes – all four corners: $1750
- Oil service: $119
- Fuel pump replacement: $1425
- Battery + alternator: $449 + $1890
In almost any case, it makes sense to buy an extended warranty if you can answer yes to either or both of the following questions. First – did you buy a pre-owned BMW? And second – do plan on keeping your BMW for longer than a couple years?
Extended warranties offer a lot of peace of mind and can save you thousands of dollars – it’s worth looking into them!
Extended Warranty Cost and Length
BMW offers many competitively priced and customizable extended warranties. While fairly comprehensive, there are some limitations that may exclude you from being eligible. The general exclusions are as follows:
-Cars older than model year 2017
-Vehicles over 60,000 miles
-A vehicle with an in-service date of over 3 years ago, and not already covered under UltimateCare +
For demonstration purposes, let’s use a 2019 X3 with 30,000 miles. BMW’s own website touts Ultimate Care +4 as covering up to 7 years/125,000 miles for $4699. When you consider the average BMW costs between $1000 and $1700 each year to maintain, it seems like a no brainer.
More expensive cars – think, a 7 Series or an M3 – can cost a bit more than that $4699. But the parts are much more expensive, and typically the jobs require more labor time. Expect to pay up to $8,000 for the maximum BMW extended warranty on an expensive vehicle. It is still highly likely that an extended warranty will save you hundreds or even thousands of dollars. Amazingly, a third-party warranty might be able to save you even more!
Of course, if you don’t need coverage that long, BMW makes it easy because Ultimate Care is tiered. Ultimate Care+ is the entry-level extension, costing under $1000 for most models and additionally covering brakes, wipers, and clutches. Coverage is easy to extend or cancel, and totally transferable.
Third Party Extended Warranty Cost and Length
While BMW’s extended warranty options are compelling, there are downsides. First of all, you’re only able to service the vehicle at a BMW dealership – not always convenient. Though the potential to save money is there, they are still very expensive. And of course, many vehicles are simply not eligible.
Using a third-party warranty, such as CARCHEX or Endurance, is generally less expensive and can in some cases cover a longer term than BMW’s warranty options. Many offer terms up to ten years, and usually feature a very low deductible, further keeping repair costs manageable. Mileage is another aspect that is often capped, and many third-party companies either do away with mileage restrictions completely or cover cars even up to the 250,000 mile mark!
Most third-party warranties also adopt a “tier” structure like BMW, offering even further customizability. These will also feature add-ons; some popular ones are free towing, rental car reimbursements, and even roadside assistance!
One thing to note: many third-party companies have a “waiting” period, or introductory period. Claims are generally not covered during this period (commonly around 30 days and 1,000 miles). So it’s always in your best interest to get covered sooner, rather than later.
BMW New Vehicle Limited Warranty
While we’ve mostly focused on pre-owned BMWs, new BMWs can get extended warranties too. A lot of the same rules of thumb apply here – if you’re planning on keeping the car a while, it may benefit you to investigate your extended warranty options. Of course, the BMW New Vehicle Limited Warranty helps covers quite a lot on its own.
The New Vehicle Warranty covers manufacturing defects and workmanship flaws. Think of stuff along the lines of badly fitting trim panels or a seat adjuster switch that breaks off in your hand. You’ll enjoy four years and 50,000 miles of coverage. It also includes:
-Rust Perforation Warranty. BMW covers rust perforation for twelve years, with no mileage limit.
-Federal Emissions Warranty. All emissions related parts are covered for 2 years/24,000 miles, and specific control devices are covered for 8 years/80,000 miles. This is extended to 3 years/50,000 miles and 7 years/70,000 miles in California. Also limited to California: TZEV vehicles are covered for 15 years or 150,000 miles.
BMW Certified Pre-Owned Warranty
One of the leading reasons people buy pre-owned BMWs at all is BMW’s Certified Pre-Owned (CPO) Warranty. It’s largely similar to buying a brand new car – including carrying over the balance of the 4 year/50,000 mile New Vehicle Limited Warranty. But it goes even further than that.
The CPO warranty covers an additional 1 year/unlimited miles under the New Vehicle Limited warranty. Remember – this covers parts of the car that are considered manufacturing defects – not maintenance or wear and tear items.
Of course, not all vehicles are certifiable. Upon taking in a used BMW, a certified BMW dealership needs to conduct a thorough inspection, review the CARFAX or AutoCheck report, and ensure only BMW OEM parts are installed. All of this documentation is sent to BMW North America, and a fee is paid. Only after these steps can BMW North America certify the vehicle.
There are a handful of other perks when deciding to purchase a Certified Pre-Owned BMW. BMW Financial Services typically offers more competitive incentives and interest rates to Certified buyers. Naturally, BMW-supported extended service contracts are typically much more aggressively priced, as well.
Our Affiliate Partners at CARCHEX and Endurance
Founded in the late 1990s as a vehicle inspection service in Baltimore, Maryland, CARCHEX quickly became much more. Current CEO Jason Goldsmith saved a bunch of money by having CARCHEX inspect a vehicle he was considering purchasing; this helped him realize its value as a customer-facing service. He bought the assets of CARCHEX with the express desire to educate and assist potential buyers. CARCHEX became a leader in the service, and later expanded into the extended warranty field. CARCHEX has since become a trusted extended warranty service for thousands of customers.
In the warranty business for over 15 years, Illinois-based Endurance prides itself on besting the competition. With unlimited mileage coverages and over $185 million paid out in claims since 2006, Endurance offers the most comprehensive and no-hassle extended warranties in the business. Endurance is highly ranked by Consumer Affairs, Consumer Advocates and Trust Pilot. They even offer a 30-day money back refund if you aren’t satisfied with your protection!
FAQ: BMW Extended Warranty
Almost always, yes. If you plan to keep the car long term, you will likely save thousands of dollars with an extended warranty. The average cost to drive a BMW for one year is $1,000 – $1,700. That’s much more than most extended warranties will cost you, especially over a long period of time. Also, considering that a fuel pump replacement can cost between $1500 to $2750, then the need for a BMW Extended Warranty becomes obvious.
Most of the BMW Extended warranty costs between $3,000 and $4,000, but prices vary depending on coverage selected, the year of your BMW and its condition. Top tier Platinum Plans can cost more than $6,000 for a 5 year/100,000-mile. A BMW Gold Warranty can cost around $3,500 for a 7 year/75,000-mile.
Just like buying a car, you can negotiate the cost of a BMW extended warranty. BMW cars are expensive vehicles to maintain, so extended warranty is likely to be pricey as well.
Of course. You can buy a BMW extended warranty at a later date. In fact, you can buy BMW’s Ultimate Protection extended warranty anytime before your vehicle’s original factory warranty expires.
BMW’s New Vehicle Limited Warranty lasts four years or 50,000 miles. There are select parts that are covered longer. Maintenance is free; three years or 36,000 miles – but only at a BMW store.
Depending on your warranty, everything from regular maintenance to complicated engine repairs. But it depends on your provider and level of coverage. Consult your warranty documents or call a representative.