Automotive

BMW UK Extended Warranty Shaming

  • Last Updated:
  • Dec 25th, 2020 6:44 pm
8 replies
Deal Addict
Aug 17, 2008
1383 posts
863 upvotes
Yet another strong indication of why extended warranties are poor purchases. Why does BMW work so hard to sell these things? Hint: They make a boatload of money on extended warranties, and the dealer makes a boatload of commissions. The actual expected claims are a fraction of the cost of the warranty.
Deal Addict
Nov 27, 2013
1554 posts
2161 upvotes
Yeah if extended warranties were financially advantageous to the consumers, they wouldn't offer them.
Just like going to the casino. You might win you might (or will) loose but in the end the house profits, not you.
Deal Fanatic
Mar 21, 2010
6480 posts
3491 upvotes
Toronto
RaphaelG041 wrote: Just like going to the casino. You might win you might (or will) loose but in the end the house profits, not you.
Worse than that, because if you're lucky enough to win at the casino, cashing out is a great feeling. In my experience, trying to claim on any kind of extended warranty is about as far from that as you can get.
Deal Fanatic
Dec 20, 2018
6364 posts
5421 upvotes
multimut wrote: Yet another strong indication of why extended warranties are poor purchases. Why does BMW work so hard to sell these things? Hint: They make a boatload of money on extended warranties, and the dealer makes a boatload of commissions. The actual expected claims are a fraction of the cost of the warranty.
not sure about UK market ...but in North America, i can see them pushing it on people so it makes it easier to sell used cars just like how they use the "free" maintenance to get cars dealer serviced and CPO for used cars, making first owners buy extended warranty so that it makes the cars easier to sell used is maybe a part of it too imo
Deal Fanatic
Jul 7, 2017
7874 posts
3742 upvotes
SW corner of the cou…
Manufacturers also get to supply parts at cost.
I smile when I see container ships sailing past my house laden with stuff made in China
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Mar 1, 2005
6031 posts
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Toronto
StatsGuy wrote: not sure about UK market ...but in North America, i can see them pushing it on people so it makes it easier to sell used cars just like how they use the "free" maintenance to get cars dealer serviced and CPO for used cars, making first owners buy extended warranty so that it makes the cars easier to sell used is maybe a part of it too imo
Maybe 1% buy BMW's here, rest are leased, won't work here.

Have a feeling this is just a stunt to gain media attention though.
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Deal Addict
Nov 27, 2013
1554 posts
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BeaverLiquor wrote: Maybe 1% buy BMW's here, rest are leased, won't work here.

Have a feeling this is just a stunt to gain media attention though.
Yeah but those leased cars get bought when they are returned. This is where they sell the extended warranties

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