Ultimate Care Dealer Costs

[tke743]

I'm finalizing my deal and looking at the Ultimate care (3 year add on and the 1 year extension). Does anyone know the dealer costs on these? In my experience these "extended warranties" are very high margin.

[Racer35]

I'm searching for the same info with no luck... I'd probably bite at 50% off but just don't see it being worth it at full pop.

[bb1857]

Ultimate Care + is not an extended warranty. You are simply paying for your maintenance costs upfront at a reduced rate so most dealers likely aren't going to move off their prices much if at all.

BMW is probably mandating that dealers charge a specific price and likely can't alter it much up or down. They are not going to want to de-value the maintenance costs so I doubt you will find the big swings in pricing that you do with many true extended warranties.

[afadeev]

Originally Posted by bb1857

Ultimate Care + is not an extended warranty. You are simply paying for your maintenance costs upfront at a reduced rate so most dealers likely aren't going to move off their prices much if at all.

BMW is probably mandating that dealers charge a specific price and likely can't alter it much up or down. They are not going to want to de-value the maintenance costs so I doubt you will find the big swings in pricing that you do with many true extended warranties.

As with everything BMW NA sells through its dealer network, dealers are usually free to mark-up prices. In some situations, BMW NA imposes limits on the mark-ups (MF, lease inception fees, etc), in others it doesn't (cars themselves). It's anyone's guess where the BMW prepaid maintenance and warranty plans fall.

One thing is for sure - everything you buy through an auto-dealer is nogotiatble!

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[al3xander]

the "refresh" which is to transfer over the maint. plan is 700 msrp. I just checked our cost because I can sell these now in the service dept. our cost is 300 on that one. The extensions of 1-3 years have much less margin.

[tke743]

Originally Posted by al3xander

the "refresh" which is to transfer over the maint. plan is 700 msrp. I just checked our cost because I can sell these now in the service dept. our cost is 300 on that one. The extensions of 1-3 years have much less margin.

You the man. TY for the info.

[Racer35]

Originally Posted by al3xander

the "refresh" which is to transfer over the maint. plan is 700 msrp. I just checked our cost because I can sell these now in the service dept. our cost is 300 on that one. The extensions of 1-3 years have much less margin.

That's helpful, thank you! Can you share margin on the extensions?

[al3xander]

Originally Posted by Racer35

That's helpful, thank you! Can you share margin on the extensions?

maint. plan extension of 1 year and 25k miles

cost= 1,350
msrp=1,700

2 years and 50k miles

cost=2,995
msrp=3,495

3 years and 75k miles
cost = 4,472
msrp=5,022

[Racer35]

Originally Posted by al3xander

maint. plan extension of 1 year and 25k miles

cost= 1,350
msrp=1,700

2 years and 50k miles

cost=2,995
msrp=3,495

3 years and 75k miles
cost = 4,472
msrp=5,022

You weren't kidding. That's not much to work with. Thanks again for sharing this!