BMW - Protection 'add ons' (tires, appearance, etc) - Reviews and Comments?

[KevinM]

Originally Posted by BurnMeWallet

Haha, I'm a mechanic by trade and I know for sure that tire could have been patched up! But are you going to be an ass about it and argue with them especially since I bought the road hazard? Hell no.

Hell no indeed - not if you have a warranty for sure!

[stealth-twntrbo]

Originally Posted by minn19

Curious about a few things.

1. How do you know this info?

2. I wonder what the average selling price is of this particular warranty.

3. Why would BMW offer a $750 rebate on this product recently? It seems like they wouldn't offer this if they were losing a bunch of money on this product.

1. I work for BMW

2. Average Selling prices varies per vehicle usually a great deal on 3's and 4's is around $950 - $1000 for 4 years.

3. Reason is BMW has found that customers that buy there aftersale products have a much higher retention rate. Customer that have Tire and Wheel coverage have shown 25% increase over customers who do not have it in buying another BMW.

[minn19]

Originally Posted by stealth-twntrbo

1. I work for BMW

2. Average Selling prices varies per vehicle usually a great deal on 3's and 4's is around $950 - $1000 for 4 years.

3. Reason is BMW has found that customers that buy there aftersale products have a much higher retention rate. Customer that have Tire and Wheel coverage have shown 25% increase over customers who do not have it in buying another BMW.

Interesting, thanks.

[GrussGott]

Originally Posted by ChicagoM4

Ah yes, "Listen to me because I am older and thus have more wisdom" spiel. If If would have done that, I wouldn't be driving an M4 in my mid-20s.

Ah, so the key to success is not listening ... seems legit.

[Fahrvergnügen]

Originally Posted by GrussGott

Ah, so the key to success is not listening ... seems legit.

If you correlate driving an M4 with being successful, then yes, you are right

[Walt Dockery]

Originally Posted by RonnyK

As my father is wont to say, with insurance, the insurer is betting you won't have a problem and you are betting you will (at least a "covered" problem).

As with all insurance products, these are priced based upon actuarial data, and in the end, the insurer is making a decent amount of coin. With the types of coverages we are talking about and limited way in which covered claims are defined, I think it is pretty unlikely that even after a bad winter in a given metropolitan area or two, the insurer takes a big hit. The fact that the dealers have a considerable amount of room to negotiate speaks only to the large markup that is reflected by the suggested retail price; in the end, the broker and the underwrite gets their share and there is still room for retail profit.

I was recently a bit annoyed when I suffered a windshield crack and learned that I had unknowingly opted out of glass coverage many years ago with this insurer. The new glass cost me $500. However, when I inquired about the coverage, I learned that it would have cost me much more than that over the past five years of my insurance coverage. When you can afford to do so, it is ALWAYS cheaper to self-insure. No one sells insurance for things that are bound to happen.

+1, very well put.

Insurance is, statistically, a bad bet that is worth paying for to protect against catastrophic financial loss. I'm ok paying too much for homeowners insurance because if my house burns down, that would represent a catastrophic financial loss to me. If I get in a wreck and get sued, that liability is potentially a catastrophic financial loss. As far as the collision component of an auto accident, that isn't what I'd call catastrophic but would be painful enough that I still do carry collision coverage, albeit with very high deductibles.

A damaged rim or blown tire is a very manageable financial loss to anyone w/ any business buying or leasing a new car. Unless you know something they don't (i.e. you have an extremely high propensity for these types of mishaps), it's a bad buy. If people want to pay for it for peace of mind that's fine, but it's still a bad buy.

Insurance is to protect against that low probability event that represents a very high $$$ tail risk. Statistically, self insuring is almost always cheaper for anything small enough you can stomach the risk for.

[vonmayr]

I have a 335i - and I debated a long time before I bought the policy. I had not had a flat tire in 10+ years; the deal I was offered was slightly different - I paid 1100 for unlimited coverage for 5 years.

In October this year I had two flats in three days on the front tires (fortunately not the same one). Replacement paid for with no issues by BMW - both tires picked up nails (roughly $600). So I haven't broken even yet but had good experience with the warranty.

[GrussGott]

Originally Posted by ChicagoM4

If you correlate driving an M4 with being successful, then yes, you are right

LOL ... yeah probably should listen to the older guys on that one:

Let's say the M4 is $85,000 and you invest that cash rather than spend it (on mods). Interest over 3 years (typical lease term) @ 8% = 107,000 ...i.e., a 22,000 jump. That's a lot of car payments if you invested that cash instead.

Looked at differently, if you have $168,000 (roughly double) as car "seed money" and it earns 8% every year, that's $1120/mo!

You're in M4s for the rest of your life.



On topic comment: save your insurance payments.

[Fahrvergnügen]

Originally Posted by GrussGott

LOL ... yeah probably should listen to the older guys on that one:

Let's say the M4 is $85,000 and you invest that cash rather than spend it (on mods). Interest over 3 years (typical lease term) @ 8% = 107,000 ...i.e., a 22,000 jump. That's a lot of car payments if you invested that cash instead.

Looked at differently, if you have $168,000 (roughly double) as car "seed money" and it earns 8% every year, that's $1120/mo!

You're in M4s for the rest of your life.

On topic comment: save your insurance payments.

Wow, you have tried explaining compound interest and the notion that a penny today is worth more than a penny tomorrow

For those wanting a further explanation look here -> http://www.businessinsider.com/compo...avings-2014-12

You must believe that I do not save money and have made a bad decision by purchasing an $80k coupe and yet another bad decision by purchasing seemingly 'frivolous' insurance. You must further assume that I won't be successful (monetarily) due to these bad decisions and listen to some old dudes. I guess it's easy to make assumptions and throw them on the internet...

Was I just too serious with this post?

[GrussGott]

Originally Posted by ChicagoM4

Was I just too serious with this post?

I would say yes.

In your defense, I'm overly fascinated with compound interest and the fact that for the price of 2 M4s you can have M4s for life so I just love an opportunity to be conversational about it.

I kinda thought we were joking around there, but that probably didn't come though. I'm socially awkward maybe a little aspy.

[Fahrvergnügen]

Originally Posted by GrussGott

I would say yes.

In your defense, I'm overly fascinated with compound interest and the fact that for the price of 2 M4s you can have M4s for life so I just love an opportunity to be conversational about it.

I kinda thought we were joking around there, but that probably didn't come though. I'm socially awkward maybe a little aspy.

Ha, no worries. I just started blogging a few months ago which probably doesn't help with my politeness and I guess I am naturally defensive.