warranty scam

jonf49 · 03-15-2023, 04:01 PM

I think I was completely scammed by BMW of San Francisco. I got a 5yr/93k mile extended warranty last year. They told me I could go to any dealership, but when I went to get some warranty work done today, at another dealership, they said there would be a 285 labor charge per hour for diagnosis! They also said they would need a rep come out from the third party company Lithia to inspect any work done by warranty. I spent 7k on this warranty and am so angry. I feel like I was completely take advantage of and lied to by BMW of San Francisco!

Suggestions?

mapster37 · 03-15-2023, 04:33 PM

Pretty normal practice. Diagnosis is usually not covered by your ext wty. So you would be responsible for that. Also sending out an inspector is normal

electrathecat · 03-15-2023, 05:16 PM

I find BMW of S.F. to be pretty disreputable. I tried to buy a car from there a few years ago and we were deep in negotiations when they completely changed the terms — their argument was that they realized it was too good a deal for me and they needed to make more of a profit. It didn’t seem accidental, just smarmy.

Though I’ve never bought a car from them, I get all my beemers serviced at Peter Pan BMW. They’re actually quite good and trustworthy and they’ve always honored extended warranties bought elsewhere without issue. For a dealership, they’re probably as good as it gets (though they can be quite slow).

AlmondJayRoM3 · 03-15-2023, 05:31 PM

Quote:

Originally Posted by jonf49

I think I was completely scammed by BMW of San Francisco. I got a 5yr/93k mile extended warranty last year. They told me I could go to any dealership, but when I went to get some warranty work done today, at another dealership, they said there would be a 285 labor charge per hour for diagnosis! They also said they would need a rep come out from the third party company Lithia to inspect any work done by warranty. I spent 7k on this warranty and am so angry. I feel like I was completely take advantage of and lied to by BMW of San Francisco!

Suggestions?

I fail to see how you got scammed. You not understanding how the aftermarket warranty works and failing to read the terms does not constitute a scam on their part.

dylanwilson · 03-15-2023, 05:31 PM

Hmm, I did get a warranty from Sterling BMW and I had it on my car for about a year and a half before selling. Some things i also learned after buying were that all work must be done by the selling dealership unless its another dealer that is more than like 50 miles outside of selling dealer. So yea you can go to others but only if they are a certain distance away from the original dealer. In terms of the inspection, I was also told that once a repair exceeds a certain dollar amount the company will send a tech out for their own inspection and then they get to determine if the repair is bad enough to repair or just something for the future. However, when i sold my car private party i went back to sterling and got a partial refund check for the warranty. My warranty was ~$3500 and i got a refund check for ~$2000. This was after having about 18 months under warranty and taking a $700 claim for oil housing leak. All in all, not a bad deal after i got the prorated return check.

Blocke · 03-15-2023, 06:48 PM

OP- you aren’t going to get much sympathy here. As others have stated, it was your responsibility to understand the T&C’s of the warranty. You sign documents, usually several times, acknowledging you understand what you are buying. The selling rep may have verbally misled you, but it’s all spelled out in your paperwork. As for suggestions, you may be able to cancel and get a prorated refund, but maybe not. I’d make sure you pay attention to what you are buying next time.

jonf49 · 03-15-2023, 07:22 PM

Quote:

Originally Posted by AlmondJayRoM3

I fail to see how you got scammed. You not understanding how the aftermarket warranty works and failing to read the terms does not constitute a scam on their part.

What they said was completely different from what they squeezed into one of the pile of sheets I had to sign. They said it was a bmw warranty. So much for trusting people and having to read all the fine print. To be fair I hadn’t purchased a car for almost 20 years, so my experience in reading all the fine print was not well seasoned. I took their word for it, and clearly I shouldn’t have. Sad that there are people like that though.

jonf49 · 03-15-2023, 07:27 PM

I was just told that I could go to any dealership with the warranty I purchased, but would have to wait for an inspector to come look at to car. It’s just not as seemless a prodess.. takes a little longer.

JAI///M3 · 03-15-2023, 08:01 PM

You gotta read the terms.

Sephrr · 03-15-2023, 09:34 PM

If it's an aftermarket warranty, those normally can be used at any major service center regardless of being a dealership or not. On the shops side of it, they are a huge pita and some add ridiculous amounts of time and a plethora of hoops to jump through. For my shop I've had a 2 hour and 24 minute phone call for a warranty to pay for a $200 tire. So if you take it to a shop, give them time and patience and it will be a better experience at that shop. Or take it back where you got the warranty from and make them do the work

jonf49 · 03-15-2023, 10:21 PM

Quote:

Originally Posted by Sephrr

If it's an aftermarket warranty, those normally can be used at any major service center regardless of being a dealership or not. On the shops side of it, they are a huge pita and some add ridiculous amounts of time and a plethora of hoops to jump through. For my shop I've had a 2 hour and 24 minute phone call for a warranty to pay for a $200 tire. So if you take it to a shop, give them time and patience and it will be a better experience at that shop. Or take it back where you got the warranty from and make them do the work

My main concern is that I plan on lowering the car soon and putting on some spacers, and I’ve heard BMW of SF and Peter Pan BMW are not “mod friendly”

I wanted something checked under warranty at Peter Pan today, and they also said I had to pay a diagnostic fee… but that it would be reimbursed by the warranty company if a repair was needed. If not I’m out 295 diagnostic fee.

There’s another shop that is mod friendly called SV Bimmer in Santa Clara, but I’m not sure if they’d be able to do any warranty work?

electrathecat · 03-15-2023, 11:59 PM

Peter Pan will overlook some minor mods, but not bigger ones (especially engine related). Don’t know if SV Bimmer does warranty work, but my guess is likely not — still worth checking out. BTW, if you’re considering BMW of Santa Clara, I find they’re pretty sketchy. I did end up buying a CPO car from them once since it was such a good deal (after a ton of negotiating) but then I ultimately found lots of small issues with the car that suggested that their service was a bit sloppy and half-assed. I’ve bought a lot of CPO cars and this one was the least impressive in terms of CPO-ness.

evoix · 03-16-2023, 07:32 AM

Quote:

Originally Posted by jonf49

I think I was completely scammed by BMW of San Francisco. I got a 5yr/93k mile extended warranty last year. They told me I could go to any dealership, but when I went to get some warranty work done today, at another dealership, they said there would be a 285 labor charge per hour for diagnosis! They also said they would need a rep come out from the third party company Lithia to inspect any work done by warranty. I spent 7k on this warranty and am so angry. I feel like I was completely take advantage of and lied to by BMW of San Francisco!

Suggestions?

I’m in the market for an extended warranty so this is interesting. So you bought a third party warranty directly from the dealership called Lithia?

Did the contract say anything about diagnostic fees? I found a bmw dealership that sells a factory bmw warranty but these are the questions I need to ask before buying. It sucks bc the contracts are so weirdly worded to confuse buyers but sales reps will yes you to death when you ask questions.

AlmondJayRoM3 · 03-16-2023, 08:11 AM

Quote:

Originally Posted by jonf49

My main concern is that I plan on lowering the car soon and putting on some spacers, and I’ve heard BMW of SF and Peter Pan BMW are not “mod friendly”

I wanted something checked under warranty at Peter Pan today, and they also said I had to pay a diagnostic fee… but that it would be reimbursed by the warranty company if a repair was needed. If not I’m out 295 diagnostic fee.

There’s another shop that is mod friendly called SV Bimmer in Santa Clara, but I’m not sure if they’d be able to do any warranty work?

Read the terms of your warranty. A shop can be mod friendly but they still must abide by the warranty terms. They always have a list of exclusions and one of them will read along the lines of damage of or due to parts not originally installed by manufacturer of the car.

As to a shop honoring the aftermarket warranty, it is up to the individual shop. This is because not all of them want to deal with the process required to get paid by the warranty company.

G35POPPEDMYCHERRY · 03-16-2023, 08:14 AM

I mean the real scam is that you paid 7K for a warranty when that is the cost for almost two engine rebuilds. so you like many others scammed yourself.

not trying to be offense but yall wild for paying anything for 2k for a warranty

knickerbocker · 03-16-2023, 10:30 AM

Quote:

Originally Posted by jonf49

What they said was completely different from what they squeezed into one of the pile of sheets I had to sign. They said it was a bmw warranty. So much for trusting people and having to read all the fine print. To be fair I hadn’t purchased a car for almost 20 years, so my experience in reading all the fine print was not well seasoned. I took their word for it, and clearly I shouldn’t have. Sad that there are people like that though.

OP - I feel for you. Just want to point out that while it's always a good idea to read all the terms and condition of what you're signing, from a legal standpoint based on what you described it could technically be considered misrepresentation. Now are you going to be able to prove it and have it be worth going to court for 7k? Of course not, but you could try throwing some big words around and see if it can get them to cancel the warranty contract. Specifically if they told you it was a BMW warranty and it turns out it isn't then technically the contract should be void. Of course, you'd just be bluffing about suing etc. but doesn't hurt to try. Good luck!

kk_alpine · 03-16-2023, 10:59 AM

Thats the deal with an aftermarket warranty. Diagnostics are usually not covered.

luthers4 · 03-16-2023, 02:25 PM

I find most aftermarket warranties to be a scam in general. Unless you have engine mods and beat the hell out your car, I can't fathom $7k worth of warranty work within 100k miles. Totally understand the diagnosis fees.. I would take my car to dealer let them determine issue then either DIY or find cheapest indy solution. I have lost money on every aftermarket warranty that I have purchased in the past. No longer!

Have you guys that diligently maintain your cars, without engine mods or tracking, had major warranty claims? Don't have an F80, for now, but had absolutely no issues with my 2016 over the the +/- 4 years of ownership. It seemed bullet proof.

arfboy · 03-16-2023, 07:07 PM

Quote:

Originally Posted by knickerbocker

Now are you going to be able to prove it and have it be worth going to court for 7k? Of course not

You'd be surprised. California has strong consumer protection laws, including providing for attorney's fees for certain violations. That alone often makes otherwise low-value cases worthwhile to attorneys.

OP - consider consulting with a California auto fraud attorney.

NickyC · 03-18-2023, 03:26 PM

If possible, I highly recommend taking the car to be serviced where you purchased the warranty. They will often waive/discount the diagnostics and deductible for repair work (if included in the contract). They will likely also be much more willing to help seeing as you purchased the car/warranty from them.

Finally, if you truly believe you were scammed I'm sure you could just cancel the warranty and get a refund for the time/percentage left on the warranty (if you purchased it a year ago, you'd likely get around $5,600 back for instance since it was five years @ $7k). I have purchased several aftermarket warranties over the years, and have cashed them all in ahead of time with no trouble.

jonf49 · 03-18-2023, 04:15 PM

Got it figured out. The warranty I was sold was the warranty with the best coverage. It’s their Platinum warranty. Head of finance confirmed that I can go anywhere with it for service. It just MIGHT take a little longer because sometimes an inspector has to come out and approve the a repair. Still have to sign for the diagnostic fee, but that get reimbursed if a repair is completed.

Hope this helps any others who were in a similar predicament.

03-15-2023, 04:01 PM	#1
jonf49 Captain 133 Rep 831 Posts Drives: 2019 BMW M4 Competition Join Date: May 2022 Location: 94063 iTrader: (0)	warranty scam - BMW of San Francisco I think I was completely scammed by BMW of San Francisco. I got a 5yr/93k mile extended warranty last year. They told me I could go to any dealership, but when I went to get some warranty work done today, at another dealership, they said there would be a 285 labor charge per hour for diagnosis! They also said they would need a rep come out from the third party company Lithia to inspect any work done by warranty. I spent 7k on this warranty and am so angry. I feel like I was completely take advantage of and lied to by BMW of San Francisco! Suggestions?
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03-15-2023, 04:33 PM	#2
mapster37 Captain 362 Rep 924 Posts Drives: F80 Join Date: Sep 2018 Location: Davie iTrader: (2)	Pretty normal practice. Diagnosis is usually not covered by your ext wty. So you would be responsible for that. Also sending out an inspector is normal
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03-15-2023, 05:16 PM	#3
electrathecat New Member 44 Rep 23 Posts Drives: 2013 535i, 2017 M4 Comp Vert Join Date: Nov 2013 Location: NorCal iTrader: (0)	I find BMW of S.F. to be pretty disreputable. I tried to buy a car from there a few years ago and we were deep in negotiations when they completely changed the terms — their argument was that they realized it was too good a deal for me and they needed to make more of a profit. It didn’t seem accidental, just smarmy. Though I’ve never bought a car from them, I get all my beemers serviced at Peter Pan BMW. They’re actually quite good and trustworthy and they’ve always honored extended warranties bought elsewhere without issue. For a dealership, they’re probably as good as it gets (though they can be quite slow).
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03-15-2023, 05:31 PM	#5
dylanwilson Private First Class 78 Rep 153 Posts Drives: F82 M4 Join Date: Oct 2022 Location: Newport Beach, CA iTrader: (0)	Hmm, I did get a warranty from Sterling BMW and I had it on my car for about a year and a half before selling. Some things i also learned after buying were that all work must be done by the selling dealership unless its another dealer that is more than like 50 miles outside of selling dealer. So yea you can go to others but only if they are a certain distance away from the original dealer. In terms of the inspection, I was also told that once a repair exceeds a certain dollar amount the company will send a tech out for their own inspection and then they get to determine if the repair is bad enough to repair or just something for the future. However, when i sold my car private party i went back to sterling and got a partial refund check for the warranty. My warranty was ~$3500 and i got a refund check for ~$2000. This was after having about 18 months under warranty and taking a $700 claim for oil housing leak. All in all, not a bad deal after i got the prorated return check.
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03-15-2023, 06:48 PM	#6
Blocke First Lieutenant 317 Rep 352 Posts Drives: 2015 AY M3 Join Date: Jan 2018 Location: Temecula, Ca iTrader: (0)	OP- you aren’t going to get much sympathy here. As others have stated, it was your responsibility to understand the T&C’s of the warranty. You sign documents, usually several times, acknowledging you understand what you are buying. The selling rep may have verbally misled you, but it’s all spelled out in your paperwork. As for suggestions, you may be able to cancel and get a prorated refund, but maybe not. I’d make sure you pay attention to what you are buying next time.
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03-15-2023, 07:27 PM	#8
jonf49 Captain 133 Rep 831 Posts Drives: 2019 BMW M4 Competition Join Date: May 2022 Location: 94063 iTrader: (0)	I was just told that I could go to any dealership with the warranty I purchased, but would have to wait for an inspector to come look at to car. It’s just not as seemless a prodess.. takes a little longer.
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03-15-2023, 08:01 PM	#9
JAI///M3 Lieutenant 528 Rep 502 Posts Drives: F80 M3 Join Date: Dec 2021 Location: East Bay iTrader: (0) Garage List 2018 F80 [0.00]	You gotta read the terms.
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03-15-2023, 09:34 PM	#10
Sephrr Second Lieutenant 287 Rep 270 Posts Drives: 2016 M3 Join Date: Feb 2022 Location: Indianapolis iTrader: (1)	If it's an aftermarket warranty, those normally can be used at any major service center regardless of being a dealership or not. On the shops side of it, they are a huge pita and some add ridiculous amounts of time and a plethora of hoops to jump through. For my shop I've had a 2 hour and 24 minute phone call for a warranty to pay for a $200 tire. So if you take it to a shop, give them time and patience and it will be a better experience at that shop. Or take it back where you got the warranty from and make them do the work
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03-15-2023, 11:59 PM	#12
electrathecat New Member 44 Rep 23 Posts Drives: 2013 535i, 2017 M4 Comp Vert Join Date: Nov 2013 Location: NorCal iTrader: (0)	Peter Pan will overlook some minor mods, but not bigger ones (especially engine related). Don’t know if SV Bimmer does warranty work, but my guess is likely not — still worth checking out. BTW, if you’re considering BMW of Santa Clara, I find they’re pretty sketchy. I did end up buying a CPO car from them once since it was such a good deal (after a ton of negotiating) but then I ultimately found lots of small issues with the car that suggested that their service was a bit sloppy and half-assed. I’ve bought a lot of CPO cars and this one was the least impressive in terms of CPO-ness.
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03-16-2023, 08:14 AM	#15
G35POPPEDMYCHERRY Banned 4997 Rep 4,139 Posts Drives: F80 Join Date: Dec 2015 Location: Philadelphia iTrader: (1)	I mean the real scam is that you paid 7K for a warranty when that is the cost for almost two engine rebuilds. so you like many others scammed yourself. not trying to be offense but yall wild for paying anything for 2k for a warranty
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03-16-2023, 10:59 AM	#17
kk_alpine Private First Class 46 Rep 124 Posts Drives: E46 M3, F80 M3 Join Date: Jan 2022 Location: Northern Virginia iTrader: (0)	Thats the deal with an aftermarket warranty. Diagnostics are usually not covered.
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03-16-2023, 02:25 PM	#18
luthers4 Private 110 Rep 76 Posts Drives: 2020 M550 Join Date: Jul 2020 Location: KY iTrader: (0)	I find most aftermarket warranties to be a scam in general. Unless you have engine mods and beat the hell out your car, I can't fathom $7k worth of warranty work within 100k miles. Totally understand the diagnosis fees.. I would take my car to dealer let them determine issue then either DIY or find cheapest indy solution. I have lost money on every aftermarket warranty that I have purchased in the past. No longer! Have you guys that diligently maintain your cars, without engine mods or tracking, had major warranty claims? Don't have an F80, for now, but had absolutely no issues with my 2016 over the the +/- 4 years of ownership. It seemed bullet proof.
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03-18-2023, 03:26 PM	#20
NickyC Lieutenant General 17474 Rep 10,662 Posts Drives: M4 CS. Former G82, x2 F82, F80 Join Date: Nov 2010 Location: Jacked out of my mind iTrader: (23)	If possible, I highly recommend taking the car to be serviced where you purchased the warranty. They will often waive/discount the diagnostics and deductible for repair work (if included in the contract). They will likely also be much more willing to help seeing as you purchased the car/warranty from them. Finally, if you truly believe you were scammed I'm sure you could just cancel the warranty and get a refund for the time/percentage left on the warranty (if you purchased it a year ago, you'd likely get around $5,600 back for instance since it was five years @ $7k). I have purchased several aftermarket warranties over the years, and have cashed them all in ahead of time with no trouble.
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03-18-2023, 04:15 PM	#21
jonf49 Captain 133 Rep 831 Posts Drives: 2019 BMW M4 Competition Join Date: May 2022 Location: 94063 iTrader: (0)	Got it figured out. The warranty I was sold was the warranty with the best coverage. It’s their Platinum warranty. Head of finance confirmed that I can go anywhere with it for service. It just MIGHT take a little longer because sometimes an inspector has to come out and approve the a repair. Still have to sign for the diagnostic fee, but that get reimbursed if a repair is completed. Hope this helps any others who were in a similar predicament.
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