Piston Slap: Save Me From My X5!

Sajeev Mehta
by Sajeev Mehta

TTAC Commentator PG writes:

Sajeev, In their December 2009 issue, Car and Driver has a great article about how extended warranties — such as those offered by U.S. Fidelis and others — are largely scams that deceive customers, don’t really cover the cost of repairs at all, and don’t give refunds at cancellation.

My parents own a 2002 BMW X5 4.4. They bought it from Carmax and have the extended warranty from that dealership. It’s a fantastic car, but it’s had some very costly repairs — thankfully, those have been covered in full or at least in part by Carmax’s warranty. The thing is, that warranty expires this month and can’t be renewed.

The ‘rents are thinking of getting an extended warranty for the Bimmer, but after reading that C&D story I’m pretty convinced they would be throwing their money away. My question: are there ANY extended warranties out there that they can use? What can they do to help avoid the full cost of repairs?

Buying a new/different car isn’t really an option right now, because they want to keep the X5 as long as they can. The car has about 80,000 miles on it and still runs well, except for the occasional hiccup, but those can be pretty pricey on a BMW.

If you or the best and brightest have any suggestions, I’d love to hear them.

Sajeev replies:

There’s a reason why the Carmax warranty cannot be renewed: genuine warranties (not the ones you see on TV) are interested in making money, not bleeding dry by the costs of older, premium German vehicles. More to the point, the current crop of “scam warranties” aren’t even remotely similar to a genuine plan underwritten by OEMs/large corporations, sold through dealerships, and subject to paperwork before coverage commences. It’s a far more evil form of the classic “cash grab.”

The question is: will a used car dealer sell you a warranty? A real warranty sold by a real people from a real company? The dealer will try their best, as a hefty commission is on the line.

Probably not, given the BMW’s future potential to vacuum money out of your wallet faster than sand in a Dyson on the beach. I’d dump it sooner than later, as your folks won’t be enamored with “The Ultimate Driving Machine” after the first un-covered mechanical/electrical failure: my parents cried a little (probably) when Dad’s BMW 7-er left him over $2000 poorer and the dealer (yes, the dealer) still couldn’t get the HVAC to blow cold in a Houston summer. Never again for them!

More to the point: it’s time to buy something with cheap parts and (though I hate to say it) non-European engineering. Such is the curse of living in The US of A.

[Send your queries to mehta@ttac.com]

Sajeev Mehta
Sajeev Mehta

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  • IGB IGB on Jan 12, 2010

    You guys are extraordinarily judgmental. Does everyone think these pseudo-socialist thoughts when they drive by my house and peer into my garage? This is America. You could park your Porsche behind your double wide if you wanted to. Thank God for that kind of freedom. If someone else wants to put a Hyundai in the 12 car garage of their mansion, that's OK too. As far as the X5 goes, sell. It'll be a tough car to sell too but worth the trouble in the end. Believe it or not, maintenance costs for certain cars CAN be more than new car payments (or certified used).

    • Accs Accs on Feb 08, 2010

      Ummm.. This is a CAR site. If people could make out the headlights at night, in pitch black, from 3 miles away in heavy smoke and somehow see this car though trees and into your open garage door... as I can. It would be me. And stuffing a Porsche behind a dbl wide... (it better be a (911, not the boxster / Cayman, or the VW **cough** Cayenne or other bastard Panamera) As far as a Hyundai. They aren't good enough to be in a 12 wide berth.. when they can sell on their merit alone.. and not for the warranty or their rip off badge designs... *scratch that* They wont ever be good enough.

  • Speedlaw Speedlaw on Mar 24, 2010

    BMW is consistent. You do NOT buy the first production run. Much like Windows, the savvy wait for SP1, er, the first or second refresh. If you are buying used get the last year of production. Avoid autoboxes and the dealer as much as you can. The 3 is no more expensive than a normal car UNLESS you take it to the dealer for everything. BMWs have a lot of replaceable bushings (I call them golden grommets) that are not cheap at the dealer but can be done for half price outside. Meyle is your friend. To do otherwise is just to pay for your dealers yacht. Don't buy a car that has been "lifetime" maintained. Replace oils and fluids. Find an honest indy mechanic -It is more involved than owning a Civic but it is not horrid. Of course I have 210k of regular 3 experience, not a first run x5 or m3r

  • 3SpeedAutomatic R&T could have killed the story before it was released.Now, by pulling it after the fact, they look like idiots!! What's new??
  • Master Baiter "That said, the Inflation Reduction Act apparently does run afoul of WTO rules..."Pfft. The Biden administration doesn't care about rules. The Supreme Court said they couldn't forgive student load debt; they did it anyway. Decorum and tradition says you don't prosecute former presidents; they are doing it anyway. They made the CDC suspend evictions though they had no constitutional authority to do so.
  • 1995 SC Good. To misquote Sheryl Crow "If it makes them unhappy, it can't be that bad"
  • 1995 SC The letters on the hatch aren't big enough. hard pass
  • Ajla Those letters look like they are from AutoZone.
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