Investment or Not?

A long term customer with a 2011 BMW called me after she had tires replaced at the BMW dealership.  The result was she paid too much to replace a tire.  Here’s the scenario:

My client purchased a Tire & Wheel Warranty at the time of purchase, so anytime she has a blowout the dealership replaces the tire.  She took the car to the dealership to check on the tires and out of the 3 that had issues, only 2 were covered under the warranty.  The third tire was not covered because it was below the “wear indicator”, which is the level of tread still on the tire.  So even though it had a bubble she’d have to pay to replace it because it was too worn.

She was happy that 2 were covered and paid the inflated price of $670 for the tire and $140 for an alignment.  If my client could have stopped there and said, “Replace the two under warranty and let me get back to you about the third.”  She could have called me or a local tire service provider, like Mavis, for a better price.   The tire should have only cost $330 and the alignment $39.95!  She could have saved herself $480!  Dealerships make money off the service department which mark up the parts cost.

Wheel & Tire Warranties are basically “tire insurance.”  Most Tire & Wheel warranties for imported cars cost $1,000 – $1,200, on cheaper cars it could be around $600.  It usually last for the term of a lease or 3 years/50,000 miles is common.  My opinion on whether to invest in Tire & Wheel warranties depends on the type of tire, the size of the wheel involved and the location of where you drive.  If it’s an 18inch and not a low profile “sports” tire, I wouldn’t buy the warranty.  If it’s a 19+ inch tire, I would take it.  The replacement costs for “sport” tires are worth the investment.   If you live in the tri-state area and you struggle to avoid potholes every day, you should get the warranty.

If you have any questions about warranties and what they really cover, please give me a call.


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#3979  Incredible! by namreka

Jul 11, 2013 (6:54 am)

I have been following this forum for the last 6+ months, as I wanted to make sure I got a great deal this time around on a new 528ix sedan. I know I paid really high for my first BMW 6 years ago and 3 years ago I used information from Consumer Reports, Costco and USAA buying services. I do feel I benefited from those services, as I know I would have paid a lot more had I not had that extra information. The advice from all the experts and Car_man on here is extremely helpful. I also saw a few people on here used the DIY Dealer Report from Inside Car Buying and had positive results. I did get one of these reports myself and I have to say the concept is ingenious. I now fully understand the complete process of leasing, the calculations and all of the possible factors of a lease where a dealer can benefit from a buyer. I sent Inside Car Buying the exact window sticker I received from the BMW dealer I visited. Within 3 hours I received the report and it simplified everything about what I should be paying for the car and why. I found this information so valuable because it educated me on the exact car I wanted, listed and broke down all the profit and incentives of the car and calculated everything right down to the plate charge. I also was able to speak with the owner of Inside Car Buying after receiving the report and he thoroughly when through it with me so I knew exactly what to do when I went back to the dealer. I got the dealer to sell me my new 528ix within $3 of the price I had from the report.

I saved a great deal of money and time but most of all I kept my sanity during the process of leasing a new car this time around! I don’t know what car dealers will do if Inside Car Buying ever becomes as big or well known as True Car or some of these other services out there. I would highly recommend this service to anybody getting a new car. BTW, the selling price on the car I got was almost $1,700 less than the True Car voucher I received from True Car. That definitely says something!






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