Remember, it's already been verified that the cost of the extended warranty plan includes at least a 50% commission, so a plan with a $4000 pricetag leaves $2000 "in the pot" for any future work. I've been told that the paperwork for work done under the extended warranty plan is the same as paperwork generated for work done while under the original warranty. Seems that the dealership gets reimbursed at the "BMW rate" but the paperwork shows the "Customer rate". It presents a skewed picture of "savings" because if the dealership "charges" you (as shown on the paperwork) $4500 for an engine replacement, the actual payment they get from the warranty company is probably pretty close to the "BMW rate". Another thing to think about is all those stories of engines having to be replaced due to carbon buildup/sludge...where the dealership offers to "split the cost" with the customer. Are they basing the price on the "customer rate" or "BMW rate"? My gut (cynic that I am!) tells me it'd be on the "customer rate". Which then makes me wonder if the work isn't turned into BMW MINI for reimbursement anyhow? (Extra money in the pocket of the dealership.) Did I say I can be very cynical at times?
I agree! I could always find them at Giant Eagle...but since moving to Hampton Roads, I cannot find them at all. Krogers in Ohio carries them, but the Krogers in VA don't. :confused5:
You all don't quite have your facts straight..... The dealer does make money on warranty work and warranty parts, just not as much as at retail rate - in essence giving the factory a volume discount as someone else mentioned - but they are making money on it. Would they rather do every job at retail rate? Sure! And your doctor would like to get his "retail" rate on everything he does rather than whatever the insurance company will pay, but that's the way it works...... Warranty companies (non-factory sponsored ones) pay the same retail rates as an out of factory warranty customer. Factory sponsored warranty programs get the same dealer warranty rates as they pay for new car repairs. FWIW, I've never had to argue with my dealer over a warranty repair, they've gone over and above to take care of me with both my cars.....a good dealer makes owning any car so much better an experience! Likewise, if my cars out of warranty, I pay what it takes to keep it as factory as possible. I do my own small repairs, but I leave the computers stuff to the experts. Don't forget, your MINI dealer warrants their work for 2 years, I doubt any aftermarket shops do that......
And that's exactly the way it should work. Unfortunately, as we know, all dealers are not the same. Like they say, "your experience may vary."