End of an Era - My Warranty has been Voided

[Matticus91]

Aside from my overly dramatic title, this isn't actually a sad thread, it's a very happy one.

As the story goes, at the time of purchasing my car I also purchased an unlimited mileage, lifetime, bumper-to-bumper warranty. Don't believe me? I have a whole thread on that too: https://www.1addicts.com/forums/show....php?t=1342480

I paid $3,795 for it and yes, it did cover literally everything on the car for as long as I own it. To date is has paid out close to $9k of my nit-picky repairs, because why not have a licensed BMW shop do it at $9million/hr if it's covered? The only exclusion here is that if the car was not maintained properly or if it was modified at all, the warranty would be void. Maintenance isn't an issue, I take great care of the car and document probably too much. The modification exclusion of course ended up being the "downfall" here.

So they finally had enough after I called in for a wheel bearing replacement and they saw the car on non-BMW suspension. Oops. They missed the rest but that's ok lol.

Now here's why this is good news. My warranty agreement states that (paraphrasing for simplicity), "...If your approved vehicle is... modified... we will cancel this contract as of the date we are made aware of such... modification. If we cancel this contract, you will be entitled to a refund computed as of the date and mileage we become aware..."

So yes, the warranty company has to pay out a prorated refund based on the term of the warranty. Even though it is considered lifetime, it somehow counts down from 10 years. I might fight them on this but I'm expected to get about 70% back, or roughly $2,600 as a flat check shipped to my door.

As a final result, I've ended up paying about $1,000 for the warranty, it's covered $8,800 in repairs, and now I can modify my car to my heart's content. I'd call this a SOLID win in my book!

UPDATE: I discussed the terms outlined in my agreement and since there were no specific percentages or rates for the prorated cancellation refund they have decided to refund THE ENTIRE AMOUNT back to me. I'm still in shock lol

[gjm120]

Good deal. Hopefully no big issues come up.

Seems odd they would cancel the whole wtty and not just void any suspension coverage.

[Matticus91]

Originally Posted by Matticus91

Aside from my overly dramatic title, this isn't actually a sad thread, it's a very happy one.

As the story goes, at the time of purchasing my car I also purchased an unlimited mileage, lifetime, bumper-to-bumper warranty. Don't believe me? I have a whole thread on that too: https://www.1addicts.com/forums/show....php?t=1342480

I paid $3,795 for it and yes, it did cover literally everything on the car for as long as I own it. To date is has paid out close to $9k of my nit-picky repairs, because why not have a licensed BMW shop do it at $9million/hr if it's covered? The only exclusion here is that if the car was not maintained properly or if it was modified at all, the warranty would be void. Maintenance isn't an issue, I take great care of the car and document probably too much. The modification exclusion of course ended up being the "downfall" here.

So they finally had enough after I called in for a wheel bearing replacement and they saw the car on non-BMW suspension. Oops. They missed the rest but that's ok lol.

Now here's why this is good news. My warranty agreement states that (paraphrasing for simplicity), "...If your approved vehicle is... modified... we will cancel this contract as of the date we are made aware of such... modification. If we cancel this contract, you will be entitled to a refund computed as of the date and mileage we become aware..."

So yes, the warranty company has to pay out a prorated refund based on the term of the warranty. Even though it is considered lifetime, it somehow counts down from 10 years. I might fight them on this but I'm expected to get about 70% back, or roughly $2,600 as a flat check shipped to my door.

As a final result, I've ended up paying about $1,000 for the warranty, it's covered $8,800 in repairs, and now I can modify my car to my heart's content. I'd call this a SOLID win in my book!

UPDATE: I discussed the terms outlined in my agreement and since there were no specific percentages or rates for the prorated cancellation refund they have decided to refund THE ENTIRE AMOUNT back to me. I'm still in shock lol

[Esteban]

Originally Posted by Matticus91

UPDATE: I discussed the terms outlined in my agreement and since there were no specific percentages or rates for the prorated cancellation refund they have decided to refund THE ENTIRE AMOUNT back to me. I'm still in shock lol

How does that even happen? We should all be so lucky. lol

That warranty really served you right!

[1and1]

wow- that's awesome! I can't believe nobody called em out on that earlier!

You just know they're in the big meeting room right now re-writing that section of the contract... Boss has gotta be peeved about this

[bagekko]

Wow thats amazing, dont bother buying lotto tickets, you just used your once in a lifetime lucky cash windfall with this.

[JimD]

I always tend to want to read the specifics when the "void the warranty" statement is made. It gets thrown around by sellers but it is obviously illegal if applied arbitrarily. The issue they can run into is U. S. law prohibiting things like tie in sales ("I will only sell you the car if you also buy this warranty" or "this warranty requires that you buy all the service and parts from us"). To be able to dodge a claim the seller needs to be able to demonstrate that your act substantially caused the damage. For instance, you cannot put on a third party part and then make a claim for failure of that part - or a directly related system with the dealer. But they cannot see a third party part on the engine and then say they won't honor a claim on the suspension.

They seem to have dodged that in this case by just tearing up the original agreement - voiding the entire deal. And there is a clause in the warranty that supports their action. I think that is legal.

[Gray_Panther]

Take the missy out on an extravagant dinner. Order whatever you want and encourage her to do the same also. Open a bottle of wine and act like money was never an issue in your life!

[xQx]

Originally Posted by Matticus91

The only exclusion here is that if the car was not maintained properly or if it was modified at all, the warranty would be void.

Wait, back up one second. Are we both talking about the same car?

Tobias? The car which has new wheels, a carbon fiber hood, aftermarket grilles, a Reiger style diffuser... and the car which used to be black, but is now white?

... and up until now, it wasn't "modified"?!

[low135]

Originally Posted by xQx

Wait, back up one second. Are we both talking about the same car?

Tobias? The car which has new wheels, a carbon fiber hood, aftermarket grilles, a Reiger style diffuser... and the car which used to be black, but is now white?

... and up until now, it wasn't "modified"?!

None of that being mechanical I wouldn't imagine it would have been an issue

[Matticus91]

Originally Posted by Esteban

How does that even happen? We should all be so lucky. lol

That warranty really served you right!

I still don't believe it lol I'll post a picture if and when the check ever arrives

Originally Posted by 1and1

wow- that's awesome! I can't believe nobody called em out on that earlier!

You just know they're in the big meeting room right now re-writing that section of the contract... Boss has gotta be peeved about this

I'm nearly 100% sure they decided to pay me out entirely to avoid a potential legal battle and likely bring up other cases where people were not so lucky!

Originally Posted by JimD

I always tend to want to read the specifics when the "void the warranty" statement is made. It gets thrown around by sellers but it is obviously illegal if applied arbitrarily. The issue they can run into is U. S. law prohibiting things like tie in sales ("I will only sell you the car if you also buy this warranty" or "this warranty requires that you buy all the service and parts from us"). To be able to dodge a claim the seller needs to be able to demonstrate that your act substantially caused the damage. For instance, you cannot put on a third party part and then make a claim for failure of that part - or a directly related system with the dealer. But they cannot see a third party part on the engine and then say they won't honor a claim on the suspension.

They seem to have dodged that in this case by just tearing up the original agreement - voiding the entire deal. And there is a clause in the warranty that supports their action. I think that is legal.

Really unsure honestly, I think technically what they did is not legal but by paying it out they're saying, "we screwed up" so as long as they fix it and don't mess with others it's ok-ish?

Originally Posted by Gray_Panther

Take the missy out on an extravagant dinner. Order whatever you want and encourage her to do the same also. Open a bottle of wine and act like money was never an issue in your life!

Solid plan

Originally Posted by xQx

Wait, back up one second. Are we both talking about the same car?

Tobias? The car which has new wheels, a carbon fiber hood, aftermarket grilles, a Reiger style diffuser... and the car which used to be black, but is now white?

... and up until now, it wasn't "modified"?!

LOL yes they have done repairs with it looking like that too, maybe I just had less caring inspectors for the earlier repairs. They're 3rd party inspectors, and likely have been from different companies even.

Originally Posted by low135

None of that being mechanical I wouldn't imagine it would have been an issue

Their clause states any modifications at all, so not sure!

[JimD]

A "any modifications at all" could easily be judged to be a tie in sale by a court and thus de facto illegal. It is legal to say that modifications you make are not covered by the warranty.

A seller can draft up anything they want. But when it doesn't comply with federal law, it won't do them any good if you are willing to pay a lawyer.

[chris_flies]

That's awesome, you got a really good deal from this.

Now you can go full-send on the mods without worry, which you've been teasing me with

[SamelCamel]

Congratulations!

I have a warranty on my 550i xDrive and I had the HPFP go out. Big surprise, I know. I had to argue with the dealership and the warranty company to get them to replace it. The warranty companies want to say everything is a consumable item... Anyhow, I had to pay the deductible so they would replace it. Several months later I get the letter in the mail about a class action lawsuit and that BMW would now be covering the HPFP for 10 years and 120k miles.

BMW ended up sending me a check for the entire amount of the replacement (over $800.) Keep in mind that I had to call BMW to get this handled. They would have never done this on their own.

Good things do happen on occasion. Count your blessings!


-Sam

[Matticus91]

Originally Posted by chris_flies

That's awesome, you got a really good deal from this.

Now you can go full-send on the mods without worry, which you've been teasing me with

Oh they're a' comin' I promise lol

[1and1]

Sooooooo

Single or twins?

[Matticus91]

Originally Posted by 1and1

Sooooooo

Single or twins?

Lol definitely not twins

[1and1]

Originally Posted by Matticus91

Lol definitely not twins

I dunno.... Something to be said for twins....











.

[Esteban]

Originally Posted by 1and1

I dunno.... Something to be said for twins....











.

Double your pleasure, double your fun with... twins.

[Matticus91]

Originally Posted by 1and1

I dunno.... Something to be said for twins....


.

I like the way you think LOL

[Manual Transmission]

at the time of purchasing my car I also purchased an unlimited mileage, lifetime, bumper-to-bumper warranty. Don't believe me?

I'm amazed any company was willing to sell this warranty to you. Seriously, there's no way they could make money on something like this especially when the vehicle is a 135i. Where can I buy one of these warranties for my 128i? I'm sure it will need 4k of work eventually.

[Matticus91]

Originally Posted by Manual Transmission

I'm amazed any company was willing to sell this warranty to you. Seriously, there's no way they could make money on something like this especially when the vehicle is a 135i. Where can I buy one of these warranties for my 128i? I'm sure it will need 4k of work eventually.

I talked with my dealership yesterday since they're the ones that handle the sales/returns side of the warranty and the company isn't offering the unlimited/lifetime option anymore, so clearly they've realized this was a terrible idea lol.