[Run Silent]

Now that I answered your direct question, I feel compelled to note the following:

As someone who spent nearly 20 years as the director of sales and finance operations for a large dealer group, I can wholeheartedly recommend that you do not purchase an extended warranty.

You have to look at cost of goods sold. There are costs for overhead; secretaries, people to process the claims, rent a building, etc. The company needs to make a profit, so I need to add that on there, also need someone to sell the warranty. As much as 50-80% of the price of the warranty—depending on the warranty company—goes to commissions back to the dealer. So the warranty company or franchise has to pay a commission, and that’s in the cost. If you add all of that up, now you have the price of the warranty. It’s what charged you for it.

Really, all you’re getting coverage for is the actual statistical probability of the breakdown, but you’re paying for overhead profit and marketing in addition to that. Were you to save the money and you have an average BMW that breaks down an average number of times, you’re going to come out way ahead financially. If it breaks down more than average, then you won’t. But if it breaks down more than on average, then the warranty company goes broke. In other words, they know they’re not going to have to pay out all the money they take in on warranties.

Never buy extended warranties. There will be several posts after mine with folks telling you how they saved thousands in repair costs by getting the extended warranty. Some will be telling the truth, some will be full of crap. But the bottom line is that if the warranty company didn't come out ahead way more than you do, then they would be broke. It's a bad investment.

Also, If you buy a warranty from a company, and they go bankrupt, you don’t have a warranty anymore. BMW isn't likely underwriting the factory extended warranties, most likely they are underwritten by Fidelity or someone similar.