[heartbreakkid]

So something interesting and equally perplexing. My car (330i MSport) completes 2 years later this month and I was looking to renew my extended warranty so reached out to the dealer, Bavaria Motors for a quote.

He came back to me stating that they are not selling BMW Extended Warranty anymore due to some ongoing issues and are instead offering Edel Assurance as an alternative. He of course tried very hard to convince me that it would be the same or even better levels of service, all work would be done at their (Bavaria) workshop and the same genuine parts would be used.

I pushed him a little further to know what was going on and he said that BMW sent them a notice with a penalty ranging into a few crores alleging that the extended warranty policy that they have been selling for the past few years should have incurred a 48% GST instead of the 18% that they have been charging.

He did not have more details about it, but as of right now since BMW only sells extended warranties through dealers, what are my options here? Edel seems to have decent reviews on their Google listing but the official warranty would still be my preferred option.

[Turbanator]

Originally Posted by heartbreakkid

He came back to me stating that they are not selling BMW Extended Warranty anymore due to ongoing issues and are instead offering Edel Assurance as an alternative.

Looks it is indeed correct. Here in the North, most are offering Bajaj.

BMW sent them a notice with a penalty ranging into a few crores alleging that the extended warranty policy that they have been selling for the past few years should have incurred a 48% GST instead of the 18% that they have been charging.

This is interesting and maybe correct. Per the law, GST on the extended warranties should be the same Percentage as on the product. BMW Dealers have been collecting only 18%. However, since the basic GST on Cars is 28%, rest is cess, I will probably not agree to the 48% claim. If that's the actual demand, it can be argued but even with 28% i.e. 10% difference, the amount will be huge. No wonder, most MNCs have a lot of such demand notices. But this should have been easier to understand by professionals.

https://lawlegends.in/article/gst-on...5%20GST%20rate.

right now since BMW only sells extended warranties through dealers, what are my options here? Edel seems to have decent reviews on their Google listing but the official warranty would still be my preferred option.

You should get the warranty. However, I foresee troubles in due course. As an example, if a shock absorber is damaged and also approved, currently BMW also takes care of other child parts, will such insurance companies also approve such parts? Only time will tell but one thing is certain, the cost of repairs/ warranties will increase even more.

[vap2151]

I guess that is the case now we just bought a C220d W206 and bought the extended warranty from the dealer and it turned out to be reliance insurance product but we have been assured that this Mercedes approved and all the warranty claims will be handled by the dealer. But when we bought our A6 in 2022 the extended warranty and service package was issued by Audi India not a third party.

[Cresterk]

Not sure how a third party warranty policy works. And if the dealer decided to not honour the policy or use sub standard parts, we wouldn’t be able to reach out to the manufacturer for help.

Would this even be applicable across dealerships? What happens if BMW decides not to provide spare parts or terminates this dealership for not offering their own warranty.

[SmartCat]

Related thread:
https://www.team-bhp.com/forum/techn...arranties.html (Anyone heard of Edel Assurance for extended warranties?)

[jfk1975]

Originally Posted by heartbreakkid

He came back to me stating that they are not selling BMW Extended Warranty anymore due to some ongoing issues and are instead offering Edel Assurance as an alternative. He of course tried very hard to convince me that it would be the same or even better levels of service, all work would be done at their (Bavaria) workshop and the same genuine parts would be used.

When I did my 5th year BRI (Extended Warranty) renewal this March, my local BMW Service manager informed me that the BRI coverage is being done through Bajaj Allianz and not through BMW India. However, the coverage would be the same as what I had with the original BRI. I went ahead with it, and I recently had to get an indicator bulb malfunction looked into. They replaced it under BRI issued through Bajaj Allianz. For all intents and purposes, it is pretty much the same coverage and costs, with the main difference being that the policy is now being issued by Bajaj Allianz. Attached are snippets of my policy for your reference. Hope this helps.

[Turbanator]

Originally Posted by vap2151

I guess that is the case now we just bought a C220d W206 and bought the extended warranty from the dealer and it turned out to be reliance insurance product but we have been assured that this Mercedes approved and all the warranty claims will be handled by the dealer.

Originally Posted by Cresterk

Not sure how a third party warranty policy works. And if the dealer decided to not honour the policy or use sub standard parts, we wouldn’t be able to reach out to the manufacturer for help.

Mercedes has always been using Reliance. No experience as we never got an extended warranty but everything is handled by Mercedes. So you should be good. Per a known SA, there are no issues as it is valid across dealerships and MB India handles everything. There is no customer contact with the insurer.

If I recollect, I have seen Allianz at BMW Dealership backend even on the warranties issued by BMW previously. As of now, BMW website mentions-
The Extended Warranty is brought to you by BMW India Financial Services Pvt. Ltd (Corporate Agent registered under IRDAI) through their Insurance partner Bajaj Allianz General Insurance Co. Ltd. (BAGIC) (IRDA Reg No. -113)

https://www.bmw.in/en/fastlane/bmw-f...-warranty.html

Even at the UK site, it's Allianz

https://www.bmw-warranty.co.uk/contact-us

So, technically these are billed as insurance @ 18% GST and the government may have raised a demand at higher tax rates citing Extended warranty terminology. I will try to find more and update

[el lobo 6061]

Originally Posted by heartbreakkid

My car (330i MSport) completes 2 years later this month and I was looking to renew my extended warranty so reached out to the dealer, Bavaria Motors for a quote.

He came back to me stating that they are not selling BMW Extended Warranty anymore due to some ongoing issues and are instead offering Edel Assurance as an alternative.

Edel Assurance is a 3rd party.

3rd party are an alternative when OEM is not offering extended warranty.

Now that BMW offers 10 years extended warranty (via Bajaj Allianz); I would suggest you write to BMW India to reprimand dealer and to offer OEM extended warranty.

Email: contact.india@bmw.in

https://www.team-bhp.com/forum/india...nty-india.html (BMW now offers 10-year extended warranty in India)

[heartbreakkid]

Thanks guys. I have written to BMW India seeking some clarification in this regards. Waiting to hear back.

the BMW Extended Warranty (BRI) itself also seems to be underwritten by Bajaj Allianz. Got some additional info about Edel - the way it apparently works is that the warranty claims can be filed by any workshop part of the Edel Authorized Workshop list, very similar to the partner garages in traditional insurance policies. Bavaria, Pune is a part of this list and several other BMW, Merc and Audi dealers too.

These workshops raise the warranty claims with Edel for spares and repair costs. So I am told that it does include Genuine BMW parts only, as that is what the authorized dealer workshops would use.

I have asked the Edel guy to come for an inspection and offer a quote, in the meanwhile waiting to hear back from BMW as well.

[TheStRyder]

Originally Posted by heartbreakkid

Thanks guys. I have written to BMW India seeking some clarification in this regards. Waiting to hear back.
.

Hi can you please share if you have any update on this.
Did you endup extending the warrenty ?

Warrenty for my X3 is getting expired this month end.

I have got a hefty quote of 1.8L for 6th Year warrenty and 4.75L for 6th and 7th year extension from Edel.

I plan to keep the vehicle for atleast 3-4 years more.

Is it worth spending so much on extending warrenty through 3rd party providers.