Prepaid Service Plans

[ESquared]

Didn't want to hijack the Extended Warranty thread, and this topic is somewhat related. As a soon-to-be first-time BMW owner, I'm investigating/analyzing the "Basic" Prepaid Service plan offered by my dealer (Engle) in conjunction with Rider's Advantage, and I'd love some input.

For about $900 (final price still to be determined, but close enough for this discussion), I'd get 24 months of coverage, which includes the Break-In Service (somewhat of a gimme, as it's already baked into my purchase deal), as well as the annual oil changes, up to the first three major service trips (6K, 12K and 18K) and a battery replacement (if necessary).

I realize this skews to the high-mileage rider to take full advantage of the third (18K mile) service, but the 12K includes rear drive oil change, valve clearance check/adjustment, spark plugs, air filter/element and a brake fluid changeout after one year. It seems to only make sense if I'm reasonably sure of hitting the 12k mile mark before the 2-year window closes, doesn't it? Otherwise, I'm paying $900 for a break-in service (which I already have) and the 6K service, which is nothing more than another oil change and one or two "diagnostic" hook-ups to the shop's computer.

I've only got about 15,000 miles on the new CAR I bought in October, 2019, but I believe that has been largely due to the pandemic and an overall reduction in travel in general.

On the other hand, I've seen how quickly pleasure miles can add up on a great bike, and I'm anticipating the RS to be the best I've owned. Not to mention that hourly shop rates aren't about to go down anytime ever, but it's rather just a matter of how fast those rates rise over the next two years. AND, it might be an added financial incentive (on top of the normal benefits of just riding) to "get my money's worth" and pile on the miles (since I wouldn't have to worry about upcoming maintenance costs).

What am I missing?

[Grumpy Goat]

It is a great idea to split up threads as soon as the subject gets even slightly off topic, as it helps greatly when searching for info - well done.

I don't think you are missing anything, really. It all depends on how much you are inclined to ride the bike and whether or not you are willing and able to work on the bike yourself. If there is a good chance that you won't hit the 18k miles in 2 years and you are prepared to work on the bike yourself, then this may be wasted money. On the other hand, if you are not willing to work on the bike or don't have the time then buying the plan could be worth it, regardless of the mileage. You'll likely not need a battery in 2 years so no savings there.

Just remember the high shop rates are such that even an oil / filter change, plus all the inspections that they need to do, plus the hooking up to the computer and updating the firmware etc. will cost you good money ... like $300+ for the 6000 mile service. Now if you ae a long-standing customer like Lee or Darrell you may get a bit of a break but for regular folk, each visit seems to like want to start at $300.

Everyone is different.

For me, I declined any service plans at the outset and for the duration of the factory warranty I bought all my consumables from the dealership and so I paid only for those aspects of the service that they had to do (like updating the firmware etc.) or I preferred that they do, for whatever reason. No one but me ever changed any oil / fluids anywhere on the bike, since new, and I will do all straightforward maintenance on my bikes myself. That is all part of my fun, but not all owners are the same.

[Lee]

Now if you are a long-standing customer like Lee or Darrell you may get a bit of a break but for regular folk, each visit seems to like want to start at $300.

At Engles and the car dealer I go to I get some small items done for no charge, but if I took the bike in for a full 6,000 or 12,000 mile service I pay the shop rate and list price on the parts.
Once it's in the computer it's hard to play with the numbers
When we got the 600 mile service free on the R1200RS and R1250RS the owner had to take care of it.

[Lee]

Evan if you normally have Engles do all the service I would ask Ed how much a 6,000, 12,000 and 18,000 mile service would cost and see how that compares to the service contract.
Since you're getting the 600 mile free and may not get to 18,000 in two years I would just ask for the cost of the 6,000 and 12,000.

[darrell]

Wayne and Lee both have good points. If you plan to have the dealer do all the services, as Lee suggested ask them what the 6000 and 12,000 service cost is AND then ask if at the end of the 2nd year if it includes the brake fluid and fork oil changes. There are annual services BMW suggests on the bikes so ask if those are included in this agreement.

[ESquared]

Thanks for the replies and perspectives. I'll check with Ed and Becky (the F&I Mgr) on all of this. It only makes sense (on paper) for me if I'm pretty certain I can average about 6K miles/year so I can have the plan cover the 12K service. I'm just not sure how hard the timeline and mileage requirements are. For example, if I were coming up on the 24 month end-of-term, but only had 10K miles on the bike, could I go ahead and have the 12K service done? Or would they extend the end-date by 3-6 months until I reach 12K?
It's kind of ironic that the no-charge break-in service makes this whole thing less attractive, as it's about a $300 "check up." But, it was a deal-clincher on Bike #1 (the T100) and it's followed me to Bike #4 now, so I'm not about to turn it down.
I'll hash it all out and circle back for those who might be interested. Thanks again for all the input!

[Lee]

For example, if I were coming up on the 24 month end-of-term, but only had 10K miles on the bike, could I go ahead and have the 12K service done?

That would be a good question.
If you can't have the service done before 12,000, it's a good excuse for a trip

[ESquared]

For example, if I were coming up on the 24 month end-of-term, but only had 10K miles on the bike, could I go ahead and have the 12K service done?

That would be a good question.
If you can't have the service done before 12,000, it's a good excuse for a trip

Exactly right! Like I said at the top of the thread, signing up for this might be the "X Factor" in getting my miles in!

[VTBob]

As several have said, asking the dealer what the charges are for scheduled maintenance , understanding what you might want to do your self.

I've always avoided service plans and warrantee plans as expenses I would always save money by self insuring.

I've long only used the Dealer for major services, ie valve adjustment etc and done the minor my self. Part of this is being cheap and part is the dealer is 45 miles away and any type of service consumes a day. So the way it has turned out the bike is in to the dealer 1 day a year for a major service, likely new tires or brakes at the same time.
To allow this to keep to one day i've stretched major service to be as much a 4,000 late to wait for tire wear out. The dealer has had no problem with this.

[ESquared]

"I've always avoided service plans and warrantee plans as expenses I would always save money by self insuring."

Me, too! If this turns out to be a "pay me now or pay me later" situation, with no savings, then I apologize in advance for wasting the bandwidth and your time. I'm okay at wrenching farkles, swapping out windshields and I once installed a "Ring of Fire" on the front wheel of a Goldwing, but I just don't have much inclination to tackle more than that. And, I have a dealer that I'm familiar with, that I believe is trustworthy and is only about a nice 20 minute ride from my house.

I'd just as soon let them do their thing, but unless the prepaid route provides some hard dollar savings (or some other significant risk mitigation), then I'd be totally fine paying as I go.

More to come, and thanks again for chiming in!

[Grumpy Goat]

... I just don't have much inclination to tackle more than that. And, I have a dealer that I'm familiar with, that I believe is trustworthy and is only about a nice 20 minute ride from my house.

I'd just as soon let them do their thing, but unless the prepaid route provides some hard dollar savings (or some other significant risk mitigation), then I'd be totally fine paying as I go.

Sounds like a good plan. That would be the way I would go as well, if I had the same parameters.

[ESquared]

I checked current shop rates for the Break-In, 6K and 12K services, and they can't price the plan low enough for it to make sense for all parties. The fact that my Break-In service is gratis as part of my deal basically tanks the economics, even if I were to put 12K miles on the RS in the first 24 months (possible, but not likely, with 2 other bikes in the rotation).

They realize it doesn't work for every buyer, but a single-bike, high-mileage owner might be able to make it work.