A costly add-on warranty didn't spare a 2020 BMW X5 owner from an engine-replacement fight — the owner paid about $5,000 for extra engine coverage, only to face a costly failure anyway.
The replacement estimate was about $33,000 — about $3,000 more than the SUV was reportedly worth, according to Guessing Headlights.
Here's what to know
On Oct. 18, the owner recounted the situation in Reddit's r/F***Dealerships community.
They agreed to the extra coverage after a salesperson stressed that the warranty would cover engine problems.
After the X5 developed a serious engine issue, BMW quoted roughly $33,000 for a new engine.
Even though the warranty cost about $5,000, the dealership still wanted the driver to cover the difference rather than pay in full.
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"Why would you buy a car when the salesperson told you to your face that model has engine issues?" a commenter asked.
"Cause I obviously wasn't thinking …" the original poster replied.
More background
Because the contract hasn't been publicly shared, a key issue remains unknown: what did the warranty actually promise to pay for?
Guessing Headlights noted that the agreement's coverage limits, exclusions, and terms for reimbursement weren't made public.
As a result, it was impossible to tell whether the plan denied full coverage or included a payout ceiling.
A $33,000 engine quote on a vehicle said to be worth about $30,000 can leave an owner with few good options: pay the bill, fight over the warranty terms, or get rid of the vehicle at a loss.
What can be done?
One commenter addressed that issue directly.
"It doesn't matter what he told you. What does the warranty say?" they wrote.
In this case, the unresolved issue appears to be whether the plan capped repairs at the X5's market value or handled engine replacement some other way.
The owner added that BMW installed a new engine with two years of warranty coverage.
When they tried to sell the SUV, the dealership offered them only $22,000.
The update raised another question: whether vehicle value limits repairs and whether the warranty provider would ever pay out the car's value instead of authorizing a repair.
Where can I learn more?
Big repair bills and coverage disputes are not unique to this case. Here are a few stories of drivers dealing with surprise costs, canceled policies, and fights over promised vehicle features.
• In Quebec, a Tesla owner launched a class action over a $4,477 heat-pump repair bill.
• Tesla owners say State Farm canceled their Cybertruck policies despite no accidents on record.
• Tesla was ordered in arbitration to refund more than $10,000 for withheld FSD capability.
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