Subject:re:<E36>Extended Warranties-recommend Korman over GE Cap

>My '95 E36 M3 has just turned 48K miles and the end of the factory
>warranty is near--I'm now wondering whether it would be worth it to
>spring for an extended warranty. I've been quoted around $1700-$2000
>for the "bumper to bumper" extension to 6 years/100K miles (at this rate
>I'll never hit 7 years in under 100K). Naturally, I'm most concerned
>about the Drive Train :-o! These quotes seem a little high though, and
>I would appreciate hearing if any better deals are to be had. I've been
>told that GE Capital is the way to go.

>Any thoughts?

Well, I chose to spend my money with Korman over GE Capital. Korman knows more about BMW's. My '95 M3 has turned 45k miles and I'm in about the same boat as you. The extended warranty plan I purchased included:

1. titanium valve spring retainers _at_ $15 each x 24
2. new valve springs blue printed for titanium
3. heavy duty transmission mounts (to keep it from torquing over)
4. Schnitzer SS kit to replace the pot metal BMW uses

   (before I did that, I had BMW apply the service bulletin fix for "Hard to disengage 3rd/engage 4th", but it did very little... the tranny mounts got rid of 15% of the slop and the SS kit got rid of 80% of the slop--if percentages are helpful at all at quantifying subjectivity of tactile shifter slop)

I got my extended warranty plan from Korman's, and for just a little bit more money than the GE Capital quoted plan, I also got:

5) ceramic coated (inside & out) exhaust manifold

• keeps underhood temps down, extending life of just about everything under your hood 6) a bunch of leaky valves replaced (six of them leaked, probably

  due to 45k miles and/or flattening of the weak pre- 9/95 retainers) 7) two slightly bent valves replaced (to my knowledge, car has

  never been misshifted, the pistons were in excellent condition, but there is some theory that the valves were starting to "dance on top of the pistons" ever so slightly. I'M REALLY GLAD I REPLACED THOSE RETAINERS NOW instead of perhaps $13,000 later for a whole engine. 8) 3 angle race cut on all the valves 9) exhaust ports polished and gasket blueprinted to manifold/

  heads 10) BMW Group N Motorsport snorkel (Korman snorkel kit with NO K&N)

I assume you'd like to keep your M3 for more than 100k miles. I bought mine used, coming off a doctor's lease (a neurologist) at 20k miles. The car never saw rain. In 8 months I have put on 25k more miles! So, for $2000 I suppose could have GE Cap cover me for 17 more months. I think my "Korman policy" will cover the engine for much more than 17 months.

Like yourself, I was concerned about the drive train. I'm especially concerned about valves & pistons at $13,000/engine. The two main issues that keep coming up on '95 M3's (specifically in my case, a pre-9/95 production M3) are: 1) valve spring retainers and 2) alledged missed downshifts.

With my new rebuilt heads, I'm now seeing about 2 MPG more on the highway up 24 MPG to 26 MPG at about 70 MPH. The engine breaths like a Hoover vacuum on steroids with its air nozzle clogged (my Euro HFM, Euro airbox, & JC standard Euro HFM chip get installed tomorrow, my current MPG improvements are with the stock chip). The engine sounds much happier lifting those titanium (1/2 the weight of steel) retainers--I didn't think the M3 engine sound could be improved upon, but it can--and not just with a stupid noisy air filter. Credit can also be given to not having six leaky valves any more. And, we know that compared to the Euro M3, a major difference in the U.S. model is in the heads, so IMHO a good place to spend money is in opening up the engine instead of say, spending money for pretty stainless exhaust parts for an already great flowing exhaust system. But, I guess shipping DIY mufflers keeps those mail order places in business.

My Schnitzer SS kit is awesome. That and the HD tranny mounts are all that is required to inspire awesome confidence that you won't miss a downshift, that despite having shorter throw. Remember the confidence you had about your brakes when you first tried to lock up the ABS (but couldn't) with the Pilots on dry pavement? You can get that same level of confidence in your shifting. You don't need the BMW service bulletin fix applied either, IMO--the problem is slop in the BMW interface to the tranny, not with OEM supplied transmission. Well, these are GREAT cars, but they aren't PERFECT cars. Close though.

Anyway, I recommend the titanium and aluminum warranties over any "platinum" warranty you might be able to buy elsewhere. The platinum warranties usually have rediculous deductibles, and they are reactive, not proactive in approach. $2000 for 17 months isn't as good a deal as proactively anticipating the most likely incidences that have bitten others before you. Besides, the E36 had been around quite a while, and I'm experiencing a LOT fewer problems on my '95 M3 even compared to my '94 325i. So, to answer your question:

>I would appreciate hearing if any better deals are to be had. I've been
>told that GE Capital is the way to go.

...I'd recommend a different way to go. Besides, every engine needs a little titanium somewhere! Your cats have enough platinum that you don't need more from an extended warranty. BTW, your BMW M3 has a seven year emissions warranty, don't forget.

• - Skip (your mileage may vary)