BMW Getting on the Warranty voiding bandwagon
13 November 2002 | 11:35 PM
#1
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Scooby Senior
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I guess BMW Drivers will need to do all their driver development and skid testing on the road now....
Once one Major marque starts to do it, they all will [img]images/smilies/mad.gif[/img]
From Pistonheads
The extent of our litigious society in which everything is tied up in rules and regulations and common sense cannot be applied is now becoming increasingly obvious. No one should be more aware of that than car drivers.
With the anti-car movement in full swing with regard to enjoying your car on the roads, many enthusiasts have taken to the track to get their thrills. This non-competitive activity, typically enjoyed with strict safety measures is now is now suffering another blow from the very industry that is supposed to be supporting it.
The issue of insurance has been a grey area for some time, with many insurance companies claiming that track days and driver improvement courses are not covered by their policies when the contrary is often true. Now we're seeing the same story emerging with regard to manufacturers' warranties.
PistonHeads reader Steve Carter from Warwickshire, recently discovered that BMW was trying to use track day attendance as a basis to dispute warranty claims.
Having bought an E46 model BMW M3 coupe in 2001, Steve decided the safest way to enjoy the full potential of the car would be on professionally organised track days. He attended a number of track days and sought instruction from ARDS qualified instructors.
Soon after a Silverstone track day, Steve noticed some undue mechanical noise from the M3’s gearbox: “I was rather concerned, so booked the car in at my local BMW dealer,” said Carter. “They later diagnosed that a pin locating the flywheel had heat-shrunk and come adrift, causing the webbing to break inside the gearbox. This necessitated (at great expense) a new flywheel, clutch and gearbox.
“I was told by the BMW dealer that this repair was not covered under the terms of the BMW warranty, due to the fact that ‘racing, rallying or other competitive sports’ were specifically excluded. Yet my driving on the track days was nothing of the sort.
“I was therefore landed with a huge bill, despite the fact that the BMW M3 is a high performance car by its very nature and design – and that BMW themselves often test and launch their cars at racing circuits.”
After having consulted with his lawyer, Carter challenged BMW, who had told him that his ‘warranty policy [was] now no longer valid’. They then admitted that the warranty was valid, but that:
Any mechanical failure sustained on any form of track or driver improvement day will not be covered by a BMW warranty;
That the mechanical failure was an ‘extremely rare’ occurrence, despite the fact that Carter knows of at least one other M owner who has experienced the same problem.
Steve is now considering a claim against BMW for breach of contract, and is bewildered by the whole situation.
“It seems strange that Porsche and TVR actively encourage new owners to take advanced driving courses, yet BMW seem worried about track use,” comments Carter. “And having spent more than £40,000 on a performance car with an ‘M’ badge – for motorsport – on its rump, surely I should be able to drive the car with a degree of verve without it breaking.”
Track day enthusiasts will be watching the issue with interest as it could once again prove the thin end of the wedge. BMW will no doubt be reviewing their policy on the matter or it could seriously damage the reputation of their M series cars - perhaps they are only suitable for the Kings Road?
Once one Major marque starts to do it, they all will [img]images/smilies/mad.gif[/img]
From Pistonheads
The extent of our litigious society in which everything is tied up in rules and regulations and common sense cannot be applied is now becoming increasingly obvious. No one should be more aware of that than car drivers.
With the anti-car movement in full swing with regard to enjoying your car on the roads, many enthusiasts have taken to the track to get their thrills. This non-competitive activity, typically enjoyed with strict safety measures is now is now suffering another blow from the very industry that is supposed to be supporting it.
The issue of insurance has been a grey area for some time, with many insurance companies claiming that track days and driver improvement courses are not covered by their policies when the contrary is often true. Now we're seeing the same story emerging with regard to manufacturers' warranties.
PistonHeads reader Steve Carter from Warwickshire, recently discovered that BMW was trying to use track day attendance as a basis to dispute warranty claims.
Having bought an E46 model BMW M3 coupe in 2001, Steve decided the safest way to enjoy the full potential of the car would be on professionally organised track days. He attended a number of track days and sought instruction from ARDS qualified instructors.
Soon after a Silverstone track day, Steve noticed some undue mechanical noise from the M3’s gearbox: “I was rather concerned, so booked the car in at my local BMW dealer,” said Carter. “They later diagnosed that a pin locating the flywheel had heat-shrunk and come adrift, causing the webbing to break inside the gearbox. This necessitated (at great expense) a new flywheel, clutch and gearbox.
“I was told by the BMW dealer that this repair was not covered under the terms of the BMW warranty, due to the fact that ‘racing, rallying or other competitive sports’ were specifically excluded. Yet my driving on the track days was nothing of the sort.
“I was therefore landed with a huge bill, despite the fact that the BMW M3 is a high performance car by its very nature and design – and that BMW themselves often test and launch their cars at racing circuits.”
After having consulted with his lawyer, Carter challenged BMW, who had told him that his ‘warranty policy [was] now no longer valid’. They then admitted that the warranty was valid, but that:
Any mechanical failure sustained on any form of track or driver improvement day will not be covered by a BMW warranty;
That the mechanical failure was an ‘extremely rare’ occurrence, despite the fact that Carter knows of at least one other M owner who has experienced the same problem.
Steve is now considering a claim against BMW for breach of contract, and is bewildered by the whole situation.
“It seems strange that Porsche and TVR actively encourage new owners to take advanced driving courses, yet BMW seem worried about track use,” comments Carter. “And having spent more than £40,000 on a performance car with an ‘M’ badge – for motorsport – on its rump, surely I should be able to drive the car with a degree of verve without it breaking.”
Track day enthusiasts will be watching the issue with interest as it could once again prove the thin end of the wedge. BMW will no doubt be reviewing their policy on the matter or it could seriously damage the reputation of their M series cars - perhaps they are only suitable for the Kings Road?
14 November 2002 | 12:24 AM
#4
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It might have something to do with M3s blowing up on trackdays.
When I was at Bedford recently an M3, on an 02 plate, blew up coming into the braking zone for turn 8. One of the marshalls mentioned it was the second M3 to do that in exactly the same place.
Later on in the day, I was discussing it with another M3 owner. As soon as I metioned that I thought BMWs were, to a certain extent, 'bulletproof', he pointed out that his last M3 had blown after a trackday, as had several others that he knew of. When discussing it with another driver on the day, he told me that he knew a dealer who always kept several M3 engines in stock for warranty repairs.
It would seem, from what I've been told, that they might be having a problem with oil starvation under extreme circumstances.
Josh
When I was at Bedford recently an M3, on an 02 plate, blew up coming into the braking zone for turn 8. One of the marshalls mentioned it was the second M3 to do that in exactly the same place.
Later on in the day, I was discussing it with another M3 owner. As soon as I metioned that I thought BMWs were, to a certain extent, 'bulletproof', he pointed out that his last M3 had blown after a trackday, as had several others that he knew of. When discussing it with another driver on the day, he told me that he knew a dealer who always kept several M3 engines in stock for warranty repairs.
It would seem, from what I've been told, that they might be having a problem with oil starvation under extreme circumstances.
Josh
14 November 2002 | 12:30 AM
#5
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From: From Kent to Gloucestershire to Berkshire
re:BMW warranties etc
After brother's new mini cooper broke steering rack, gearbox, clutch, dashboard, headlamps, both seats and various less major things, all in 6 months, (fixed on warranty, but car off road a lot as a consequence) he asked to reject it. Dealer offered several £k less than any other equivalent model was selling for.
Mine and his interpretation of BMW(UK)'s verbal response was "we don't care - go away and sue the dealer if you like". Of course, we could have got the wrong end of the stick (several times), and they genuinely care about customers. Personally, I'd trust BMW to do what I think is the right thing about as far as I could throw an X5, but that's just me.
Must state this is entirely my opinion, as I don't want to be libellous.
After brother's new mini cooper broke steering rack, gearbox, clutch, dashboard, headlamps, both seats and various less major things, all in 6 months, (fixed on warranty, but car off road a lot as a consequence) he asked to reject it. Dealer offered several £k less than any other equivalent model was selling for.
Mine and his interpretation of BMW(UK)'s verbal response was "we don't care - go away and sue the dealer if you like". Of course, we could have got the wrong end of the stick (several times), and they genuinely care about customers. Personally, I'd trust BMW to do what I think is the right thing about as far as I could throw an X5, but that's just me.
Must state this is entirely my opinion, as I don't want to be libellous.
14 November 2002 | 07:00 AM
#6
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A local magazine organised a little M5 vs STi shootout a couple of years ago...the day before the event, BMW SA phoned all the M5 owners in the country (there were probably only 20 or 30 at that time), and informed them that their warranties will be void if they compete in the challenge...on the day, BMW scouts were on hand to ensure that no one ignored this order...
If that were because they were afraid of mechanical failures, or because they knew the STi's would win, we can only guess...
If that were because they were afraid of mechanical failures, or because they knew the STi's would win, we can only guess...
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14 November 2002 | 09:14 AM
#8
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From: London
Owners of E30 M3's must be grinning in anticipation of even stronger residuals now 
After all, they have been proven to be
a) great cars, particularly on the track
b) they are still going (even after being on track)
It is sad that increasingly, manufacturers are releasing their cars and running demo days on track (which makes absolute sense for performance cars) and then voiding warranties for people that see the sense to do likewise....
Anyone with a Porsche or TVR fell foul of this issue yet?
Ta,
Matt.
After all, they have been proven to bea) great cars, particularly on the track
b) they are still going (even after being on track)
It is sad that increasingly, manufacturers are releasing their cars and running demo days on track (which makes absolute sense for performance cars) and then voiding warranties for people that see the sense to do likewise....
Anyone with a Porsche or TVR fell foul of this issue yet?
Ta,
Matt.
14 November 2002 | 09:43 AM
#9
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I think what irks me so much about this whole warranty voiding malarky is that the said same manufacturers have the cheek to use tracks to launch their cars (BMW and Subaru certainly) and then tell you "don't do this, as we'll void your warranty".
It's hypocracy, plain and simple.
Chuffed that this guy got this sorted out, and I wish him every joy in suing BMW for breach of contract. With a following wind and a Mercedes-driving judge, he might just manage it.
Interesting factoid: the UK is the only territory (apparently) to get the marketing phrase "the ultimate driving machine".
If enough people complain to the ASA, could this be proven as wrong? 
It's hypocracy, plain and simple.
Chuffed that this guy got this sorted out, and I wish him every joy in suing BMW for breach of contract. With a following wind and a Mercedes-driving judge, he might just manage it.
Interesting factoid: the UK is the only territory (apparently) to get the marketing phrase "the ultimate driving machine".
If enough people complain to the ASA, could this be proven as wrong?
14 November 2002 | 02:14 PM
#11
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i never had any cause for complaint when i had my bmw. if a screw came out the dealer would fix under warranty, i even had them come out to my home & change the flat battery for me under warranty.and just before i sold it they put a new engine in it. maybe these guys should use a different dealer?
14 November 2002 | 03:32 PM
#13
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Hi
It's the sad bloke with the BMW M3 here. Heard you'd been on the case, so thought I'd have a look see.
Just to clarify - when BMW first heard I'd been on a track day - they completely nullified my warranty.
After my lawyer wrote to them, they decided to re-instate the warranty, but refused to pay for the repairs - as I had taken part in 'racing, rallying or competitive sports' (which I hadn't).
I now have to decide whether to risk taking on Bavaria in court - but thought a press release would at least put some pressure on them to decide what the 'M' in M3 stands for! (and to at least hounour the existing warranty - which does NOT exclude track days).
I guess it'll run and run (well hopefully the M3 will anyway)
Steve Carter
[Edited by GetCarter - 11/14/2002 2:40:14 PM]
It's the sad bloke with the BMW M3 here. Heard you'd been on the case, so thought I'd have a look see.
Just to clarify - when BMW first heard I'd been on a track day - they completely nullified my warranty.
After my lawyer wrote to them, they decided to re-instate the warranty, but refused to pay for the repairs - as I had taken part in 'racing, rallying or competitive sports' (which I hadn't).
I now have to decide whether to risk taking on Bavaria in court - but thought a press release would at least put some pressure on them to decide what the 'M' in M3 stands for! (and to at least hounour the existing warranty - which does NOT exclude track days).
I guess it'll run and run (well hopefully the M3 will anyway)
Steve Carter
[Edited by GetCarter - 11/14/2002 2:40:14 PM]
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