BMW tire/wheel warranty calculations
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BMW tire/wheel warranty calculations
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INSTRUCTIONS
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1. Make a copy of this spreadsheet for your own use (you will not be able to edit this sheet). "File --> Make a copy..." You will need to log in to your Google account to do this. Alternatively, you can choose to download an Excel formatted copy of this, but you will lose the graph below.
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2. Enter your own values for any cell marked yellow (these initial prices are based on a 5 year warranty for a 2011 X3 28i, with tires being replaced from Costco). Read Notes column for tips.
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3. Evaluate bold sections to help make a decision on whether the tire/wheel warranty works for you.
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Note: This analysis assumes that you won't need to replace your wheel at any point in time.
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INPUTS
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Notes:
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Tire cost\$210.99The price for a new tire
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Installation/disposal\$15Installation and disposal fees for tire (\$15 is how much Costco charges if you purchase the tire from them)
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Tax6.25%Tax rate
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Total per tire\$240.11
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Tire / wheel hazard\$1,347.30The total price being offered for the tire/wheel hazard protection
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Per tire deductible\$50Deductible per tire (technically, it's per incident, but I'm assuming I won't have multiple flats at once)
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Years5Years of protection
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OUTPUT
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Breakeven tires7.09This is how many tires you'd need to replace for this to be a breakeven proposition
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Tires / year1.42This is how many tires you'd have to replace each year
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Analysis of how much money you make/lose, depending on how many flats you have:
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Number of flatsSavings
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0-\$1,347
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1-\$1,157
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2-\$967
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3-\$777
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4-\$587
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5-\$397
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6-\$207
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7-\$16
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8\$174
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9\$364
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10\$554
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11\$744
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12\$934
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