3rd Party Warranty

[ark1tech]

I'm thinking about getting a 3rd party warranty. I had to spend $700 already on a new crankshaft sensor, and I don't want to have to take money out of my wallet everytime something happens. Does anyone else have a warranty like this, or can I get one from mercedes? Also, does anyone know a price that a 3-4 yr warranty would cost..

Thanks in advance.

-David Morace

[sleewell]

look at mercury. i got mine from them and other forum members use them as well. mine goes for 3 years or to 85k miles, whatever comes first. covers everything but oil changes, brakes, scheduled maintenance. the cost various based on the car and miles but mine was only 1554.

[ark1tech]

O wow that sounds great. Do you have a link or a phone number for that?

[sleewell]

no, sorry, i have mercury insurance also and got it through my local rep. google it or yellow pages or something.


one thing that is funny is that he was looking at what i paid for the car and was like why did you pay so much for the GE warranty? i didnt do my research on warranties, just the car and got ripped by the salesman. turns out they sell the cars lower and make money on the warranty. but you can cancel the warranty in the first 60 days if you dont file a claim. that salesman was so pissed when i canceled, he was like, "i wouldnt have given you that price on the car if you didnt go with that warranty." i told him i didnt feel bad at all and he should be a more honest used car salesman, as i was laughing. saved me like 1200 bucks going with mercury!!!! good tactic to get a good price on a car i guess!!!

[ark1tech]

Ok thats funny. Now, if something was to go wrong with the car and you needed a new part or watever, who fixes it? Mercedes? or someone else?

[sleewell]

you can take car to any MB dealer or any licensed mechanic, or if its really bad you get free towing. i have a 50 dollar deductible (most are 100). mercury is great bc you only pay the deductible and they work out the rest. most companies will make you pay the whole bill and reimburse you later.

[trikoid]

I doubt that warranties will save you money, on average. They cost a lot, and have deductables.

Remember, the reason the warranty company is in business is to take more fees in than payments out. They study the costs a lot, and select fees based on their expectations of payments.

When I priced a 3 year warranty for an 04CLK500, it was $2-$3K. And it doesn't cover all the little stuff. Just not worth it.

[Discgolfer74]

So far, I think a warranty is a waste of money. But I guess it all depends on how many options you have that could potentially go wrong. Unless you drive the crap out of you Benz, you shouldn't need to worry about anything more than basic maintenance (which warranties don't cover).

I recommend establishing a good relationship with your mechanic and/or service writer/manager. Get ALL of your A & B Services and basic repairs done with them (loyalty). Then, when something does come up, you can run the scenario by them and get an idea of how much it would be, and if it is a necessary repair. These guys have seen it all, and usually know what the problem is before it even goes on the rack. Look at it as a free diagnostic.

For example; I have been having issues with my SRS light since I bought my car. I explained the issue to Todd (my service guy, who I've known for almost 8 years), and he was quick to determine that it was my Passanger Recognition Sensor . He also said that it would cost upwards of $1200 to repair... It won't eject my passanger, so I can deal with the SRS light on my dash for a while!

- Keep up with your regular maintenance.
- If something doesn't sound right, don't wait until it causes something else to go.
- Pick up a repair manual and a set of tools, and do some of the labor yourself.

If this doesn't work for you, then consider this:
Car Value - (What you owe + Warranty) = Equity
EX: $21,100 - ($16,809 + $3,000) = $1291
I'm in the green, are YOU?
(FYI: My car value just dropped $3000 in the past 6 months)

If this doesn't add up, then you may want to consider buying a newer car with a warranty, or keep your car in the garage and only drive it on Sundays.

[sleewell]

regardless if you think its worth it or not when buying a used car there is a lot of risk, i don't think anyone would argue that. one or two trips to the shop could cover the entire cost of the warranty, especially cars like MB's which aren't exactly the cheapest to repair. if i had bought a new car and knew who exactly had been driving the car and that i had taken car of it i would never purchase one of these warranties. but buying a car with 40-50k miles on it is a risk and these types of warranties offer reassurance to people. plus they are transferable so it adds value if you decide to sell your car.

[Discgolfer74]

Originally Posted by sleewell

plus they are transferable so it adds value if you decide to sell your car.

I don't deny that a warranty would be a great benefit, but even if transferable, they do NOT add value to the car. You can take two cars to the bank, one with a warranty and one without. The bank will still only give you the NADA value, warranty or not. The ONLY value you get with a warranty is piece of mind. Sometimes, just that, is worth $2000 - $3000.

To each, his own.

[sleewell]

selling to a bank yes i agree with you, but private party sales are a whole different ball game. take two identical cars and tell the person that this one has one year left of a warranty they can use at any MB dealership and which one does that person buy?

[Discgolfer74]

Originally Posted by sleewell

selling to a bank yes i agree with you, but private party sales are a whole different ball game. take two identical cars and tell the person that this one has one year left of a warranty they can use at any MB dealership and which one does that person buy?

The one the bank will finance.

[sleewell]

my bank financed my warranty no questions asked.

[Discgolfer74]

Originally Posted by sleewell

my bank financed my warranty no questions asked.

They will, depending on your LTV (Loan to Value). My loan was 100% on an 80%LTV. I would have had to pay out of pocket for a warranty (or basically put about $3000 down).