cmpcpro

Hey guys, I have recently bought a 08 S550 with 58k on it. I don't know if I should set money aside for a repair fund, or try to find a good warranty. My issues are this: I have always heard such bad things about these aftermarket warranties and how they try to do whatever they can not to cover the issue. If I am going to get a warranty on an S class I want it to cover everything or the peace of mind isn't there.

My next issue is this: I have a wholesale account with MB, so I get parts at a cheap price, plus I am good friends with a very good MB only mechanic who owns his own shop (Left to him by his father). We trade work and have known each other for years. So I am not sure if it is wiser for me to just set aside some money (I set aside an envelope with 6k in it the other day to do either warranty or fund).

If I were to get a warranty I would want to get one that I could bring the car into the actual MB dealership and drive out in a loaner if possible (No loaner means I am daily driving my 55 Pontiac while repairs are made, not the most fun after a few days).

What would you guys do? I know I have owned the car for about 4 days and have already noticed the headrests don't go down, there is a creaking noise from the front suspension (Had it aligned yesterday and they said the drivers side control arm was brand new, wondering if it can be lubed?), the car had the wrong starter battery so to be safe I paid Mbrace $213 last night to come out and replace it, and I have developed an intermittent rattle that sounds like it's coming from the center console below the cup holders.. Keep in mind this is a one owner, immaculate car.

Thanks guys!

Mike5215

Tough spot. It's hard to find a 3rd party warranty on an S that's decent and doesn't cost 5 figures. I normally recommend a warranty but most MB dealers aren't going to be thrilled about an aftermarket warranty. When I bought one for my 04 I called my MB service guy first and asked him which one gave him the least hassles. I ended up with EasyCare who did put up a fight once in awhile buy did cover everything. Not sure you can buy that warranty direct...I think the selling dealer has to sell it to you.

DaveW68

You might want to call around to your local credit unions. Many of them offer warranties through the CUNA network. I just purchased a 2007 S600 with 24k miles. I purchased a warranty through my credit union for $3300 for the platinum exclusionary policy for 7 yr, 75k miles from date of warranty, with $100 deductible. It covers everything except the normal wear items. Plan is administered by "The Warranty Group", who also administers the CarMax plans that every agrees are great, and is backed by Virginia Surety Insurance Co. I had the same warranty on my M5 and can say with certainty that they do pay their claims. I also checked with my closest Benz dealer and they said they have had no issues in working with them on claims.


With your mileage, expect the cost to be higher and the term to be shorter...but it's still definitely worth looking into as the credit union warranties are usually better than what the dealers sell and only a fraction of the price. You just need to make sure you keep up with the scheduled maintenance on your car and get your oil changed at least every 6 mo or 6k miles....otherwise they can deny claims. But all warranties are like that.

cmpcpro

Thanks! I'll look into that one

tztony

When I purchased my 08 S550 I also purchased an aftermarket extended warranty from PWI (Preferred Warranty Inc.) in Pennsylvania.


I don't know if the cost was comparable to some of the other companies but I definitely know they honor their contract without any argument.
Premier Level- 24 month or 30k miles, $100 deductible, paid $3000.
Well it's paid for itself and then some.
COMAND head unit died $2400
Camshaft Sensor $240
COMAND Voice Control Module $2600
Camshaft Plugs $150
Transmission Mount $270,
and they never as much blinked an eye when dealer called for authorization.


I'm satisfied with the company.

cmpcpro

Thanks for the info are you in PA too? How many miles are on your 08? Funny you mentioned voice control as you were replying to my thread I was making a thread to see if my voice control is bad.

cmpcpro

Also was your warranty a cover all or are there alot they won't cover? Thanks again!

Mike5215

That, my friends, is what they call the proof being in the pudding. If PWI swallowed up that stuff without complaint, I'd be comfortable handing them my $3k any day.

cmpcpro

Me too! Someone said that in cali I have to buy a contract from a dealer that's bs if true otherwise I'll wire them 3k in a heartbeat

cmpcpro

Wow you weren't kidding they have an A- with the BBB that is amazing for a warranty company. If they will sign me in Cali I am joining tomorrow. I have already left my number with their answering service.

steveb9771

Following from FAQs on Preferred Warranties Inc web site--
Can I purchase a protection plan directly from Preferred Warranties?
No, you can obtain Preferred Warranties protection plans only from approved dealerships. We look to work only with dealers known for quality, dependable pre-owned vehicles. We currently have dealers in approximately half of the states, and we are constantly expanding our trading area.

How do I get a Preferred Warranties plan?
Only from your dealer when you purchase the vehicle. Just review the options, costs and contract with your dealer, and choose your plan. No extra vehicle inspection will be necessary. You’ll get your Preferred Warranties protection plan at the same time that you purchase your car.

cmpcpro

Wow how disappointing I called them and they surely didn't seem friendly by any means but they aren't available in California and they will only accept a car if it's bought the day you buy the car and not a day after.

DaveW68

Call around to credit unions in your area to see if they offer coverage.

Mike5215

You may have dodged a bullet. Check out these reviews of PWI:

http://www.consumeraffairs.com/auto_...preferred.html

Pretty typical for a 3rd party warranty company I'm afraid. The difference between a Mercedes warranty and any other is this:

Mercedes will subsidize the cost of their warranty, for a number of reasons, none of which apply to a 3rd party:

-They hold the warranty price down (even artificially low) to an extent as a marketing move to perpetuate the brand's reputation for quality, in the same way they fudge higher residual values on their leases to their detriment.

A business that exists to sell and profit from issuing warranties or service contracts must collect more in premiums on average than they pay out in claims on average. It's basic math. If they sell everyone a policy for $3,000 and pay on average $5,000 in repairs, they cannot sustain the business. On the other hand, if they price policies artificially low to attract consumers, but have a claims organization focused on denials, that is a sustainable business model

-MB holds the warranty price down (and offers the warranty in the first place) as a concession to their dealerships designed to improve resale of used MB inventory. CPO exists solely as a sales aid to MB dealers. MB is not in the for-profit warranty business. In fact, to help mitigate costs, they charge the selling dealer around $2,000 to have a car "Certified". MB is very picky about which cars they will or will not certify, not to protect the consumer but to protect themselves.

None of those conditions exist for a 3rd party warranty company. They are in business to collect premiums and control claims costs. They often do not require a car be pre-inspected or certified as a condition of selling the warranty. In fact, they often later use the fact that the car may not have had a sterling maintenance history as an excuse to deny coverage for a "previous condition" brought on by a lack of maintenance that may have occurred before the policy was written

-When MB pays a CPO claim, they're providing their own parts, at dead cost, and a flat labor rate lower than the street price from a captive dealer. MB relies on the opinions of its captive dealers when it comes to what repairs are covered and necessary under the CPO contract. MB often errors on the side of its customers because that relationship holds the promise of future vehicle sales.

A 3rd party warranty company has a naturally adversarial relationship with the repair shops. They have no reason to trust the repair shop as far as the shop's opinion of how the mechanical failure occurred, or the best way to repair it.

They must pay retail prices for parts and labor. They have no incentive to make concessions to retain their insured as a customer....they likely already have all the money they'll ever see from him

That's not to say that their aren't legitimate 3rd party warranty companies, however they are not cheap. Legitimate warranty companies knows what they're getting into when they warranty a high dollar German luxury car, and that experience is reflected in the price. Expect to pay around $8k for a decent three year premium level warranty on a used S Class with average miles.

Also...

An AM BEST rating is a reflection of an insurance company's financial health...measured in part as the value of the policies in force less the anticipated claim and administrative costs. An AM Best rating has nothing to do with an insurance company's claims practices or the way in which it treats its policy holders.

A BBB rating reflects the number of negative reports that have not been responded to by the business in a way the BBB deems acceptable. That may not be anything close to what the consumer felt was acceptable. The BBB has no regulatory authority or powers. They are simply an aggregator of complaints. Pre internet, they were the only aggregator of complaints. Now, there are hundreds. Just Google the name of the company and see what comes up. Yes, some consumers make ridiculous claims and have an agenda, but if those types of complaints are the norm for the company over time, they probably have a basis of truth.

cmpcpro

Ouch! Looks like they were a good family company and then bought out and went "mainstream". Well glad they didn't buy me! I just called a credit union and got the highest price I've seen yet! Their supreme which covers "almost everything" was a little over 9k for 4 years up to 100k! (My car has 59k). Ouch!!

DaveW68

The best pricing is had when mileage is below 35k. It goes higher from there. Check pricing with a $250 deductible and I'm sure you'll see it is substantially less.

Mike5215

Yeah, those were the numbers I was getting when I was shopping cars that were too old for CPO. My CU was $9k on an average mileage 2008 S Class, and $12k on the same year and mileage CL.

After beating my head against a wall for a few weeks looking at 07 and 08s with miles in the 40-50k range I realized that if I took the cost of the warranty and added it to the price of the car I was at around $50k anyway. I decided to shop newer cars with CPO and spent around that on the 2010.

OP, I would go back to the CU and find a plan that's not as comprehensive...just major mechanical. That way you're protected from anything catastrophic, and you'll just have to roll the dice on the other stuff.

cmpcpro

That was.. lol

cmpcpro

Yeah, I was thinking about that, but honestly, the little stuff is the important stuff. You can get a rebuilt 7spd 722.9 for $1,400 on eBay (there is one there right now for that price, rebuilt).. An engine is a few grand.. so for what I would pay for a drivetrain warranty I could just put 3k in the bank and cover any motor/tranny issue.. worst I would have to do is add a little more for labor on a motor swap.. worst case.

It's the little stuff like the voice control module that's over a grand.. that I wanted to be covered from.

DaveW68

Egads! You may want to call other credit unions and banks in your area. I purchased my 7 yr/75k mile plan for $3287 with $100 deductible on the top end exclusionary plan on a 2007 S600 with V12 TT. Of course my car only has 24k miles. There are definitely better deals out there if you know where to look.

cmpcpro

That's the problem I have no idea where to look for the best one.. I hear so many horror stories

tztony

No, I'm in Atlanta. I purchased my car in June 2014 with 51,329 on the clock.
They had to replace the Voice Control Module because it was causing my audio system to malfunction.

tztony

I purchased their top tier service contract. Includes everything except normal wear and tear items.

tztony

I purchased my contract when I purchased the car from the dealer.

tztony

I read several of the posts related to denial of repairs. Many or most indicated they purchased the "PLUS" Contract which is one step below the PREMIER Contract which I purchased. Plus doesn't cover as much as PREMIER.