I am sorry, this is going to be long but please read it and help me out!

PROBLEM # 1:
I bought a 2011 C63 AMG with 26k miles from a dealer (not CPO) for 37K 4 months ago. I paid him 4k for my warranty and a month later, i get a letter from the warranty company saying it's been cancelled as the dealer never paid them. When i tried to contact the dealer, i learnt that they filed for bankcrupcy and they are closed. (I tried contacting the lawyers but no one couldn't do anything as the business is closed).

PROBLEM # 2:
The coolant has been leaking and the check engine light was on for a long time and after some research, i knew that the headbolts was the problem. I took the car to the local Mercedes Dealer and told them what the issue was and they said they'd fix it. After taking the engine apart, they tell me the head gasket blew off and had to be replaced (cost to replace the head gasket was $4000). After replacing it, they found that the engine has been overheating and now they tell me that the block has to be replaced!!! which is crazy and they gave me an estimate of $33,000. I don't know if they messed something up or what is it that they are not telling me. Now they tell me my car is worth $21,000 which is unbelievable.

Please help me out on what should i do, i am clueless!!!

 

Wow sorry to hear that. That's bad luck with the warranty thing and company going out of business. Sounds like the head bolts is what went bad. As far as worth is that what Mercedes will give you for the car 21k??

 

Yes, That's how much Mercedes is ready to give me but the worst part is they want me to trade in for another car. They are not willing to buy the car outright.

 

That's a tough position and really feel for you. Me personally check you state laws see what you can do with the guidance of an attorney. I would speak to the attorney before doing anything. As for the car you can save for a new block (used maybe find some poor fellows who wreaked theirs and buy it). If not the option take the loss and trade it in. I know for me I be pissed especially for the lost in equity on the sale. But if the car is your only one something is better than nothing and cut your loses.

I'm really sorry for what your going through and will keep you in prayer. Please keep us posted on the situation. Talk to a lawyer as soon as possible.

 

Definitely contact an attorney. Just because they went out of business does not mean they aren't liable.

If an attorney says you're out of luck then I'd either part the car or take the dealer up on their offer.

Regardless, this is about to be a huge headache and a big mess. We feel for you here.

The warranty company is now out of the picture. There is no way they'll step back into it, either. You're going to have to sue the dealer for $37,000.

 

I called every lawyer in New Jersey (where i bought the car from). They told me that if the dealer is out of business i.e. they filed for brankcrupy, they don't have money to give the money. So i am out of luck there too.

 

Trust me, i called every lawyer i could. They said i can't do anything because the dealer is brankcrupt. I even called the General Attorney of New Jersey and filed a case. That is all i can do

 

Good call on calling the Attorney General for the state. I had to do that before but email here in California and they responded pretty promptly. Should be interesting their response.

 

Sorry to hear about your situation. I would look for a good engine shop and have them just rebuild it for you with better parts if possible. The block could be repaired and not necessarily replaced. Dealer like to just replace it cause they earn more. Companies like weistec have the ability to rebuild so possible for you to find a shop to do it. It will cost some but may not be as much as quoted.

 

Either way you lose cause your out 15k to 20k maybe more for rebuild by non dealer or you take the 16k loss in value from trade in I would take the loss in trade in sucks but that's prob what I would do.

 

Yikes, quite a mess you're in. I'd trade the car in and just call it a $15k learning experience.

 

Let me be a potential point of light in this dark chasm you find yourself in...

1st. You 100% DO have actionalbe steps that can be taken against the dealer where you purchased the warranty. Bankruptcy covers LOTS of *** in terms of liability when the business is going under, HOWEVER, the one thing that it NEVER provides is immunity for criminal activity. You my friend are currently the victim of fraud. You did not pay the dealership for services rendered or parts or labor, you provided them funds ($4k) that were to be supplied to the warranty provider for coverage, NEVER to be consumed by the dealership itself. With that being said if they did not provide the funds to the warranty company then they STOLE from you, fraud 101!!!

But....

2nd. I would tell whoever told you $37,000 for an M156 to literally take a long walk off of a short pier. I remember reading this and that about M156 from the dealer going for $56,000ish when filed under warranty....robbery!!!! Truth is low mileage M156s from wrecked cars can be had for $4,000-$7,000 all day long. Factor in $2,000 for the remove/replace and you may be able to get back in your car for under $7,000 total.

Fact is your car is out if warranty and that ship has sailed and no matter what you do now it will not regain warranty status. If it were me I would find an attorney local to the dealership that was VERY reasonable about fees and have them file a criminal complaint against the dealership accompanied by lawsuit to be WHOLLY reimbursed including attorney fees. Even under bankruptcy you are allowed to protect a certain amount of assets from seizure and you would be AMAZED how funds magically appear when facing criminal charges.... They will most likely pay you to just shut up and go away. With this done you may very well find yourself back in your car with little to no out of pocket $ spent in the long run. Best of luck and keep us posted

 

I agree with JPTaylor, companies can't hide behind BK when criminal activity is involved. Also, take the car to an Indy and see what they say. Headbolts shouldn't be an issue on a 2011.

 

I think we all have a little bit of money to be dabbling with these cars to begin with.... BUT....I work too damn hard for every cent of mine to lay down and just take $15k worth of shaft up the chute....in this case you are the victim, stand up and fight like hell

 

Are there any good Independent shops in your area?

JPTaylor - good input. Where have you seen engines for those prices?

 

There are several on EBay most of the time and car-part.com typically has a few as well

 

Thanks. Good luck OP, feel for you man.

 

Awesome post JP. Right on the money.

 

Thanks my Friend....just hate to see one of us get burned.......(plus it's kinda what i do)

 

Yes, there are some independent shops and they say it's gonna be $15,000

 

Thanks for your reply JP!
I did contact a lot of lawyers in the area and they told me that they can't do anything because the business is closed.
I contacted the attorney general of New Jersey and they told me that i am not the only victim and this case against the dealer is HUGE! So i filed an application and filed a case. I am running out of options.
Regarding the M156, I spoke a local performance shop and they said it costs $15000, I could find some engines on ebay but after all this what is the guarantee that it wont blow up on me again? Do you know any trusted websites or people i could get an engine from.
This is my first car and i have worked so freaking hard to get here, it kills me!

 

Prock, I feel terrible for what happened to you... Did they say what was wrong with the block? This sounds like it went past what usually happens with head bolt failure. I'd research more independent shops. I asked my MB dealership what it would cost me to preemptively replace my head bolts and they quoted me at nearly $13k... Just for head bolts... I shopped around and Indy shops were much better, and fortunately there are some good ones in my area. Have you contacted MB? I wouldn't expect much from them after my last experience, but it may be worth a shot...

 

LKQ stands behind their used engines pretty firmly.....

I have dealt with New Jersey courts on occasion in the past and to say I found them to be difficult would be putting it kindly at best. Just because their doors are physically shut does NOT mean they are defunct, if they are still in bankruptcy then they are STILL an attachable entity....and I'm not sure about NJ but I will tell you that in Georgia you could financially go after any and all individuals that were listed as principles of the underlying business.....

 

I contacted MB and they said they couldn't do anything about it. The dealer said that some work had already been done on the engine(which i wasn't aware of) and the 1st and the 4th cylinder are squared off instead of being round and it wasn't sealed in properly.

 

I called the lawyers and told them but no one is ready to take my case. At this point i am thinking of selling the car to a wholesale dealer. What do you think?