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MB Extended Limited Warranty and Auction Purchase

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Old Jan 9, 2017 | 11:32 AM
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MB Extended Limited Warranty and Auction Purchase

My factory warranty will be expiring at the end of April so I have been shopping around for best pricing on the MB ELW. I've gotten some ridiculous numbers from my current dealer (no way I'm paying that much for peace of mind), so I have been calling the other local dealers before reaching out to out of state dealers/third parties.

When speaking with a financial manager at one dealer, they looked up my info and found that my car was sold by MBUSA financial at auction when the original owners lease was up. He mentioned that you can't get a MB ELW if the car was sold at auction. Has anyone else heard this? I tried researching, but didn't find any clear explanation.

I purchased the car from an exotic boutique dealer, who purchased the car from MB financial at auction and had all PPI's records done at my MB dealer. The car has a clear title and passed all inspections when purchased by me with all services completed on time, so I am not sure why they would allow a factory warranty, but not allow one to purchase an extended limited warranty... Sounds like a strange policy.

Does anyone have insight on this? I was going to post in the warranty discussion sub, but it doesn't look like there's a whole lot of traffic there.
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Old Jan 9, 2017 | 12:55 PM
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Originally Posted by cornerjunkie
My factory warranty will be expiring at the end of April so I have been shopping around for best pricing on the MB ELW. I've gotten some ridiculous numbers from my current dealer (no way I'm paying that much for peace of mind), so I have been calling the other local dealers before reaching out to out of state dealers/third parties.

When speaking with a financial manager at one dealer, they looked up my info and found that my car was sold by MBUSA financial at auction when the original owners lease was up. He mentioned that you can't get a MB ELW if the car was sold at auction. Has anyone else heard this? I tried researching, but didn't find any clear explanation.

I purchased the car from an exotic boutique dealer, who purchased the car from MB financial at auction and had all PPI's records done at my MB dealer. The car has a clear title and passed all inspections when purchased by me with all services completed on time, so I am not sure why they would allow a factory warranty, but not allow one to purchase an extended limited warranty... Sounds like a strange policy.

Does anyone have insight on this? I was going to post in the warranty discussion sub, but it doesn't look like there's a whole lot of traffic there.
I cannot comment about how MBUSA does things but MB Canada operates differently - or at least my dealer does.
I bought my 2011 E350 wagon from them and I had serious concerns as it approached the end of the factory warranty due to a lot of folks having transfer case bearing failures that shred the trans being integrated cases. Being a $10K CDN fix it seemed a good idea to buy the extended warranty to 120000 km and an additional 2 yrs.
When I traded the car I transferred the warranty to the 2014 SLK350 with the same extension. I sold that car and got a refund because there were no claims.
Last September I got a 2013 C63 AMG under the same conditions. Previously leased, off lease with 9 months of factory warranty sold through an auction.
Having settled down and looking at this car as a future car for some years to come and a daily driver I looked into an extended warranty.
My dealer CS agent had no issues. The car being under factory warranty it required no additional inspections to get the warranty. Had it been out of factory warranty it would have had to go through an inspection routine specified by the underwriter of the insurance policy which really these things are but they would have covered it.
My warranty is with a company called Secure Drive.

Last edited by Alex.currie44; Jan 9, 2017 at 01:01 PM.
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Old Jan 9, 2017 | 01:08 PM
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Originally Posted by Alex.currie44
I cannot comment about how MBUSA does things but MB Canada operates differently - or at least my dealer does.
I bought my 2011 E350 wagon from them and I had serious concerns as it approached the end of the factory warranty due to a lot of folks having transfer case bearing failures that shred the trans being integrated cases. Being a $10K CDN fix it seemed a good idea to buy the extended warranty to 120000 km and an additional 2 yrs.
When I traded the car I transferred the warranty to the 2014 SLK350 with the same extension. I sold that car and got a refund because there were no claims.
Last September I got a 2013 C63 AMG under the same conditions. Previously leased, off lease with 9 months of factory warranty sold through an auction.
Having settled down and looking at this car as a future car for some years to come and a daily driver I looked into an extended warranty.
My dealer CS agent had no issues. The car being under factory warranty it required no additional inspections to get the warranty. Had it been out of factory warranty it would have had to go through an inspection routine specified by the underwriter of the insurance policy which really these things are but they would have covered it.
My warranty is with a company called Secure Drive.
So your extended warranty is 3rd party? I shouldn't have any issues getting a 3rd party warranty, but I would like to be able to get a factory MB extended warranty. I guess I'm just not seeing the justification for not being able to purchase one due to auction sale. Especially when it was MB Financial who auctioned the car...
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Old Jan 9, 2017 | 01:54 PM
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Originally Posted by cornerjunkie
So your extended warranty is 3rd party? I shouldn't have any issues getting a 3rd party warranty, but I would like to be able to get a factory MB extended warranty. I guess I'm just not seeing the justification for not being able to purchase one due to auction sale. Especially when it was MB Financial who auctioned the car...
Yes it is third party because that is all they sell now as far as I know.
To the best of my knowledge you can only get an extended warranty from MBC - and I am not certain about this - if you buy a CPO car.
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Old Jan 9, 2017 | 02:57 PM
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Originally Posted by Alex.currie44
Yes it is third party because that is all they sell now as far as I know.
To the best of my knowledge you can only get an extended warranty from MBC - and I am not certain about this - if you buy a CPO car.
MB does offer a factory extended warranty if your car is currently still under the original factory warranty even if your car was not purchased CPO, but they quoted me $8,165 for an additional 3yr/50,000 miles... No way I'm paying that much.
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Old Jan 9, 2017 | 06:54 PM
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My car is canadian and came to the USA and was sold at auction and I can't get a extended warranty either from MBUSA. They said canadian cars are excluded nothing about auction cars.

Sounds like a bunch of bs to me.
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Old Jan 9, 2017 | 08:25 PM
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I would contact several MB dealerships and see what they say. Seems like they all have somewhat different policies.
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Old Jan 10, 2017 | 12:24 AM
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If the car still has a factory warranty you should be able to have the option of an extended warranty from MB USA which is a CPO. Yet I believe this can only be obtained if you purchase it off a MB dealership. Since this is not the case MB will write you a policy, however it will be through a 3rd party. All that is required is like a 120$ inspection in order for them to write the policy (This doesn't apply to people who still have a warranty such as OP). I would just shop all the dealerships in your area for the best price. For me my car was out of warranty when I bought it, however MB Beverly Hills sold me a 3rd party (Fidelity) 6 years/60K miles warranty for about 5k as opposed to Fletcher Jones that wanted 16k for the same policy. It's a really dumb system, but when I was talking to the head of their finance department he told me the only reason MB won't offer you another factory like warranty is because legal reasons and and that since the car has mileage more things are likely to break, and i'm guessing when they ran the numbers out it didn't turn out very profitable. Also make sure to get the full comprehensive package if you do decide to go down that path since it'll cover the most stuff.

Last edited by Jake215; Jan 10, 2017 at 12:30 AM.
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