Extended Warranty Question.
04-26-2011, 03:26 PM
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2008 CLK350
Extended Warranty Question.
Hello everyone!
I have ‘08 CLK350 23.4K mi (San Diego, CA USA), and my factory warranty (4 years or 48K mi - whichever comes first) is going to expire in December 2011. So, I spoke to my dealer (Mercedes-Benz of Escondido, CA) and have been given the following extended warranty options:
2 years/75K mi - $2,850
2 years/100K mi - $3,775
3 years/75K mi - $3,235
3 years/100K mi - $4,390
4 years/75K mi - $3,695
4 years/100K mi - $5,160
Now questions (I drive about 10K a year):
1. Does it make sense to buy an extended warranty on this model at all?
2. If so, should I buy it from a dealer or auto-market and why?
3. Can extended warranty be purchased out of state?
4. If so, could you guys check and see if dealers in your states other than CA have a better deal?
I would really appreciate your input. I feel like this information could be useful to everyone
Thanks!
I have ‘08 CLK350 23.4K mi (San Diego, CA USA), and my factory warranty (4 years or 48K mi - whichever comes first) is going to expire in December 2011. So, I spoke to my dealer (Mercedes-Benz of Escondido, CA) and have been given the following extended warranty options:
2 years/75K mi - $2,850
2 years/100K mi - $3,775
3 years/75K mi - $3,235
3 years/100K mi - $4,390
4 years/75K mi - $3,695
4 years/100K mi - $5,160
Now questions (I drive about 10K a year):
1. Does it make sense to buy an extended warranty on this model at all?
2. If so, should I buy it from a dealer or auto-market and why?
3. Can extended warranty be purchased out of state?
4. If so, could you guys check and see if dealers in your states other than CA have a better deal?
I would really appreciate your input. I feel like this information could be useful to everyone
Thanks!
04-26-2011, 05:26 PM
#2
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You will have about 30k on it when your warranty expires. At 10k a year you will hit 70k when the longest (4 year) warranty expires. So I see no reason for you to get the pricier 100k warranty unless your driving might change. As a per year cost, the 4 year 75 k seems like the best deal.
I have no clue about cost/coverage between dealers or third parties. However, I'd much rather have my car in front of the guy who sold me the warranty than have a warranty from "Bob's Auto Warranties" and have to serve as some sort of go between the repair shop and them.
Should you get one at all? Maybe we should do a poll, but there seem to be quite a few here who think they are a good idea. As for me - I have a standing policy to never buy an extended warranty on anything ever. They are a huge profit center for whoever sells them. I have regretted my decsion only once, and that was a $200 error - nowhere near what I have saved by never buying them. Having said that, I may break my own rule for this car. I sort of look at it like a bet in Vegas. What is the price, what are the odds of something going wrong, and what is the fix likely to cost. So say you pay $4,000 to warrant your car for 40,000 miles (4 years at 10k miles per year). What are the odds of needing a repair exceeding $4,000 in 40,000 miles? Let's say it's 25% and it costs $6,000. If you were in Vegas, would you bet $4,000 for a 25% chance at $6,000? Some people would and some would not. On these cars there is so much than can go wrong, and everything costs so much to fix, that the odds of repairs exceeding the price seems high enough to seriously consider it. However, remember that, just like at a casino, the odds are always in favor of the house.
One final consideration is your own financial situtation, which affects how risk averse you are. If you had a $7,000 repair bill, would it change your life? Peanut butter for a month?
I have no clue about cost/coverage between dealers or third parties. However, I'd much rather have my car in front of the guy who sold me the warranty than have a warranty from "Bob's Auto Warranties" and have to serve as some sort of go between the repair shop and them.
Should you get one at all? Maybe we should do a poll, but there seem to be quite a few here who think they are a good idea. As for me - I have a standing policy to never buy an extended warranty on anything ever. They are a huge profit center for whoever sells them. I have regretted my decsion only once, and that was a $200 error - nowhere near what I have saved by never buying them. Having said that, I may break my own rule for this car. I sort of look at it like a bet in Vegas. What is the price, what are the odds of something going wrong, and what is the fix likely to cost. So say you pay $4,000 to warrant your car for 40,000 miles (4 years at 10k miles per year). What are the odds of needing a repair exceeding $4,000 in 40,000 miles? Let's say it's 25% and it costs $6,000. If you were in Vegas, would you bet $4,000 for a 25% chance at $6,000? Some people would and some would not. On these cars there is so much than can go wrong, and everything costs so much to fix, that the odds of repairs exceeding the price seems high enough to seriously consider it. However, remember that, just like at a casino, the odds are always in favor of the house.
One final consideration is your own financial situtation, which affects how risk averse you are. If you had a $7,000 repair bill, would it change your life? Peanut butter for a month?
Last edited by Yidney; 04-26-2011 at 05:35 PM.
04-26-2011, 07:10 PM
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06 CLK350 -SOLD! 2010 Cadillac SRX Premium Turbo
Well said and written Yidney. I have never purchased an extended warranty for anything as well. My CLK was a CPO which I might have paid for hidden somewhere but that's it.
mortum if you do decide to purchase one, make sure it covers as much as possible with no hidden fine print. Also ask if it is transferrable if sold out right before expiration. Remember if you trade it in while the warranty is still in effect, you can collect in $ what is remaining. Usually the dealer tries to hide the weenie and keep it for themselves. Good luck with your decision.
mortum if you do decide to purchase one, make sure it covers as much as possible with no hidden fine print. Also ask if it is transferrable if sold out right before expiration. Remember if you trade it in while the warranty is still in effect, you can collect in $ what is remaining. Usually the dealer tries to hide the weenie and keep it for themselves. Good luck with your decision.
04-26-2011, 11:02 PM
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2008 CLK350
Well said and written indeed, Yidney. 4 years/75K mi option does look like the way to go, if course I will decide to purchase it at all.
I never buy extended warranty on anything myself except for cars I previously owned but those were much cheaper cars. The extended warranty on my previous '01 Acura CL-Type S, for example, was only $1,090 and that's for 7 years/100K from the extended warranty purchase date! Acura, generally a reliable car, was braking here and there and by replacing failed transmission alone, I repaid what I’ve paid for my warranty two times over.
I have never owned Mercedes-Benz before and I am not that familiar with my model's average reliability but after some analyzing I might not be buying that warranty after all.
Thank you, this helps.
I never buy extended warranty on anything myself except for cars I previously owned but those were much cheaper cars. The extended warranty on my previous '01 Acura CL-Type S, for example, was only $1,090 and that's for 7 years/100K from the extended warranty purchase date! Acura, generally a reliable car, was braking here and there and by replacing failed transmission alone, I repaid what I’ve paid for my warranty two times over.
I have never owned Mercedes-Benz before and I am not that familiar with my model's average reliability but after some analyzing I might not be buying that warranty after all.
Thank you, this helps.
