Hello everyone,

the lease on my 2003 E500 (35 months old, 42,500 miles) is up in about 4 months and I am considering to buy it. I asked my dealer for an extended warranty and they said I could not get a Mercedes one anymore because that is only possible within the first year of the car being sold. They quoted me at 4500 dollars for a extension for 3 years or up to 100,000 miles by a Non-Mercedes warranty with a 200 dollar deductible that they have been using for about 4,5 years and that any Mercedes dealer "should" (direct quote) honor. They also said that, in the future, I should get a warranty on a new car right when I buy/lease it because if you end up not using it your payment is reimbursed to a large extent. Does all of this sound reasonable or should I go talk to another dealer?

It DOES sound reasonable, but with any aftermarket service agreement (which is what it is), its only good if the company stays in business. (The MB extended warranty would be worthless too if MBUSA went under, but then the point would be moot anyway, since we would all be orphaned.)

How long an aftermarket warranty company has been in business is good info but NOT a reliable indicator of how long they will remain in business.

The price they charge to "cover" a car is based on how much they expect to shell out to cover MB's expected costly repairs. I personally would never keep my Benz without an extended warranty, because what costs $300-$500 to repair on any other car will set you back about a grand on a Benz. Experience and observances on this Board leads me to believe you will spend about $4000 on repairs in 3 years after your nre car warranty runs out.

I've often wondered why you can't pay a dealer to Starmark your own car, let him take a profit on the non resale he is doing & warranty it.

Bottom line is if you want to continue to enjoy owning your Benz after the new car warranty expires you should have an extended warranty/service agreement. You are really just making a wager with a third party that your car WILL require costly repairs, and the issuer is wagering that it will not. ...after all, they are only in the waranty buisness to make a profit, which only happens if you DON'T need repairs that they have to pay for which exceeds the amount that you paid them for the warranty... Also, be sure to shop on line for 3rd party warranty companies & check around with others here, and MB dealer's Service Departments to see if they were paid for needed repairs/work that was done.

My 2 cents, never buy extended warranty from the dealer, being middleman it cost 20-30% higher then buying directly. Don't think dealer would take the responsibility of insurance company for not covering for something or disappearing.
I just bought my extended warranty from "Warranty Direct", I went through couple of dealers to check them out and heard nothing but good news, googled them and didn't come across any negatives. So i'm hoping they should work out. Supposedly they're one of the biggest/best extended warranty company. So enuf of there advertisement. I went with "majorcare" plan paid $2345, 0 deductable, 4yr/100K miles. Which for obvious reasons covers all the major components except stereo, which i just just got replaced under MB warranty. They had bumper to bumper for $3900 something but paying $1600 extra for just trims n such doesn't sit well with me. They include TSBs, and there's no labor rate cap as it is with some other warranty companies.

I cannot speak for your dealership, but here, if an extended warranty company did not cover an item that should have been covered, we step up and take care of the client.

Now, I can sell an extended warranty to anyone / any car and the most I have ever seen for a 60mth / 100k warranty is $5400. ( $0 deductible ) covers roadside type items, fuel if you run out, $100 towards road hazard issues with your tires, rental coverage, etc...

Like stated above, I would never own a MB out of warranty! From my side of the desk , I have more than doubled the cost of any extended warranty for my clients...

Steve

and yes, Dealerships DO mark up the cost of the warranty... just like the price of the cars, parts, etc... it's the dealership way...

Steve

Kind of true. However, most warranty companies are covered by insurance, but none the less, I would rather pick a good company to work through. And MBUSA only sells the extended warranty branded under their name. As with other companies, the coverage is through a third party. If MBUSA were to go under, your extended warranty would still be in effect.

Yes.... in a very big way!

In my experience, I have found that the dealership's 1st asking price is twice what it costs them from the manufacturer... but why do you beileve that an MBUSA warranty is owned by someone other than MBUSA?

waranteedirect.com is where I got mine from!

This is actually a really timely thread, since I'm in a similar position.

2003 E500, low miles (just hit 14,500), coming up for end-of-warranty in Jan 07.

My dilemma is
1) extend (3rd party seems the only way)
2) trade to 07 E550
3) trade to 07 550i

Option 1 is clearly the lowest cost, option 2 might introduce some more first-model-year blues, option 3 offers vastly better inside-the-cabin technology beyond the drivetrain (bluetooth, ipod, HUD,...although I'm not a fan of the fake-military red lighting, and the LCDs in the instrument cluster on the bimmer are too small)

Gotta see what the NYC area dealers are willing to do. I've got one dealer who owes me for taking /*way*/ too long to replace a body panel that they themselves banged up. I put 2,500 miles on their loaner while I was waiting, but still. I figure that is my best option to drive the price down on option 2.

$5400 for an extended warranty, wow dude i can't imagine anybody paying such money. But then again...ppl are crazy.

so who is the best to buy extended warranty from for the AMG cars?

I checked warranty direct and they dont cover AMG Cars

thnx

Then again, you really do get what you are paying for. $5400 is alot of money, but when its comes down to it, you will never have to worry If they pay the labor rate charged by the shop, $0 deductible goes along way, the actual items covered list will be longer, the authorization process will be quicker and easier ( For the shop doing the work and in turn you getting your car back sooner ) oh and they cover AMG cars!

One supercharger repair could run almost as much as some contracts cost! But if you have an AMG you may already know that...

Steve