Extended Warranty Ripoff
09-27-2006, 09:22 AM
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Extended Warranty Ripoff
Although I should have known better, I purchased a 2-year extended warranty from the dealer for $3,200 in July 2005 when I purchased my E500. Because of brake problems that could not be resolved, I received an assisted trade on a 2007 E550 in July 2006. The warranty cannot be rolled over, so it had to be cancelled. After almost three months of delay, I just received a check for $2,510. So, they had the use of my $3,200 for over a year, had no claims against the contract because it wasn't effective until 2009, and now pocket $690 for their "trouble." I asked them to explain the amount of the refund because it doesn't seem consistent with the contract, but have not yet had a reply. Buyer Beware!!!!
09-27-2006, 11:31 AM
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'08 AM Vantage V8 - '03 E500
1. What does your contract say about refunds?
2. Have you been dealing only with the, um, dealer, or was MBUSA also involved?
3. Bonus question: What were the unresolvable brake problems? SBC-related?
2. Have you been dealing only with the, um, dealer, or was MBUSA also involved?
3. Bonus question: What were the unresolvable brake problems? SBC-related?
09-27-2006, 11:47 AM
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Harley-Davidson
Originally Posted by DWP
. . . Bonus question: What were the unresolvable brake problems? SBC-related?
Part Two : https://mbworld.org/forums/e-class-w211/150948-brake-failure-happened-again.html
09-27-2006, 02:23 PM
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'71 Pinto
Because of brake problems that could not be resolved, I received an assisted trade on a 2007 E550 in July 2006. The warranty cannot be rolled over, so it had to be cancelled. After almost three months of delay, I just received a check for $2,510. So, they had the use of my $3,200 for over a year, had no claims against the contract because it wasn't effective until 2009, and now pocket $690 for their "trouble."
09-27-2006, 03:07 PM
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So, they had the use of my $3,200 for over a year, had no claims against the contract because it wasn't effective until 2009, and now pocket $690 for their "trouble." I asked them to explain the amount of the refund because it doesn't seem consistent with the contract, but have not yet had a reply. Buyer Beware!!!!
You paid for the period you were covered.
09-27-2006, 03:31 PM
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2015 ML 350
Actually, he was covered at the time by his New Car Factory Warranty only,which would have covered any repairs/replacements without touching the extended warranty. His "Extended Warranty" doesn't begin to cover anything until after the New Car Warranty is no longer valid. So, he should have been given a full extended warranty refund less a reasonable "handling Fee". ...but I bet he's just glad to be out.
Last edited by Barry45RPM; 09-27-2006 at 03:33 PM.
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09-27-2006, 04:32 PM
#8
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It is probably like any other insurance product. Upon sale, the originator pays a commission to the salesperson, and this is their way to recapture that expense plus overhead.
09-27-2006, 04:41 PM
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2003 E320
i had the same battle when i got my E320 and then got it replaced because of the nav fiaco back in 2003/2004.
my first E320 had an extended warranty for $1800. when i got the replacement nav car, they couldn't transfer it. they couldn't even tell me how much i would get back.
a month or so later i got a check for $1200.
nobody could actually explain this to my satisfaction.
Rock.
my first E320 had an extended warranty for $1800. when i got the replacement nav car, they couldn't transfer it. they couldn't even tell me how much i would get back.
a month or so later i got a check for $1200.
nobody could actually explain this to my satisfaction.
Rock.
09-28-2006, 08:08 AM
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Update: Good News--Maybe
The dealer called yesterday and said that they had "made a mistake." They were not yet sure of the additional amount that I was owed, but I would be getting an additional refund in the several hundred dollar range. As I have always said: "Every little bit helps!" Still, why is it so hard to do a simple financial transaction correctly the first time. Is it incompetence or a blatant attempt to fleece the customer?
09-28-2006, 11:06 PM
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C240
a blatant attempt to fleece the customer
u said it! for the ppl who don't realize or don't have to time to fight it out. If the gimmick works hey they're richer $690 without lifting a finger.
u said it! for the ppl who don't realize or don't have to time to fight it out. If the gimmick works hey they're richer $690 without lifting a finger.
09-29-2006, 10:21 AM
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+1 Most people wouldn't scream, and they get to keep some free profit. Life was much better when the owners were people and not faceless corporations.
