Vik888

I've ordered a 2008 E550, due October this year.

From what I've read so far on this forum, and as well as on MB's site, I understand that I have the option of buying an extended warranty of upto 36 months / 100k miles.

The MB site further says I may buy it within the first 12 months or 12,000 miles of service (whichever comes first) without any surcharge. They also list a MSRP for the extended warranty coverage.

From this forum, I've understood that a lot of people buy that extended warranty from other MB dealers because they can get it cheaper. Is this true or do I have to buy it at the time of purchase from the dealer selling me the car?

Also, anyone know the 'invoice' price on the warranty? My dealer has told me it will run what amounts to $500 over the MSRP on MB's site.

cyclerider

You can buy the warranty from any dealer and at any time up until your 4 year 50,000 mile warranty is up. Why not wait until October 2008 to lay out that rather large sum of money? That will give you time to contact many dealers for the best price, and will also give you a year to decide if you really expect to own this car for 7 years. I probably won't buy the extended warranty for my car, because I expect the 2010 W212 will make our cars suddenly seem out of date, and will probably want to trade up.

TPAbnz

OVER suggested retail price?

If you do a search here, I'm sure you'll come across the dealers who discount; one is CA, I believe.

cyclerider

Maybe you shouldn't have told your dealer you have a twin engine airplane.

Vik888

I didn't tell the dealer about the plane.

I'm not buying the warranty now anyway. I just wanted to confirm I have the option of buying it without any surcharge within the first 12 months or 12k mi of ownership, and that paying $500 over the MSRP on the MBUSA site is a rip off.

I keep my cars a long time, and most likely this car will be handed down to a family member in 3-4 years, so I do plan to get a 7yr/100k mi warranty.

rhampar

Vik888,

Per MB web site you can buy 36mo/100k mi extended warranty for $4120. In 05 when I bought my CLK500 I was able to negotiate it down and buy for $3450. Suggest you shop around get the best price from other dealers and then go back to your dealer with a price $75-$100 less and they'll probably meet or beat it. Dealers make a ton of profit when they sell extended warranties.

Just make sure your going to keep the car past the 4 yr warranty. I thought I'd be keeping my CLK but found it too small after 2.5 yrs of ownership and now I'm buying a 08 E550 and will be loosing out on this money when I trade /sell the CLK.

Vik888

Thanks for your reply.

Yes, I will keep it. My next car will not a daily driver, so I'll always need this one.

Most likely after 4 yrs, or whenever the new SLs come out, I'll get one, and keep this or give it to my parents to use, and they'll use it until the warranty runs out. I'd love to say we might drive it as long as we've driven our 1989 MB 420SEL, but I think these cars can't be kept after warranty due to the sheer cost of maintaining them out of warranty.

Do we keep our cars long? Current cars are 13yrs old and and 18yrs old.

Thanks for your advice!

TPAbnz

Check the policy but I believe you are entitled to a refund less some administrative fee. Good luck!

jimm

WHY buy an extended warranty?

Consumers Reports, and all other independent reports I’ve ever
read, says they are NOT a good deal.

Yes ... I know: all comments such as this are always refuted by
isolated examples that recite “how lucky they were to have had
this coverage!” (I’m sure I’ll hear about it here.)

jimm

cyclerider

Since you leased your car for 24 months, I'm not surprised you are not in favor of an extended warranty. What if you purchased your car and planned to keep it for 10 or more years like the original poster intends to do? This thread really only applies to car owners, not car renters.

Vik888

Like Cyclerider said .. when you keep a car like a late model MB for 7yrs, things *WILL* go wrong w/ a lot of the "technology" and paying $3k more for another 3yrs/50k miles is piece of mind.

Now on the other hand those "service plans" Best Buy and Circuit City try to sell you are a waste of money

jimm

Of course you’re right about my not needing it with a 24 month lease.

However .. I was not referring to my personal situation. I was merely
reflecting the professional opinions I've read over many years, where
the verdict is consistent that extended warranties aren’t a good value.

jimm

Vik888

I guess it depends on the car too.

For my Toyota 4Runner, now nearly 13 yrs old, it was a waste of money. There wasn't anything that went wrong w/ the car in the 7yr/100k mi period. Even if anything did, I now know it wouldn't have cost much to fix.

Now w/ the E-Class, things that do go wrong, cost A LOT to fix from reading this forum. It isn't that things just cost a few hundred dollars anymore. My friend's dad's S-Class driver's display died, and it cost $2k to fix out of warranty, just for the part. Suddenly, $1k/yr after 4 yrs with the car doesn't seem too bad.

Vik

jimm

True.

But, the underwriters are very smart .. and know the difference in
the cars.

They calculate what they receive and what they pay out. They win!
(Which one might reasonable conclude that the insured loses.)

jimm

Vik888

No doubt about that. They wouldn't be in business otherwise.

But I'm assuming MB also gets a better labor rate, parts rate than you would getting the repairs done from the dealership or an indep shop yourself.

jimm

That could be a very good point Vik.

Another point may be that some folks (certainly not anyone here) may
find it difficult to “prudently” manage their finances. Wherein, “forced”
savings accounts become wise.

The expensive “extended warranty” may replicate that forced savings
account.

jimm

rhampar

Checked with MBUSA and my local dealer. Unfortunately I was told that in New York State once you buy extended warranty your locked into it for the car it was purchased for. Can't transfer to a new car or get refund less an administrative fee (although some states do allow this). Can only transfer to new owner if car is sold privately.

If someone on this board has information to rebutt the above please let me know. Would also be interested in any loop holes NY owners may have found and exploited to get a warranty transfered or refund as I have more than a year before this extended warranty kicks in.

Doubt dealer is going to give me any extra in trade cause I have extended warranty. Maybe I'll just have to keep the CLK and purchase/lease the E550 when it comes in.

C5DRVR

I will never buy a MB extended warranty again. I did not need it and they are extremely expensive. The underwriters know what they are doing. Read the fine print on the actual warranty not the sales brochure. Most of the expensive electronics like the comand system are omitted from the factory warranty and that is what tends to cause issues.

Vik888

Actually the MBUSA site tells you what *IS* covered, and conveniently omits what isn't covered so if you don't know what else is there, you won't know about it until it breaks.

Worth discussing what isn't covered, maybe in another thread.