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CPO vs. used with extended warranty

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Old Dec 17, 2022 | 10:58 AM
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CPO vs. used with extended warranty

This may have been obvious to others but I wondered how a CPO Mercedes could have a 7 year warranty/100,000 miles while a new Mercedes has only a 4 year/50,000 mile warranty.



The answer is simple: Mercedes Benz extended warranty. The MB EW is available during the existing warranty period. For example, the warranty on my 2019 E450 ends on December 26, 2022. I can get an extended warranty for 3 years:


  • · 75,000 miles $2200
  • · 100,000 miles $3250


That is my cost so the dealer cost will obviously be less.



If the price differential between a used Mercedes still under warranty vs. a CPO is more than $3,000 and the Carfax report is clean, the brakes, tires and other wear items are in good shape and 75,000 miles is sufficient it would be more efficient use of money to buy the used Mercedes, have it detailed and purchase an extended warranty than a more expensive CPO from the dealer.
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Old Dec 17, 2022 | 11:37 AM
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1991 964 Turbo, 2002 Black E55, 2002 Black E55 " The Beast"- 2014 E63s
what's the current mileage on the car?
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Old Dec 17, 2022 | 11:50 AM
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Originally Posted by C2 Turbo
what's the current mileage on the car?
32,000
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Old Dec 19, 2022 | 06:27 PM
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Originally Posted by JTK44
This may have been obvious to others but I wondered how a CPO Mercedes could have a 7 year warranty/100,000 miles while a new Mercedes has only a 4 year/50,000 mile warranty.



The answer is simple: Mercedes Benz extended warranty. The MB EW is available during the existing warranty period. For example, the warranty on my 2019 E450 ends on December 26, 2022. I can get an extended warranty for 3 years:

  • · 75,000 miles $2200
  • · 100,000 miles $3250


That is my cost so the dealer cost will obviously be less.



If the price differential between a used Mercedes still under warranty vs. a CPO is more than $3,000 and the Carfax report is clean, the brakes, tires and other wear items are in good shape and 75,000 miles is sufficient it would be more efficient use of money to buy the used Mercedes, have it detailed and purchase an extended warranty than a more expensive CPO from the dealer.
Mercedes extended warranty is only available to the original owner.
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Old Dec 20, 2022 | 01:16 AM
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2008 E350 4Matic, 2011 E350 4matic
Originally Posted by JTK44
This may have been obvious to others but I wondered how a CPO Mercedes could have a 7 year warranty/100,000 miles while a new Mercedes has only a 4 year/50,000 mile warranty.



The answer is simple: Mercedes Benz extended warranty. The MB EW is available during the existing warranty period. For example, the warranty on my 2019 E450 ends on December 26, 2022. I can get an extended warranty for 3 years:

  • · 75,000 miles $2200
  • · 100,000 miles $3250


That is my cost so the dealer cost will obviously be less.



If the price differential between a used Mercedes still under warranty vs. a CPO is more than $3,000 and the Carfax report is clean, the brakes, tires and other wear items are in good shape and 75,000 miles is sufficient it would be more efficient use of money to buy the used Mercedes, have it detailed and purchase an extended warranty than a more expensive CPO from the dealer.
I think you can check with the vendors listed in the extended warranty subforum to see what their prices are, sometimes they beat the local dealer by a lot And in your case and in the current marketing condition, you're probably better off just getting the extended warranty. There's no guarantee that you'll get a lower sale price when turning it into the dealer with the high demand for used cars. I think getting it as a CPO used to work when you could turn it in and pay 5k less than the residual value but with that low mileage, that's probably not going to happen. CPO also costs the dealer some money to put it into CPO condition but you do get unlimited miles with CPO but you don't seem to drive it enough to make that worthwhile, you'd probably still be under 75k at the rate you're going in another 3 years. One advantage of having either warranty is that you can transfer it if you sell it private party so if you sell it with one or two months left on the warranty, that would probably net you more than waiting til it's completely expired.
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Old Dec 26, 2022 | 01:41 PM
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Originally Posted by mercedesmax
Mercedes extended warranty is only available to the original owner.

FWIW: I just checked with my Mercedes dealer where I bought the extended warranty and he said that if you are buying from the original owner, the car is still under the factory warranty, that it should not be a problem purchasing an extended warranty.

This makes sense to me.
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Old Dec 26, 2022 | 02:43 PM
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Originally Posted by cetialpha5
I think you can check with the vendors listed in the extended warranty subforum to see what their prices are, sometimes they beat the local dealer by a lot..
This is exactly what I did. The savings vs. my local dealer was substantial.



Originally Posted by cetialpha5
And in your case and in the current marketing condition, you're probably better off just getting the extended warranty. There's no guarantee that you'll get a lower sale price when turning it into the dealer with the high demand for used cars.
I think that shipped has already sailed. My 2019 E450 has gone down in value in the last 90 days about $3,000. I did not buy the extended warranty to enhance resale value, but to protect me during the next three years. My present plan is to keep my car until expiration of the warranty in three years. As I have only 32,000 miles, that leaves me 43,000 miles (75,000 less 32,000) over the next three years. I doubt I will put on 30,000 miles over the next three years, never mind 43,000.



Originally Posted by cetialpha5
. CPO also costs the dealer some money to put it into CPO condition but you do get unlimited miles
If you read the posts on CPO's cars, it seems that all the dealer does is a detail job. If the car has relatively low mileage, the wear and tear parts, brakes, rotors and tires are still good. All other parts except for battery and wiper blades are under warranty, so the dealer does not do anything. If a problem arrives it is covered. I believe it is not unlimited mileage but 100K but I could be wrong.

.
Originally Posted by cetialpha5
One advantage of having either warranty is that you can transfer it if you sell it private party so if you sell it with one or two months left on the warranty, that would probably net you more than waiting til it's completely expired.
At the end of the extended warranty my car will be 7 years old. With a 7 year old car the most important thing in determining value is mileage and body condition. I do not think that 2 or even 6 months of extended warranty will affect the resale value.
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