Just bought a new 2025 E350. The dealer wants $5800 for an 84 month/100,000 mile extended warranty. They also said that the extended warranty must be purchased when the car is purchased or it would cost 25% extra. They want $5000 for 48 months prepaid maintenance. I always understood that the extended warranty could be purchased any time during the
term of the original warranty. The price also seems high for both the warranty and the maintenance package. I would appreciate any input.

 

I would RUN not walk from your dealer. This is complete BS - plus the price they are quoting is outrageous!

Here is what I did: When my 2019 E450 came off of lease we were in shortage of new cars because of Covid. My lease was 36 months, 10K miles per year. At the end of lease I still had 1 year and 20K miles under the original warranty. I decided to buy my car.

In December, in the 47 month of ownership, with one month of factory warranty still left and with 35,000 miles on my car I bought an extended warranty from Jeff Jackson of Mercedes Benz of Louisville: 7 years 75,000 miles: an additional 3 years and 25,000 miles. I presently have 52,000 miles and the warranty is good through December 2025: 4 years original + 3 years. The cost was $2,200 with no deductible.

My advice is to wait until your factory warranty is up: If you like your car and want to keep it, then and only then should you consider an extended warranty: your car may be trouble free and you may decide you do not need an extended warranty. My car had a few repairs under the original warranty and I decided to buy the extended. Good thing that I did: had to have the exhaust system replaced and the transmission recalibrated. Those two items were more more than the cost of the extended warranty.

On the other hand you may not like your car and decide not to keep it beyond the manufacturer warranty. Or it could be in accident or even stolen. In these circumstances there is no need for an extended warranty. This is money you will never get back.

But there is absolutely no reason today to lay out money for an extended warranty that will not come into effect until 4 years from now.

Hope this helps

 

Thanks. I should add that. with the Mercedes warranty, you can get a refund any time before it kicks in and a pro rata refund after it goes into effect as long as you haven't used it .
The reason to get the warranty in advance is that you pay a higher price after the first 30 days of ownership plus the warranty cost can increase further over four years, I'm not necessarily recommending the extended warranty--just presenting all sides .

 

There is a cost associated with paying $10,800 several years in advance. IMO buying prepaid maintenance is not wise.
Eight years of factory maintenance on my '18 E300 has cost me less than your quote of $5,000 for 4 years of maintenance.

 

If you buy the warranty now, let's assume the price is $2,500 vs. $2,200 that I paid in December 2022, and further assume the cost of money at just 5%, the true cost is 20% more, (5% for 4 years = 20%) or $3,000. It does not make economic sense to buy insurance today that will not go into effect until 4 years from now. I do not know if the price goes up after 30 days: if that information is from the dealer who quoted you quoted you $5,800: well you decide if it is factual. If I were you I would check first with Jeff Jackson where many of us bought are extended warranty rather than your BS dealer.

With regard to the prepaid maintenance of $5,000. Like the quote for extended warranty, this figure has been pulled out of thin air and is total BS:

Assuming you drive 10K per year your service and costs from a Mercedes dealer are:

• 10K mile Service A: cost $225
• 20K mile Service B: cost $700
• 30K mile Service A: cost $225
• 40K mile Service B: cost $700

Total $1850.

As Service A is nothing more than an oil change and Service B is service A plus cabin filter and brake fluid change, any independent shop can do it for 30% to 50% less. (my Indy shop does not believe the brake fluid change every two years/20K is necessary, but I acknowledge that MB recommends this service)

There is a major service at 50K miles including changing of spark plugs. But that is not covered under the prepaid maintenance.

Again I suggest you RUN from this dealer. He is ripping you off.

 

Eight years of factory maintenance for $5,000 as you posted is outrageous.

But it is even worse: They want $5000 for 48 months prepaid maintenance. So the $5,000 is not for 8 years but only 4 years! (again as you posted)

 

My guess is that you could get a better price buying online even after 4 years from now. Why go thru all the trouble of trying to get a refund when you can just wait 4 years and buy it then cheaper, not a good selling point from the dealer at all. For your reference, I bought a 3 year Mercedes extended in 2019 after the original 4 year warranty, totaling 7 years, for $3500. In the past, I have not had any claims against my extended warranties but this time around, I just replaced my engine mounts. Without the extended warranty, it would have cost $3200, so I am almost even minus interest. In my opinion, what I really bought for $3500 was a peace of mind of not having a surprise big expense for my car but if you could self insure, that would be the smartest thing to do. We self insure all our Japanese cars but our German cars have extended warranties.

 

Until this car, I have always leased. When I decided to buy I still had 1 year left on the factory warranty. My wife wanted me to get a new car and not have to deal with the expense of a Mercedes out of warranty. I took the middle road and bought the extended warranty. It gave me "peace of mind": Even though I can afford any expense out of warranty, I just didn't want to get hit with a $5,000 plus expense in the event of a failure of the main module or other electrical/electronic issue which my indy shop could not handle.

This December my extended warranty ends and in all likelihood I will get a new one rather than chance a major expense. Like you I self insure my 2018 Ford Edge Sport: but the only problem I have had with the Ford is the heated steering wheel, replaced under warranty, and then failed out of warranty. Nothing else and if something happens the cost of repairs is a fraction of what my Mercedes will cost.

 

There is nothing outrageous about 8 years of maintenance for $5k. That's $625 per year on average. Some years the cost was much greater and others less. All service is performed by my Mercedes dealer. In the past I've had too many problems with shade tree Mercedes mechanics.
Here's the list of maintence performed on my E300 over the past 8 years:
Annually - software update, oil & filter change, brake inspection, rotate & balance tires
Bi-annually - change charcoal & dust filters, change brake fluid, comprehensive suspension check, change differential fluid
At 4th year - change automatic transmission oil & filter
1 time - replaced 12 volt battery, replaces 4 tires

 

He was quoted $5000 for 4 years: that is outrageous

As to maintenance done: here we agree to disagree: (do not want this thread to delve into what maintenance should or should not be done: years or mileage. Each to make their own decision)

I changed my oil and filter by mileage, every 10K miles not time (I realize you do it every year). I have an oil extractor so no need to go to the dealer.
Transmission fluid change: when I had my car in because of jerking shifting at 48K miles, the dealer did a recalibration and changed the transmission fluid. Under warranty no charge.
Cabin filters: I do every 20K miles not every two years. I do not live in a particularly dusty area and upon inspection of the filters after 20K miles they were in pretty good shape. I do this myself which takes less than 10 minutes.
I have bought 4 new tires which were balanced when installed. So far wear has been even on all four tires, the car tracks straight, so no need for alignment or re-balancing.
Rear brakes and rotors replaced at 32K miles. Shop felt this was because of the electronic rear brakes. Still on original front brakes and rotors at 52K miles. (Brakes are not included in prepaid maintenance)
Battery: still original, 6 1/2 years but notice when I go to Stand By mode, I only get 23 weeks where in the Fall I was getting 34 weeks. So might have to be replaced this summer. I have had excellent results at Walmart and will use them for a replacement: $179 including installation with 48 month warranty: if anything goes wrong within 48 months Walmart replaces the battery no questions asked.

But I think we both can agree a prepaid maintenance plan for 4 years at $5,000 is outrageous

 

Contact Jeff Jackson.

 

See post #2 above

 

Thanks. I contacted Jeff Jackson and they have the best price I've seen on a 7 year, 75000 mile extended warranty, which is what I'm looking for. For those who have dealt with them...I assume the warranty is from Mercedes Benz with the same coverage and terms offered by other dealers including a full refund by request during the first four years, a pro rata refund after that if no claims have been made, transferable to other buyers of the car, and the warranty work will performed by any MB dealer...and that Jackson is legitimate/honest. Just being cautious. Thanks again!

 

Yes the extended warranty from Jeff Jackson is from Mercedes Benz with no deductible.

I cannot answer any of your other questions as I posted I see no point in buying an extended warranty whey you purchase a car rather than waiting until towards the end of the manufacturer's warranty. I'd rather have my money now and let it earn money than buy something that will have no value until 4 years from now and further why would I want to even bother wanting a full refund or pro rata and other headaches trying to get money back, when the correct decision is to wait.

 

Hello! I’m looking to purchase a 2015 e350 with about 72K miles. I will get a PPI done by Mercedes and came across this thread when looking for warranties. I called the dealer but they said Jeff no longer works there. Is the dealer still best to use or is there any other way to contact Jack?

 

Your vehicle is too old with too many miles to qualify for most extended warranty coverage. A '16 or newer would help, but unless you're in factory warranty, you do not qualify for Mercedes-Benz ELW, but I'd be able to assist you with warranty coverage accepted at all Mercedes-Benz dealers and licensed independent repair facilities in the US. My contract is below for more information.

Trenton O. Gibson
tgibson@highline-autos.com
Highline Autos
Direct: 602.909.9216
Office: 480.348.0777

 

I had to give a like because this was my thought process. The AMG have gone up each year but a decent amount so this sorta locks in the price. I agree the prices listed above are very high.