Best Discount for MB Extended Warranty
#151
I just bought my wife and I (although I know I probably won't be driving it much once she gets the keys in her hand) our first Mercedes Benz, a 2000 E320 4Matic with only 25,500 miles on it. I know the original 2 owners (it was her husband's and then it was hers), it was bought and used at Ray Catena MB in NJ for the first 4 years and then driven down to Sunny Isles Beach and garage kept from there on (she lives in NY and only came down for a few months per year and then only drove it short distances hence the low miles).
I did a carfax on it and but I just started seeing in this forum about VMIs is it the same thing or will the VMI tell me whether a recall was fixed on it or not because I can't find it on the carfax?
Also the carfax report mentions in the Warranty Check notes that the 2000 - 2004 model year vehicles include free maintenance and that roadside assistance is for the life of the vehicle. Is this true?
How can I get a VMI report? And should I consider an Extended Warranty Plan? Will an EWP cover my car since it is 15 years old but only has 25,500 miles on it? I got a quote from Warranty Direct and from Carchex but I am not sure how those plans work or if they are any good.
Thanks
I did a carfax on it and but I just started seeing in this forum about VMIs is it the same thing or will the VMI tell me whether a recall was fixed on it or not because I can't find it on the carfax?
Also the carfax report mentions in the Warranty Check notes that the 2000 - 2004 model year vehicles include free maintenance and that roadside assistance is for the life of the vehicle. Is this true?
How can I get a VMI report? And should I consider an Extended Warranty Plan? Will an EWP cover my car since it is 15 years old but only has 25,500 miles on it? I got a quote from Warranty Direct and from Carchex but I am not sure how those plans work or if they are any good.
Thanks
#152
I just bought my wife and I (although I know I probably won't be driving it much once she gets the keys in her hand) our first Mercedes Benz, a 2000 E320 4Matic with only 25,500 miles on it. I know the original 2 owners (it was her husband's and then it was hers), it was bought and used at Ray Catena MB in NJ for the first 4 years and then driven down to Sunny Isles Beach and garage kept from there on (she lives in NY and only came down for a few months per year and then only drove it short distances hence the low miles).
I did a carfax on it and but I just started seeing in this forum about VMIs is it the same thing or will the VMI tell me whether a recall was fixed on it or not because I can't find it on the carfax?
Also the carfax report mentions in the Warranty Check notes that the 2000 - 2004 model year vehicles include free maintenance and that roadside assistance is for the life of the vehicle. Is this true?
How can I get a VMI report? And should I consider an Extended Warranty Plan? Will an EWP cover my car since it is 15 years old but only has 25,500 miles on it? I got a quote from Warranty Direct and from Carchex but I am not sure how those plans work or if they are any good.
Thanks
I did a carfax on it and but I just started seeing in this forum about VMIs is it the same thing or will the VMI tell me whether a recall was fixed on it or not because I can't find it on the carfax?
Also the carfax report mentions in the Warranty Check notes that the 2000 - 2004 model year vehicles include free maintenance and that roadside assistance is for the life of the vehicle. Is this true?
How can I get a VMI report? And should I consider an Extended Warranty Plan? Will an EWP cover my car since it is 15 years old but only has 25,500 miles on it? I got a quote from Warranty Direct and from Carchex but I am not sure how those plans work or if they are any good.
Thanks
Try contacting Jeff Santos at MB of elm brook or Erin at MB of Santa Rosa- both were great to talk to and will give you good info on warranty options.
Good luck and enjoy your car!!
#153
Member
I just bought my wife and I (although I know I probably won't be driving it much once she gets the keys in her hand) our first Mercedes Benz, a 2000 E320 4Matic with only 25,500 miles on it. I know the original 2 owners (it was her husband's and then it was hers), it was bought and used at Ray Catena MB in NJ for the first 4 years and then driven down to Sunny Isles Beach and garage kept from there on (she lives in NY and only came down for a few months per year and then only drove it short distances hence the low miles).
I did a carfax on it and but I just started seeing in this forum about VMIs is it the same thing or will the VMI tell me whether a recall was fixed on it or not because I can't find it on the carfax?
Also the carfax report mentions in the Warranty Check notes that the 2000 - 2004 model year vehicles include free maintenance and that roadside assistance is for the life of the vehicle. Is this true?
How can I get a VMI report? And should I consider an Extended Warranty Plan? Will an EWP cover my car since it is 15 years old but only has 25,500 miles on it? I got a quote from Warranty Direct and from Carchex but I am not sure how those plans work or if they are any good.
Thanks
I did a carfax on it and but I just started seeing in this forum about VMIs is it the same thing or will the VMI tell me whether a recall was fixed on it or not because I can't find it on the carfax?
Also the carfax report mentions in the Warranty Check notes that the 2000 - 2004 model year vehicles include free maintenance and that roadside assistance is for the life of the vehicle. Is this true?
How can I get a VMI report? And should I consider an Extended Warranty Plan? Will an EWP cover my car since it is 15 years old but only has 25,500 miles on it? I got a quote from Warranty Direct and from Carchex but I am not sure how those plans work or if they are any good.
Thanks
Not sure if they certify cars that old or not, but if they did it is hard to say if it would be of value since the time horizon is so short. But I'm sure you could call a dealer and see what the costs would be (not sure if they would be able to "CPO" it for you... probably at a huge fee).
Third party warranties. Take a look at what you can get from your credit union or bank. USAA has extended warranty options that seem good (haven't used them as I'm under MB extended right now). Not sure what their limits are on age and/or mileage though.
#154
I got a great discount from Jamie @ Elmbrook MB, and the whole process is fast and straightforward. He can be easily reachable over telephone.
The following is his contact info:
Jamie Ruis
Mercedes Benz of Elmbrook
jruis@mbofelmbrook.com
262-821-5000 ext. 331
The following is his contact info:
Jamie Ruis
Mercedes Benz of Elmbrook
jruis@mbofelmbrook.com
262-821-5000 ext. 331
#156
Member
Can only CPO cars up to 7 model years old and 75k miles if Im not mistaken.
Most warranty companies will not warrant a car over 9 or 10 model years.
-Jason
Most warranty companies will not warrant a car over 9 or 10 model years.
-Jason
If you wanted to go the MB route extended warranty wise that would only work, from my understanding, if the car is a CPO. At that point it would get a 1 year unlimited mile warranty with the option to extend it by 2 years for a total of 3 years CPO.
Not sure if they certify cars that old or not, but if they did it is hard to say if it would be of value since the time horizon is so short. But I'm sure you could call a dealer and see what the costs would be (not sure if they would be able to "CPO" it for you... probably at a huge fee).
Third party warranties. Take a look at what you can get from your credit union or bank. USAA has extended warranty options that seem good (haven't used them as I'm under MB extended right now). Not sure what their limits are on age and/or mileage though.
Not sure if they certify cars that old or not, but if they did it is hard to say if it would be of value since the time horizon is so short. But I'm sure you could call a dealer and see what the costs would be (not sure if they would be able to "CPO" it for you... probably at a huge fee).
Third party warranties. Take a look at what you can get from your credit union or bank. USAA has extended warranty options that seem good (haven't used them as I'm under MB extended right now). Not sure what their limits are on age and/or mileage though.
#157
MB ELW Qualification
Do you have to have purchased the car from a Mercedes dealer to qualify for the MB ELW.
I purchased a 2013 E350 with 17000 miles from a non Mercedes dealer. The car is still under the manufacturer warranty which will expire in Dec 2016, and I am wondering if this vehicle will qualify for the MB ELW.
Thanks
I purchased a 2013 E350 with 17000 miles from a non Mercedes dealer. The car is still under the manufacturer warranty which will expire in Dec 2016, and I am wondering if this vehicle will qualify for the MB ELW.
Thanks
#158
MBWorld Fanatic!
Do you have to have purchased the car from a Mercedes dealer to qualify for the MB ELW.
I purchased a 2013 E350 with 17000 miles from a non Mercedes dealer. The car is still under the manufacturer warranty which will expire in Dec 2016, and I am wondering if this vehicle will qualify for the MB ELW.
Thanks
I purchased a 2013 E350 with 17000 miles from a non Mercedes dealer. The car is still under the manufacturer warranty which will expire in Dec 2016, and I am wondering if this vehicle will qualify for the MB ELW.
Thanks
https://mbworld.org/forums/extended-...cs-thread.html
#160
Recommendation to use Jason Mayes for purchasing ELW
I had Jason Mayes (jmayes@iamilwaukee.com) give me a quote on an ELW for my newly purchased E350.
He responded lightning quick and provided an estimate of $2096 for 7/75 and $3149 for 7/100.
I opted for the 7/75 coverage and we completed the deal via e-mail in one day.
Jason was super easy to work with and was really quick to respond !
If you are interested in a quote, or buying a Mercedes ELW warranty, I highly recommend working with him. I saved almost $1500 from what the dealer wanted for the same policy.
Just remember to buy the policy within 30 days of purchasing the car or there will be another 15% added to the price of the policy.
He responded lightning quick and provided an estimate of $2096 for 7/75 and $3149 for 7/100.
I opted for the 7/75 coverage and we completed the deal via e-mail in one day.
Jason was super easy to work with and was really quick to respond !
If you are interested in a quote, or buying a Mercedes ELW warranty, I highly recommend working with him. I saved almost $1500 from what the dealer wanted for the same policy.
Just remember to buy the policy within 30 days of purchasing the car or there will be another 15% added to the price of the policy.
#161
Super Member
Great thread.
Jamie Ruis saved me $$$ on two more years of Merc warranty. It was a 100% professional, no drama transaction. Thanks, Jamie!
Jamie Ruis
Mercedes Benz of Elmbrook
jruis@mbofelmbrook.com
262-821-5000 ext. 331
Jamie Ruis saved me $$$ on two more years of Merc warranty. It was a 100% professional, no drama transaction. Thanks, Jamie!
Jamie Ruis
Mercedes Benz of Elmbrook
jruis@mbofelmbrook.com
262-821-5000 ext. 331
#162
Member
Extended Warranty
I just purchased an extended warranty for a new CLS550 from Erin Mahre at MB Santa Rosa. Every complimentary comment posted within these forums I found to be 100% accurate. $700 discount from retail, quick, professional, very pleasant and friendly as well.
#163
Member
My local dealer never discounts anything and all of the used cars are overpriced so when I needed an extended warranty I knew they'd be high. Yet I called them anyway and they quoted me a price that was insane. Then I called a few other dealerships and all were lower than my dealer but still higher than I really wanted to pay. So I started looking at 3rd party warranties until I found this thread. I called Jamie at MB of Elmbrook and he beat my dealers price by $1800 for a 7/100K warranty extension! I highly recommend him as he saved me a lot of cash as my local dealer was charging higher than retail!
Jamie Ruis
Mercedes Benz of Elmbrook
jruis@mbofelmbrook.com
262-821-5000 ext. 331
Jamie Ruis
Mercedes Benz of Elmbrook
jruis@mbofelmbrook.com
262-821-5000 ext. 331
#164
Senior Member
Just purchased 7/100 coverage through Jason. He's been EXTREMELY prompt at responding to my emails about a really good deal on the ELW.
#165
Good Morning All,
I got my new 2015 ML 350 yesterday. Question regarding regular service, the dealer provide service maintenance A $344 for first year or 10k mile, and Service maintenance B $554 for second year or 20K mile, and Third Year for service A plus $139=344+129=$473 and 4th year service B plus $399=554+399=$953, so total for 4 year service maintenance is 344+554+473+953=$2324. (this is for each individual price)
Now the dealer told me dealer provide a 4 year service maintenance prepaid suite service cost at $1899
And Benz provide EXT LTD warranty 84 month/75000 mile MB warranty plan for $2899
I already bought, but have 30 days to decide so I can cancel them or keep them.
My first question is do I need all of them, I don’t drive much, except go to train station park. And weekend drive kids around or vacation.
Second, are these price like car price, all dealer are the same? Can I negotiate? Guess it is too late for that since I lost my bargain. Do I need shopping around? How reliable is 2015 ML350? I plan to keep the car for long time. Please advice. Thanks All.
I got my new 2015 ML 350 yesterday. Question regarding regular service, the dealer provide service maintenance A $344 for first year or 10k mile, and Service maintenance B $554 for second year or 20K mile, and Third Year for service A plus $139=344+129=$473 and 4th year service B plus $399=554+399=$953, so total for 4 year service maintenance is 344+554+473+953=$2324. (this is for each individual price)
Now the dealer told me dealer provide a 4 year service maintenance prepaid suite service cost at $1899
And Benz provide EXT LTD warranty 84 month/75000 mile MB warranty plan for $2899
I already bought, but have 30 days to decide so I can cancel them or keep them.
My first question is do I need all of them, I don’t drive much, except go to train station park. And weekend drive kids around or vacation.
Second, are these price like car price, all dealer are the same? Can I negotiate? Guess it is too late for that since I lost my bargain. Do I need shopping around? How reliable is 2015 ML350? I plan to keep the car for long time. Please advice. Thanks All.
Last edited by frank944; 04-12-2015 at 09:40 AM. Reason: ADD PHOTO
#166
Member
Good Morning All,
I got my new 2015 ML 350 yesterday. Question regarding regular service, the dealer provide service maintenance A $344 for first year or 10k mile, and Service maintenance B $554 for second year or 20K mile, and Third Year for service A plus $139=344+129=$473 and 4th year service B plus $399=554+399=$953, so total for 4 year service maintenance is 344+554+473+953=$2324. (this is for each individual price)
Now the dealer told me dealer provide a 4 year service maintenance prepaid suite service cost at $1899
And Benz provide EXT LTD warranty 84 month/75000 mile MB warranty plan for $2899
I already bought, but have 30 days to decide so I can cancel them or keep them.
My first question is do I need all of them, I don’t drive much, except go to train station park. And weekend drive kids around or vacation.
Second, are these price like car price, all dealer are the same? Can I negotiate? Guess it is too late for that since I lost my bargain. Do I need shopping around? How reliable is 2015 ML350? I plan to keep the car for long time. Please advice. Thanks All.
I got my new 2015 ML 350 yesterday. Question regarding regular service, the dealer provide service maintenance A $344 for first year or 10k mile, and Service maintenance B $554 for second year or 20K mile, and Third Year for service A plus $139=344+129=$473 and 4th year service B plus $399=554+399=$953, so total for 4 year service maintenance is 344+554+473+953=$2324. (this is for each individual price)
Now the dealer told me dealer provide a 4 year service maintenance prepaid suite service cost at $1899
And Benz provide EXT LTD warranty 84 month/75000 mile MB warranty plan for $2899
I already bought, but have 30 days to decide so I can cancel them or keep them.
My first question is do I need all of them, I don’t drive much, except go to train station park. And weekend drive kids around or vacation.
Second, are these price like car price, all dealer are the same? Can I negotiate? Guess it is too late for that since I lost my bargain. Do I need shopping around? How reliable is 2015 ML350? I plan to keep the car for long time. Please advice. Thanks All.
#167
I'm from the UK and it seems we have to buy warranty directly from MB. My 09 was extended for another year of used car warranty for £400. I also checked 3rd party warranty and they wanted £500 so it quite a surprise when I saw the price. My car has had starting problems that the MB that has been trying to resolve since my previous warranty expired but I figure its better to just get another year's warranty to be safe.
Last edited by BDriver; 04-16-2015 at 10:52 AM.
#168
Newbie
Join Date: Aug 2010
Location: Boston area
Posts: 8
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2012 E55 4Matic, honda goldwing,fiat spyder
Extended warranty
I want to say thanks to Jamie Ruis. He got me a great deal on my 2012 e55 4matic. He was very cordial on the phone and through email. He responded swiftly and thoroughly and I would recommend him to anyone looking to get an extended warranty on their vehicle.
-Vincenzo
-Vincenzo
#169
I've never seen a definitive answer. Can a second owner qualify for an extended warranty so long as the car is under the original factory warranty term? Or is it only available to an original owner. The dealer here says it only is available to the original owner. Their quote for a 2013 C63 was 7800 for the 3yr/75000.
#170
MBWorld Fanatic!
I've never seen a definitive answer. Can a second owner qualify for an extended warranty so long as the car is under the original factory warranty term? Or is it only available to an original owner. The dealer here says it only is available to the original owner. Their quote for a 2013 C63 was 7800 for the 3yr/75000.
#171
Senior Member
I would recommend Jamie Ruis from Mercedes-Benz of Elmbrook. I just bought the 2 years extended warranty for my 2013 GL450. Jamie gave me some good numbers. He was very professional and easy to deal with and answered all my questions.
#172
I'll second that! Great price and service
Jamie Ruis
Mercedes-Benz of Elmbrook
262-821-5000 ext. 331
jruis@mbofelmbrook.com
Jamie Ruis
Mercedes-Benz of Elmbrook
262-821-5000 ext. 331
jruis@mbofelmbrook.com
#173
Member
This is a tricky-er question and answer than you guys think...
#1, car has to be under factory warranty, yes.
BUUUUUUUT. If you car was traded in, and bought 2nd/3rd/4th owner at a Mercedes Dealership, and NOT sold Certified, then your car DOES NOT qualify for a MB warranty.
BUUUUUUUT, if your car was traded in and bought at a NON-MB dealership, then it will qualify for a MB warranty, as long as it's under factory 4 year, 50k warranty.
Sounds backwards, but its the way it is :/
#1, car has to be under factory warranty, yes.
BUUUUUUUT. If you car was traded in, and bought 2nd/3rd/4th owner at a Mercedes Dealership, and NOT sold Certified, then your car DOES NOT qualify for a MB warranty.
BUUUUUUUT, if your car was traded in and bought at a NON-MB dealership, then it will qualify for a MB warranty, as long as it's under factory 4 year, 50k warranty.
Sounds backwards, but its the way it is :/
#174
MBWorld Fanatic!
This is a tricky-er question and answer than you guys think...
#1, car has to be under factory warranty, yes.
BUUUUUUUT. If you car was traded in, and bought 2nd/3rd/4th owner at a Mercedes Dealership, and NOT sold Certified, then your car DOES NOT qualify for a MB warranty.
BUUUUUUUT, if your car was traded in and bought at a NON-MB dealership, then it will qualify for a MB warranty, as long as it's under factory 4 year, 50k warranty.
Sounds backwards, but its the way it is :/
#1, car has to be under factory warranty, yes.
BUUUUUUUT. If you car was traded in, and bought 2nd/3rd/4th owner at a Mercedes Dealership, and NOT sold Certified, then your car DOES NOT qualify for a MB warranty.
BUUUUUUUT, if your car was traded in and bought at a NON-MB dealership, then it will qualify for a MB warranty, as long as it's under factory 4 year, 50k warranty.
Sounds backwards, but its the way it is :/
Thank you for the great info. You are definitely an asset to our community!
#175
MBWorld Fanatic!
I'm in process of checking pricing on MB EW and wanted to verify tax on this, specifically for Wisconsin and California.
I see that tax was included in the WI quotes I received, yet when I look in the Wisconsin tax code it does not seem that it should be included?
This is warranty for vehicle purchased in Texas, any input is welcome. Still waiting to see if the quote from California includes tax.
Wisconsin
Specifically items 2 and 3:
3) Receipts from maintenance contracts and warranties. Section 77.52 (2) (a) 13m., Stats., imposes Wisconsin sales tax on the sale of contracts, including service contracts, maintenance agreements, computer software maintenance contracts for prewritten computer software, and warranties, that provide, in whole or in part, for the future performance of or payment for the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., unless the sale, license, lease, or rental in this state of the property, items, or goods to which the contract relates is or was exempt, to the purchaser of the contract, from taxation under subch. III of ch. 77, Stats.
Tax 11.27 Note Examples: 1) Company A sells a machine to Customer C which will be used exclusively and directly in manufacturing. Customer C purchases an extended warranty with the machine. Customer C provides Company A with a properly completed exemption certificate. The sale of the extended warranty is not subject to Wisconsin sales or use tax because the machine to which it relates is exempt from Wisconsin sales or use tax.
Tax 11.27 Note 2) Customer D, a resident of Minnesota, purchases an automobile from a dealership in Wisconsin. Customer D makes no use of the automobile in Wisconsin other than to drive it to his home in Minnesota. Customer D purchases an extended warranty with the automobile. The sale of the extended warranty is not subject to Wisconsin sales or use tax because the sale of the automobile is exempt from Wisconsin sales or use tax.
Tax 11.27 Note 3) Assume the same facts as in Example 2, except that Customer D does not purchase the extended warranty at the time of sale of the automobile. Instead, six weeks after the sale, Customer D purchases the extended warranty from the dealer. The sale of the extended warranty is not subject to Wisconsin sales or use tax because the automobile to which the sale relates was exempt from Wisconsin sales or use tax.
Tax 11.27 Note 4) Customer E, a resident of Wisconsin, purchases an appliance from a store in Wisconsin. Customer E purchases an extended warranty with the appliance. The sale of the extended warranty is subject to Wisconsin sales tax because the sale of the appliance is subject to Wisconsin sales tax.
Tax 11.27 Note 5) Assume the same facts as in Example 4, except that Customer E does not purchase the extended warranty at the time of sale of the appliance. Instead, 2 months after the sale, Customer E purchases the extended warranty from the store. The sale of the extended warranty is subject to Wisconsin sales tax because the appliance to which the sale relates was subject to Wisconsin sales tax.
California:
Specifically "Optional Warranty"
Does sales tax apply when I sell a warranty?
It may. Generally, warranties are divided into two basic types—mandatory warranties and optional warranties. To determine how tax applies, you first need to know the warranty type: mandatory or optional.
Mandatory warranties
A mandatory warranty or maintenance agreement is a contract that comes with a product and is included in the total selling price. Under a mandatory warranty, your customer does not have the option to purchase the product without the warranty. Examples include standard manufacturers' warranties that come with new vehicles, computers, electronic devices, appliances, and auto repair shops' parts-and-labor warranties on repairs.
If your sale of the product is taxable, the mandatory warranty is also taxable. The warranty is usually included in the price of the item sold, but you may show it as a separate charge on your invoice. If you do, that separate charge is taxable (provided the sale of the associated item is taxable).
Example: Your electronics store sells a new computer to a consumer for $1,500. The price includes a one-year parts-and-labor warranty backed by the manufacturer. Your full $1,500 charge is taxable.
Optional warranties
An optional warranty or maintenance agreement is a contract your customer may choose to purchase for an additional charge. If your customer can buy the product without buying the warranty from you, the warranty is optional. Separate charges for optional warranties are generally not taxable (exception: see Optional software maintenance agreements below). Examples of optional warranties include an extended repair warranty for a computer or electronic device, an extended mileage warranty for a car, and a service plan for a refrigerator.
Example: Your car dealership sells a used car for $10,500. You offer the customer the option to buy an extended, 18-month warranty for an additional $500. The customer can buy the car without the warranty. If the customer buys the car and the optional warranty, tax would apply to the $10,500 charge for the car but not to the $500 charge for the warranty.
I see that tax was included in the WI quotes I received, yet when I look in the Wisconsin tax code it does not seem that it should be included?
This is warranty for vehicle purchased in Texas, any input is welcome. Still waiting to see if the quote from California includes tax.
Wisconsin
Specifically items 2 and 3:
3) Receipts from maintenance contracts and warranties. Section 77.52 (2) (a) 13m., Stats., imposes Wisconsin sales tax on the sale of contracts, including service contracts, maintenance agreements, computer software maintenance contracts for prewritten computer software, and warranties, that provide, in whole or in part, for the future performance of or payment for the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., unless the sale, license, lease, or rental in this state of the property, items, or goods to which the contract relates is or was exempt, to the purchaser of the contract, from taxation under subch. III of ch. 77, Stats.
Tax 11.27 Note Examples: 1) Company A sells a machine to Customer C which will be used exclusively and directly in manufacturing. Customer C purchases an extended warranty with the machine. Customer C provides Company A with a properly completed exemption certificate. The sale of the extended warranty is not subject to Wisconsin sales or use tax because the machine to which it relates is exempt from Wisconsin sales or use tax.
Tax 11.27 Note 2) Customer D, a resident of Minnesota, purchases an automobile from a dealership in Wisconsin. Customer D makes no use of the automobile in Wisconsin other than to drive it to his home in Minnesota. Customer D purchases an extended warranty with the automobile. The sale of the extended warranty is not subject to Wisconsin sales or use tax because the sale of the automobile is exempt from Wisconsin sales or use tax.
Tax 11.27 Note 3) Assume the same facts as in Example 2, except that Customer D does not purchase the extended warranty at the time of sale of the automobile. Instead, six weeks after the sale, Customer D purchases the extended warranty from the dealer. The sale of the extended warranty is not subject to Wisconsin sales or use tax because the automobile to which the sale relates was exempt from Wisconsin sales or use tax.
Tax 11.27 Note 4) Customer E, a resident of Wisconsin, purchases an appliance from a store in Wisconsin. Customer E purchases an extended warranty with the appliance. The sale of the extended warranty is subject to Wisconsin sales tax because the sale of the appliance is subject to Wisconsin sales tax.
Tax 11.27 Note 5) Assume the same facts as in Example 4, except that Customer E does not purchase the extended warranty at the time of sale of the appliance. Instead, 2 months after the sale, Customer E purchases the extended warranty from the store. The sale of the extended warranty is subject to Wisconsin sales tax because the appliance to which the sale relates was subject to Wisconsin sales tax.
California:
Specifically "Optional Warranty"
Does sales tax apply when I sell a warranty?
It may. Generally, warranties are divided into two basic types—mandatory warranties and optional warranties. To determine how tax applies, you first need to know the warranty type: mandatory or optional.
Mandatory warranties
A mandatory warranty or maintenance agreement is a contract that comes with a product and is included in the total selling price. Under a mandatory warranty, your customer does not have the option to purchase the product without the warranty. Examples include standard manufacturers' warranties that come with new vehicles, computers, electronic devices, appliances, and auto repair shops' parts-and-labor warranties on repairs.
If your sale of the product is taxable, the mandatory warranty is also taxable. The warranty is usually included in the price of the item sold, but you may show it as a separate charge on your invoice. If you do, that separate charge is taxable (provided the sale of the associated item is taxable).
Example: Your electronics store sells a new computer to a consumer for $1,500. The price includes a one-year parts-and-labor warranty backed by the manufacturer. Your full $1,500 charge is taxable.
Optional warranties
An optional warranty or maintenance agreement is a contract your customer may choose to purchase for an additional charge. If your customer can buy the product without buying the warranty from you, the warranty is optional. Separate charges for optional warranties are generally not taxable (exception: see Optional software maintenance agreements below). Examples of optional warranties include an extended repair warranty for a computer or electronic device, an extended mileage warranty for a car, and a service plan for a refrigerator.
Example: Your car dealership sells a used car for $10,500. You offer the customer the option to buy an extended, 18-month warranty for an additional $500. The customer can buy the car without the warranty. If the customer buys the car and the optional warranty, tax would apply to the $10,500 charge for the car but not to the $500 charge for the warranty.