MBPhD

I just spoke with my service advisor regarding Warranty Direct's extended warranty and they're not paying for sale tax (for parts) in Nevada. I have to pay the sale tax myself. Is this right? Yes, I read the contract again and I couldn't find anything related to sale tax in the contract. Any advice/opinion on this?

MBPhD

Musikmann

Sorry, I have no idea. For all I know, my StarMark warranty might not cover sales tax on parts either. Like you, I have read over my warranty booklet, and don't see any mention of any sales tax. In West Virginia, if we are paying for repairs ourselves, we pay 6% tax on parts and labor at the dealership.

Brunelleschi

it seems to me that unless it states in your contract that you are responsible for sales tax, they should be required to pay all costs incurred when a repair is needed (after the deductible is met of course). In my honest opinion, a letter to warranty direct from a lawyer stating that the responsibility of paying sales tax lies with them is in order.

lkchris

If the insurer were "required to pay sales tax" the warranty would cost different amounts in different states. Even different cities.

And, if you moved to a different state/city, the insurer would then need to change the cost of your warranty.

And, the cost of the whole thing would be higher to cover these paperwork costs.

You as a voter are responsible for your local tax rates. There are NEVER sales in your state where the purchaser does not pay the taxes.

NY C32

Except those states that don't collect sales tax

mkaresh

Good point. At first I couldn't believe they didn't pay the tax--I refer people to them on my site--but this makes sense.

I once had an extended warranty with a different company (deceased). I cannot remember if they paid sales tax.

Anyone have a different warranty and know whether they pay the tax?

whoover

I've had many repairs done on Starmark extended warranties and have never been asked to pay sales tax. Same with the Mercedes extended warranty (the one you can buy when buying a new car from the dealer).

I had a non-Mercedes extended warranty a long time ago (bought from the dealer on a '95 S500 about to go off warranty). As the car got older they invoked various dodges and rope-a-dopes. The best was paying for a repair but not the time needed to diagnose the problem (sometimes a couple of hours of labor). But they never charged me sales tax.

Grnhilndr-2

I have a 2005 E500 4Matic with only 10,000 miles. I am being pursued by Warranty Direct for me to buy one of their warranties. I was wondering if a warranty is really needed considering the miles on my car and that I have 2 more years on the MB warranty. The cost of the 6 or 7 year extended warranty is rather high, approx. $3000, which I feel would be enough to cover any problem I might have with my car in the near future.
I should like to get your views. Thanks

Grnhilndr-2