Is extended warranty worth it?
#1
Is extended warranty worth it?
My 2016 GLC factory warranty is coming to an end and so fAr I've only put on about 42000km and nothing major has gone wrong. However recently I got a battery warning message and the heated seats haven't been working properly. As I'm still under warranty I will be getting these issues fixed but it's starting to make me wonder if it will be worth it to buy an extended warranty for 3000 give or take....I do plan on keeping the car for several years to come as it's still very good mechanically. Any thoughts on if I should get the extended warranty?
#2
Member
If you want to keep the car longer, extended warranty is something you would like to have, if the car start having issues after the factory 4 years or 80k KM warranty.
Repairs cost could be subtantially higher compared with ELW cost.
Repairs cost could be subtantially higher compared with ELW cost.
Last edited by Webmoto; 01-18-2020 at 03:19 PM.
#3
The way I look at it is you have to look at the probability and that future repairs will exceed the cost of the warranty. Everything less than the warranty price, you lose. So you may get a 7,000 repair, but if the warranty costs 3K, you'd be out 4K. So the question is can you deal with a 4K hit. I'd lean more heavily into choosing to get an extended warranty if you don't drive a huge amount and the warranty term will expire in terms of time vs mileage. My experience is to bank the warranty money and take your chances. But if you have, as I said a long time horizon and low mileage burn or your car has issues that could manifest themselves later in other vehicle systems, then get the warranty.
#4
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Join Date: Nov 2018
Location: Dallas Texas USA
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2023 AMG EQE 53
If you do decide to get one make sure it's a MB piolicy and not some third party policy. Those third party companies come and go. With the complexity and expense of some of the electronics I'd be hesitent to go without a policy.
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SilverSurferMB (01-19-2020)
#6
I bought a CPO GLC 2018 at the very end of 2018 so warranty is good until the end of 2023. Before taking delivery we checked with our insurance company and they offered an extended warranty on all major systems, including electrical and suspension for 7 years from the date of delivery for $38 per year but you have to purchase when you buy the car. I’m paying that now so it will be available after the factory warranty expires.
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#9
Extended warranties are some of the highest profit-margins in the insurance business. However, if you cannot afford the loss or repair...you may want to search for an extended warranty. Also, keep in mind that most extended warranties are VERY restrictive if you read the fine print and come with deductibles. My daughter played soccer with a girl whose dad literally prints money. He owns an automobile extended-warranty program.
#10
I've bought extended warranties from Mercedes on every vehicle I've gotten from there. I've only had to use it once like 5 cars ago to replace some suspension parts that were making noises, for about two thousand dollars. However, the best part is that you can cancel it at any time. In every case I've traded in the cars and cancelled the warranties. At least for me, it's worth the peace of mind. I still have another year left on the factory warranty, I will start looking into buying the next extended in a few months.