Am I the only MB owner without a warranty
#1
Am I the only MB owner without a warranty
Am I doing my math correctly?
When I sat down with my finance guy at MB after closing on a CPO 2013 ML350BT with 40kmiles, he quoted me about 3,500usd for 2yr extended warranty.
I'll put on about 10k/year.
My thinking was this: The original warranty is 4yr/50,000 miles, so i'll have until Oct 2016 on the original warranty, and the dealership will give me 1 year unlimited miles(end of Oct 2017). Had i purchased the 2yr Extended which starts the second the original warranty runs out...50k miles. So net, net...I'm paying basically 3,500 for really just 1 year of extended coverage.
So, the risk is would I be getting a 3,500 repair bill from either a dealership, or independent mechanic between Oct 2017 to Oct 2018 on issues that havent been discovered or addressed prior to Oct 2017.
Warranty companies are in the business to make money. They have all the repair history on this model and their actuary tables assign the odds of break-downs and costs for come up with a premium that will still put them in the black.
I'm not in the insurance business so maybe someone who is can correct me. Is the price of the extended warranty indicative of the reliability and parts cost for any particular model?
In other words, would the extended warranty for a 2013 basic C-class with 40k miles be less than a 2013 fully loaded S-class with the same mileage (assuming for argument sakes, S classes have a lower reliability record).
Unless there is a fire sale on warranties, does MB make or loss money selling extended warranties?
When I sat down with my finance guy at MB after closing on a CPO 2013 ML350BT with 40kmiles, he quoted me about 3,500usd for 2yr extended warranty.
I'll put on about 10k/year.
My thinking was this: The original warranty is 4yr/50,000 miles, so i'll have until Oct 2016 on the original warranty, and the dealership will give me 1 year unlimited miles(end of Oct 2017). Had i purchased the 2yr Extended which starts the second the original warranty runs out...50k miles. So net, net...I'm paying basically 3,500 for really just 1 year of extended coverage.
So, the risk is would I be getting a 3,500 repair bill from either a dealership, or independent mechanic between Oct 2017 to Oct 2018 on issues that havent been discovered or addressed prior to Oct 2017.
Warranty companies are in the business to make money. They have all the repair history on this model and their actuary tables assign the odds of break-downs and costs for come up with a premium that will still put them in the black.
I'm not in the insurance business so maybe someone who is can correct me. Is the price of the extended warranty indicative of the reliability and parts cost for any particular model?
In other words, would the extended warranty for a 2013 basic C-class with 40k miles be less than a 2013 fully loaded S-class with the same mileage (assuming for argument sakes, S classes have a lower reliability record).
Unless there is a fire sale on warranties, does MB make or loss money selling extended warranties?
#2
Calculating extended warranty
Am I doing my math correctly?
When I sat down with my finance guy at MB after closing on a CPO 2013 ML350BT with 40kmiles, he quoted me about 3,500usd for 2yr extended warranty.
I'll put on about 10k/year.
My thinking was this: The original warranty is 4yr/50,000 miles, so i'll have until Oct 2016 on the original warranty, and the dealership will give me 1 year unlimited miles(end of Oct 2017). Had i purchased the 2yr Extended which starts the second the original warranty runs out...50k miles. So net, net...I'm paying basically 3,500 for really just 1 year of extended coverage.
So, the risk is would I be getting a 3,500 repair bill from either a dealership, or independent mechanic between Oct 2017 to Oct 2018 on issues that havent been discovered or addressed prior to Oct 2017.
Warranty companies are in the business to make money. They have all the repair history on this model and their actuary tables assign the odds of break-downs and costs for come up with a premium that will still put them in the black.
I'm not in the insurance business so maybe someone who is can correct me. Is the price of the extended warranty indicative of the reliability and parts cost for any particular model?
In other words, would the extended warranty for a 2013 basic C-class with 40k miles be less than a 2013 fully loaded S-class with the same mileage (assuming for argument sakes, S classes have a lower reliability record).
Unless there is a fire sale on warranties, does MB make or loss money selling extended warranties?
When I sat down with my finance guy at MB after closing on a CPO 2013 ML350BT with 40kmiles, he quoted me about 3,500usd for 2yr extended warranty.
I'll put on about 10k/year.
My thinking was this: The original warranty is 4yr/50,000 miles, so i'll have until Oct 2016 on the original warranty, and the dealership will give me 1 year unlimited miles(end of Oct 2017). Had i purchased the 2yr Extended which starts the second the original warranty runs out...50k miles. So net, net...I'm paying basically 3,500 for really just 1 year of extended coverage.
So, the risk is would I be getting a 3,500 repair bill from either a dealership, or independent mechanic between Oct 2017 to Oct 2018 on issues that havent been discovered or addressed prior to Oct 2017.
Warranty companies are in the business to make money. They have all the repair history on this model and their actuary tables assign the odds of break-downs and costs for come up with a premium that will still put them in the black.
I'm not in the insurance business so maybe someone who is can correct me. Is the price of the extended warranty indicative of the reliability and parts cost for any particular model?
In other words, would the extended warranty for a 2013 basic C-class with 40k miles be less than a 2013 fully loaded S-class with the same mileage (assuming for argument sakes, S classes have a lower reliability record).
Unless there is a fire sale on warranties, does MB make or loss money selling extended warranties?
#3
Well, there is the catch, unless I mis-understood, its NOT 2 yrs on top of the CPO dealers extended 1 yr, it picks up where the original ends. So, in my case, it ends in Oct 2018.
On pickup day, I was rushed for time, so I may have missed something regarding the extended 2 yrs. Does the typical extended warranty start where original ends, or after CPO's warranty? If after CPO's, then I may agree, its worth the piece of mind especially when the mileage will be around 60k then, and issues usually start around there.
On pickup day, I was rushed for time, so I may have missed something regarding the extended 2 yrs. Does the typical extended warranty start where original ends, or after CPO's warranty? If after CPO's, then I may agree, its worth the piece of mind especially when the mileage will be around 60k then, and issues usually start around there.
#4
Well, there is the catch, unless I mis-understood, its NOT 2 yrs on top of the CPO dealers extended 1 yr, it picks up where the original ends. So, in my case, it ends in Oct 2018.
On pickup day, I was rushed for time, so I may have missed something regarding the extended 2 yrs. Does the typical extended warranty start where original ends, or after CPO's warranty? If after CPO's, then I may agree, its worth the piece of mind especially when the mileage will be around 60k then, and issues usually start around there.
On pickup day, I was rushed for time, so I may have missed something regarding the extended 2 yrs. Does the typical extended warranty start where original ends, or after CPO's warranty? If after CPO's, then I may agree, its worth the piece of mind especially when the mileage will be around 60k then, and issues usually start around there.
My 14 S class with extended warranty is covered for unlimited miles to May 2021.
#6
My ML CPO was the same as above - CPO through July 2016, then extended warranty through July 2018.
Definitely worth the peace of mind - MB has covered almost $9k in repairs at this point without batting an eye and I'm at the 85k mi mark.
But read the fine print - MB may have made changes.
Definitely worth the peace of mind - MB has covered almost $9k in repairs at this point without batting an eye and I'm at the 85k mi mark.
But read the fine print - MB may have made changes.
#7
Out Of Control!!
Joined: Jun 2004
Posts: 12,126
Likes: 2,205
2014 E63S; AMS 100 octane ecu tune; edok tcu tune; BB intakes; dyno tuned
I would make the argument that there are more Benz vehicles on the planet not under warranty and still in service than those in service and under any type of oem or third party warranty
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#8
OldMerc,
9k in repairs? Do you mind sharing your service record?
How much was before Extended, and how much was after?
Were there any issues that were put off until a later time since your extended would have covered it?
9k in repairs? Do you mind sharing your service record?
How much was before Extended, and how much was after?
Were there any issues that were put off until a later time since your extended would have covered it?
#9
Sure. If I remember the CPO and EW were $3.9k.
Keep in mind I have an ML550.
Main cost was replacement of the ECU, all fuel injectors, fuel sensor, and the wiring loom due to fuel leaking from an injector through the wiring into the ECU. Apparently this is unique to the M278 and appears to be an issue with early builds.
Second biggest cost was a check valve issue that allowed too much slack in the timing chain on warm startups - caused a diesel-like clacking noise as the timing chain would slap when starting. Installed a check valve, replaced the timing chain, and a few other minor pieces. Not sure if this is unique to the M278.
Other repairs included a leaking air strut and a failed tailgate locking mechanism (tailgate would not open).
Aside from the air strut and tailgate, main costs were manufacturing and design related...not a failure of a component.
Nothing put off by MB - the injector issue only surfaced because a CEL came on for the fuel sensor failure 200mi after I drove off from the dealership. After 1 sensor replacement, CEL came back on and lead to the realization it was a leaking injector.
I plan on keeping the ML for a while - so none of this really bothers me, but I'm glad warranty covered all of it. And I still have two years to go.
Aside from Airmatic, I don't expect any additional major issues.
Keep in mind I have an ML550.
Main cost was replacement of the ECU, all fuel injectors, fuel sensor, and the wiring loom due to fuel leaking from an injector through the wiring into the ECU. Apparently this is unique to the M278 and appears to be an issue with early builds.
Second biggest cost was a check valve issue that allowed too much slack in the timing chain on warm startups - caused a diesel-like clacking noise as the timing chain would slap when starting. Installed a check valve, replaced the timing chain, and a few other minor pieces. Not sure if this is unique to the M278.
Other repairs included a leaking air strut and a failed tailgate locking mechanism (tailgate would not open).
Aside from the air strut and tailgate, main costs were manufacturing and design related...not a failure of a component.
Nothing put off by MB - the injector issue only surfaced because a CEL came on for the fuel sensor failure 200mi after I drove off from the dealership. After 1 sensor replacement, CEL came back on and lead to the realization it was a leaking injector.
I plan on keeping the ML for a while - so none of this really bothers me, but I'm glad warranty covered all of it. And I still have two years to go.
Aside from Airmatic, I don't expect any additional major issues.