To warranty or not to warranty, that is the question
10-21-2011, 10:37 PM
#1
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2007 S600
To warranty or not to warranty, that is the question
I bought an 03 S600 w 67k just delivered yesterday. Need to figure out this weekend if I want warranty - which I have to assume I do - and for what amount of time. 2 years $7k, 3 years $9k, 4 years $12.5k. I will only drive 5k miles per year. Car is in nice shape, and has ECU/TCU tuned by Veloce Performance before delivery.
Without a warranty, I'd only drive the car a year or less and sell. I wouldn't do anything to enhance the car.
With a longer warranty, I'd add remote start (anyone have the mid-city engineering one?), some rims, and maybe swap headlights and do something with the grill - my CL600 had the grey color painted black and that looked cool.
Cost of ownership is my main concern - if I add $12.5k to current cost, plus mods, I'm all in around $37k. 3 years from now with a remaining one year warranty - I imagine the best I could hope for is high teens - maybe $20k if I'm really lucky and only put on a few miles so it's still under 80k in total. It would cost me $500-600/mth plus maintenance. Sounds about right.
What do you think?
Without a warranty, I'd only drive the car a year or less and sell. I wouldn't do anything to enhance the car.
With a longer warranty, I'd add remote start (anyone have the mid-city engineering one?), some rims, and maybe swap headlights and do something with the grill - my CL600 had the grey color painted black and that looked cool.
Cost of ownership is my main concern - if I add $12.5k to current cost, plus mods, I'm all in around $37k. 3 years from now with a remaining one year warranty - I imagine the best I could hope for is high teens - maybe $20k if I'm really lucky and only put on a few miles so it's still under 80k in total. It would cost me $500-600/mth plus maintenance. Sounds about right.
What do you think?
10-22-2011, 11:01 AM
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I know rates are up since January 1st.....my advice, talk to Bruce Mendel. He is very knowledgeable about vehicles and warranties. He also sells them.
Brucem105@comcast.net.
Brucem105@comcast.net.
10-23-2011, 01:32 PM
#6
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In that case just put the money in a guaranteed investment account and pull it out as and when you need it for repairs. Unless you were really unlucky I think you'd be very unlikely to be spending $3.5k p.a. on repairs for a 2003.
Although it's an apples to oranges comparison in some respects 2yrs ago I paid $3200 for a top of the line Chrysler warranty (does cover ABC) on my '04 S600 that had 67k miles on it at the time. That was a 5yr/70,000 miles policy w/$200 deductible. A shame they don't cover the ABC equipped vehicles any longer.
Although it's an apples to oranges comparison in some respects 2yrs ago I paid $3200 for a top of the line Chrysler warranty (does cover ABC) on my '04 S600 that had 67k miles on it at the time. That was a 5yr/70,000 miles policy w/$200 deductible. A shame they don't cover the ABC equipped vehicles any longer.
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10-24-2011, 09:17 AM
#8
They sure did. Chrysler was the best, cheap, good claims paying, good coverage. Unfortunately some CPA there woke up one day, looked at their loss ratios for Mercedes, and whacked the entire Mercedes line. Game over player 1.
To get a Tier I warranty company (pays dealer claims, no games) to write an exclusionary warranty (B2B coverage including ABC, COMAND nav, etc etc), with no liability limit except what the owner paid for the car, on an S600 with 67K is crazily expensive.
MY COST on the 4 year Platinum warranty is over $11K! These guys are not dumb, they know what that car can cost between 67K and 115K miles, and if he paid $25K for the car, and it incurs $25K in claims over the next four years, they have to pay all $25K even if the car is only worth $9K four years from now with 110K miles on it. Just one coil pack, two ABC struts, a ventilated seat fan, and the COMAND dvd drive, nothing major over the next 48K miles, is $8200 at an MB dealer! No engine problem, no trans problem, really nothing unusual for that car.
I have a hard time recommending someone spend $10K+ on a warranty, especially when as a percentage of what they are paying for the car it's so high. Normally I'd tell you to just bank the money and use it as needed.
I also see all the claims on these cars, as I have close to 100 of the 600, 55, and 65 series cars under warranty. One client of mine here on MB World did $9K in claims in the first year of his four year warranty! A CL600 I sold recently with 63K had over $24K in claims filed with Fidelity in its previous 19K miles by the previous owner!
This is not to scare you into buying anything. What are the odds it'll exceed or approach $9K in claims in the next 36K miles? Hard to say. I'd say 60/40 against. But it also depends on the service history of the car in question, and what's been replaced in the last 20K or so miles. With my 63K mile CL600, it had so much recent work done that it is possible it will go the next 36K miles without needing anything significant. But if your car has not had a lot of work done recently, those components are going to need replacing as they reach end of life between now and 100K.
Bruce
To get a Tier I warranty company (pays dealer claims, no games) to write an exclusionary warranty (B2B coverage including ABC, COMAND nav, etc etc), with no liability limit except what the owner paid for the car, on an S600 with 67K is crazily expensive.
MY COST on the 4 year Platinum warranty is over $11K! These guys are not dumb, they know what that car can cost between 67K and 115K miles, and if he paid $25K for the car, and it incurs $25K in claims over the next four years, they have to pay all $25K even if the car is only worth $9K four years from now with 110K miles on it. Just one coil pack, two ABC struts, a ventilated seat fan, and the COMAND dvd drive, nothing major over the next 48K miles, is $8200 at an MB dealer! No engine problem, no trans problem, really nothing unusual for that car.
I have a hard time recommending someone spend $10K+ on a warranty, especially when as a percentage of what they are paying for the car it's so high. Normally I'd tell you to just bank the money and use it as needed.
I also see all the claims on these cars, as I have close to 100 of the 600, 55, and 65 series cars under warranty. One client of mine here on MB World did $9K in claims in the first year of his four year warranty! A CL600 I sold recently with 63K had over $24K in claims filed with Fidelity in its previous 19K miles by the previous owner!
This is not to scare you into buying anything. What are the odds it'll exceed or approach $9K in claims in the next 36K miles? Hard to say. I'd say 60/40 against. But it also depends on the service history of the car in question, and what's been replaced in the last 20K or so miles. With my 63K mile CL600, it had so much recent work done that it is possible it will go the next 36K miles without needing anything significant. But if your car has not had a lot of work done recently, those components are going to need replacing as they reach end of life between now and 100K.
Bruce
