mistertonyn

What do you guys think about this warranty package for a pre-owned 2007 S550?
The dealership is willing to sell me the premium listed below...which covers the powertrain and all the other typical areas (suspension,drive axle,trasfer case, electrical, AC/heating, sterring, etc.)

This is coverage through a third party of course (Protective/Select Co.) but is sold and written up by MB dealership.

What do you guys think? Is this a good deal/coverage OR take a chance and NOT buy any warranty?

It would be for a 2007 S550 with less than 40K miles...I would be buying this car from a NON MB dealership.



SELECT PREMIUM $ 0 No 12 Months / 12,000 Miles $3,962.00
SELECT PREMIUM $ 50 No 12 Months / 12,000 Miles $3,887.00
SELECT PREMIUM $100 No 12 Months / 12,000 Miles $3,862.00
SELECT PREMIUM $ 0 No 24 Months / 24,000 Miles $4,114.00
SELECT PREMIUM $ 50 No 24 Months / 24,000 Miles $4,039.00
SELECT PREMIUM $100 No 24 Months / 24,000 Miles $4,014.00
SELECT PREMIUM $ 0 No 36 Months / 36,000 Miles $4,753.00
SELECT PREMIUM $ 50 No 36 Months / 36,000 Miles $4,678.00
SELECT PREMIUM $100 No 36 Months / 36,000 Miles $4,653.00

IDriveAnM5

First off, my advice would be do NOT buy a used S550 outside of the factory MB warranty without some sort of warranty coverage. When I did this several years ago, I had an MB CPO warranty and it paid itself off. I extended the term too, which was a good idea. The poor car was problem-ridden, but it was still very nice. It was an S500V4.

With regard to your warranty, you'd be well advised to shop around to other third-party warranty providers as well. If the dealer is selling it to you, then they're going to make money off of you. You should AT LEAST check around and compare prices and coverage. I think that, with the 2007 S550, you'll want to pay particular attention to the valve body assembly, to make sure that is covered by whatever warranty you end up with. I believe this may be a transmission situation.

You may find that the cost difference between what you're paying for the car and an extra third-party warranty TOTAL would be close to a CPO car. A CPO car would be the ideal approach, I suppose.

Unless you're totally married to the used car you're looking at, I'd search hard for a CPO car. Otherwise, do your research and shop the warranty around. Good luck.

Question: How come you're buying the car from a non-MB dealership, and the warranty from an MB dealership??

cablvr

I would not purchase a 3rd party warranty - most go out of business after 12-24 months and re-emerge under a different company name/legal entity. They're all frauds.....

I would question where the vehicle was sourced. It seems if the vehicle was sourced from an MB dealer, or at auction, then it may not have been CPO worthy. Good luck.

Becks Imports

This is an extremely uninformed opinion. I mean, a lot of people gripe about extended warranties based on something they heard, or read, or maybe even they had a negative experience with a company and are telling people not to do business with that company.

But I'd love to see your stats to back up those claims. Most go out of business after 12-24 months and reemerge under a different name??? Their <sic> all frauds? I mean, really, ALL?

I work with two companies; Fidelity and NAC. Both have been in business over 25 years. Both are A+ BBB rated. I have well over 1000 customers with each, with tons of claims-paying history. Everyone is happy, including people here on MBWorld that are willing to act as references.

In fact, when you walk in to an Audi dealer and buy Audi Pure Platinum extended warranty protection, 'from the manufacturer', guess what you actually get? A Fidelity Platinum warranty with the contract and brochure re-branded to say Audi on it. And NAC is an even better value than Fidelity for certain cars, especially as they are up in miles.

For the OP's S550 in question, I am sure (unless the miles on the car are very high) that I can get him a quote on a better coverage warranty for less money, and he'll have the same experience as the one from MB.

This business certainly does have its share of shady operators, so to warn someone to choose carefully makes sense. But 'some' or even 'many' is a lot different than 'all'. And there are complaints about even the best companies, just like there are complaints about MB themselves denying certain claims under the new-car warranty, including some right here on MBWorld.

So by all means if you have specific experience to share, good or bad, share it. But a false generalization is not going to help the OP get the best value for his money.

Bruce

559cl55amg

Warranties are bs they are frauds!!! They always have a clause. "damage covered by a non covered part is not covered!!!" stupid!!!!

Becks Imports

Guess what? Mercedes extended warranties have the same clause. And the actual clause is "damage to a covered part by a non-covered part is not covered'.

That means if your tire blows up on the highway (non- covered part) and a piece of rubber punctures your radiator (covered part), the damage to the covered part, in this case the radiator, would not be covered.

That sounds unreasonable?

"Warranties are bs they are frauds."

Another comment with tons of specific information to help the OP.

I have (just to name a single client on MBWorld) a customer on here with an S600 and a Fidelity Platinum warranty. He paid $4800 for the 4 year warranty. After a year of owning the car, he filed an $8K+ claim and was paid without any hassle. He still has three years left to go on his warranty, and his ultimate claims limit is the price he paid for his car, which was over $25,000.

Boy, I really shafted him selling him that warranty.

Bruce

ima55r2

If your car is still under the factory warranty you can get the MB extended warranty from any Mercedes dealer. I got mine from an out of state dealer for a discounted price and no sale tax.

Becks Imports

Good point, but I doubt a 2007 is still under the 4/50K new-car warranty. Very small chance.

Bruce

ima55r2

I agree but it's still a chance. Best to give the VIN to a MB dealer and check the in-service date.

mistertonyn

I think that checking to see how long the company has been around is the best approach. If it has only been around a year or so then I would be careful versus a company that has been around lets say 10-20 years.
If a MB dealer uses them to sell the warranty, you would think that they would be more legit... and not the scam companies.

cablvr

Bruce - look at the original post - the vehicle in question has 40K miles. As far as I know, I don't think the guy bought the vehicle anyway.

I don't think your opinions are objective. I have had experience with 3rd party warranty companies, and both went out of business. Never again! I can't speak for the companies you represent, but I guess they are well capitalized, or operate in consumer unfriendly states.

listerone

I'd never buy a warranty that wasn't fully backed by the maker of the vehicle in question.Independent companies that offer vehicle warranties have a tendency to go bankrupt,disappear somehow or fail to honor legitimate claims.

phatisfy

I just got an exended Warrenty through Cargurad just alittle over 3k. That includes everything except normal wear and tear,of course. 5yrs/ 100,000. $50 deductible.

mistertonyn

Is that buying through a MB dealership or did you buy direct from that warranty company ?

phatisfy

I got it from the company directly.

Becks Imports

I never claimed to be objective, I sell these warranties, how can I be?

What I said was that there are shady ones, and good ones, and you have to be careful. I think THAT is objective. What you just said above was objective too: "....both went out of business" referring to your personal experience. But your first post was a wild and inaccurate generalization: "most go out of business after 12-24 months......" and "they're all frauds."

I select the companies I rep VERY carefully, and in fact do not do business with the companies that contact me and ask me to rep them. I chased both of the companies I currently rep for two years, after doing tons of research, speaking to shops that handle claims with them, etc. Both are A+ BBB rated, both in business over 25 years, both US insured with an AM Best highly rated insurer, etc. Both are licensed to do business in NY, FL, and CA (as well as the other 47). Those are the three toughest states in the USA for warranty companies, because they are regulated like life insurance companies.

And if a warranty company is insured, even if they DO go out of business, their insurer pays the claims. It's not like everyone gets screwed. If they are NOT insured properly, everyone DOES get screwed.

Can I predict the future? No. I might have told you to buy a Pontiac a few years ago and look how that turned out.

But blanket generalizations are not helpful, rarely provide specific info, and rarely are true. My point is that just like in any other business, there are good and bad players. People work with me because they know I've done the work to find out which is which.

A warranty from the company I rep for the OP's car with 40K would be $4557 for 4 years from today, or an additional 50K miles, exclusionary (commonly referred to as bumper to bumper) with $100 deductible.

Also, your comment about the vehicle being sourced from an MB dealer, or an auction, potentially meaning it may not be CPO worthy is inaccurate. I stand right next to the buyer for my local Benz dealer, we bid on and buy the exact same cars. He got back an S65 with 4K miles on it, and took it to auction because 'he does not have that type of customer'. When he gets an AMG car, he calls me first to see if I want it because that's also typically not his type of customer.

There are all sorts of reasons cars go to auction or Benz dealers wholesale them.....it has nothing necessarily to do with CPO.

Bruce

Becks Imports

Phatisfy, I can tell you from looking at your car that you've most likely voided your extended warranty. You have your suspension lowered beyond factory limits, and you are running aftermarket wheels.

In almost every extended warranty contract, those two things can void your entire policy. So before you go in for a claim, I'd strongly suggest you raise the car up and put the OEM wheels back on, or at least put MB caps on them.

Now, you could go in and an inspector for the claim does not come out, and you're fine (assuming the shop does not say anything to the warranty company). Or an inspector could come out, and not notice or not care. But there is a real risk you should be aware of.

Hell, I know MB dealers that note mods in the car's service history, and then if a claim is filed that could be related to the mod(s), they pass than info on to MB.

Bruce

phatisfy

Thanks for the heads up. If something is wrong with anything to do with my suspension,then that of course I will bring it back to stock spec. But if anything goes wrong that has nothing to do with my wheels or suspensions.They can't void my warranty for it? I've been through the bs excuses with the dealer before regarding warranty claims before,so Im aware of what to do before hand.

Becks Imports

It's tricky, but here's the deal:

With a new-car warranty, provided by the manufacturer, it's a real warranty in the legal sense of the word. That gives you certain protections and legal remedies. It also means you are protected by the MM act. That federal law states that for a manufacturer to deny a warranty claim due to a non-factory approved modification, the denial (and the claim in question) has to have been related to or as a direct result of the modification.

With an extended warranty, it's not a warranty in the true legal sense of the word, although everyone refers to it as a warranty. It really is a service contract. And you are signing a contract, and agreeing to the terms contained in that contract. And every one of them has a clause that you can not modify your car in a way not approved by the manufacturer. When you do, your ENTIRE WARRANTY can be voided, because you breached your contract. If you already have that type of mod, and sign the contract anyway, you are committing fraud. So if you have a blown engine, and the inspector sees your modded wheels/suspension, he can let the company know and they can void your coverage in entirety.

Now, no service contract company is going to sue you for fraud about a mod, but they could based on the terms you agreed to when you signed the contract. But what they will do is void your coverage.

Imagine you were an insurance company, I paid you $4K for coverage, came to you with a $6K claim, and you noticed I had breached the contract and you could legally void it. What would YOU do?

Bruce

IDriveAnM5

This has turned out to be a pretty informative discussion!
Thanks!

jngizzi

Newbie here, I just purchased (taking delivery Saturday) of an '09 S550 4Matic, P2, Black/Black, 19 inch MB Wheel upgrade. The car has 21K on it. With the balance of the original warranty plus the CPO warranty, I'm covered to 3/14. Purchasing the Certified Pre-Owned Extended Limited Warranty takes me to 3/'16 or 135K miles.

In your opinion for those who spent serious time with an S550, in your opinion should should I;

1. go for extended warranty?
2. Dealer is asking $3895, retail price is $4495. Is the price in line with what others have paid for the MB Certified Pre-Owned Extended Limited Warranty?

Dealer communicated that this is just like an extension of the CPO Warranty, no deductible, etc.

Thanks in advance for your advice .......


Joe

Becks Imports

I think you are getting some inaccurate information. A few things:

1. CPO has a deductible, and it is not as good coverage as the new-car warranty, nor as good as the ELW assuming it's the exclusionary ELW, not a named component plan.

2. I am 99% sure the ELW will also end at 100K, and will not take you to 135K.

3. $3895 for the exclusionary ELW is not a bad price. If it's not exclusionary, forget it.

From me, with your car an exclusionary warranty with coverage from now until 11/16 or an additional 85K miles (ending at 106K miles) would be $4100 with a $50 deductible. Coverage better than CPO, so that if something breaks during the CP"O coverage period that CPO does not cover, this warranty could be used instead.

Bruce

jngizzi

Bruce,

Thanks for the quick reply. The warranty (according to the pamphlet I have in front of me) is "The New 135K Extended Limited Warranty" by MB.
Also on the cover it states "The Mercedes Benz Certified Pre-Owned Extended Limited Warranty Program".


Reading on, it states this will extend the MB CPO Limited Warranty by offering coverage for either 1yr/120K or 2 years/135K total accumulated miles.

Going with the 2 years @ $3895 based on dealer notes covers the car to March '16 or 135K total miles, with no deductible.

List price for this is $4495 for S class....

Wife says its a no brainer..purchase it

Becks Imports

Sounds like a new program!

I agree, it's a hit. See if it's same coverage as CPO (good inclusionary plan) or if it's like the original new car warranty (exclusionary).

Even a good inclusionary plan pales against an exclusionary, which would be the only reason I'd consider looking elsewhere.

Bruce

jngizzi

It is a new program. Here are a couple of links I came across for it;

http://daveknowscars.com/2011/02/01/...-135000-miles/

https://mbworld.org/forums/e-class-w...questions.html

Going through both of them now.....

Regards,

Joe