Autonation red shield
12-12-2018, 08:59 PM
#1
Super Member
Thread Starter
Autonation red shield
Need opinions. I just purchased a used s550 from south bay mercedes in Torrance which is an autonation dealer. They offered me a Red Shield warranty for 3 years for $5000 with $100 deductible. Car was CPO but that warranty expired 12/08/18 so i cannot extend that warranty. Anybody have experience with Red Shield? Any advice on the price of the warranty? They say I have 90 days to think it over. Need everyone's advise please.
12-12-2018, 09:23 PM
#2
MBWorld Fanatic!
Warranties are all about risk tolerance. you can fix a lot of stuff for 5K so the warranty is really intended for catastrophic failures which are somewhat rare on this car. I have a 2015 4Matic and I did not purchase an ELW on mine and a year later no issues. I had an ELW on my 2012 and it paid out a bit but I still ended up not using the full value of the warranty. 5K is way high for 3 years. Should be around 3600 for that time period. I am not a fan of warranties because they more often than not do not pan out. You are better off self insuring and finding a good indy to address any issues you may have. YMMV.
12-13-2018, 08:19 AM
#4
MBWorld Fanatic!
100% about risk. Considering the service b is almost 900 at the dealer be prepared. I extended my warty on my last s550 and a month later the rear air shocks went out cost was about exactly what ipaid for the warty.. almost 2 years later i traded the car and cashed in the couple of months left and still got 500 back. This was the factory benz warty though... for me Id pay the extra cash and get a cpo car. Lets do some quik math what are u paying for the non cpo car? add the 5k and tires and brakes all around and whats that number? I bet its almost same as what a cpo car will run you.
12-13-2018, 03:38 PM
#5
Super Member
Thread Starter
So I got a great deal on a fully loaded s550. The cpo ran out on this car 3 days before I can buy it. It comes with autonation certified 90 day warranty and they offer 3 years red shield with $100 deductible. Just wanted to see if anyone used this company.
12-16-2018, 07:43 AM
#6
Super Member
They dont sell warranties because they are nice. They sell them to MAKE LOTS of money. The odds of needing that warranty are NOT in the car owners favor. Of course they will tell you all sorts of terrible things can happen but strange thing is they never take me up on an alternative idea.
Dealer puts 1000 in escrow and car owner does as well. If car makes it to 100000 miles without some cataclysmic failure the car owner keeps all the money. If the opposite happens the dealer keeps the money. They never will take me up on that on.
Dealer puts 1000 in escrow and car owner does as well. If car makes it to 100000 miles without some cataclysmic failure the car owner keeps all the money. If the opposite happens the dealer keeps the money. They never will take me up on that on.
12-17-2018, 06:41 PM
#7
Member
Been in the service business computer and auto forever.
Service contracts are lucrative and warranty extensions from 3rd parties are very profitable.
The commission is 50% if you sell it at list price. Yes 50%
They are notoriously hard to collect on. You do have to have every receipt on the exact maintenance schedule they and the manufacturer recommend.
The CPO program gives MB a sales edge and semi-guarantees the other service business comes back to them.
Still it is worth having and gives them more flexibility when you are negotiating down the price of the car.
Service contracts are lucrative and warranty extensions from 3rd parties are very profitable.
The commission is 50% if you sell it at list price. Yes 50%
They are notoriously hard to collect on. You do have to have every receipt on the exact maintenance schedule they and the manufacturer recommend.
The CPO program gives MB a sales edge and semi-guarantees the other service business comes back to them.
Still it is worth having and gives them more flexibility when you are negotiating down the price of the car.
