lawguy

I am still finalizing the debate between a fairly well optioned & mint condition (albeit "pewter" colored) '06 e55 (CPO car) and '07 e63 (also CPO). While Pewter isnt my fave, its a gorgeous car with a well known history. Very tough decision between the two cars, and after researching ito the point of going insane, its still a tough call. '06 e55 is still about 10k cheaper, which is a lot of dough!

Anyhow, here is the question de jour: The local MB dealer (who will be servicing the car) said that they can sell me one or two more years of extended MB warranty on the CPO car, but only within 30 days of its initial purchase - and importantly she said that they cannot sell it to me afterwards. Anyone know if its true?

More to the point, they quoted one more year at $2,500 and 2 years at $3,950. Said price will be the same at any MB dealer. I also know that cheaper 3rd party warranties can be had (with longer coverage), but I also know many of them have deductibles, and coverage issues.

Is it a "no brainer" that buying an extended MB warranty is the wiser way to go, even if a bit more expensive at the start?

cal1

I think it is a "no brainer" going with the MB warranty. There will be no deductible and never an issue of the service not being covered in full. What the saleswomen is telling you is true or at least I have been told this many times.

220S

I know that if you buy the car new, then you can either buy the warranty within 30 days and save 10% or buy it anytime before the factory warranty is over (and add 10%.)

MB offers a 3 year extended and 75k or a 3 year extended and 100k on new cars. I bought mine new and was offered this pricing on MB warranties from my dealer last month: total 7 years and 75,000 miles for $3590 or a total 7 years and 100,000 miles for $5290.

It kind of sounds like they are selling the extended warranty and just adding on to the already extended CPO warranty.

The rules may be different for CPO'd second owner cars, but at least you can see the pricing I was offered. I'd personally go and ask other dealers. These warranties offered by MBUSA are sold by the dealers and are a 100% markup product. Check the specific rules for CPO second owner cars and then shop for the best price/deal from the dealers. Or call MBUSA and see what they say. 1-800-FOR-MERCEDES.

MB_Forever

Well said. It actually gets a little more tricky though; for new cars, the surcharge is 5% if you buy the warranty anytime after 30 days from the time you buy the new car and before 1 year from the in-service date. Then the surcharge goes up to 10% if you buy the warranty within the 2nd to 3rd year and finally 15% if you buy it from the 3rd to 5th year. Basically, the more you wait, the more they punish you due to the higher risk of something breaking as the car ages.

For CPO warranties, you can get up to 3-years coverage (I've done it on both of my older cars: C32 and SL55). Also, the price is NEVER the same across dealerships: some of them mark it up more than others and some discount it more than others. The price that MBUSA charges the dealerships maybe the same, but each individual dealer eventually plays with pricing a little bit.

I would suggest going with Mercedes warranty, and if you later decide you want to keep the car longer, you can always get additional aftermarket warranty as long as you are under CPO... otherwise, it'll get very expensive.

220S

That's interesting to know. My dealer never said anything to me about it going up as the years go by, but only that MBUSA can change the pricing at anytime (and they normally raise it slightly every year.) I wonder why the surcharge increases like that? The way it was explained to me is that the extended warranty doesn't go into effect until after the factory warranty expires. And you can't buy it once the car is out of factory warranty. That means you'd either have a 4 year old car entering into the extended warranty or a car reaching the 50k mark. The car's not going to be any younger (except with the 50k mileage limit) or older than 4 years once the ELW takes over. So the surcharge increasing due to time/mileage doesn't seem logical to me. I always thought the no surcharge within 30 days was simply an incentive sort of thing to get consumers to buy at the time of their car purchase. Also they told me only original owners of new cars can buy the full ELW. But the CPO cars are normally as sold as 3/100k now anyway, right?

bzliteyear

Fwiw, I just bought 2 years extension on S600 at MB dealer 3 days before the orig CPO 5 years/100k expired. I don't think the orig owner statement accurate as I'm 3rd owner and got the same CPO ELW warranty.
PL

MB_Forever

I'm not sure what you mean by the statement in bold above. The warranty that the first owner can extend is actually the factory bumper-to-bumper warranty, which is intrinsically different than CPO warranty. The surcharge increases because the car is in-fact older at the time of "later" warranty purchase, which means the owner is wanting to keep the car for an additional few years, which means that most likely MBUSA will have to spend money on warranty items especially as the car ages more, which ultimately means greater risk. So all they're doing is passing some of that to you.

For new car purchases, only the first owner can extend the factory bumper-to-bumper warranty, and it can ONLY be done as long as the car is still under the initial factory warranty, which is 4 years/50,000 miles.

For used cars, one can only purchase CPO warranty if the car is purchased from a Mercedes-Benz dealership and the car is under 100,000 miles and the dealership actually certifies the car to sell as CPO. Also in case of CPO, one obviously does not have to be the first owner in order to purchase the warranty as the car is being sold as a used car. The additional CPO coverage is usually offered in a 1-year/100k or 2-year/100k or 3-year/100k mile terms. Please note, however, that you automatically get 1-year/100k miles free of charge whether you whether you purchase any additional CPO warranty or not. Any additional warranty purchased actually gets added on top of that one year that is offered for free. So for example, if one purchased a CPO vehicle and also purchased 3-years additional CPO warranty, then they actually get 4-years/100k miles of CPO coverage, which only starts after the initial 4-year/50,000 miles initial bumper-to-bumper warranty ends.

I think he was talking about factory bumper-to-bumper warranty NOT CPO warranty. For original factory warranty, only the original owner can purchase an extension to their initial factory warranty and it has to be done before that initial factory warranty period expires.

bzliteyear

I've researched this quite a bit, and here's what my MB dealer saying.
There's the factory 4 yrs/50k original warranty.
Then there's the up to 3 more yrs/up to 100k total miles.
Some people call this CPO warranty, but dealers now call it ELW - extended limited warranty. For the most part, the ELW is pretty similar but it may not include some of the misc. trim items. All the other coverage is the same between orig and ELW.
Therefore, whether it's original owner purchasing an extension, or the new owner buying - both are buying the same ELW warranty. In other words, CPO = ELW, regardless of original owner or new buyer, as well before warranty expires.
PL

lawguy

I learned the same thing today. However, the 2nd dealer I spoke to now says the 2 years of ELW beyond the one year of "CPO" that conveys with the car must be purchased when the CPO car is purchased.

I think we're all clear on what type of warranty is at issue...there just doesnt seem to be any consensus (amongst us...or the dealers) as to when it must be purchased. LOL.

NCE500

Your 1/2 year warranty pricing above is identical to what I was quoted at several dealers last year. The current rule is apparently that you need to purchase the additional warranty (past the 1 year CPO) within 30 days of buying the car.

I'd absolutely go with the 2 year, but ask them to split the cost (which would equate to them discounting the car by $2K) as part of the sale. That's what I did when I bought mine. Your odds of accomplishing that are probably better with the E63 though due to the price differential between the cars.

Good luck.

MB_Forever

The Extended Limited Warranty (ELW) is an extension of the New Vehicle Limited Warranty (NVLW) and provides the same coverage. The MBCPO Limited Warranty is actually slightly different. Although it is very comprehensive, it does not cover everything covered by NVLW. When buying a used certified pre-owned car from a Mercedes dealership, one is buying a car that is is/will be covered by the MBCPO LW as soon as initial factory warranty is over.

Vabene7

What about the case where one is purchasing a MB from a non Mercedes dealer, so it is not a CPO. If the vehicle is still covered under it's original 4 yr. 50k mile warranty, can you still purchase additional coverage?

-Chris

bzliteyear

Check w/ your local MB finance mgr -it should be ok.
In my case, I bought MB private party and still had 7 days left of the orig 5 yrs/100k CPO car from prior owner.
Since car only had 52k miles, I was able to pay for ELW/CPO for 2 more yrs. If you get stuck, just PM me.
Patrick

Faast

How much did you pay for those 2 extra years ?
Thanks

220S

Yes, I was talking about extending the new factory warranty. In my case, since I bought the car new and am the original owner (I was one of those who got one of those giant discounts on 2009 leftovers when the economy was at its worst.) All my comments pertain only to extending the original factory warranty.....that's why I called it an ELW in my post

Since I'm the original owner I can simply extend the original bumper-to-bumper factory warranty at anytime before the 4/50 is up. There is no surcharge beyond the one that occurs if you don't buy the ELW within 30 days of purchasing the car.

For the record, the prices I posted are for an ELW, not a CPO extension.

EDIT: I still don't think you can buy an extended factory warranty (when the car is still within the original factory warranty) unless you are the original owner. Maybe a CPO type warranty, but not a extended factory warranty. This is what several dealers told me. They told me if I wanted to sell the car I could either keep the warranty with the car (as an incentive to the buyer) or get a refund. They said they only way someone can buy an extended bumper-to-bumper factory warranty on a used car is if the buyer can convince the seller to buy it before they sell the car (and then the buyer could pay back the seller.)

Vabene7

Thanks for the above. I appreciate the info and help.

bzliteyear

I could be wrong, but from talking with multiple MB dealers in CA, CPO = ELW. It's the same warranty, but MB corp is trying to get people to start using the Extended Limited Warranty phrase as some customers were upset that cup holders and wear items were not included in CPO. Therefore, MBs pushing the ELW phrase to educate people that the 2nd 50k miles warranty is NOT the same as factory. Specifically, they want sales people to stop using the phrase "bumper to bumper" - there's no such thing for used cars. As for original owner only being able to buy, there are some dealers providing that mis-information, but that clearly is wrong. I bought my car private party, there were 5 days left on prior CPO/ELW - MB dealer transferred into my name - and then I bought 2 more years of CPO/EWL...all without any signature from prior seller. Bottom line, it's possible to do...just need to find an MB dealer who can help you get it done.

MB_Forever

Yes that is correct, but the surcharge amount itself changes every year.... For example, if you buy the warranty extension before the 1st year of owner ends, then the surcharge amount is only 5%. If you buy the warranty before the 2nd year of ownership ends, then the surcharge is 10%, and then if you buy it anytime after the 2nd year but before the 4th year, the surcharge is actually 15% [QUOTE=220S;4286463]

That is 100% correct at least up until last year. I was told so by MBUSA reps directly. If some dealerships are doing otherwise once in a while to make a sale, I would guess they are doing so illegally or going around it somehow

220S

Hmmmm. I was never told about the surcharges and a while ago I called a dealer (who had emailed me trying to sell ELWs) about their pricing. He said that the only surcharge is the one within 30 days. He said I can buy it anytime before the factory warranty is up. The only reason I shouldn't wait until the last year is because sometimes there are price increases for the ELW. It hasn't yet gone up in price since last year but MBUSA may raise it anytime.

I just called MBUSA now and they confirmed this. There is no surcharge if I wait (aside from the 30 days) but there can always be price increases on the product later on.

And I still don't understand the logic of any surcharge anyway, because the ELW doesn't go into effect until the car is out of factory warranty. So the mileage of 50k (or 4 years) will still be on the car when the ELW goes into effect. If I buy it in two years with 25k on it or in four years with 25k on it, or one year with 49k on it, why would it matter to MBUSA? I'm still owning an ELW and they have to service it under warranty for the next 3/50k (on a 7/100k ELW) once the factory warranty is over. I think a surcharge is just an incentive tool to get buyers to buy it at time of their new car purchase.

As far as the second issue, MBUSA told me the same thing. You have to be the original owner and still under factory warranty to get the ELW. I think maybe the dealers are doing something else with used cars(?) Like an extended CPO or something(?) For anybody who has a warranty under CPO and has extended it, maybe they can post a pdf of their contract. It would be interesting to compare an ELW contract an original owner has bought to one from a second-hand car/owner. And if you call MBUSA, there is a special phone line for CPO contracts and warranties, so that kind of implies the CPO and ELW are maybe different

Anyway, the bottom line: Everybody needs to shop the dealers to get a good price on a warranty. Pricing is dealer dependent. Also read the contract and be sure you understand what you're buying. Dealers are always trying to bring in money, esp in this economy. They'll tell you anything. And MBUSA can change the rules anytime, so be aware of that possibility, too.

(fwiw, I'm not buying one anyway. I'll be selling my E63 in when my new car gets built and arrives; I'm leaving MBs for now.)

lawguy

What car/brand are you going to....and why?

MB_Forever

Can you please ask exactly how much is the surcharge amount and percentage that is charged if you don't buy the warranty within the first 30 days of purchasing the car? I will go to the dealership tomorrow to investigate this further and hopefully get a definite answer

I Like Soup

I would call up one of the SAs and ask them directly which 3rd party warranty companies they have worked with. That is what I did and I've been very happy with EasyCare. I've said this before, if you go with a 3rd party vendor, the SA looks at it as an open checkbook to get work done on your car because it is no money out of pocket for MB. If MB has to do warranty work, it comes directly out of their pocket and they may not be near as generous with the work they offer to do.

coolcamden

Has anyone ever heard of/worked with Total Shield? The 2 local dealers to me, 1 is quoting 2 years/100K at $4898 through MBZ, the other is quoting Total Shield 3 years/75K for $2806. The skeptical me is saying there's too much discrepancies to be real. Something is off somewhere.

220S

https://mbworld.org/forums/4261324-post13.html


I did ask when I called MBUSA today and they said "a surcharge may be applied." Of all the dealers I've spoken with, that surcharge is 10% after 30 days from the vehicle purchase date/in-service date. And if I buy the ELW anytime before the factory warranty is up, then I'll have to add 10%. But when I asked for quotes, I gave them my VIN and they could see that it was after the 30-day period. So prices I'm getting now are including that 10%.

As MBUSA said, this is a dealer add-on product. The dealer can sell it for any price they feel the market will bear. They can add any surcharges they feel like (all MBUSA says is "a surcharge may be applied.") The only thing one needs to do is simply to get the best price that one can from a dealer while knowing that this is a 100% markup product. All the surcharges and any other mumbo-jumbo really mean nothing. Bottom line is just the final price.

Again, these were the best prices I could get:
7 years and 75k for $3590
7 years and 100k for $5290

Another dealer gave me these prices:
7 years and 75k for $4900
7 years and 100k for $6600

Not sure what the MSRP is, but another dealer had quoted 7/100k for $6800 and 7/75k for $5200. I'm guessing that this is close to MSRP.

EDIT: just to be clear, those prices above include the post 30-day 10% surcharge.

lawguy

Oh, I saw that. Still a newbie and didnt put your name together with the post. Glad to know its not a performance issue.