Extended warrenty problems - PeachParts Mercedes-Benz Forum

cdplayer · #1 10-26-2006, 12:46 AM

Hey guys. Looking for some help.
Fifteen days ago I bought a 2001 S500 from an independant car dealer.
Paid cash.
For an additional $3435.00 I added a three year 36,000 mile extended warrenty from the dealer. The warrenty is from Interstate (a compny in New York) and is called Hi-Road coverage. My specific policy is called Hi-Road Tech +.
It's a very comprehensive policy covering all the major features that are prone to be problematic on the Mercedes.
Ya, I know I can here some of you now. But bear with me please.
I ran over 60 Carfax reports

over a three week period and finally decided on the car I bought.

88,822 miles and in very good condition. Carfax revealed well a taken care of lease return. One owner car.
The dealer was 53 miles away. No problem. For most of us here in California, it's right next door. Anyway, drove the car home Tuesday night.
Wednesday and Thursday added approx. 57 miles. The car sat in the garage from Thursday afternoon to Friday morning. And Friday morning I found the car's suspension had collapsed. All fours!
The problem I am having is the insurance company has denied coverage of the repairs stating the problem was preexisting.
If that were the case I would not have been able to drive the car at all.
This S500 has the Sports Package with 18" AMG wheels. With the suspension collapsed, the rear wheels are actually rubbing on the fender weld. And you can not even turn the front wheels more than 1/2 an inch.
My mechanic is a certified former Mercedes dealer enjoying owning his own repairshop for Mercedes only.
He has told these eggheads the collapse was not preexisting.
The insurance company sent an inspector to look over the car. The claim still is being denied.
Anyone with similar experience? What have you been able to do. Any suggestions would be helpful.
I will be negotiating with a lawyer next week because the policy specifically states among all componants covered, front and rear suspension (including struts and strut bearing plates) are covered.
What I do know is the 40amp maxifuse is blown. The pump is dead. Burned out. And the relay needs to be replaced too. The driverside strut has a hairline crack next to the air inlet. And tomorrow is the 13th day the car has been in the shop waiting for the insurance co. to pay up.
Thanks in advance for any leads.

PaulC · #2 10-26-2006, 01:13 AM

Attorney time. Cost of repairs?

Jim B. · #3 10-26-2006, 03:13 AM

Pre-existing condition: A physical condition existing prior to the effective date of the policy.

OBVIOUSLY you wouldn't have bought a vehicle with a visibly and obviously collapsed suspension. And it seemed to be in good order when you took it to your home.

Seems to me that if the suspension worked when you took delivery of the car, and by your description of what a collapsed suspension looked like and how the car couldn't be driven with it, and the policy was in effect (in force?) then it wasn't "pre-existing" and the insurance company is looking for a way avoid payment of a legitimate claim

You paid an *extremely* costly premium for an insurance policy issued by a 3rd pary company, these companies are adept at avoiding warranty claims, and often go out of business,

I bought one once with a used car purchased from a Ford dealer....only once.

If I were in your shoes I would seriously contemplate a consultation with an attorney. He'll be able to advise you as to whether you have a valid claim, and how it can be pursued.

Jim B. · #4 10-26-2006, 03:40 AM

The website www.inds.com is pretty sparse on information (if this is the company that issued it to you, and I think it is)and it looks like the insurance is basically being offered as merely a high profit item for dealers to sell along with the cars, like the rustproofing, scotchgarding and other extras the finance managers try to sell you.

The sample contract there in pdf. form on the website looks like a typical take it or leave it "adhesion" contract to me, where you had no chance to negotiate any of the terms (though I am not a lawyer)

Their sample contract provides for binding arbitration if you make a written request for that. Does yours? You might want to take a good leisurely look at your warranty and read ALL the small print to see what it says.

The adjuster who said "pre-existing condition" is merely making a legal conclusion to allow him to deny your claim.

You bought FAR from a bumper to bumper warranty, look at the exclusions.

dannym · #5 10-26-2006, 09:34 AM

If you bought it from a dealer, third party warranty or not, they should take it back. I believe you have a certain amount of time to do that under the Lemon Laws.

Danny

Jim B. · #6 10-26-2006, 10:32 AM

Quote:

Originally Posted by dannym

If you bought it from a dealer, third party warranty or not, they should take it back. I believe you have a certain amount of time to do that under the Lemon Laws.

Danny

Ummm, wait a minute, not so fast. Even with a brand new car, to trigger the lemon law, In California, where the buyer CDplayer lives,you have to have it back to the dealer for the SAME problem at least three succesive times, with no success in fixing. And, keep in mind you need written documentation of the date and mileage for EACH visit (usually the repair order) and it's good to keep notes of who said what to who with each visit and phone call.. Dealers try to avoid getting to the three time limit by writing the first repair order then keeping the same repair order "open" till they get the problem fixed.

Learnt about all this as I got a NEW 2001 Lemon Volvo C70 coupe that went back to the dealer in Calif. more than 5 times for the same problem. Dealer was awful, refused to return calls, got seats greasy and dirty every time worked on the car, spilt coffee on the console, rental cars got flat tires, car seemed to spend as much time in the shop as home, only 7k on it for the whole year.

A good lemon law lawyer finally had to be used. We got ALL our money back, less attorney's fees of $2000 and the mileage deduction we had to make for the miles it was driven that year.

The manufacturers HATE to buy back a lemon car. (They have to have branded "LEMON" titles that will show on CARFAX), and they are dogs on the market. Our very same exact 1 year old $39k Volvo with 7k on it sold as a Lemon car on ebay for just a few months after Volvo NA in New Jersey bought it back, sent it to NJ and later sold it to a NJ dealer who stuck it on ebay where I saw it get knocked down for only $24K, now, that's a BIG depreciation hit!!!

Plus Volvo NA lied on the Lemon law disclosure on the title, they said "Owner complained of vibrations but we tested the car and couldn't find any" YEAH RIGHT. Our complaints involved water leaks and cracking and groaning noises that could never be fixed - and if Volvo couldn't find any problems, how come they bought the car back as a Lemon?

The manufacturer would rather get you to keep the fixed Lemon car, or failing that, offer you another new car just like it. I would just say "NO".

And, its even stricter with USED cars. In California the Lemon Law protection is much worse for USED cars, and may be next to worthless in thisw case.

Either this Mercedes has a SIGNIFICANT "pre existing condition" which the dealer knew about but HID, the buyer would want to try and unwind the deal and get his money back, on the basis of fraud, (But did the buyer buy the car as is or do his due diligence before purchasing?....... OR the car did NOT have a "pre exsisting condition" in which case he might need a lawyer to try to get the warranty company to honor the claim for covering the repair under warranty

Jim B. · #7 10-26-2006, 11:20 AM

Quote:

Originally Posted by BlackE55

Edit: I noticed the car was from an "independant car dealer", so it's an auction car. They won't stand behind their product like an authorized MB dealer.

They'll stand behind it.....WAAAAAAAAAAAAAY behind it.

jcyuhn · #8 10-26-2006, 04:06 PM

In general lemon laws apply only to new car purchases. Used cars don't qualify. Certainly the statutes vary state-to-state, but I've never seen one which covers used vehicles. I'd go after the seller, looking to return the car for a complete refund. Something about warranty of fitness for a particular purpose (i.e. driving...).

- JimY

Hatterasguy · #9 10-26-2006, 08:54 PM

I just went through this since we bought a new car. I remember four seperate specific people, three of them salesman at different dealerships selling different brands, told me that AAA is the best aftermarket warranty out there.

I know this won't help you now, you will probably have to take them to small claims. But for the future, I am not to worried about AAA going out of business anytime soon.

cdplayer · #10 10-26-2006, 11:40 PM

Thanks guys. Your input is very helpful.

The lastest is a mediater has sent his own investigator to the shop. This person is more knowledgable about MB than the other moron. (I mean uninformed individual.) The pump will be covered after all. And the repair of the driver side strut because of the crack.
However I am asking for both struts to be repaired. Preventive maintenance. And highly recommended.
I also want the relay replaced too. Plus, as a precaution, I am asking that the sensors on the strut towers be changed.
I have read posts here that the manner of collaps varies. Curious that mine was a complete collaps just over night.

On another note,something that I have wondered about for a few days.
Is it possible to "pump" up the car with a bad lift system? Is there a valve somewhere on the pump body where you could pump air into the system.
Especially if the selling dealer knew something was wrong to begin with.
To "cure' the problem just long enough to get it off his lot.
Just an idea.