Extended warranty - good and bad - PeachParts Mercedes-Benz Forum

tivoliman · #1 06-21-2006, 03:45 AM

Please share your experience with aftermarket Extended Warranties.

I'm looking to buy a 2000 - 2002 S430 or S500, and figure a warranty would be good.

When I purchased the 500SEL, I also purchased an Aftermarket extended warranty - best thing I've ever done.

The upfront cost of the warranty was recouped with peace of mind and service.

The warranty company was "http://warrantybynet.com" - I would recommend them to any one. However - they have recently decided not to do business in New Jersey. I'm out of luck. I would clearly buy their service again.

So, which extended warranty service should I consider.

Preference: bumper to bumper for the maximum time.

The Starmark warrany is an option, but seems to max out at 100,000 miles.

Homeline · #2 06-21-2006, 01:28 PM

I bought my one and only extened warranty several years ago just as my suburban was going out of the factory warranty. They can be a good thing...and they can be a sham. Cars are only getting more technically complicated, so they are great for computers/electronics, A/C, climate control.

But, if you read the fine print, you'll learn several things. Theres a very broad interpretation by the policy maker in the use of terms like normal wear-n-tear, defects, abuse and so on. They are also big on 'friction' related things, normal wear-n-tear items (brakes, rotors, clutches) are not covered. All that is well and good....but isn't an engine one big friction producing machine? Also, the burdon of proof falls on the policy holder if a claim is needed. Example, you have an mechanic tear into an engine for a ticking sound. He finds the source, and the warranty people decide if it's covered. If it's not you are SOL, your car is in pieces and you owe the mechanic for the tear down.

My policy stated it covered ALL internally lubricated parts. But when the shop found 3 bad main bearings (with only 50K), all of a sudden those were defective parts from the manufacture....sorry not covered. We went round and round on that one. I won.

In short, I got my monies worth, but I'll never buy another one again. When I needed it most I had to fight to get satisfaction. But I got it in the end!Basically, they word their policies in such a way that there is a loop-hole for them to pretty much deny any claim..should they desire.

Read it 3x cover to cover and ask questions before plunking down any money. I did all that and still had issues.

How long do you plan keeping the car? Will you exceed mileage limits before time limits? Penalty/reward for taking to a particular shop? $$ of deductible?

I can't recall what company mine was with, but I had 2 shops tell me it was one of the better companies out there. I'll look tonight and let you know.

Good luck,
Cliff

tivoliman · #3 06-22-2006, 05:53 AM

aaautowarranty.com seems to broker other warranty companies.

Hmmm

Jim B. · #4 06-22-2006, 09:28 AM

I bought the Starmark warranty when I bought the 560SEC ten years ago.

I didn't make out well buying it, because the only claim I had was the ABS sensors, which was a simple fix.

But the peace of mind during that time did help.

Keep in mind, at the MB dealers, these are sold by the finance manager who makes BIG commissions selling them - in fact, finance managers can make more money than a salesman on a used car sale. That means that the price is negotiable, but the finance managers are tougher on those than salesman, just like a real estate agent

Take a GOOD look at the warranty, they are NOT bumper to bumper, and seldom cover things that go wrong in the real workd, like a trim piece falling off.

The aftermarket warranties sold by private insurance companies deserve even MORE scrutiny, what is the deductible, at which shop (I once bought one (1986) that turned out only to be good at the Ford dealer who sold the car - very inconvenient.)

However with the cost and complexity of repairs on a newer Mercedes, a Starmark warranty is DEFINATELY worthy of consideration at least, because the build quality of late does not seem to be quite as high as 30 years ago, and it is like having an insurance policy, shifts the risk of loss to the company which is betting nothing will go wrong

The sting of the cost can be less painful IF you can fold the price of the warranty into the total selling price of the car, which I did.

Good luck!!

Mike Murrell · #5 06-22-2006, 10:19 AM

Many good points brought out in this thread.

Already echoed, but in my estimation, extended warranties are a scam. Too many caveats; too much fine print.

A warranty, be it factory or extended, is a collection of words placed on a sheet of paper.

Bottom line - buy a make with a solid reputation and do your own preventative maintenance. Odds are you'll be fine if you do this.

STORMINORMAN · #6 06-22-2006, 10:59 AM

...extended warranty.

When we bought the SVX in 1992 (1st year) the Subaru factory warranty was 3 years, 36k on the entire car, bumper-to-bumper, & 5 years, 60K on the "powertrain". The dealer recommended a transferrable, aftermarket 7 year, 100K warranty that co$t about $1,100. The clincher was that the dealer also guaranteed the aftermarket warranty and if you didn't make any claim against the aftermarket warranty, either within the 100K OR the 7 year term, whichever came 1st, the dealer would refund 100% of the purchase price of the warranty to the original purchaser.

We usually buy our cars to keep. The SVX, especially the first couple years of production, became almost notorious for grenading transmissions. Our car had almost no problems under the factory warranty (except for rear wheel bearings, another story) until the tranny went out at 56K: the dealer replaced the tranny with an upgraded factory unit for $0.00 within 24 hours of determining the problem (wouldn't shift into 3rd) and we have had no problems with it at all since then, 75K+ miles later and still counting!

Needless to say, on the 7th year anniversary date I picked up a check for $1,100 from the dealership. Best warranty I ever had.

If anything like that is available now I wouldn't hesitate to buy one from a reputable dealer.

Cheers!

p.s. From everything I have ever heard the STARMARK warranty is one of the best products out there. I would imagine a SEARCH on "STARMARK" would yield reams of threads.

Mike Murrell · #7 06-22-2006, 11:16 AM

Storminorman is the 2nd person I know of to find such an offer. A co-worker bought an Accord some yrs. ago with the same deal. After x amt. of yrs., she came back and received a full refund.

I agree - quite an offer if you can find it.

Homeline · #8 06-22-2006, 01:19 PM

Quote:

Originally Posted by Homeline

I can't recall what company mine was with, but I had 2 shops tell me it was one of the better companies out there. I'll look tonight and let you know.

Good luck,
Cliff

The outfits name was WESTERN DIVERSIFIED SERVICES, INC, and as I recalll they were headquartered in IL.

Cliff