Used Car Warranties

[Winemaker]

We have a 2014 Mercedes Benz 450GL, we bought it in 2019 as it can haul 7 people comfortably. It is primarily used as a touring vehicle; long trips to visit family in FL and other states. It is not a daily driver. We bought it as a certified used vehicle and was covered by warranty until 2022. It is a fine car, has a turbo charged V8, and the car has been problem free. We are creeping up to 100k miles and reports/research says that, if properly maintained, should be able to do 300k miles. Some of the future maintence schedule call for replacement of timing chains, and water pump, an $18k expense. My service rep at the dealership suggested I purchase a used car warranty, throught their dealership. The best value was a 3 year/ 36k miles for $6k. Anybody deal with these after market car warranties?

We have always bought used vehicles and drove them until the "wheels fell off". We paid $35k for it back in 2019, and follow the Mercedes maintenence schedule. It is irreplaceable in the fact that all cars this size do not have a bench seat in the second row anymore; they all have captains chairs, which is the whole reason why we bought it.

 

[Mark1]

I always self-insure when possible, because someone has to pay for the insurance overhead. Of course, I would even drop full coverage on a vehicle like this (12 years old and 100,000 miles).

I guess I knew maintenance on MB was expensive, but $18k for timing chains and water pump seems excessive. Are you sure insurance would cover this amount?

 

[Aerides]

I don't think those warranties cover things like maintenance, like your timing chain, etc. I'd read the fine print on what is and is not covered. But I'd likely roll not do it.

 

[COcheesehead]

I have heard of so many exclusions on warranties. The logical side of my brain (a really small portion) says if they were a good deal for the consumer, the dealer wouldn’t sell them.

 

[lakerunner]

I have owned German cars for years. I have found the most extended warranties don't really cover enough. Als, find an independent garage that works on Mercedes. They will be able to do the timing chain and water pump for about 60% of the dealer price.

 

[aja8888]

Wear Items are usually not covered under those "repair insurance" contracts. Read the exclusions.

 

[jazz4cash]

My concern would be the repair vs maintenance issue. I asked my service writer his opinion on warranties and he said to go with a factory contract or Zurich but we had good experience with a contract from CarMax honored by a GM dealer too. The folks that sell these may have a dozen providers so I’d go with a major player if at all and check for elimination periods.

 

[Winemaker]

I guess I misled a bit. I wasn't planning to use the warranty doing suggested maintenance. Timing chains don't catastophicly fail like timing belts. The self diagnostics would start throwing codes to give warning.

The independent garage that I have used for 35 years won't touch it other than state inspections. Too much technology and tool specifications.

 

[harley]

DD just bought a 2015 Corolla for DGS, since my 2004 Highlander that I had bequeathed him decided not to behave. The dealer gave them a 3 month/4000 mile warranty. Within the first two days the Check Engine light came on, and the problem was that the vapor filter/canister for the gas tank was missing. They checked the warranty coverage, and it was refused because it doesn't cover "electronics". Not sure how that physical system is electronic, but it does show how worthless those warranties are. Luckily the place that sold it to them will fix it for just the cost of the part.

 

[Midpack]

By definition it's more likely the used car warranty would cost more than self insurance - that's how insurance works by definition. Most policyholders would find it cheaper to self insure, a few would realize cost savings with a policy. The decision rests with which group do you expect to be in, and what does the policy actually cover. Dealers and insurance companies would not promote used car warranties unless they made a profit on them, at the expense of policyholders...

 

[rk911]

My only experience with after-market warranties are with those on RVs and then only what I've heard and read. The long and short of it is the only after-market warranties worthy of considerstion are those offered by the vehicle mfg. The others are riddled with exclusions and gotchas. Frequently reported were denials of coverage for failures of covered parts or systems that were caused by uncovered systems or parts. OP...read the policy carefully and ask questions. Good luck.

 

[floss187]

It's so much drama, paper work, etc that even IF it is covered, it will take you 6 months of phone calls and pulling your hair out to get re-imbursed. That's if you're lucky.


Run. it's never worth it.

 

[Texas Proud]

I don't think those warranties cover things like maintenance, like your timing chain, etc. I'd read the fine print on what is and is not covered. But I'd likely roll not do it.

I would agree with this.. you have to do maintenance that is required from what I remember of my sisters extended warranty...

 

[mystang52]

$6000 up front means you're prepaying that amount for 3 years of coverage. Why not just plop the $6000 into a segregated bank account. After 3 years, you'll likely be $6000 "richer," plus interest. If you need a repair on the car in those 3 years, the repair fund is waiting for you. For perspective, my 8 year old Audi needed a couple of repairs. Dealer wanted $7000+. My trusted mechanic did it for $3100.

 

[Koolau]

I guess I misled a bit. I wasn't planning to use the warranty doing suggested maintenance. Timing chains don't catastophicly fail like timing belts. The self diagnostics would start throwing codes to give warning.

The independent garage that I have used for 35 years won't touch it other than state inspections. Too much technology and tool specifications.

Might be a good time to sell it. MB service is expensive.

Most think of insurance as a way to protect against a cost you can't cover yourself.

Good luck on your decision.

 

[rk911]

$6000 up front means you're prepaying that amount for 3 years of coverage. Why not just plop the $6000 into a segregated bank account. After 3 years, you'll likely be $6000 "richer," plus interest. If you need a repair on the car in those 3 years, the repair fund is waiting for you. For perspective, my 8 year old Audi needed a couple of repairs. Dealer wanted $7000+. My trusted mechanic did it for $3100.

Excellent suggestion! That is precisely what we did rather than buy an extended warranty for our 2nd motor home. But in addition to the initial funding we added $ to that fund every month. We paid for all maintenance and repairsfrom that fund. When we sold the last motor home we had thousands of unspent $ in that fund that we
re-purposed.

 

[easysurfer]

I've always passed on the extra car warranties outside of what warranties come with the purchase.

Don't the car companies have ticky tacky rules. Like say if you engine is messed up, they might say well it wasn't oil changed according to a certain schedule so not covered.

I'd rather put aside savings to cover repairs myself than to do the warranties thing. But I can't say from actually experience good or bad stories using them.

 

[Al18]

It depends. If you buy a Toyota, you can buy an extended warranty from Toyota.

 

[jazz4cash]

I've always passed on the extra car warranties outside of what warranties come with the purchase.

Don't the car companies have ticky tacky rules. Like say if you engine is messed up, they might say well it wasn't oil changed according to a certain schedule so not covered.

I'd rather put aside savings to cover repairs myself than to do the warranties thing. But I can't say from actually experience good or bad stories using them.

I don’t think that happens with new cars but you may need to document maintenance, especially oil changes. It oil changes are neglected to the point of engine failure it’s pretty easy to tell by the condition of the oil and parts. I was reading today about a newer car with no dipstick. The mechanic thought he had put oil in the engine but there was no dipstick and the engine destroyed itself.