Aftermarket Extended Warranty

[spiceboy]

What do you guys think about aftermarket extended warranty? Any experience? I'm purchasing a 4 year old Mercedes from an independent used car dealership. They are offering me a warranty through a 3rd party company. There are different packages I can choose from, obviously. But I don't know if I should even bother considering. Thoughts?

Term is 3 years, unlimited mileage. Max claim is $5000.

[Twin_Cam_Turbo]

If its FCPP through Milennium insurance walk away, that warranty is just shit, almost every aftermarket extended warranty is shit to deal with, and a rip off, I hate dealing with them at work.

[94boosted]

My experience with them is that they're not worth their weight in the paper they're written on. Most of the time they make you jump through so many hoops before they reimburse you. Especially the warranties sold by small used car lots.

[spiceboy]

Not locally. I'm buying a car from a small lot in Toronto.
Scary yes. But I've done a lot of background check on the business + staff (found some interesting stuff on one staff but I didn't mention it to the manager yet), even went to the distance to call up the MB dealership the car was originally serviced during its one owner ownership. They told me everything's clean with this car and seems to be taken care of during the 4 years.
I have a couple of friends in Toronto to test drive for me, then also pay for an inspection at one of the MB dealers there.

That's why I'm proceeding with the purchase. With that said, the extended warranty the dealer is offering seems to carry a lot of clauses/exemptions in the contract. I even talked to the warranty company on the phone, and they claimed that many of the "franchise" dealerships across NA honour their warranties. But when I checked with Hyatt MB they haven't even heard of them (based in Ontario), so no they won't honour their warranties.

These guys pay directly to the shops, not through customer reimbursement. The catch is if it's an independent mechanic/shop it needs to be on their "list". In addition, one needs to have an AMEX account, that's how they get paid. If not, a cheque can be an alternative but the mechanic may not get paid until 30 days later. I don't think any mechanic would sit well with that arrangment.

So yes while an extended warranty may be highly recommended for the car I'm buying, this particular package doesn't seem like the best choice.

[Twin_Cam_Turbo]

Originally posted by spiceboy
Not locally. I'm buying a car from a small lot in Toronto.
Scary yes. But I've done a lot of background check on the business + staff (found some interesting stuff on one staff but I didn't mention it to the manager yet), even went to the distance to call up the MB dealership the car was originally serviced during its one owner ownership. They told me everything's clean with this car and seems to be taken care of during the 4 years.
I have a couple of friends in Toronto to test drive for me, then also pay for an inspection at one of the MB dealers there.

That's why I'm proceeding with the purchase. With that said, the extended warranty the dealer is offering seems to carry a lot of clauses/exemptions in the contract. I even talked to the warranty company on the phone, and they claimed that many of the "franchise" dealerships across NA honour their warranties. But when I checked with Hyatt MB they haven't even heard of them (based in Ontario), so no they won't honour their warranties.

These guys pay directly to the shops, not through customer reimbursement. The catch is if it's an independent mechanic/shop it needs to be on their "list". In addition, one needs to have an AMEX account, that's how they get paid. If not, a cheque can be an alternative but the mechanic may not get paid until 30 days later. I don't think any mechanic would sit well with that arrangment.

So yes while an extended warranty may be highly recommended for the car I'm buying, this particular package doesn't seem like the best choice.

Don't take it, I have only ever dealt with one good extended warranty at my job and thats because its GM selling it through GM provided by GM for GMs, every other company is a hassle to deal with and rips of both our dealer and the customer I find.

[Disoblige]

I agree, stay far away from this. Huge warning light already when a THIRD PARTY COMPANY is offering this. I can see things ending badly if something happens and you're wasting your time trying to get something fixed.

[spiceboy]

US extended warranty suppliers must be a lot different (easy to deal with) than CDN ones? Everyone on the MB forums highly recommend getting extended warrnties, even 3rd party. It sounds like they never got too much hassle when dealing with them.

['93 SR-V]

I bought an old explorer from some shit hole used car lot by the stampede grounds that came with one of those warranties. When I had it in for an oil change the mechanic diagnosed a few problems (leaky pinion seal and intake gasket). So I decided to put the warranty to work.

The deal was you could only take it to a shop on their list (they were all independent shops). I ended up at a husky off of Elbow drive. They did the pinion seal, I think I was out $60 or something for fees the warranty didn't cover. I asked the guy about the intake and he said the warranty would only pay so much (the standard industry flat rate/time or whatever for the job) so if anything went wrong it would be on the hook for the extras... I don't know if the guy just didn't want to do it or what. I assume they don't get paid out for these claims at their normal full rate so they probably don't want to do the pain in the ass jobs either.

The dealer I bought the explorer from threw the warranty in for free otherwise I don't know if it's worth it... I'm not sure about all of the companies but I would think that most won't pay for service at a dealer (if that's important to you).

[Rat Fink]

.

[dirtsniffer]

at bimmer the 3rd party warranties are very good, same service as manufacturer warranty at the dealer.

[you&me]

Originally posted by dirtsniffer
at bimmer the 3rd party warranties are very good, same service as manufacturer warranty at the dealer.

Technically, the third-party warranty offered by BMW dealers (Coverage One) offers more comprehensive protection than BMW's own CPO.

[prosh]

I went thru Coverage One for my extended warranty and considering the cost difference $900 vs $2800 which lexus quoted me to extend 3 more years. Haven't had to use it yet but the ultimate coverage seemed to cover almost everything a manufacturers bumper to bumper would cover.

Originally posted by you&me


Technically, the third-party warranty offered by BMW dealers (Coverage One) offers more comprehensive protection than BMW's own CPO.

[Redlyne_mr2]

On a benz go with the coverage one warranty. You will only be able to use it at Hyatt however as Lonestar does not honor 3rd party warranties.

[spiceboy]

Where can i inquire/purchase a Coverage One package?

[realazy]

Originally posted by spiceboy
Where can i inquire/purchase a Coverage One package?

bump for an answer

I would like to buy this Coverage One for my 2010 bmw as well when the factor warranty expires next year.

[dirtsniffer]

finance office at the dealer. you can buy it anytime before the manufacturers warranty expires.

[Redlyne_mr2]

realazy, your mailbox is full. I can get you special pricing on a warranty for your BMW.

Spiceboy, call Vanja at Hyatt Mercedes.

[realazy]

Originally posted by Redlyne_mr2
realazy, your mailbox is full. I can get you special pricing on a warranty for your BMW.

I pm'd you Ryan.