Extended Warranty - Opinions/Experiences

[NEMESIS CLS]

You can do it on a monthly rolling but they charge you interest unlike the service plan which does not- and it’s exorbitant by todays standards....
E.g. Tier 1 with £250 excess annual premium = £1006
Or £106.85 per month rolling
That’s 21.5% by my calculation

My Tier 1 quote with £250 excess is 1640 py = £137pm??? Are you saying that you pay £1006 interest?

 

[NEMESIS CLS]

Just spoke to Mercedes. £1638.56 for Tier 1 with 250 excess. Payable in one go for the 1st year, then from year 2 can be paid on monthly installments. Cover starts 1 month after payment, due to no existing warranty on the car. Just paid for it, so its now ready to start from 3/8

 

[markjay]

Based on members' experiences, I probably won't bother with an Extended Warranty.

I see this as an insurance policy that buys you peace of mind.

It seems that (roughly) the annual cost is ~£1000 and the typical repair costs as reported by members here were ~£2,000 to ~£3,000.

Obviously for those individuals who had a payout that exceeded the premium this was a good deal in hindsight.

But this type of ratio of premium to payout is very high and only makes sense when the probability of an insured event actually occurring is very high. Which I don't think is the case here.

So it's a No from me... (red buzzer)

 

[JDL60]

My Tier 1 quote with £250 excess is 1640 py = £137pm??? Are you saying that you pay £1006 interest?

No, I’m saying my Tier 1 annual premium is £1006...
You are paying more because you has a posh car, innit?

 

[AlexM]

Ouch. they sting you for not taking the tier 1 from the end date of the manufacturer's warranty then?.

 

[AlexM]

Based on members' experiences, I probably won't bother with an Extended Warranty.

I see this as an insurance policy that buys you peace of mind.

It seems that (roughly) the annual cost is ~£1000 and the typical repair costs as reported by members here were ~£2,000 to ~£3,000.

Obviously for those individuals who had a payout that exceeded the premium this was a good deal in hindsight.

But this type of ratio of premium to payout is very high and only makes sense when the probability of an insured event actually occurring is very high. Which I don't think is the case here.

So it's a No from me... (red buzzer)

Fair comment. I think the issue is that the warranty is there to protect you against the costs that you can't afford to self-insure against. If my engine blew, then the car would be scrapped as a new engine would be prohibitive. Gearbox could be repaired for somewhere between £1500-3000. It's Mercedes labour and parts costs that make it worthwhile.

If I had a car that was, say, nearly three years old with full MBSH and intended to keep it for another three years, I'd probably take a Mercedes service plan and extended warranty for peace of mind and knowing that that would be partly offset by improved sale price when I sold it. the warranty and increased service would cost, what, 5k over three years?. I can live with that on an annualised basis.

Once your car is out of the dealer network then it becomes more attractive to self-insure and use a good indie. I'm not sure at what age it makes sense to not use Mercedes dealers - possibly once the car is out of warranty if you're not so concerned about resale value or intend to keep it for a longish time.

 

[JDL60]

Fair comment. I think the issue is that the warranty is there to protect you against the costs that you can't afford to self-insure against. If my engine blew, then the car would be scrapped as a new engine would be prohibitive. Gearbox could be repaired for somewhere between £1500-3000. It's Mercedes labour and parts costs that make it worthwhile.

If I had a car that was, say, nearly three years old with full MBSH and intended to keep it for another three years, I'd probably take a Mercedes service plan and extended warranty for peace of mind and knowing that that would be partly offset by improved sale price when I sold it. the warranty and increased service would cost, what, 5k over three years?. I can live with that on an annualised basis.

Once your car is out of the dealer network then it becomes more attractive to self-insure and use a good indie. I'm not sure at what age it makes sense to not use Mercedes dealers - possibly once the car is out of warranty if you're not so concerned about resale value or intend to keep it for a longish time.

A good summary IMO Alex.....

 

[Alex]

I found that it is actually cheaper and more rewarding to fix and maintain your car yourself. Spend your money on material things like tools and equipment not ephemeral piece of paper with a small print and conditions.

 

[clk208]

I was tempted to continue the tier 1 after the first free year when I bought my CLS at 4 years old from a main dealer but glad I didn’t.

Cost was something like £1400 PA and the only repairs the car has needed over the last 6 years has been a couple of window regulators, set of springs, serpentine belt and some
minor suspension bushes. Most of these wouldn’t have been covered or would have been swallowed by the excess so am seriously up by not having one.

That said may make sense for the first year to ensure any niggles are ironed out.

 

[NEMESIS CLS]

No, I’m saying my Tier 1 annual premium is £1006...
You are paying more because you has a posh car, innit?

Ah ha...I see Innit

 

[AlexM]

I found that it is actually cheaper and more rewarding to fix and maintain your car yourself. Spend your money on material things like tools and equipment not ephemeral piece of paper with a small print and conditions.

Yes, but my time is prohibitively expensive - even compared to an MB dealer's labour rates

 

[Alex]

Yes, but my time is prohibitively expensive - even compared to an MB dealer's labour rates

Yet here you are discussing the merits of saving the money by buying a warranty or using an indie...

 

[markjay]

Yes, but my time is prohibitively expensive - even compared to an MB dealer's labour rates

Only if you could have sold it at the higher rate.

But if, for example, you fix your car instead of sleeping hours, the real monetary cost to you is zero (emoji of smiley wearing dark sunglasses).

 

[AlexM]

Only if you could have sold it at the higher rate.

But if, for example, you fix your car instead of sleeping hours, the real monetary cost to you is zero (emoji of smiley wearing dark sunglasses).

Ah, but my nighttime 'special rates' are even higher!

 

[Skd884]

Amg purchased new in 2012 never extended the warranty and had no issues, keep the money aside unless you enjoy lining the pockets of warranty firms.

 

[Bobby Dazzler]

I found that it is actually cheaper and more rewarding to fix and maintain your car yourself. Spend your money on material things like tools and equipment not ephemeral piece of paper with a small print and conditions.

And you’re not even handy with the spanners. If you can do, then anyone can do it.