[ShyGuy]

I've heard the stories about the bad ones. Are there any out there that are good? I'm looking at picking up a 05 E55 and I want some piece of mind knowing that I'm not gonna have to fork out a crap load of money if some massive failure happens.

[Jgresch]

old republic.
first canadian.

i'm sure people have had "bad experiences" with every insurance place out there. But those are the two I usually go with, and recommend.

[XtC-604]

dad had a supercharged E55, those things are pretty reliable i wouldn't worry too much about it. We didn't have any failures, eventually traded in for a E63. Watch out if you do pick it up, cause if u lay on it with traction control off, it'll just keep spinning XD

[Jgresch]

dad had a supercharged E55, those things are pretty reliable i wouldn't worry too much about it. We didn't have any failures, eventually traded in for a E63. Watch out if you do pick it up, cause if u lay on it with traction control off, it'll just keep spinning XD

remember that brand called toyota? Weren't they the most reliable car in the world? lol

I just looked up the e55.. out of 10 classes, its the most expensive to buy a warranty for lol....

[ericthehalfbee]

Take the money the warranty would cost you and put it aside. Use this money for any repairs you might have.

IMO, there's no such thing as a "good" warranty company. I've dealt with them all and in the end they look out for their interests more than yours. I've seen too many people denied coverage for the most ridiculous reasons (like a BMW owner for not changing the oil every 5,000K when BMW recommends much longer intervals).

Or they approve the repair but you have to take it to a shop they recommend instead of your personal mechanic. Or they want to install used parts (no shit, I once saw a warranty company recommend a used fuel pump module because a new one was $1,000). And you have to wait for these parts and the approval so you're stuck without your vehicle for several days while all the red tape clears.

Think of it this way: The warranty company charges $2,000 for a certain vehicle for extended warranty. They're in business to make money, so they know that this particular vehicle will have, for example, an average of $1,500 of repairs. So they make $500 on average for each car they warranty.

This is why you don't buy an extended warranty - because on average the warranty cost is greater than the expected repair costs for the vehicle.



Now some people think that an extended warranty is a good idea for an expensive car. I've seen many people do exactly this and financially it doesn't make sense. If you can't afford to maintain/repair the car then an extended warranty isn't going to bail you out. So many things aren't covered, and even if you get all the optional "packages" you're still going to have to pay for certain repairs.

For example, we had a guy who bought an SL55 at a smoking deal of $30K from the US. That's basically 1/4 the original price, and this car only has 30,000 km's on it. Great deal, right? Well, until things needed repairs. $1,100 to fix the hard top flaps so the roof would work (very common on these cars). Another $1,500 to fix the shifter stuck in park (another common problem on these cars). A very expensive brake job. None of them covered under warranty.

Here's the thing: just because you bought that used Mercedes for 1/2 or 1/3 the cost of a new car, doesn't mean that Mercedes has also dropped the prices of replacement parts for the car. So this guy is still paying the maintenance and upkeep on a $120K car even though he only paid $30K for the car.



/RANT

[dai3yuen]

What about the Mercedes extended warranty? Does your car not qualify for that?

[maxx]

are you buying through dealer?

[Jgresch]

Take the money the warranty would cost you and put it aside. Use this money for any repairs you might have.

IMO, there's no such thing as a "good" warranty company. I've dealt with them all and in the end they look out for their interests more than yours. I've seen too many people denied coverage for the most ridiculous reasons (like a BMW owner for not changing the oil every 5,000K when BMW recommends much longer intervals).

Or they approve the repair but you have to take it to a shop they recommend instead of your personal mechanic. Or they want to install used parts (no shit, I once saw a warranty company recommend a used fuel pump module because a new one was $1,000). And you have to wait for these parts and the approval so you're stuck without your vehicle for several days while all the red tape clears.

Think of it this way: The warranty company charges $2,000 for a certain vehicle for extended warranty. They're in business to make money, so they know that this particular vehicle will have, for example, an average of $1,500 of repairs. So they make $500 on average for each car they warranty.

This is why you don't buy an extended warranty - because on average the warranty cost is greater than the expected repair costs for the vehicle.



Now some people think that an extended warranty is a good idea for an expensive car. I've seen many people do exactly this and financially it doesn't make sense. If you can't afford to maintain/repair the car then an extended warranty isn't going to bail you out. So many things aren't covered, and even if you get all the optional "packages" you're still going to have to pay for certain repairs.

For example, we had a guy who bought an SL55 at a smoking deal of $30K from the US. That's basically 1/4 the original price, and this car only has 30,000 km's on it. Great deal, right? Well, until things needed repairs. $1,100 to fix the hard top flaps so the roof would work (very common on these cars). Another $1,500 to fix the shifter stuck in park (another common problem on these cars). A very expensive brake job. None of them covered under warranty.

Here's the thing: just because you bought that used Mercedes for 1/2 or 1/3 the cost of a new car, doesn't mean that Mercedes has also dropped the prices of replacement parts for the car. So this guy is still paying the maintenance and upkeep on a $120K car even though he only paid $30K for the car.



/RANT

like I said, of course there is gonna be some haters....

some stuff is true in there, in fact the company makes a lot more than 500 bucks for every 2000 warranty lol...

the warranty is just like insurance though. maybe a 10% chance that something major goes wrong...every car is different, every owner is different

Sure there are little catches in there for most companies, but they aren't all out to scam you. I've had my extended warranty for almost a year and it has paid for itself already. So basically I'm driving care free for the remaining 4 years.

You aren't really giving good reasons to not buy a warranty. A lot of it is chance, would you like to risk the tranny dropping in your brand new benz? I don't know about you, but I think its worth paying an extra 5% for peace of mind. (Of course it might be more or less than 5% of the price)

Also just because a company makes money of something doesn't mean you don't buy it. The economy would be non functional this way lol. you bought a car didnt you? trust me, someone made money there unless you stole it...

edit:and you have not dealt with them all. do you know how many warranty companies there are?

edit2: I keep seeing more junk in your post. A lot of warranty companies let you take your car to any certified shop. There aren't many that say you have to go to their shop.

And just because your friend who bought a mercedes in bad condition doesn't mean warranties dont cover anything. I deal quite a bit with old republic. they cover everything the original warranty covers plus more. They only skip out on wear and tear items. Hell they even replaced my clutch/flywheel.

[threezero]

just curious would you be deny warranty service if you mod you car? like say you install an aftermarket alarm than suddenly any electrical problem is not coverd?

[Jgresch]

^ depends what it is. As long as you can prove it has nothing to do with the problem you will be okay most places.

If you throw a turbo on your car, and blow something, don't expect it to be covered.

[boostfever]

Easycare has pretty good warranties too. Make sure car is no older than 5 years though.

[ericthehalfbee]

like I said, of course there is gonna be some haters....

edit2: I keep seeing more junk in your post. A lot of warranty companies let you take your car to any certified shop. There aren't many that say you have to go to their shop.
I'm not a hater - I'm simply relating my experiences with our customers. And most of them have not been good.

Some have done well with their warranties and have already received repairs worth more than their warranty cost, but those are rare cases. Cases the people who sell you the warranty like to point out so they can sell them (we had a guy buy the same car as you and his tranny dropped one week later, and he got a new one from the warranty company).

BTW, what is your relationship to extended warranties - do you sell them (since you previously posted you looked up the price for the E55 and also stated they make more than $500 on a warranty).


Our shop (which has an exceptional rating with our customers) was even blacklisted from an extended warranty company. This was over the fuel pump issue as we told the customer installing a used pump was a bad idea (old pumps had a known issue and new pumps were modified). So by installing a used pump the owner was getting a replacement with the same problem. Their warranty was close to expiriing and the company obviously was trying to get a repair done to last "just until the warranty expires". We explained this to the customer and they called the warranty company and raised shit. Finally they approved a new fuel pump, but told the customer they had to use a different shop since we were now blacklisted. Unfortunately, I can't name the warranty company since there's an on-going fispute between several of our customers (who want the choice to use us vs another shop) and this company. BTW, this is one of the larger and well-respected companies.


Over your lifetime the average person will own a lot of cars. They may get a lemon in that bunch that they go "I should have bought a warranty". But the rest of them will be like "I paid $2,000 for a warranty and never even used it".

Don't look at extended warranties on a single car basis - look at it over your lifetime. You will end up throwing money away if you keep buying them for every car you purchase.

Therefore, the best financial choice is to not buy the warranty and take your chance.

Keeping your car properly maintained is the best way to spend money on your car.

[Jgresch]

yea selling warranties is part of my job :)

your 1000% right, there are a ton of cars out there that wont need a warranty, like hondas toyotas etc. Lots of them have good track records.

There are others of course that are not as lucky and are known for many problems.

Like I said before, and I'm sure you would agree, it's just like any other insurance. There is a little chance of something happening, but if it does happen your covered (unless you go with a retarded company who tries to put in a used fuel pump lol)

[ShyGuy]

have any of you guys dealt with ensurall?

[taylor192]

yea selling warranties is part of my job :)
Making money selling warranties is how you get paid :p :)

Anyone ever considering an extended warranty should consider this: Do you know of any company in the business of losing money?

No. Thus more people buy the extended warranty than make claims. Otherwise the company would be losing money. Personally I think the money is better in my pocket then paying Jgresch's salary. :p

An extended warranty IMHO is for those who cannot afford the slim chance they got a lemon - so they pay a hefty premium to gamble against it. That's a big price to pay cause you're bad with saving money for a rainy day - kinda counter productive eh?

[BlackZRoadster]

yea selling warranties is part of my job :)

your 1000% right, there are a ton of cars out there that wont need a warranty, like hondas toyotas etc. Lots of them have good track records.

There are others of course that are not as lucky and are known for many problems.

Like I said before, and I'm sure you would agree, it's just like any other insurance. There is a little chance of something happening, but if it does happen your covered (unless you go with a retarded company who tries to put in a used fuel pump lol)


do you work in the business office? Probably in a import or domestic dealership?

[Jgresch]

To the guy a couple above, I don't make money off selling warranties, my pay structure is weird.

do you work in the business office? Probably in a import or domestic dealership?
Just started a couple weeks ago because they were short. I'm in the b/office part time for now.

Import or domestic?? as opposed to... from space?

edit: this thread is going no where....

A) there a lots of people, with valid reasons, who think warranties are a waste of money...
B) There are some people who like knowing that they would be covered. I am one of them, and my warranty has paid for itself.... now if I were to get a Honda as my next car, no I would not look into an extended warranty, even though I get them dirt cheap.

[BlackZRoadster]

^ sorry i meant import and domestic and not euros

[Jgresch]

lol import.

[taylor192]

To the guy a couple above, I don't make money off selling warranties, my pay structure is weird.
You missed my point and are trying to deflect.

How would any extended warranty company stay in business if they lost more money for claims than took in for coverage? They base their rates off a certain (small) percentage of vehicles making large claims, and the rest making small claims or none at all.

It all comes down to gambling. Take this for example:
Would you play poker at a table with a $3K ante and only a slim chance of paying and a huge chance you won't even win your ante back? Even the best poker players in the world wouldn't take that bet.

[ericthehalfbee]

Whether you make money or not, I have to ask people here who they trust more:

The person who is selling the warranty?

or

The person who has to talk to the warranty company on behalf of the customer, provide them with repair bills verifying the customer has kept their car properly maintained, has to come up with a detailed estimate of the job and has to justify to the warranty company that the work you're suggesting is actually necessary?


Here's a question for Jgresch: Do your warranty companies pay for diagnostic time to find out what the problem is in the first place? Think about this carefully before you answer.

[Jgresch]

You missed my point and are trying to deflect.

How would any extended warranty company stay in business if they lost more money for claims than took in for coverage? They base their rates off a certain (small) percentage of vehicles making large claims, and the rest making small claims or none at all.

It all comes down to gambling. Take this for example:
Would you play poker at a table with a $3K ante and only a slim chance of paying and a huge chance you won't even win your ante back? Even the best poker players in the world wouldn't take that bet.
I already stated this a few posts ago. I said there are a huge amount of people that wouldn't take it because chances are slim. I realize that.

Edit: I wasn't trying to deflect lol, I already admitted defeat above and didn't feel the need to yet again justify.
Whether you make money or not, I have to ask people here who they trust more:

The person who is selling the warranty?

or

The person who has to talk to the warranty company on behalf of the customer, provide them with repair bills verifying the customer has kept their car properly maintained, has to come up with a detailed estimate of the job and has to justify to the warranty company that the work you're suggesting is actually necessary?


Here's a question for Jgresch: Do your warranty companies pay for diagnostic time to find out what the problem is in the first place? Think about this carefully before you answer.
Holy crap you guys, I tried to settle this already insisting you all have the upperhand. like I said above there is just a small chance that you would make your money back so its not worth it for most. you're right congrats.
A diagnostic would be covered only after the fact if the problem is covered by warranty. So if you pay $90 to find out that the problem is not covered, you don't get refunded, however if it is covered, then your $90 is covered :)

Edit: It shouldn't be who they trust more, the seller, or the mechanic... Because I don't actually put pressure on people to buy them (since I don't make money from them) I basically just asked if theyve had one before or if they want more information.. I would consider myself a user because I've had mine for a year, and its more than paid for itself. Yea, it's a rare occurance, but if someone asks me my experience with warranties, I say its a good one, because it has been. I'm not gonna say no run away, just just sharing what has happened to me just like you are sharing what your experiences are...I think this dead cow has been beaten enough..

you guys win, don't buy extended warranties, they are for suckers and don't actually work. In the long run, you lose more money than you actually save.

[ShyGuy]

I'm actually still considering one. Just don't know where to go to buy one. From what I have seen. The airmatic suspension is prone to fail on my car and at 600 a strut I think its worth it to get some coverage.
Posted via RS Mobile (http://www.revscene.net/forums/announcement.php?a=228)

[ShyGuy]

Ensurall quoted me $3500 for 5yrs extended coverage but I'm not quite sold on their company.
Posted via RS Mobile (http://www.revscene.net/forums/announcement.php?a=228)

[Jgresch]

I'm actually still considering one. Just don't know where to go to buy one. From what I have seen. The airmatic suspension is prone to fail on my car and at 600 a strut I think its worth it to get some coverage.
Posted via RS Mobile (http://www.revscene.net/forums/announcement.php?a=228)

Ensurall quoted me $3500 for 5yrs extended coverage but I'm not quite sold on their company.
Posted via RS Mobile (http://www.revscene.net/forums/announcement.php?a=228)

no!!!! have you not been reading the thread! just put the 3500 aside and you will save money!

Old republic with all the bells and whistles, 0 deductable, towing, room and food paid for, 24 hr road side, etc etc etc was like 4300 iirc, more expensive than most but I feel its worth it..5 years 120k i think.

and to all the others, I'm just helping op with his original question...

[taylor192]

5 years 120k i think.

and to all the others, I'm just helping op with his original question...

No more picking on you for money savings - if the OP wants to waste his $$$ on an extended warranty, so be it :)

The extended warranty was even less worth it for me cause of the KMs limit. I just searched Old Republic and it seems it tops out at 160K kms over 10 years. You'd have to be driving your car ~15K kms/yr to take full advantage of this warranty. OP, how many kms are on the 05 E55?

For the time limit, what year do they use? model year, or build year? Ie I have a 2003, yet built and purchased in 2002.

[Jgresch]

No more picking on you for money savings - if the OP wants to waste his $$$ on an extended warranty, so be it :)

The extended warranty was even less worth it for me cause of the KMs limit. I just searched Old Republic and it seems it tops out at 160K kms over 10 years. You'd have to be driving your car ~15K kms/yr to take full advantage of this warranty. OP, how many kms are on the 05 E55?

For the time limit, what year do they use? model year, or build year? Ie I have a 2003, yet built and purchased in 2002.

Max is 9 years from in service date with OR I believe, we have like 5-6 different companies and they all slightly vary.

Yea, max is 160km, they offer 120s as well if you drive the car less.

OP if you're really set on buying a warranty, I'm back at work on Saturday, I can check out our cost on a specific warranty if you want to save a few bucks. I can't make any money off it anyway so I have nothing to lose.

Edit: that 10 year your looking at is a wrap plan, You need to have factory bumper to bumper remianing to qaulify for that, and its uber expensive. Benz will only make it up to 5 years. And the KM terms are plus the current kms, so if you have 50km on your car and you buy 5 year/120, it means youre covered to 170km... which is liek 24/km of driving a year

[SuperAman]

I don't know if you have to get this from a authorized dealer, but
Coast to Coast is an option.

[Jgresch]

I know I want this thread to die, but I just got back from Hyundai reading my two lights on right now(abs, tcs) and my speed sensor is bad. 489$ to fix and its covered lol just thought I should add that to my growing list....

[RabidRat]

For those of you citing the fact that warranty companies aren't in it to lose money, that on average, they will make more money off your premiums than they pay out to you for repairs, I think you're missing the point.

Of course on average they're making more off your premiums. That's how they're not bankrupt. The whole point is that when some poor fucker gets blind-sided years later with a $15,000 problem, they won't suddenly be out $15,000. They'll be out the original $2000 or whatever it costs for the extended warranty.

It's just insurance.

The real issue is whether or not these warranty companies will fuck you when you really need them. Which is why the OP is asking if there are any good extended warranty vendors. The ones curtis listed off would not be examples of good extended warranty vendors.

[Jgresch]

^thank you!!!! lol i've been saying it's like insurance :p

I listed two reputable, GOOD warranty companies in my first post. I used it again today, all they needed was my KM/VIN and policy number, then had to confirm the part/service work with the service rep and I was on my way, nto a dime out of my pocket, no questions asked :)

[ShyGuy]

Well. If you sell them would you be able to help me get a quote for them?

Its a 2005 E55 w/80k KM
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[taylor192]

For those of you citing the fact that warranty companies aren't in it to lose money, that on average, they will make more money off your premiums than they pay out to you for repairs, I think you're missing the point.

Of course on average they're making more off your premiums. That's how they're not bankrupt. The whole point is that when some poor fucker gets blind-sided years later with a $15,000 problem, they won't suddenly be out $15,000. They'll be out the original $2000 or whatever it costs for the extended warranty.

It's just insurance.
I buy additional insurance cause I cannot afford to pay out $Ms in liability.
I don't buy extended warranties cause I can afford to pay $Ks for repairs.

Insurance is to protect you from liabilities you cannot afford. Someone buying an E55 and throwing down $4-5K for an extended warranty should be able to afford the liabilities.

The whole point is that poor fucker might be out $15K one time out of 10, yet paid $2K 10 times for a total of $20K.

[Jgresch]

Well. If you sell them would you be able to help me get a quote for them?

Its a 2005 E55 w/80k KM
Posted via RS Mobile (http://www.revscene.net/forums/announcement.php?a=228)

I'm at work saturday, I'll get you info on a couple different options then.

[AWDTurboLuvr]

I'm on Secure Drive with my MINI. Cost me $2000 for the 3 year warranty. The total cost of parts+labour that have been used towards repairs so far is $4200. I've had a crank pulley, harmonic balancer, two front axles, two power steering pumps, a radiator plus some other misc. associated repairs done so far.

The A4 that my wife drives isn't on any sort of warranty as the car is pretty reliable.

[hk20000]

With all that said, if you know your cars and keep up with basic maintenance, it's really difficult to actually wind up with a repair bill that justifies the insurance.

It really only makes sense if you bought a really dodgy vehicle (unknown history, unknown records, from USA with possible hidden "washed" damage records).

Anything that's driven locally in a reasonable manner (20,000km/year) is unlikely to fail in such a way that if you keep the car for more than 5 years after any major repairs where you won't be able to offset the insurance money.

Unless you have OCD and every single component on your car you are demanding perfection... even then the deductible makes it hardly worth it, because that deductible easily takes up half of the labour cost usually.

Some extended warranty does not demand a deductible but those are restricted strictly to bought-showroom-floor new vehicles...other 3rd party insurance generally speaking has a deductible in any major claims...