What is a downside to purchasing an extended warranty?
Upfront Cost: Extended warranties can be expensive, and you might never use them. Weighing the cost of the warranty against the potential repair bills is crucial. Limited Coverage: Many warranties have exclusions and may not cover all types of repairs. Extended warranty providers should be willing to give you specific information about the extent of coverage for each plan they offer. Even basic coverage can include a long list of components that are covered. Compare the specifics of the plans you’re considering to find one that matches your needs.Many consumers and third-party companies commonly use these terms interchangeably, so we’ve done the same in this article. Extended warranties for cars over 100,000 miles cost $136 per month or $1,398 per year of coverage on average.We recommend only buying an extended warranty that itemizes in detail which repairs and components are covered. Untapped coverage: After paying thousands for coverage, many owners never file a claim.Negotiating a Better Deal Speak with the finance and insurance managers, explain that you want to buy a new car and need to talk to them about the factory extended warranty on the vehicle. You may find that three different dealerships will give you three different prices on the same coverage.An extended warranty or service contract on your vehicle pays the costs of some repairs, above what the manufacturer’s warranty covers or after the manufacturer’s warranty ends. Extended warranties and vehicle service contracts typically exclude routine maintenance such as oil changes and tire replacement.
Can you negotiate the cost of an extended warranty?
Negotiating a Better Deal Speak with the finance and insurance managers, explain that you want to buy a new car and need to talk to them about the factory extended warranty on the vehicle. You may find that three different dealerships will give you three different prices on the same coverage. The Extended Limited Warranty can be purchased at any time during the new vehicle basic warranty period (48 months/80,000 km), as long as the vehicle has been regularly maintained at an authorized Mercedes-Benz Retailer.An extended warranty can provide many benefits, including financial coverage and peace of mind, should something go wrong with your vehicle. If you are considering the purchase of an extended warranty for your used car, it is possible to negotiate with the dealer for the best price and the warranty coverage you need.The Mercedes-Benz Extended Limited Warranty Agreement may be canceled for a full refund at any time prior to the expiration of the New Vehicle Limited Warranty and the effective date of this Agreement, if a written request for cancellation is submitted using the Cancellation form that can be obtained from the selling .How to get your money back. You can cancel an extended warranty at any time and you’ll get a prorated refund for the unused portion of your policy. If the warranty was included in your loan, your car payment won’t drop, but you may pay off the car sooner after the refund is deducted from your balance.
Is it worth paying for extended warranties?
Like most insurance policies, an extended warranty is something you pay for in the hope that you’ll never need to use it. For many owners, it’s worth paying the price for peace of mind; even if your car is built by a brand renowned for its reliability, there’s always a risk that something could go wrong. Based on this data, extended auto warranties cost an average of $1,297 per year across providers, plans, coverage options and vehicles. We also surveyed 1,000 extended auto warranty owners in January 2025. The majority of respondents, 70%, paid between $500 and $2,500 in total for an extended warranty plan.Afterwards, the standard Mercedes-Benz Star Certified Pre-Owned Warranty term provides protection for up to another 2 years or a total of 120,000 accumulated kilometres. It is included on every qualified Certified Pre-Owned vehicle and covers your powertrain and major components.They typically don’t cover damage that may occur in an accident or normal wear and tear to the vehicle. An auto service contract or extended warranty is not a warranty as defined by federal law, because you buy it separately; it’s not included when you buy a car.Mercedes-Benz Extended Warranty Protections No deductibles. Honored at more than 350 authorized Mercedes-Benz dealerships. New Vehicle Warranty.The cost of a Mercedes extended warranty can range from $2,400 to nearly $8,000, depending on the vehicle and plan. You can extend the factory warranty by one to three years and cover up to 75,000 or 100,000 miles on the odometer.
Can an extended warranty be added after purchase?
You can purchase an extended warranty when you purchase your vehicle or at a later time. The major benefit of purchasing it when you buy the car is the ability to add the purchase price into your total amount financed. If you are suffering from a case of buyer’s remorse, most providers allow you to cancel an extended car warranty. Then, depending on the warranty company and the warranty plan, you may also be eligible for a full or partial refund for the prorated amount of any unused time or mileage of your contract.An extended warranty — also known as a protection plan or service contract — provides similar guarantees for even more years. These policies cost extra, may have different fine print than a manufacturer warranty and often are sold by a third party rather than the product’s manufacturer.In general, an extended warranty can be used following a 30-day or 1,000-mile wait period. Some providers offer alternative waiting periods depending on driving habits, such as 60-day/500-mile or 90-day/200-mile waiting periods, and certain “no-wait” plans exist, but they’re exceedingly rare.The most direct way to cancel your extended warranty is to contact the accounting department at the dealership. The accounting department is usually responsible for processing the cancellation and refund paperwork, so this is the quickest way to complete the cancellation of your extended warranty.
Can I buy a Mercedes extended warranty after purchase?
Additionally, you can purchase Mercedes-Benz Extended Limited Warranty coverage at any time prior to the expiration of your original New Vehicle Limited Warranty. Once your CPO Limited Warranty expires, the CPO Extended Limited Warranty offers up to 2 additional years (unlimited miles), providing the same comprehensive coverage. For additional details, contact your local Mercedes-Benz dealer.The purchase of any Mercedes-Benz Certified Pre-Owned vehicle includes a 1-year unlimited mileage Limited Warranty. That warranty includes coverage extending to the engine and powertrain, steering, suspension, brakes, electrical systems, and climate control system among other components.When you purchase a new Mercedes-Benz, you are protected against defects in materials or workmanship that originated at the factory. This basic comprehensive warranty starts on the sale date of the new vehicle, and lasts for 4 years or 50,000 miles, whichever occurs first.Yes, you can purchase an Extended Warranty at any time, even if you don’t have an existing Mercedes-Benz warranty. However, please be aware that you’ll be unable to take out a monthly policy, and will need to purchase a 12-month policy or a 24-month policy.