Used Car Warranty from Dealership. Worth It or Not?

SausageParty on 17/02/2024 - 23:00
Last edited 18/02/2024 - 01:26 by 1 other user

Hi everyone, I'm based in NSW.

I'm in the process of purchasing a car from a dealer for the first time so I'm new to all of this. Few days ago, I put a deposit down for a 2017 Mercedes-Benz C-Class for $37,500, the full balance to be paid for next week when I pick up the car. The dealer asked me if I wanted to purchase warranty on the car (on top of the mandatory 3 month statutory warranty that they provide).

It would cost me $4,500 and it would cover me for 5 years. It would cover for up to $8,000 PER claim. I can claim as many times as I want but the total value of all claims is limited to $37,500 (the price of the car). The warranty product is called Presidian Platinum Warranty and it is administered by Davantage Group Pty Ltd, also known as, National Warranty Company.

  • Does anyone have any experience in these used car warranties?
  • Is the warranty worth it (especially for a European car)? Or should I not get the warranty and just set aside the $4,500 for future repairs?
  • If I do purchase the warranty, how hard would I have to fight when making a claim?

Thanks for your help.

Some extra information:

I read through the product disclosure statement and noticed these exclusions:

Seals and Gaskets - Replacement of a seal or gasket will only be included when part of the repair of another covered component.

Specific Parts - Any items that require replacement as a part of normal vehicle maintenance or are known to have a limited service life, including spark plugs and leads, glow plugs, belts, timing belts and chains, including guides, sprockets, keyways and tensioners, filters, hoses, any rubber bushes, couplings, dampeners or mounts, CV boots, shock absorbers, strut inserts, suspension air bags, brake linings, brake pads, disc rotors, drums, clutch linings, globes and fuses.

Automotive Mercedes C-Class

Comments

  • john_conner on 17/02/2024 - 23:20
    +9

    I’ve never heard one good story on used car warranties. Personally, I would set aside the money and self insure. Trying to claim on a policy like that would be like trying to get blood from a stone.
    If you think you need an insurance policy like this, better not to buy the car in the first place!

    • parsimonious one on 18/02/2024 - 13:34

      Yep, too many exclusions and loopholes to dodge liability

  • Hybroid on 17/02/2024 - 23:21
    -2

    No one can tell you if something is worth it to you or not. It might be worth it 6 months into ownership when a defect occurs that gets covered, or it might be a waste of money and you (hopefully) have zero issues in 5 years.

    I would personally choose to self-insure and not bother with a third party "warranty". Others might want the peace of mind.

    I really hope you got a decent engine in that C-class and not a pitiful C200 base spec. They were $30-37k when new…

    https://www.carsguide.com.au/mercedes-benz/c-class/price/201…

    • brendanm on 17/02/2024 - 23:48
      +2

      They were $30-37k when new…

      No, that's how much people are selling used ones for, cheapest one when new would have been low $60k.

  • sumyungguy on 17/02/2024 - 23:23
    +2

    Depends on how long you're expecting to keep it. Search for W205 2017 problems and make sure the expensive things aren't excluded. Mercedes Benz don't market to price-sensitive buyers so you can expect the odd 4-figure remedial maintenance bill further down the road.

  • randomusername2017 on 17/02/2024 - 23:45
    +3

    Out of warranty euro and aftermarket dealer warranty(they charge for these now 🙀)

    What could go wrong…

  • brendanm on 17/02/2024 - 23:45

    Which engine does it have?

  • Toph Beifong on 18/02/2024 - 01:00
    +3

    Not worth the paper it's written on, it's one big scam

  • herysoe on 18/02/2024 - 01:08
    +2

    used 2017 Mercedes-Benz C-Class —- you need lot of warranties..good luck

  • Euphemistic on 18/02/2024 - 04:57
    +4

    Its not a warranty, its an insurance policy.

    Typically they arent worth it as the exclusions rule out anything serious plus the servicing requirements mean its very easy to void it.

  • CurlCurl on 18/02/2024 - 07:35

    Doesn't include the Dampeners!

    WTF.

    • CurlCurl on 18/02/2024 - 09:11
      +1

      Oops. should have said, why would it? How many dampeners have people here replaced?

  • SBOB on 18/02/2024 - 07:50
    +6

    Put the $4500 in a savings account and don't touch it for 5 years.
    The warranty will be worth about the same as the pieces of paper you're yearly bank statements are printed on.

    Good luck with your out of warranty, cheap to maintain merc. I hope your friends and acquaintances are impressed:)

  • JIMB0 on 18/02/2024 - 07:57

    I put a deposit down for a 2017 Mercedes-Benz C-Class for $37,500

    Could have got an absolutely mint Toyota for that much and saved an additional $4500 as you could skip the warranty.

    • [Deactivated] on 18/02/2024 - 08:31
      -3

      @JIMB0
      Buying a used Mercedes is asking for trouble but I think Toyota reliability is a bit of a myth.
      Ask anyone who has owned an Aurion. 😬

      • brendanm on 18/02/2024 - 10:27
        +1

        What's wrong with an Aurion?

        • [Deactivated] on 18/02/2024 - 11:43

          If you own one you already know. 😊

          • brendanm on 18/02/2024 - 12:09

            @[Deactivated]: I've owned one, and worked on plenty, they are great cars, so genuinely curious as to what you are on about.

            • CurlCurl on 18/02/2024 - 12:33
              +2

              @brendanm:

              I've owned one, and worked on plenty, they are great cars, so genuinely curious as to what you are on about.

              Fuel use. Toyota claim just around 9 litres per 100. Not sure if a V6 will get that.

              Burst oil lines.

              Electrical.

              A common mechanical issue with the Aurion is faulty brakes, including warped rotors and excessive wear. This can cause a spongy pedal, a shorter stopping distance and a grinding noise when you apply the brakes. This can be a result of faulty brake pads and/or warped rotors. If your rotors are warped, they need to be machined or replaced to restore proper braking efficiency. With faulty brake pads, you’ll need to get them replaced as soon as possible as they decrease stopping power and increase your risk of having a collision. If you notice your steering is loose, you may have a steering fluid leak. The steering fluid helps the steering wheel move more smoothly and evenly. A leak in the steering fluid can cause your steering wheel to be loose and make it harder to drive the car. Another common mechanical issue is a transmission leak. A transmission leak can be the result of a crack in the transmission pan, improper fluid replacement, or a faulty transmission seal. Transmission leaks can cause excessive transmission fluid usage and a burning smell from the transmission. Be sure to get a transmission leak diagnosed to determine the source of the leak and the best solution for repair.

              One common problem with the suspension of the Aurion is worn-out suspension bushings. Worn-out bushings can cause a clunking or rattling noise when you drive over bumps, uneven tire wear, and/or a stiffer-than-usual suspension. Worn suspension bushings can be replaced to restore a smooth and quiet ride. Another suspension problem is a loose suspension mount. Loose suspension mounts can cause a popping or clicking noise when going over bumps or riding on a rough road. Loose suspension mounts can be replaced to get rid of the noise.

              Another common problem with the Toyota Aurion is faulty air conditioning. The AC on your Toyota Aurion can have a number of issues, including a faulty compressor, leaky AC lines, or a faulty AC evaporator. If your AC isn’t blowing cold air, you may have a faulty AC compressor. A bad AC compressor can be diagnosed and repaired, or the entire compressor can be replaced. If you notice that your AC is leaking from the lines, you can get them repaired or replaced. If you notice your AC evaporator is leaking, it can be diagnosed and repaired or replaced as well.

              • brendanm on 18/02/2024 - 17:02
                +1

                @CurlCurl:

                Fuel use. Toyota claim just around 9 litres per 100. Not sure if a V6 will get that.

                I got better than that with the one I had, and the guy I sold it to got better economy again than I did.

                Not sure if you got AI to write that garbage for you, or where you picked it up from.

                Edit - oh, you've simply copied it from the renowned resource "clarify.com.au", where they have just put a bunch of garbage into "articles" to get Google clicks.

                • CurlCurl on 18/02/2024 - 22:02
                  +1

                  @brendanm:

                  oh, you've simply copied it from the renowned resource "clarify.com.au"

                  clarify.com.au is a dead web page. You can purchase it if you like.

                  http://ww16.clarify.com.au/?sub1=20240218-2201-49b3-a645-cdb…

                  • brendanm on 18/02/2024 - 22:55
                    -1

                    @CurlCurl: You know very well I meant "carify.com.au", as that's where you got that "info", my phone autocorrected it. Now go back and read the rest of that post.

                    • CurlCurl on 19/02/2024 - 12:12
                      +1

                      @brendanm:

                      You know very well I meant "carify.com.au", as that's where you got that "info", my phone autocorrected it. Now go back and read the rest of that post.

                      Don't you love it when some numbskull says to you You know very well I meant "carify.com.au" But of course you know everything.

                      I've NEVER heard of carify.com.au. or clarify.com.au. If you search Google you will find the link I quoted from. I guess you've heard of Google.

                      • brendanm on 19/02/2024 - 12:16
                        -1

                        @CurlCurl: I did search Google, and that's exactly what came up. It's utter garbage filler regardless of where it's come from. I do know a lot more about this topic than you, as I have actual experience, rather than quoting ai generated content from dubious websites.

                        • CurlCurl on 19/02/2024 - 12:25

                          @brendanm:

                          Brendan. I must apologise to you. I just checked, and yes it was carify. I had many links open and I thought it was an American site I read and copied from.

              • cdaddy on 18/02/2024 - 21:17
                +1

                @CurlCurl: This answer brought to you by ChatGPT

                • CurlCurl on 18/02/2024 - 21:59

                  @cdaddy:

                  This answer brought to you by ChatGPT

                  Do you always run off at the mouth and make a fool of yourself? You have this time.

                  If you had half a brain you could find the web page. I won't hold my breath while you look for it.

                  • brendanm on 18/02/2024 - 22:57

                    @CurlCurl: If you had half a brain you wouldn't get "info" from a website like that, to be fair. It's literally a spam site full of garbage to trick people who don't know how to do a ppsr check for $2.

                    In addition, they probably used chatgpt to write that "article", so that poster isn't wrong.

            • [Deactivated] on 18/02/2024 - 12:38

              @brendanm: The 2GR-FE V6 is notorious for oil leaks.
              $3-$5K to fix a timing cover leak.
              And how about $1-$1.5K just to replace a water pump?
              The V6 is a strong performer with reasonable economy (on the highway) but Aurions are let down by dreadful steering, brakes and suspension.

              • brendanm on 18/02/2024 - 12:56
                -1

                @[Deactivated]: Lol a water pump isn't $1k+.

                The steering brakes and suspension are the same as a Camry.

                • [Deactivated] on 18/02/2024 - 13:50

                  @brendanm: You obviously haven't had a water pump replaced in an Aurion.
                  Mechanics used to remove the engine to do the job but a workaround was discovered where they can do it without removing the engine.
                  Still, Toyota dealers quote $1,500 for the job using genuine parts.
                  I was quoted a laughable $1,750 using non-genuine parts by Lube Mobile.
                  Anyway, you're obviously an expert on Toyota Aurions. 🙄

                  • JIMB0 on 18/02/2024 - 14:02
                    +1

                    @[Deactivated]: Then get yourself a Toyota where the 2GR isn't mounted sideways. Much easier to work on with the added bonus of driving the rear wheels.

                    • [Deactivated] on 18/02/2024 - 14:45

                      @JIMB0: Yep I agree 100%.

                  • brendanm on 18/02/2024 - 16:41
                    -1

                    @[Deactivated]: I've replaced water pumps in aurions and klugers mate, so have a much better idea as to how it goes than you do. You remove the engine mount, and can manoeuvre the engine to get the pump out and back in.

                    I purchased one just to figure out the blowing smoke issues that everyone blamed on "valve stem seals", that wasn't.

                    • CurlCurl on 18/02/2024 - 16:53
                      +1

                      @brendanm:

                      I've replaced water pumps in aurions and klugers mate, so have a much better idea as to how it goes than you do. You remove the engine mount, and can manoeuvre the engine to get the pump out and back in.

                      That is how it is done know but ….Mechanics used to remove the engine to do the job but a workaround was discovered where they can do it without removing the engine.

                      https://au.toyotaownersclub.com/forums/topic/44132-toyota-au…

                      • brendanm on 18/02/2024 - 17:02

                        @CurlCurl: I'm aware of what Toyota says. The last time I worked on cars was about 6 years ago, and for many years prior to that I did them without removing the engine, if people are too dumb to figure it out for themselves, that's hardly my problem.

                        Other mechanics also used to remove the heads and have them done to solve the oil burning issue, when it's simply clogged valve cover breathers.

  • Dollar General on 18/02/2024 - 08:14
    +1

    For $37,500 I would have purchased a newer model Japanese or Korean car with new car warranty still on it.

    You’re paying $37,500 for someone else’s problems

  • conant on 18/02/2024 - 08:17
    +1

    I think Pickles uses Warranty group a few years ago. When you by from dealer why not by certified used car with extended factory warranty option?

    • Pelicannn on 18/02/2024 - 11:28

      +1 to certified used car from MB

  • Hardlyworkin on 18/02/2024 - 08:34
    +3

    Make friends now with a local Mercedes mechanic.

  • Sinnerator on 18/02/2024 - 08:38
    +2

    these warranties are only worth it if you are willing to take the matter to small claims court (xCAT)
    They are also filled with phuck the customer fine print clauses

  • bbinc on 18/02/2024 - 10:05
    +1

    Is it a golden handcuff? Service tied to selling dealer? Repairs only by them? Dealer will take a cut of that $4500. That’s a big premium for a very limited cover.

  • slacker on 18/02/2024 - 10:47
    +3

    Not worth it. That is a long list of exclusions. I think I've spent a total of $50 on repairs for my 10 year old car (that I've owned since new) that would not be excluded by that list.

    In general insurance works best for rare events that are financially devastating like writing off your car or your house burning down. If we look at a matrix of insurable events based on the likelihood of it happening vs the financial impact it would look like this:

    • Rare event, financially devastating - Definitely worth insuring.
    • Common event, financially devastating - You would not be able to afford the premiums (unless it is a community rating like health insurance). Find other ways of reducing the risk.
    • Rare event, financially annoying (eg $2000 or $3000). Not worth insuring. Better off self insuring. Used car warranty is in this category.
    • Common event, financially annoying. Generally better off self insuring unless you really want the predictability of fixed premiums vs an unexpected large expense. Pet insurance is in this category.
  • Pelicannn on 18/02/2024 - 11:05
    +2

    Thank you for your purchase of OzB’s favourite brand of high yield investment.

    Looking forward to reading your posts in 12-18 months OP.

    • Pelicannn on 18/02/2024 - 11:14
      +2

      As a legitimate response though… definitely do not buy that extended warranty. They usually have exorbitant requirements like 3-6 month service requirements and require you to send in a lot of documentation. If you miss doing it on time as per the T&C guaranteed they will tell you to take a hike.

      I’m not going to shit on your parade for buying an MB, I’ve had 3 BMW’s so I can’t talk, but I’ve always purchased my BMW’s from a BMW dealership, and they have always taken care of me, even outside of the normal manufacture warranty. The last of which on my previous car was to the tune of $3,000 for new brakes which developed an issue and they replaced without question.

      See if you can find the MB at a dedicated MB dealership that comes under their approved pre-owned. I reckon that would be a way better guarantee than that shitty aftermarket warranty. The car might cost a little more at the MB dealership though so it wouldn’t be a total saving of the full price.

  • CurlCurl on 18/02/2024 - 11:21
    +1

    Best post on this thread by far.

  • coffeeinmyveins on 19/02/2024 - 09:35

    put a deposit down for a 2017 Mercedes-Benz C-Class for $37,500

    I hope you have $10k to maintain it over the next 12 months.

    Why would you be spending that much on a 7 year old euro vehicle, and a C class at that.

    There's also a reason why it's 7 years old and being sold, because the original warranty is gone and the owner probably saw the issues starting to crop up because that's when these cars tend to have $5k fixes here and there.

    It would cost me $4,500 and it would cover me for 5 years. It would cover for up to $8,000 PER claim

    The fact that this is going to cost you $1000 per year should tell you how little faith they have in the vehicle not having any claims.

    Also as others have pointed out, you will have to fight tooth and nail for any claim, and read the fine print. 100% they will force you to service it with them every 3-6 months and have a bunch of exclusions from claiming, which are the things you would think you'd be covered for but aren't.

    Don't look at the pretty badge OP, there's a reason why these euro trash cars have such high rates of depreciation.

  • AngusD on 19/02/2024 - 10:00
    +1

    Don't do it. For all the reasons mentioned by comments above - they're never worth it. Only car warranty worth anything is the manufacturer's warranty. The other thing I've been warned about these used car warranties (never bought one of them myself) is that they won't pay to fix something until it's completely broken. Got a funny noise coming from the car somewhere? They don't care as long as the car is still running. They'll wait until that squeak or rattle develops into something that is actually seriously broken, and hopefully by then the warranty has expired and it won't be their problem. Save your $4,500 towards future repairs, otherwise you'll be paying for a useless warranty and still end up paying for the repairs out of your own pocket on top of that.

    You're better off finding a good independent mechanic that specialises in Mercedes - ask around in online forums, Facebook groups, etc dedicated to your chosen car to find out which are the best ones near you. These are often significantly cheaper than going to a dealer for repairs.

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