Warranty Direct - 3 year-old car

[Participant]

Hi all

The original 3 year manufacturer's warranty has expired on my E-Class with 25k miles and I'm assessing options for an extended warranty vs. self insuring.

Mercedes want close to £800 for a year, Warranty Direct (which covers wear and tear if sub 70k miles) is £348 with a £100 excess.

This apparent price difference is too much to ignore and given that there are also plenty of examples of manufacturer warranties being declined, would it be a terrible idea to select Warranty Direct over the manufacturer's equivalent and save ~£500?

WD seem to cover multimedia equipment and include AA roadside and home start (though since I'm still servicing the car at Merc dealers, I already effectively have this anyway).

Not sure self insuring is a great idea; I'm obviously scared of the air suspension, gearbox, and engine checking out.

Thoughts welcome, thanks.

 

[watercooledman]

Warranty direct will screw you over
Chop the merc in for a newer model

 

[HangTime]

This apparent price difference is too much to ignore and given that there are also plenty of examples of manufacturer warranties being declined, would it be a terrible idea to select Warranty Direct over the manufacturer's equivalent and save ~£500?

Bear in mind the WD cost appears to be about £450 for a single claim (premium plus excess) which is the same as the differential to Merc warranty. So if the price difference of £450 is "too much to ignore" is it also too much to ignore the prospect of doing without warranty altogether on what is still a relatively new vehicle?

 

[Participant]

Warranty direct will screw you over
Chop the merc in for a newer model

They must pay out sometimes?! If they do try and do that unfairly presumably there's recourse with the FCA.

Thought about swapping the car, but it's been so utterly brilliant and reliable, and is loaded with options, so we've decided to purchase it from the finance company for the balloon payment of £17k. Any upgrade would cost more than the value we'd get from it.

Bear in mind the WD cost appears to be about £450 for a single claim (premium plus excess) which is the same as the differential to Merc warranty. So if the price difference of £450 is "too much to ignore" is it also too much to ignore the prospect of doing without warranty altogether on what is still a relatively new vehicle?

The above cost is for WD's 'Gold' product which is zero excess; £100 is voluntary. Edit - oh I see what you're saying; if I claim then the effective delta is less as there's no excess on the Merc one?

WD with zero excess is £472 so £330 cheaper.

 

[NathWraith]

Warranty direct will screw you over
Chop the merc in for a newer model

Here he is.

OP I'd go with Mercedes but if it's not viable you re likely better just setting aside some money "just in case" rather than bothering with warranty direct types.

A 3 year old E class with less than 30K on the clock would not concern me out of warranty one bit.

 

[Participant]

Here he is.

OP I'd go with Mercedes but if it's not viable you re likely better just setting aside some money "just in case" rather than bothering with warranty direct types.

A 3 year old E class with less than 30K on the clock would not concern me out of warranty one bit.

Interesting, thanks. I wonder what the cost of replacing air suspension, gearbox, or god forbid engine is in one of these things?! I could fund it outright but wouldn't enjoy it! But then fear is how insurance makes money .

 

[Diagro]

Be warned.

Warranty direct will get out of paying for anything.

I've had experience with them twice. Both times, they refused.

One, engine failed. They claimed wear and tear.

Second a rear shock failed and also broken rear spring. They claimed the car was specialist and also possible that due to wear and tear, the items failed.

So yea... don't bother.

 

[[TW]Fox]

Why do you want a warranty?

For me, the purpose of a warranty is to remove any hassle, faff or uncertainty from the car ownership process. If my car breaks down, I want to make a quick phone call after which it is collected and replaced with a hire car until such time as it is fixed by my local trusted main dealer. The knowledge that this is the service I am paying for and will get in the event of, say, my turbo failing is why I maintain the manufacturer backed insured warranty on my car. Essentially, it continues the seamless service I benefited from (and you did too) from the new car warranty on the car.

If it was strictly a financial decision then I have made the wrong one - in the years since my manufacturer warranty expired on my car I have made zero claims - I am objectively in a worse financial position than I would have been had I not bothered with a warranty. But I've instead benefited from virtually zero risk, which is something I value.

I therefore struggle to see where the cheaper warranty providers fit into this - it doesn't remove the uncertainty or the risk for me, it simply adds more - so for me it became about either manufacturer warranty or no warranty at all.

 

[Housey]

I therefore struggle to see where the cheaper warranty providers fit into this - it doesn't remove the uncertainty or the risk for me, it simply adds more - so for me it became about either manufacturer warranty or no warranty at all.

Yup, though most extended warranties are 3rd party provided.

 

[[TW]Fox]

Yup, though most extended warranties are 3rd party provided.

Virtually all are - I should have clarified I mean manufacturer backed warranties. They are all insurance policies, but the manufacturer ones generally tend to be better integrated with the dealerships and have clearer and fairer terms. This is because not only are they intended to be an insurance policy to generate revenue but they also provide peace of mind for the brand and drive new and used sales. There are plenty of people who are loyal to a brand because they know they can get 4-5 years out of a car using a combination of manufacturer and extended warranties.

 

[Participant]

Why do you want a warranty?

Fear of a huge bill annoying me when there are so many things I'd rather spend money on, especially since I'm now contractually a home worker.

Financially insurance only makes sense if you're unlucky, but that small chance of a large bill keeps me keen.

 

[jellybeard999]

On average, it must cost less, otherwise warranty companies wouldn't make any money. Though this relies on actually saving the money and being able to afford potentially a few grand in one go, on the basis that you save £x hundred pounds a year.

I appreciate some cars may have huge repair bills or particular weaknesses, so it'll come down to the risk appetite of the owner.

Then there's the convenience aspect fox mentioned - I guess this may be important if you're very reliant on your car for work or personal reasons.

I'm firmly in the camp of bank the cost of the warranty and pay for repairs as necessary.It's all a gamble!

 

[jellybeard999]

Fear of a huge bill annoying me when there are so many things I'd rather spend money on, especially since I'm now contractually a home worker.

Financially insurance only makes sense if you're unlucky, but that small chance of a large bill keeps me keen.

£800 a year is £4000 over 5 years and that's not counting the excess. Obviously it's possible, but Id say it's very unlikely to cost that to maintain a 3-8 year old C class on non wear and tear items that you'd be able to claim for.

How long do you plan to keep the car for?

Will you keep paying the £800 (assuming it doesn't increase with age/mileage) when it's older (and more likely to fail), despite the car being worth much less?

 

[Rotty]

A 3 year old E class with less than 30K on the clock would not concern me out of warranty one bit.

exactly, a few weeks ago I bought a 4 yr old C class coupe for a daily, the 2.1 diesel, never gave warranty a minutes thought, millions of taxi drivers doing stellar mileage on same engine can't be wrong


as others have said though if you want the piece of mind (and I will on other car) manufacturer warranty is only way to go

 

[Deleted User 298457]

I know where you are coming from OP. My E expires in December and the whole air bag situation is what makes me think it's a good idea

However 800 quid a year sounds steep...

 

[NathWraith]

Just had a look at what the extended warranty is for the C63 as it's warranty expire at the end of this month.

£2,729 for 12 months
£5,400 for 24 months

No excess.

a lot of cheddar IMO. I'll likely just let the wrranty run out and pay for anything thats doing myself. Car has only done just over 15K miles (2018 - 18 plate).

 

[Minstadave]

Just had a look at what the extended warranty is for the C63 as it's warranty expire at the end of this month.

£2,729 for 12 months
£5,400 for 24 months

No excess.

a lot of cheddar IMO. I'll likely just let the wrranty run out and pay for anything thats doing myself. Car has only done just over 15K miles (2018 - 18 plate).

Better off just slinging the cash into savings if you have the discipline at those prices.

 

[bobuk]

I've found that with Warranty Direct it's more like breakdown cover, trying to get them to cover warranty claims is like pulling your teeth out with a pair of tweezers.

 

[ezekial]

Just had a look at what the extended warranty is for the C63 as it's warranty expire at the end of this month.

£2,729 for 12 months
£5,400 for 24 months

No excess.

a lot of cheddar IMO. I'll likely just let the wrranty run out and pay for anything thats doing myself. Car has only done just over 15K miles (2018 - 18 plate).

Wow, that is unbelievable

 

[ezekial]

I've found that with Warranty Direct it's more like breakdown cover, trying to get them to cover warranty claims is like pulling your teeth out with a pair of tweezers.

Yes, I had them decline a warranty claim due to faulty injectors and in the report they said that they never actually inspected the injectors because they couldn't find them? But if it was the injectors they weren't going to cover so they didn't. I just rejected the car so I didn't fight it but damn.