A new car purchase is an exciting, stressful and expensive experience. All of those factors contribute to potentially costly mistakes, but those mistakes may often occur following the actual vehicle purchase.
If you have lived long enough then you have likely heard people say that you get what you pay for, which can be valid. With the purchase of your Mercedes-Benz, you have chosen a reputable, recognized quality vehicle. In this case you really do get what you pay for, but what about all of those extended warranties, options and coverages?
Regardless of the terminology, such as warranty options or additional insurance coverage, it all equates to extended warranty plans. So understanding what an extended warranty is, what it does and the two primary types is important.
Thinking of an extended warranty as medical insurance for your vehicle is a good point of reference. These can vary in just how comprehensive they may be, and there are a variety of warranty plans with varying deductible rates too.
The primary concept of an extended warranty is to provide insurance to cover any repair expenses that are required following the expiration of the manufacturer’s warranty. Determining your need for an extended warranty will depend on your intentions.
If this is a vehicle that you expect to have for many years, maybe the car you will hand down to your child, then it makes good practical sense. If you are uncertain of how long you will have your new vehicle, or if you know that you intend on trading this car in within a few years, it may not be a wise decision.
Manufacturer-backed and third-party warranties are the two basic types of extended warranties. Although these won’t generally differ that much, how they are handled could be a different matter.
With manufacturer-backed extended warranties, repairs are made in franchised dealership shops and the dealership service writer will most often approve repairs quickly. A third-party backed warranty is underwritten by another company and how long it takes for approval and repairs may be a timely process.
The hours spent test driving, discussing and debating the right price can be considerable. You are excited about a new purchase of a great car, stressed over the money, decisions and time spent and that can be a recipe for failure.
It is common for the salesperson to spend all those hours with you, getting the right car, right terms and right price. Then, when you think it is about to be wrapped up, this salesperson introduces you to the sales manager (sometimes called the F&I manager). Next comes the seemingly endless pitches, additional that, extra this and many other optional protections that sound essential and paramount.
This is in no way happenstance, this is a designed and proven method that dealerships use to boost profits for each vehicle sale. If you do your homework, know what you need and why you need it, then you can avoid falling prey to many of these tactics.
A salesperson who cares about getting you the best deal will take time to understand and know your needs. They will know that you only plan on keeping this vehicle for three years and won’t feel compelled to push unwanted and unneeded expenses on you.
Independent dealers who take the time to know their customers and understanding sales people who desire to meet your expectations and needs are what you seek. A company that values you and your business will be obvious, both during the sale and throughout the after market purchases and processes. Congratulations on deciding to go with a proven and established manufacturer like Mercedes-Benz. A car of this quality deserves a trustworthy and respected dealer – and so do you.