Long story short: I have a 2008 mercedes. I bought it used a yr ago and purchased an extended warranty policy from a company called Easy Care. The engine light came on last week. I took it to a european car repair shop down the road from my home. They told me it was still under factory warranty until 50,000 miles (it's at around 49,200 right now), and that I should therefore take it to the dealer. I called the mercedes dealer; they couldn't fit me in until thursday (yesterday). Just got a call today from dealer stating that factory warranty ran out at 48 months--NOT 50,000 miles (whenever THAT was)--and that they called Easy Care and they refuse to pay b/c "according to them it's a pre-existing condition because the european repair place I 1st took it to had already inquired about the problem back when the factory warranty was still in effect." They said their coverage only kicks in AFTER factory has expired (even though I've been paying for it for over a year). Apparently, my car issues came up at around the same time factory warranty was expiring. But because i inquired about repairs with another repair shop BEFORE the expiration of said warranty, now my extended warranty company refuses to even discuss the issue (according to the local mercedes dealer). What kind of recourse action can I take here?! Thanks for your time! :)
Country relating to Question: United States
Thank you for the post, I am happy to assist you by answering your questions. Were you within 48 months of first purchase when the 1st repair facility took possession of the vehicle for the diagnostic?
I'm not sure of the 1st purchase date since I bought it used. I guess I can call the dealer I bought it from and request that info. (?)
ok, does the factory warranty run from the date of first purchase or some other date?
Please excuse my ignorance in these matters--my husband of 20 yrs and I are recently separated and he usually handled this sort of thing . :) Where would I locate that information regarding the factory warranty? I do know that the mercedes dealer is who told me the factory warranty had just expired "a few days ago..."
Not at all a problem, the factory warranty generally starts when the vehicle is considered first put in use. In use is the commensurate with the date of first sale. Therefore your warranty very likely started when the vehicle was first sold and continued uninterrupted through your purchase. Assuming that the factory warranty was in place when you first identified the problem, but not when the vehicle was first presented to the dealership for the problem, the terms of your extended warranty would govern. Therefore you should review your extended warranty for the definition of "pre-existing condition" to determine whether this issue can be deemed as such. If the definition does not include this instance, then you should demand that the extended warranty company honor the warranty provision (contract terms) else you file suit for Breach of Contract. Please let me know if you need additional guidance or have any follow up questions.
Thank you SO MUCH for your time and expertise!!! :)
Thank you, XXXXX XXXXX to offer a rating if I have answered your questions.
Thanks again for your help. I called my extended warranty co today and asked them for their definition of a "pre-existing condition" and I was told that it's simply a condition that existed BEFORE the warranty was purchased. My situation just arose last week and I purchased the warranty in May 2011. When I took the car in for estimates at the FIRST repair shop, I had no idea the car was still under factory warranty. But by the time I got it to the 2nd shop, because the 1st shop had already inquired with the extended warranty co, they're trying to claim that it's my fault that the (unbeknownst to me) factory warranty had lapsed during the interim period. Anyway, the "cancelation dept" of the extended warranty co is supposed to call me on Monday morning re: this matter...I told them they could either make me happy or cancel the contract. If there's any advice you may have to offer before then, I would greatly appreciate it. And I certainly don't mind if there's an additional fee for your extra time, in case I've exceeded some sort of time limit here. Just let me know. :)
Thank you for the follow up, the issue is that in canceling the contract and allow the extended warranty to simply cancel the contract and refund your money, that remedy fails to properly compensate you as you purchased the warranty for exactly this reason and the claim that "we will just refund your money (rather than honor the contract)" leaves you without an extended warranty, a necessary repair that you will have to pay out of pocket (because for any other warranty company it truly will be a pre-existing condition), and a diminished opportunity to purchase an extended warranty from another vendor due to the car's age and mileage. Therefore you can demand that they either comply with the terms of the contract and cover the repair, or refund not only your money paid thus far but also a sum to compensate you for the position you are now in having relied on their representation they would actually warranty the vehicle.
Thank you AGAIN! Can I hire you for further assistance should I need it? What if they balk? My car's at the 2nd shop now and I decided I want THEM to do the work. The estimates from both shops were approx the same, but the 2nd shop gave me a loaner vehicle (which is something I couldn't have done without). But to top it all off, I need to get my car repaired and returned to me ASAP so that the engine light goes off so that I can pass the smog test in order to renew my tags, which expire on June 30! Good Lord...It's ALWAYS something, right?! :)
Thank you for the follow up. It is indeed "always something." I am happy to assist you further by answering your questions, but must respectfully XXXXX XXXXX you rate my previous answers if I have answered your prior questions, otherwise I will receive no credit for assisting you thus far.
Negotiate, Draft, and Review many complex commercial agreements each year.
Please remember to positively rate my answers if I have answered your questions, and please let me know if you have any follow up questions.
Hey again! Ive spoken with somebody at the extended warranty co about covering the repairs. I told them I was demanding that they honor the contract and cover my current repairs given that my situation did not fall under their definition of pre-existing condition, as the warranty was purchased in May 2011. They told me that they had "advised Christy" (a person I've never met) at the 1st shop I took it to for estimates that the car was still under factory warranty for a few more days, and that I should therefore take it to a dealer for the repairs. I WAS told there was approx 950,000 miles left on factory warranty, but I feel that's beside the point. I had to make an appt with the dealer, and by the time they could get me in and reserve me a loaner car, the factory warranty had apparently expired. So now the extended warranty co says that "they did their job by advising Christy (the person I've never met) at the 1st shop to take my car to the dealership" and because I failed to do so during the timeframe in which they had "advised Christy" that there is nothing more they can do for me. "Sorry we can't help you with this" is what I was just told. I explained that I felt they were breaching the contract and that I wasn't going to simply go away. They didn't care. They did say I can have an attorney write a letter to their law dept should I wish to pursue this further. My thinking is that if I cancel the contract and receive a refund, THAT money would cover the cost of my repairs. What do YOU think? Thanks again for your time! :)
Thank you for the follow up, Christy was not your agent, and despite whatever directive/request was made of Christy it is not construed as communicated to you. Further, whether such a directive/request was made boils down to their word against Christy (or whomever), but that is really not the point. The issue is that the extended warranty is to pick up immediately after the factory warranty expires, and the factory warranty expired when the need for repair was presented to a repair facility. I think you should consider retaining counsel to contact the warranty company on your behalf advising that the refusal to honor the warranty is a breach of contract for which you will file suit seeking specific performance if necessary.
I agree and am actually willing to do so based on principle. Is it possible for me to retain YOUR services to proceed with this issue? Thanks again for your time!
Regrettably we cannot take on JA customers as clients for our respective practices. But you should consider making use of the local lawyer referral service offered by the state bar association.
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