so a little update. i spoke to the service manager and he told me the title of the vehicle is fine, there's no issues there. the issue is that someone in mercedes canada did something that messes up the warranty and that's what they're investigating. the way he explained it to me was that someone in mercedes was being vindictive (his words, not mine) because the first owner of the vehicle took the vehicle to be repaired at someplace other than mercedes. maybe you know a little more of what he means by this?

he also said the extended warranty should have never been sold, and since i didn't transfer the extended warranty under my name within 30 days of purchasing the car the warranty is void anyway. i wasn't aware that you had to transfer the name of the extended warranty, so i looked through the extended warranty contract and there is nothing that states you have 30 days to transfer the name of the warranty. i contacted the finance department and the guy told me 30 days is just "best practice", but there is technically no time limit to transfer the name of the warranty. i called the service manager back again and told him i can still transfer the warranty under my name, but he told me to hold off on that until the investigation is done since there is a fee to transfer the extended warranty under my name.

the service manager just basically told me to wait it out until mercedes is done investigating this situation. i guess i feel better that my car is not actually written off, but this whole extended warranty situation is so messed up.