@UnFadeable21 it looks like that vendor sprays a cosmoline variant that is tinted black (possibly with graphite?). Not a bad thing at all. Cosmoline has been used by the US military for decades and, IIRC, was developed either by or for the military. Cosmoline will arrest any rust that is present (ensure you remove any heavy flakes with a wire brush) and prevent further corrosion. I’ve used it on my 200 and around the shop on various implements - it’s good stuff. Goes on wet and dries to a waxy film that is VERY durable. The big benefit with cosmoline is that is dries and is less messy when compared to lanolin products like Woolwax - which will always be oily (wet) to the touch. The downside is cosmoline has very little, if any, creeping ability and it does not “self-heal” - it is thus not a good candidate for interior/cavity applications (inside frame rails, doors, fenders, etc.) or areas with exposure to rock chips / road debris (control arms, etc.).
Also, recommend checking out this thread for additional info on lanolin-based undercoatings (Fluid Film, Woolwax, Surface Shield, etc.). Fluid Film was also developed by the military - I think the US Navy. These products have their place and are excellent at creeping into cracks/crevices.
forum.ih8mud.com
I recommend Repair Geek’s YouTube channel. He goes down the undercoating rabbit hole in some of his videos. BLUF - each product has its use case (lanolin, cosmoline, etc.). And whatever you do, stay away from the rubberized stuff (Ziebart); it will destroy your frame and trap moisture - as others have noted.
EDIT to add: IMO $500 is a bit steep. Around here, there are a few shops that apply Woolwax. You’re looking at $200 for a full-size SUV. Personally, I did my own application of cosmoline (CRC Rust Inhibitor), Woolwax, and Surface Shield. I spent around $300 for materials, but this was my initial “baseline” coating and I went liberal with the products.