Prepaid maintenance - yes or no?
#1
Member
Thread Starter
Prepaid maintenance - yes or no?
On a three-year (10k per) E 450 lease, PPM is currently $1275. Assuming no excess mileage, would it make more sense to roll it into the lease, or to skip it and pay out of pocket for each service? If it's common practice to end the lease a few months early and start the next lease, would you even get to a third service? I won't be servicing the car where I'm leasing it -- too far away -- and I'm not yet sure what my local dealer charges per service. Maybe this varies from dealer to dealer? Just wondering how you veteran MB drivers who are leasing typically handle this.
#2
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I prefer to purchase PPM up front at today's cost and never worry about future price increases. As to not using a service, as long as you stay in the Mercedes family at lease end (i.e., get another MB car), Mercedes will refund any unused portion of the PPM you didn't use.
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lensjack (10-23-2018)
#3
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I do not lease and drive very few miles so your service situation may be different than mine which is based on time, not miles. I wait until after the first A service to prepay so the services covered are B A B instead of A B A. The B service is more expensive than the A services. I paid out of pocket for my first A service that was discounted with a coupon from MB USA.
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lensjack (10-23-2018)
#4
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2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
This is my second lease, 10K, 36 months. I take the two year prepaid maintenance - not the 3 year 30,000 mile, with each lease:
Two reasons:
1) The cost of the prepaid maintenance is put into the lease and is residualized: you only pay 41% (the residual is 59% for 10K, 36 months) of the cost: and
2) You will turn in the car before the 30,000 mile service.
I service my MB at a local dealer - not the dealer I bought the car from.
Absolutely no problem: when the local dealer puts my VIN in the program, (actually when I drive into the service are, my name and VIN number appear on the dealer's "white board". Pretty neat the first time I saw it happen) the prepaid maintenance immediately pops up.
Remember dealers make their money on service not sales, so you local dealer will be very happy to service your car!
Hope this helps.
Two reasons:
1) The cost of the prepaid maintenance is put into the lease and is residualized: you only pay 41% (the residual is 59% for 10K, 36 months) of the cost: and
2) You will turn in the car before the 30,000 mile service.
I service my MB at a local dealer - not the dealer I bought the car from.
Absolutely no problem: when the local dealer puts my VIN in the program, (actually when I drive into the service are, my name and VIN number appear on the dealer's "white board". Pretty neat the first time I saw it happen) the prepaid maintenance immediately pops up.
Remember dealers make their money on service not sales, so you local dealer will be very happy to service your car!
Hope this helps.
Last edited by JTK44; 10-23-2018 at 05:58 PM.
#5
MBWorld Fanatic!
I don't believe that dealer's service departments make much money on any car that is under warranty unless it comes from MB USA for warranty work. My first A service cost $125 after MB USA coupon. The second service is estimated to be about $300. $425 is not much revenue for 2 years servicing my E300. The only warranty work after a year was a software update.
#6
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Thread Starter
This is my second lease, 10K, 36 months. I take the two year prepaid maintenance - not the 3 year 30,000 mile, with each lease:
Two reasons:
1) The cost of the prepaid maintenance is put into the lease and is residualized: you only pay 41% (the residual is 59% for 10K, 36 months) of the cost: and
2) You will turn in the car before the 30,000 mile service.
I service my MB at a local dealer - not the dealer I bought the car from.
Absolutely no problem: when the local dealer puts my VIN in the program, (actually when I drive into the service are, my name and VIN number appear on the dealer's "white board". Pretty neat the first time I saw it happen) the prepaid maintenance immediately pops up.
Remember dealers make their money on service not sales, so you local dealer will be very happy to service your car!
Hope this helps.
Two reasons:
1) The cost of the prepaid maintenance is put into the lease and is residualized: you only pay 41% (the residual is 59% for 10K, 36 months) of the cost: and
2) You will turn in the car before the 30,000 mile service.
I service my MB at a local dealer - not the dealer I bought the car from.
Absolutely no problem: when the local dealer puts my VIN in the program, (actually when I drive into the service are, my name and VIN number appear on the dealer's "white board". Pretty neat the first time I saw it happen) the prepaid maintenance immediately pops up.
Remember dealers make their money on service not sales, so you local dealer will be very happy to service your car!
Hope this helps.
In placing my order, I haven't followed every bit of advice posters have given. For example, I opted for RWD despite several strong recommendations in favor of 4MATIC. Living in Southern California, I never drive in snow and rarely in rain. And I've driven RWD in winter all over New England and Europe. Very comfortable with it. Wanting a cushy cruiser above all else, I put the money into Air Body Suspension instead. But whether followed or not, I remain grateful for every bit of advice and insight experienced MB drivers have generously shared here. It's really flattened the learning curve for me.
Now if one of you guys hitting Sindelfingen in early December could just pick up my car and load it onto a C5-M headed to Edwards AFB...
#7
Senior Member
I prefer to purchase PPM up front at today's cost and never worry about future price increases. As to not using a service, as long as you stay in the Mercedes family at lease end (i.e., get another MB car), Mercedes will refund any unused portion of the PPM you didn't use.
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#8
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2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
Dear Kindscorpian27:
You stated:
Can you verify this?
At the end of my lease, when I returned my car under mileage and spoke to MBFS. I was told basically, but very politely, "use it or lose it:
Are you saying that prepaid maintenance is different: if you do not use it, you get your money back?
Thanks.
You stated:
"it works out better to include it in the lease because it is less than out of pocket. As long as it’s a MB product the unused portion will be prorated and you will receive the difference if you are no full term on your lease "
Can you verify this?
At the end of my lease, when I returned my car under mileage and spoke to MBFS. I was told basically, but very politely, "use it or lose it:
Are you saying that prepaid maintenance is different: if you do not use it, you get your money back?
Thanks.
#9
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2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
Dear UA529:
The prepaid 2 year 20,000 mile service is $890.
Your two coupons total $425, which is half the price.
It would seem that it would be foolish then for anyone to buy the prepaid service,
The prepaid 2 year 20,000 mile service is $890.
Your two coupons total $425, which is half the price.
It would seem that it would be foolish then for anyone to buy the prepaid service,
#10
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2022 GLE 450 (Black on Black)
FYI. When MB re=purchased our 2018 E400 Convertible this past August, I had the prepaid maintenance. When they settled our claim, they did not return any of the prepaid maintenance which i had not used at all. So be aware of the program. The savings these days are not that great as compared to when the program was introduced years ago. Do the math first and see if its a good investment as it applies to your specific model and engine size. On the other hand, my tire protection program was returned by the dealer at almost 85% of the cost.
#11
MBWorld Fanatic!
FYI. When MB re=purchased our 2018 E400 Convertible this past August, I had the prepaid maintenance. When they settled our claim, they did not return any of the prepaid maintenance which i had not used at all. So be aware of the program. The savings these days are not that great as compared to when the program was introduced years ago. Do the math first and see if its a good investment as it applies to your specific model and engine size. On the other hand, my tire protection program was returned by the dealer at almost 85% of the cost.
#12
Senior Member
Dear Kindscorpian27:
You stated:
Can you verify this?
At the end of my lease, when I returned my car under mileage and spoke to MBFS. I was told basically, but very politely, "use it or lose it:
Are you saying that prepaid maintenance is different: if you do not use it, you get your money back?
Thanks.
You stated:
"it works out better to include it in the lease because it is less than out of pocket. As long as it’s a MB product the unused portion will be prorated and you will receive the difference if you are no full term on your lease "
Can you verify this?
At the end of my lease, when I returned my car under mileage and spoke to MBFS. I was told basically, but very politely, "use it or lose it:
Are you saying that prepaid maintenance is different: if you do not use it, you get your money back?
Thanks.
#13
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2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
Are you both saying this was a dealer policy, possible influenced by your purchase/lease of a new MB or was this a policy of MBFS, the owner of the car?
#14
MBWorld Fanatic!
Point in fact: When I take delivery of the 2019 E450, the PPM, Wheel and Tire Insurance and Extended warranties I purchased with the E300, will all be transferred to the new car.
#15
Senior Member
Good question, I just don’t have the answer to that question. The 1st instance was purchase from one dealer financed with MBFS trade in and up at another dealer financed with Chase. That was a MB owned service agreement. Second instance was leased at one dealer with MBFS, early lease return at another dealer financed by MBFS. Hopefully this will help clarify