Just saying .. There are other factors (pre-paid maint & ELW)

Apr 28, 2018 | 12:06 PM

rroberts

Thread Starter

Member

Joined: Jun 2002

Posts: 198

Likes: 15

From: Southern California

C63s coupe

Just saying .. There are other factors (pre-paid maint & ELW)

Posting this here after posting similar as a reply in the E63s forum, since relevant here and to both pre-paid maintenance and ELW. The original topic was does pre-paid maintenance really save money.

Pre-paid maintenance can save you "up to 30% off" -- but notice those "up to" weasel words and .... You can save 15% with a Costco card at most dealerships or by just using the regular monthly specials they send you e-mails about. Next there is the time-value of money. If you pay now and you can be earning 15% on your money elsewhere, maybe your money should be elsewhere. Even in 2008-09 my money market funds paid 15%. [Stable investments for 15% in bad years and 25% in good ones lets me sleep at night.] Next, if you pre-pay maintenance and you trade in do you get anything back or additional? On MBZ's Extended Limited Warranty (ELW) you do not, versus being able arguably get some value back if you transfer to a private party purchaser. Just saying ....

May 19, 2018 | 07:30 AM

BillyD

Senior Member

Joined: May 2010

Posts: 357

Likes: 51

From: S. Florida

'12 R197, '17 S63A4, '13 CLS4M, '99 A208 320CLK'99 CLK320A

Quote:

Originally Posted by rroberts

On MBZ's Extended Limited Warranty (ELW) you do not, versus being able arguably get some value back if you transfer to a private party purchaser. Just saying ....

The above statement is incorrect. If the ELW has never been used, it is fullly refundable on a prorated basis. I have purchased 7/75 warranties on our last 4 purchases and 3 have been fullly refunded when we traded the vehicles in during the original (non-extended) warranty period. The fourth had a $3500 ELW repair on it in it's 6th year. BTW, the 7/75 warranty was less than half the cost of the repair it covered.

Hope this helps.
Bill