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Old 05-07-2014, 10:17 AM   #1
XDCX
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Default Mercedes Certified Pre-owned now offers Unlimited Mileage Warranty

I was watching TV the other night and decided to watch a Mercedes commercial - it was promoting their Certified Pre-owned Program.

I was amazed when I saw that the commercial emphasized that the mileage portion of the Pre-owner coverage was for unlimited miles - I actually watched the commercial again on my Tivo to make sure I understood the coverage correctly.

I did a quick review of the Mercedes webpage and verified that the unlimited mileage coverage applies to most non-AMG models. The coverage has no deductible and it's transferable if the current owner sells the vehicle to a private party.

Unlimited mileage is an appealing offer but I know people who drive 40,000 - 50,000 miles per year - I wonder how the new CPO program will "pencil out" for Mercedes?
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Old 05-09-2014, 12:37 PM   #2
Bondo
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I haven't yet really seen a serious uptick in sales from what I perceive to be a direct correlation to the Unlimited Mileage Program, but then again, it's pretty new. Perhaps it could be a way to bite into the companies that offer maintenance on a new car (albeit the UMP is for CPO cars). I figured every real estate agent in town would be beating down our doors, but again it's still fairly new.

What I think is a better program (as far as closing deals) is the 2 payment credit and two years complimentaty maintenance for CPO cars that Mercedes rolls out about once a quarter. Some customers come in knowing about it already, but if they don't it is a very powerful closing tool--I love breaking the news to people, it's the sweetest icing on the cake.

The UMP is, however, pretty incredible on the right car. A customer of mine bought a 2014 E63S, drove it for about two or three months, and then traded it back in on a new S550 4matic. I then sold the E63 to another customer of mine, and since it was CPO, he is getting an additional year of warranty with unlimited miles. So almost 5 years with unlimited miles. Sweet deal.

On another note, since Feb. 2012 when I started, the lowest CPO rates were always 1.99%--they've just this month jumped to 2.99%. Economy recovering?

Last edited by Bondo; 05-09-2014 at 12:42 PM.
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Old 05-12-2014, 10:40 AM   #3
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Bondo - thanks for the information - I always like to hear what sales promotions seem to be working and which ones are still waiting to gain traction.

Concerning the Unlimited Mileage coverage on CPO - I agree that the program is still new and perhaps there's not that much awareness. To me it seems like it could be a costly program for Mercedes - granted they make excellent vehicles but all cars start to have failures at some point.

Also interesting to hear that Mercedes' promotion where they offer to cover two payments and provide two years of maintenance is a better closing tool. That is a great offer and the fact that Mercedes only offers it on occasion makes it seem more like a genuine sale. (Like the Nordstrom "Half-Yearly Sale" that some people mark on their calendar.)

On a final note, it's interesting that Mercedes has increased the lowest finance rate from 1.99% to 2.99%.
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Old 05-13-2014, 10:33 AM   #4
conn02
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Had a friend that would look to buy lemon law buybacks (12 month unlimited mile warranty) from my store because he was a maintenance tech for a copier company and would put 100000 miles a year on a car (he got a mileage allowance from the company) after a year he would buy another he really loved the Dodge Spirits and Plymouth Acclaims.
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Old 05-14-2014, 06:57 PM   #5
mryan55
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Quote:
Originally Posted by conn02 View Post
Had a friend that would look to buy lemon law buybacks (12 month unlimited mile warranty) from my store because he was a maintenance tech for a copier company and would put 100000 miles a year on a car (he got a mileage allowance from the company) after a year he would buy another he really loved the Dodge Spirits and Plymouth Acclaims.
Could just sell one of those $4,100 cost Max Care lifetime $0 deductible warranties!
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Old 05-15-2014, 11:47 AM   #6
XDCX
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Originally Posted by mryan55 View Post
Could just sell one of those $4,100 cost Max Care lifetime $0 deductible warranties!
Holy smokes - $4,100 is the dealer cost for a service contract?

I wonder if Auburn Hills sells many of those plans?
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Old 05-15-2014, 03:07 PM   #7
mryan55
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I was off a little bit... cost is $3,670... and Chrysler's advertised retail and required retail price for Florida is... $5,070. Yikes!
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Old 05-17-2014, 07:04 PM   #8
ohiobuckeyes
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Chrysler CPOV Max Care Lifetime (CMLN) is only $2005 (Cost with/4x4). MSRP for the plan was only $3105 (w/4x4). Helps that you a DE and you buy it at cost. CPOV Lifetime only comes with a $100.00 Deductible.

I should know I have this plan on my 12 Grand Cherokee I purchased in October. Made my former dealership CPOV the vehicle so I could save on the Service Contract.
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Old 05-17-2014, 08:58 PM   #9
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Unless you are faithfully selling Chrysler Service Contracts exclusively CPOV is becoming less of of a deal... up to $350 per unit, and as we sell Zurich primarily, the CPOV does not provide a great advantage cost-wise.
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