Dealer Service Required for Mercedes Lease?

Ask the Hackrs
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Hi leasehackr,

We leased a GLC350e this Monday from a MB NoCal dealer. When we were signing the contract, we were told by finance manager that Mercedes does not cover maintenance cost which we were aware of. He recommended us to purchase pre-paid service plan from them, because we were leasing 36 months, so we should purchase three services which costs ~$3000 (they can sell us at ~$1500). If we declined and planned to do services at any place other than (any) MB dealer, at the end of the lease, they will charge us $3000 anyway. We were caught off-guard regarding this and agreed to purchase the service plan and put it into our payment which is ~$45 per month.

My questions are:

  1. is there such requirement from MB lease or finance manger was bluffing? Never seen this in other thread before.
  2. Am I allowed to do service at other place such as renowned local german car shop?
  3. If there is no such requirement, can I return the service plan?

Thanks in advance

2

Legally, you can take your car anywhere for service. They’re trying to use a scare tactic. Just save your receipts.

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I believe if you buy MB Maintenance it gets residualized, so even if they sell it for 1500, part of the cost is offset by it being bundled into the lease. Run the numbers and see if it makes sense.

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4

No requirement. They lied. Yes call MB financial and see if you can cancel it.

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5

When I got my Audi in September, I was told by some people that with these new luxury cars the in built computer tracks service and you have to get it done by a dealer who can do the work and also update the software to show service done. If you don’t, they supposedly fine you at the end. This sounds like he was trying to convince of you something similar to what I heard.

First service was free for me so haven’t decided on whether or not to call their bluff.

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6

By law, an auto manufacturer cannot “fine” you by going to an independent shop for repairs/maintenance. Save the receipts to show the work was done, and go wherever you wish for service.

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7

Dealer told us the total cost of 3 services is 3k. Mercedes will pay for 1.2k, Costco member another 300 bucks down, which ends at 1.5k.

8

They lied.

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9

I had my Mercedes serviced at an independent mechanic, had no issues when turned in. Supplied by receipts, no proof of service although it had been done

10

If it added 45 a month looks like they may have charged the 3000 but it got residualized. Hope they also didn’t lie you into a bad lease as well.

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45 * 36 = 1620 (tax included) which sounds about right. If maintenance cost can be residualized, it should be 3000 * 0.4 (59% residual value) = 1200. we should pay 1200 but 1500. But I don’t understand why service cost can be residualized.

Forgot to share the lease details:
MSRP 56.4K
sell price 42.xx K
drive off 3k (include 1st month payment and other fees)
monthly: 407 + 45(maintenance cost amortized) = 452

12

Yes 45 times 36 is 1600 which means they charged 3000 once you factor the residual. Basically you got lied to.

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I was planning to cancel this, but before doing that I called some german car shops for their prices on 3 services, I got one replied with 36x + 63x + 36x = ~14xx. Since the number is close to what we paid to dealer, we decided to stay.

14

I’d cancel it out of principle!

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