Was charged @ $1100 for a 2-year lease. But I don’t think it is worth after realizing it’s just oil change.
Do I have to go to the dealer where I signed the lease, or any dealer, or even online? The dealer is a bit far.
Also, how easy will it be to cancel it? Thanks a lot!
Look in the paperwork regarding it. The answers should be there
In addition to this you might have extra generous protection as a CA resident.
Thanks for the hint. Yes, online search shows the plan can be cancelled only for CA residents. But I don’t see such a contract in my package?
Quote from online search:
I just bought the four year pre-paid maintenance plan with my 2015 S550. On page 3 of the contract, the section Cancellation reads as:
Subject to any specific exclusions or limitations under State law, the Mercedes-Benz Prepaid Maintenance Agreement cannot be cancelled by the purchaser and is non refundable.
On the forth page of the PrePaid Maintenance Agreement, there’s a subsection dedicated to California:
In California, the Purchaser may cancel this Agreement at any time by submitting a written cancellation request to the Selling Dealer or any authorized Mercedes-Benz dealership.
Before going to the dealer to cancel it, I want to make sure the numbers are clear.
The PPM is charged at $1100. The MSRP is $850. The dealer mark-up is $250.My lease RV% is 63% (or 64%?), and tax rate is 9%.
So the refund should be $1100*(1-RV%)1.09=$443.63?
Or, $850(1-RV%)1.09=$342.81?
Or, ($850(1-RV%)+$250(mark-up))*1.09+=$615.31?
Thanks!
Hey thanks for this post. I just got ripped off on the PPM also. Is this a sure thing for California?
It should be. Just found a friend who did this last year. Full refund
But he did purchase option and refund amount is easy to calculate. Not sure how to calculate the refund with lease
It should be the first one. That’s why dealer won’t be happy as they will be losing the whole 250
You basically input how many miles at the time of refund and MB will state how much the refund will be
The first one won’t let them lose the whole mark-up? Only 250x37%1.09 is refunded.
Or I only paid the above mark-up effectively anyway?
Thank you for the hint!
Ops you are right. 3rd one, i mis-read it
Best route to go when getting PPM is having it residualized into the lease, so you don’t pay the full amount.
Thanks for the hint. But how did I know if it’s residualized or not? Can it be found in the lease contract? Shouldn’t it be automatically?
Thanks!
Dumb question…I am about to sign an AMG Gle with 5k miles. But the car has been sitting for over a year since build. Should the dealer do the oil change and rear axle differential oil change before delivery? Is ppm worth it for the next services on a 36mo lease?
If the vehicle is due for service A soon, ask the dealer to do it prior to you signing the lease. Getting the PPM at retail value and getting it residualized is usually a good idea because you only pay a portion of the cost. 2 service PPM is 850$ and 3 service is 1110$. If the residual on the lease is 55%, you will basically be paying 45% of the cost of the plan.
On a demo, you might be able to negotiate that they add the 3 service PPM without passing the cost to you since you will need 3 services during a 36 month lease (instead of 2) if the vehicle is not due for service A now.
I’m just wondering if you got your refund on the PPM. I have a plan on my leased MB that I’m looking to cancel. If you were successful, I would be grateful for any advice and wording that got you the result you wanted (particularly if there is a specific piece of legislation that you relied on). Thanks.