The Demise of MB Service Contracts?

[bill3862]

I made an application for Service + contract via my dealer on 04.04.2008 and duly signed on the dotted line committing to three years.

I have this morning received a telephone call from my dealer stating that my application is now on hold whilst MB make a decision regarding this service and its format/conditions.

This NOW CONFIRMS the rumours ciculating that MB are either dropping this service or going to radically change it.

Although I have signed and committed to this contract, I now await the outcome of MB examing my application and their signature to commit to their obligations.

If it radically changes either in service provision/price then I will make decison to continue with MB or change marque.

I will update members with outcome of my application.

Bill

 

[portzy]

I will update members with outcome of my application.

Bill

Yes please/thank you Bill, I am quite seriousley considering one of these.

Portzy.

 

[bill3862]

Portzy

I suspect that this MB Service is going to be radically changed and probably will make it a non starter. I understand that MB having been loosing money with this scheme in its present format which does not bode well for any revamping.

I am sure that MB want to retain as much business as is possible in the present economic climate but will do themselves or their authorised Agents no favours if the scheme is over priced or devalued too much in what it offers.

I have noticed many Authorised MB outlets offering incentives for servicing etc (my own knocking 25% off labour rates until end of April) which can only mean that MB owners are now using more economic servicing/repair outlets which in return is reducing work available to these outlets.

Bill

 

[Rory]

I'd be surprised if MB lose money of ServicePlus. I know some people have done OK out of it, but I've not heard of engines being replaced etc. I expect it to cost me way more than I'll get out of it, the balance being insurance / peace of mind.

I do think MB have got themselves in a mess with S+. in the UK, it's run on the commerical vehicle system (that's why the quotes are in KMs) and it's ended up operating like a full service and repair maintenance contract which I am sure is not what they really intended.

From MB's point of view, it probably doesn't entice many new owners, but it does encourage existing owners to hang on to their cars - not a good thing for new car sales.

I would guess they might move to the German system that was mentioned the other day by raymont:

one scheme the operates during warranty and includes pads / discs and one which kicks in after the warranty and is described as a service with warranty product.

 

[Rory]

Posted in wrong thread

 

[jeremytaylor]

I had got a quote from them a few weeks back, pending confirmation of mileage. On reading this thread I rung up to 'give them my mileage and proceed'.

The very nice lady on the phone said that, as of this morning the product was suspended for new applications, and that it would most likely be replaced with 2 new products - Service (covering, presumably, just the cost of routine servicing with exclusions as to certain parts and associated labour) and Service + Friction (presumably as above to include cost and labour of brake parts).

I suggested to her that, presumably both products would be cheaper than Service Plus, given the reduced cover. She said she would hope so, but that all would be confirmed next week, when they wold also make a decision as to what to do with pending applications.

 

[crockers]

Sh!t.............. there goes my plans .........

Bill... a contract is legally binding if it has offer / acceptance / money or monies worth.

If they offered you service + and you accepted you have covered the first 2 items - if you filled in an ddm and they accepted that you have covered the third but without any monetary instrument being transacted you have not entered into a contract.

They may also use the get out that the illustration / quotation was an invitation to make an offer - so when you signed up you made the offer and they have now not accepted it....

All in all a pretty poor show if this is the case .... and I for one am not overly over joyed in hearing this news ...May make me rethink my future MB ownership after the warranty period......then it may not...

 

[Rory]

The very nice lady on the phone said that, as of this morning the product was suspended for new applications, and that it would most likely be replaced with 2 new products - Service (covering, presumably, just the cost of routine servicing with exclusions as to certain parts and associated labour) and Service + Friction (presumably as above to include cost and labour of brake parts).

So that sounds the same as the BMW Service and Service & Maint packages.

I suggested to her that, presumably both products would be cheaper than Service Plus, given the reduced cover. She said she would hope so, but that all would be confirmed next week, when they wold also make a decision as to what to do with pending applications.

That'll be interesting. BMW Service & Maint is so cheap it's a no brainer. The obvious downside for some people is that it's limited to 60K miles.

 

[portzy]

Portzy

I suspect that this MB Service is going to be radically changed and probably will make it a non starter. I understand that MB having been loosing money with this scheme in its present format which does not bode well for any revamping.Bill

Thanks Bill.

Story of my life, just as I decide the rug is pulled etc. All I want, or was looking for, is something that effectively extends the three year warranty for total peace of mind.

Oh well.

Portzy.

 

[crockers]

Thanks Bill.

Story of my life, just as I decide the rug is pulled etc. All I want, or was looking for, is something that effectively extends the three year warranty for total peace of mind.

Oh well.

Portzy.

Same here.... I wonder now how many people will leave the marque after 3 years ? Also - besides Mobilio there seems to be less incentive to maintain a MB full Service history as once the car gets on a bit the extra value in resale is easily outweighed by the savings in servicing....IMHO

 

[jeremytaylor]

BMW Service & Maint is so cheap it's a no brainer. The obvious downside for some people is that it's limited to 60K miles.

BMW obviously know how long their cars last

 

[Rory]

Same here.... I wonder now how many people will leave the marque after 3 years ? Also - besides Mobilio there seems to be less incentive to maintain a MB full Service history as once the car gets on a bit the extra value in resale is easily outweighed by the savings in servicing....IMHO

I think the whole market and pricing is so screwed up in the UK, that taking into account monthly ServicePlus costs, plus ongoing monthly depreciation, that you would be probably better off (or certainly not much worse off) buying a new car on a PCP every 3 years. You'd still have to pay for servicing but it should only need to most basic stuff doing plus maybe a couple of tyres.

You'd get a new car every 3 years and that what all the manufacturers want to happen.

Where this does tend to fall apart with brands like MB is if you like your cars with a lot of options - they tend to skew the PCP prices and you lose a lot of the option value.

 

[Rory]

BMW obviously know how long their cars last

Who cares? They want to sell new cars, what happens at 5yrs+ doesn't matter.

Having said that, there was story in the Telegraph over the weekend of a failed engine in a 1996 BMW and BMW offered a contribution of several thousand pounds. (Although the car wasn't worth repairing anyway).

 

[portzy]

Also - besides Mobilio there seems to be less incentive to maintain a MB full Service history as once the car gets on a bit the extra value in resale is easily outweighed by the savings in servicing....IMHO

Just what I was thinking. I have a "Service E" scheduled for this Saturday with no other choice really because there is still six months of the warranty to run.

Portzy.

 

[bill3862]

Sh!t.............. there goes my plans .........

Bill... a contract is legally binding if it has offer / acceptance / money or monies worth.

If they offered you service + and you accepted you have covered the first 2 items - if you filled in an ddm and they accepted that you have covered the third but without any monetary instrument being transacted you have not entered into a contract.

They may also use the get out that the illustration / quotation was an invitation to make an offer - so when you signed up you made the offer and they have now not accepted it....

All in all a pretty poor show if this is the case .... and I for one am not overly over joyed in hearing this news ...May make me rethink my future MB ownership after the warranty period......then it may not...

Crockers

I had received via telecon a confirmed price for Service + from the girls at MB and then gone two days later to Dealer to complete necessary documentation, quoting reference number given by MB.

Although I have signed/accepted proposal forms and authorised a DDM, I doubt very much this will mean a thing to number crunchers at MB as its not signed on their side.

What might make them think is my changing marque (four vehicles purchased in eight years) in light of this and indicated part exchange value on July 2005 E220CDI Elegence with Command and so on with less than 26000 miles on clock - approx £15000 meaning a £10995 knock in two years and £21600 on new price !!!!

Therefore much vaunted excellent residual values of MB, together with Main Dealer customer service/vehicle servicing costs make MB ownership very questionable in my book. Couple this with Service + experience now and I am seriously doubting the wisdom of further allegiance.

Bill

 

[Rory]

What might make them think is my changing marque (four vehicles purchased in eight years) in light of this and indicated part exchange value on July 2005 E220CDI Elegence with Command and so on with less than 26000 miles on clock - approx £15000 meaning a £10995 knock in two years and £21600 on new price !!!!

Don't blame you - few could live with dropping £20K+ in under 3yrs for under 30K miles on an E220CDi.

 

[BTB 500]

Thread title is possibly a little misleading as I suspect Sevice Contracts will continue, with just Service Plus being dropped?

 

[fuzzer]

MB service plus costs an absolute arm and a leg compared with the BMW versions that are available. Not good VFM at all!

 

[bill3862]

Thread title is possibly a little misleading as I suspect Sevice Contracts will continue, with just Service Plus being dropped?

BTB

Bill

You maywell be correct but I feel it will all depend on number crunchers at MB, and we all know how brilliant they were in late 90's/early 2000 in cost cutting and the results, which have costs MB £millions in rectfying quality issues/faults to protect marque name. It would not surprise me if MB dropped the whole Service Contract provision.

Should Service contracts continue, I have no doubt this will result in higher costs for less cover and will make it less attractive to those of us that considered Service Contracts, and Service + in particular.

I have no doubt that MB would have made money out of my contract but peace of mind was greatest incentive for me personally in continuing ownership of the vehicle.

For information, my vehicles has been subject of four faults/warranty claims since February 2006 - 2 x electronic faults linked to airbags and restraints resulting in replaced part of wiring loom, one Sat Nav aerial replaced and tomorrow, part of exhaust to be replaced (common fault I am told).

Outside of warranty period, I can imagine the costs factors of correcting these faults.

Bill

 

[crockers]

MB service plus costs an absolute arm and a leg compared with the BMW versions that are available. Not good VFM at all!

Are you comparing like with like ???