Yesterday we looked at the Mercedes-BenzCertified Pre-owned (MBCPO) program. (Read Part I here.) Not everyone can afford to pay the sticker price or the upkeep of a new Mercedes-Benz. The MBCPO program is a way for those with champagne taste and a beer budget to own one of the most renowned luxury cars on the planet.
Here are the nuts and bolts of the Mercedes-Benz certified pre-owned (MBCPO) program:
- A “rigorous” inspection process with all deficiencies brought up to Mercedes-Benz standards.
- An extended warranty: 5-years/100,000 from the in-service date with the option of buying another one or two year extension.
- 24-hour roadside assistance for the life of the vehicle.
- Up to three days trip interruption benefits.
- A free CARFAX vehicle history report.
- 7-day/500 miles exchange program.
How Much Can You Save?
I live in the San Francisco Bay Area so I went to the website of Mercedes-Benz of San Francisco to look at MBCPO vehicles. I found a certified 2008 Mercedes-Benz C-Class C300. This 4-door sports sedan has a 3.0-liter, 6 cylinder engine, automatic transmission, and just over 20,000 miles. It also comes with factory options, including:
- Premium 1 package
- iPod integration kit
- 7-speed driver-adaptive automatic transmission
- 6-CD changer
I then called the dealership. I talked with Sebastian, the Pre-owned Manager, and discovered that the sticker price on this C300 when new was $38,800. Expect a new 2011 model to be that or more. The selling price for the certified 2008 model that I found online is $27,975. That’s a saving of $10,825 before price negotiations take place. Plus, the buyer receives an extended warranty that has significant value.
There’s another temporary benefit that is available on some 2007-08 certified Mercedes-Benz models. Qualified buyers receive 1.99% financing over 36 months. Offer is good until August 31, 2010.
Certified Pre-Owned (CPO) Programs
I regularly recommend to family, friends, and readers of this website to at least consider a CPO vehicle when buying pre-owned. CPO vehicles not only meet a higher standard, but the manufacturer’s extended warranty protects the buyer should problems arise. There is usually a short list of other benefits, from receiving a vehicle history report to free roadside assistance.
Expect to pay a premium for a CPO vehicle. However, the added cost is off-set by added value. Remember too that the actual premium you pay for a CPO vehicle is determined by your negotiation skill. The benefits of any CPO program don’t diminish just because you made an exceptional deal.