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Old 17th May 2017, 18:23   #16
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Default Re: Mercedes launches extended warranties of up to 6 years

Another reason for staggered pricing is the psychological ploy of making a line shorter by drawing a longer line beside it. 5.97L within 3 months isn't small amount but suddenly looks quite reasonable when put against 11.46L at 24-36 month interval. The top-most option is only there to extend the scale.
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Old 17th May 2017, 21:48   #17
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Default Re: Mercedes launches extended warranties of up to 6 years

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Originally Posted by redeff View Post
.....

BTW have you seen the BSI rates as on date? Also I believe that BSI is non transferable...
Just a correction. BSI from BMW is transferable. It is latched to the Chassis Number. No paperwork needed. You sell your BMW and if it has any BSI cover, it goes along with the car.

MB tie up with insurance company for warranty extension! I hope they do not increase the paperwork involved in the repairs. Like quote and pre approval and the final payout approval. It would help if they keep the repair experience just like the standard warranty provides.
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Old 18th May 2017, 01:53   #18
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Default Re: Mercedes launches extended warranties of up to 6 years

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Originally Posted by Arjun Reddy View Post
Thanks for the response from the inside. All the number crunching and data analysis is fine. Then why differentiate between 0-3 months and 3-12 months ? Why couldn't it have been a straight forward 0-12 months ?
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Originally Posted by Jeroen View Post
Iíd say itís still a marketing ploy. Sure enough the risk increases when the life of a product increases. But why charge more when you purchase the insurance later? The risk as such hasnít changed. The car and itís component donít start behaving differently because you have or have not bought insurance.

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Originally Posted by GTO View Post

Sales strategy man, just to entice people to buy it ASAP. Indians are known to keep their options open till the deadline. Ever seen the lines at government offices on the due date?

Most people will just add the warranty to their new car invoice and thus, the loan.
Perfectly explained by GTO! Also, in insurance business, there are two types of risks - the good risk and the bad risk. As a vehicle ages, the risk tends to move from being good to bad. The profitability of the insurer depend on how many good risks are underwritten. Extending the warranty while in the third year of ownership, you already may have a doubt about the car's reliability and hence one is willing to take up as much cover as possible. Simultaneously, the insurer will have to bear any costs associated with warranty claims in the extended warranty period which will shoot up the costs of the insurer and hence the higher pricing towards the end of the standard warranty since it amounts to being a bad risk.

However, this necessarily does not mean that extended warranty purchased with a new car will prove to be profitable to the insurer. It may turn out to be even more disastrous since the owner had already paid a lesser amount. The differential pricing helps bring the losses down as from an organizational point of view, the risk underwritten is averaged out amongst the pool of insureds (owners who have purchased extended warranty).
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Old 18th May 2017, 10:08   #19
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Default Re: Mercedes launches extended warranties of up to 6 years

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Originally Posted by Simple_car View Post
The prices seem to make sense only if you buy new. For an existing owner, these prices make little sense.
'New car' business is priority no.1 for any car manufacturer. Hence, nearly all initiatives are rolled out from that POV only. At least the option is available to existing owners, however overpriced it might be.
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Old 19th May 2017, 10:47   #20
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Default Re: Mercedes launches extended warranties of up to 6 years

I just clocked 3 yrs with my W212 a week back.
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Old 19th May 2017, 22:15   #21
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Default Re: Mercedes launches extended warranties of up to 6 years

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At least the option is available to existing owners, however overpriced it might be.
Slightly off topic.

Was looking at the NEXA site and was pleasantly surprised to find that extended warranty can be bought anytime before the expiry of the standard warranty period/2 years.

But just like Mercedes (and probably all other manufacturers), NEXA's charges too keep escalating with the passage of time. A sample:
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Mercedes launches extended warranties of up to 6 years-screenshot_20170519213851470_com.android.chrome.png  

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Old 21st May 2017, 15:33   #22
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Default Re: Mercedes launches extended warranties of up to 6 years

^ One reason that warranties are getting longer & longer (and you can buy them anytime) is profit. In this era of transparent service charges & lower ownership costs, the service departments of dealerships are under a lot of pressure. The longer the warranty, the more years that owners will get work done at authorised workshops. If my car wasn't covered for 6 years, she'd already be visiting independent workshops.
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Old 21st May 2017, 18:28   #23
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Quote:
Originally Posted by GTO View Post
^ One reason that warranties are getting longer & longer (and you can buy them anytime) is profit. In this era of transparent service charges & lower ownership costs, the service departments of dealerships are under a lot of pressure. The longer the warranty, the more years that owners will get work done at authorised workshops. If my car wasn't covered for 6 years, she'd already be visiting independent workshops.

Had similar thoughts. I am due to visit a local service station called 6th gear in Bangalore. Heard a lot about their service especially of the big three German cars. They seem confident when I spoke to them on the phone. They claim that they use OEM parts and the service costs and parts are at about a third of what you would get charged at the ASS.
Hope to start a thread on their service once I get to see that place, though I will not be able to use their services till I am out of the Mercedes warranty.
In six years I will probably do 60-70k kms on my C250 , already have a 4 year warranty on the car , does it really warrant a 5th and 6th year warranty ?
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