Team-BHP > The Indian Car Scene


Reply
  Search this Thread
22,100 views
Old 17th May 2017, 18:23   #16
BHPian
 
ksameer1234's Avatar
 
Join Date: Sep 2014
Location: Mumbai
Posts: 775
Thanked: 2,700 Times
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.
ksameer1234 is offline   (4) Thanks
Old 17th May 2017, 21:48   #17
BHPian
 
Join Date: Feb 2008
Location: New Delhi
Posts: 316
Thanked: 134 Times
Re: Mercedes launches extended warranties of up to 6 years

Quote:
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.
BeamerBoy is offline   (3) Thanks
Old 18th May 2017, 01:53   #18
BHPian
 
tp_dominator's Avatar
 
Join Date: Dec 2016
Location: Pune
Posts: 201
Thanked: 973 Times
Re: Mercedes launches extended warranties of up to 6 years

Quote:
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 ?
Quote:
Originally Posted by Jeroen View Post
I’d say it’s 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 hasn’t changed. The car and it’s component don’t start behaving differently because you have or have not bought insurance.

Thanks
Jeroen
Quote:
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).
tp_dominator is offline   (4) Thanks
Old 18th May 2017, 10:08   #19
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 70,429
Thanked: 299,657 Times
Re: Mercedes launches extended warranties of up to 6 years

Quote:
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.
GTO is offline   (3) Thanks
Old 19th May 2017, 10:47   #20
BHPian
 
Join Date: Nov 2014
Location: Chennai
Posts: 53
Thanked: 20 Times
Re: Mercedes launches extended warranties of up to 6 years

I just clocked 3 yrs with my W212 a week back.
E90-E250 is offline  
Old 19th May 2017, 22:15   #21
Senior - BHPian
 
dailydriver's Avatar
 
Join Date: Feb 2017
Location: Cynical City
Posts: 1,217
Thanked: 6,405 Times
Re: Mercedes launches extended warranties of up to 6 years

Quote:
Originally Posted by GTO View Post
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:
Attached Thumbnails
Mercedes launches extended warranties of up to 6 years-screenshot_20170519213851470_com.android.chrome.png  

dailydriver is offline   (3) Thanks
Old 21st May 2017, 15:33   #22
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 70,429
Thanked: 299,657 Times
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.
GTO is offline   (4) Thanks
Old 21st May 2017, 18:28   #23
Senior - BHPian
 
Arjun Reddy's Avatar
 
Join Date: Jun 2013
Location: Bangalore
Posts: 1,529
Thanked: 2,891 Times

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 ?
Arjun Reddy is offline  
Old 25th June 2018, 12:23   #24
BHPian
 
pdiw's Avatar
 
Join Date: Mar 2010
Location: Bangalore
Posts: 33
Thanked: 80 Times
Re: Mercedes launches extended warranties of up to 6 years

I agree with GTO. Last year I bought 4th year warranty and my car developed only ABS sensor issue. The cost of the part covered under warranty was 20K.

Now I have two options to buy for my C class limited edition.
1. 5th year for 1,58,356/-
2. 5th + 6th year for 3,09,160/-

There is a catch here, there is no option to buy for only 6th year at end of 5th year warrenty.


I am thinking to go without warranty and visit 6th gear for further service. Please let me know if anyone has different experience.
pdiw is offline  
Old 25th June 2018, 17:37   #25
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 70,429
Thanked: 299,657 Times
Re: Mercedes launches extended warranties of up to 6 years

Quote:
Originally Posted by pdiw View Post
1. 5th year for 1,58,356/-
2. 5th + 6th year for 3,09,160/-
That is insane pricing! 1.5 lakhs per year is just insane. Please avoid. I doubt your car will even need repairs worth 3 lakhs in the 5th & 6th years.
GTO is offline   (1) Thanks
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks