Need advice on service contracts for my new mini cooper(36 months lease)
#1
12-31-2018, 01:33 PM
Need advice on service contracts for my new mini cooper(36 months lease)
Hi!
Happy New Year!
I went to dealer and leased a mini cooper s 2 hardtop 2019 yesterday for 36 months yesterday.
I also bought three service contracts(protection packages) from dealer in the final financial step. Frankly I'm not familiar about those protection packages, and I know I can cancel them within 30 days after purchase. So I just selected three protection packages which might be useful in my opinion.(I might be wrong since I'm new in this area)
Here're details of three packages I've selected:
1. TIRE AND WHEEL PROTECTION (36 month plan) $805
I selected this one mainly because my current car(Audi) has replaced 4 tires in the past 4 years because of road hazard (Maybe I'm so unluck? ) and it would cost me more than $1000 dollars if without this protection package
2. MINI MAINTENANCE UPGRADE $600
This upgrade is only for the 3rd maintenance at 36000 miles or 36 months.
This protection package includes the replacement of brake lintings(pads) and rotors, external drive belts, clutch disc, wiper blade inserts and other stuff. The financial guy told me that in most cases dealer needs to replace the brake pads, rotors and discs when the 36 months lease ends. It would take me much more than the price of this protection package($600) to replace and repair them.
I'm very doubtful about it, but I still selected it since I can cancel it later
3. EXCESS WEAR AND TEAR $1199
This includes waiver of covered excess wear and tear charges up to 5000.
Above protection packages are really expensive. I'm not sure how useful actually it is.
1. I'd like to have advice on whether should I keep some of those protection packages or remove them.
2. In addition, I wonder can I purchase and negotiate the protection packages later from another dealer different from the one where I bought the car? I guess I can get better price if I can negotiate them between different dealers
More information:
My wife will mainly drive it from home to her work. She's a fairly new driver. For the long distance driving, we won't use this car.
Can anyone give any advice? Thanks in advance!
Happy New Year!
I went to dealer and leased a mini cooper s 2 hardtop 2019 yesterday for 36 months yesterday.
I also bought three service contracts(protection packages) from dealer in the final financial step. Frankly I'm not familiar about those protection packages, and I know I can cancel them within 30 days after purchase. So I just selected three protection packages which might be useful in my opinion.(I might be wrong since I'm new in this area)
Here're details of three packages I've selected:
1. TIRE AND WHEEL PROTECTION (36 month plan) $805
I selected this one mainly because my current car(Audi) has replaced 4 tires in the past 4 years because of road hazard (Maybe I'm so unluck? ) and it would cost me more than $1000 dollars if without this protection package
2. MINI MAINTENANCE UPGRADE $600
This upgrade is only for the 3rd maintenance at 36000 miles or 36 months.
This protection package includes the replacement of brake lintings(pads) and rotors, external drive belts, clutch disc, wiper blade inserts and other stuff. The financial guy told me that in most cases dealer needs to replace the brake pads, rotors and discs when the 36 months lease ends. It would take me much more than the price of this protection package($600) to replace and repair them.
I'm very doubtful about it, but I still selected it since I can cancel it later
3. EXCESS WEAR AND TEAR $1199
This includes waiver of covered excess wear and tear charges up to 5000.
Above protection packages are really expensive. I'm not sure how useful actually it is.
1. I'd like to have advice on whether should I keep some of those protection packages or remove them.
2. In addition, I wonder can I purchase and negotiate the protection packages later from another dealer different from the one where I bought the car? I guess I can get better price if I can negotiate them between different dealers
More information:
My wife will mainly drive it from home to her work. She's a fairly new driver. For the long distance driving, we won't use this car.
Can anyone give any advice? Thanks in advance!
#2
12-31-2018, 04:57 PM
First, I believe that the three packages are pure profit for the dealer.
The Tire and wheel package would depend on where you live and the road conditions there. It would also depend on your parking skills.
I think the maintenance package would be a waste since oil changes are included in your lease period. You aren't responsible for the last maintenance when you turn in the car. If they have to replace the brakes to resell the car, that's on them. As long as the brakes aren't worn to the backing plate you should be ok.
I've leased many cars before and never have I had to replace tires or brakes in that time period. I also have never had to pay for excess wear and tear. When I leased from Chase, they included up to $1500 in excess wear and tear as part of the lease. Dents and scratches can be claimed on your insurance but you have to pay the deductible, which would still be cheaper than $1199. Tires will need replacing if worn to the wear bars. You just need to replace them with something with an equivalent rating. Doesn't have to be new, can be used.
The Tire and wheel package would depend on where you live and the road conditions there. It would also depend on your parking skills.
I think the maintenance package would be a waste since oil changes are included in your lease period. You aren't responsible for the last maintenance when you turn in the car. If they have to replace the brakes to resell the car, that's on them. As long as the brakes aren't worn to the backing plate you should be ok.
I've leased many cars before and never have I had to replace tires or brakes in that time period. I also have never had to pay for excess wear and tear. When I leased from Chase, they included up to $1500 in excess wear and tear as part of the lease. Dents and scratches can be claimed on your insurance but you have to pay the deductible, which would still be cheaper than $1199. Tires will need replacing if worn to the wear bars. You just need to replace them with something with an equivalent rating. Doesn't have to be new, can be used.
The following users liked this post:
lhykakaxi (01-01-2019)
#4
01-01-2019, 09:38 AM
I would decline all of these. The maintenance upgrade strikes me as unethical. Unless you plan to put more than 36K miles on the car, that maintenance isn’t your problem. They are asking you to cover their cost of turning the car around to resell.
Even considering your bad luck with tires, the tire and wheel package probably doesn’t make sense. Many of these plans include a deductible in the range of $50. With that, your benefit on a $200 tire is $150. If you made 4 claims in three years, your cost (assuming there is a deductible) would be $1005. Many of these plans don’t cover curb rash so unless you Live in an area where broken wheels are common, you aren’t likely to get any benefit on wheels. So it seems like the math works in their favor on this, not yours.
I bought my MINI used in April. The price was $15000. I paid cash but had to meet with the “finance” person because that’s who does the paperwork. She handed me a list of the warranties and plans they recommended for my car. They totaled more than $11K! That was a new low in dealer greed, in my experience. I declined them all. She pressed so hard that I was about to walk away from the deal. They do that because the dealer profit on these plans is huge. In most cases, the dealer benefits far more than the customer.
Good luck and congratulations on the car.
Even considering your bad luck with tires, the tire and wheel package probably doesn’t make sense. Many of these plans include a deductible in the range of $50. With that, your benefit on a $200 tire is $150. If you made 4 claims in three years, your cost (assuming there is a deductible) would be $1005. Many of these plans don’t cover curb rash so unless you Live in an area where broken wheels are common, you aren’t likely to get any benefit on wheels. So it seems like the math works in their favor on this, not yours.
I bought my MINI used in April. The price was $15000. I paid cash but had to meet with the “finance” person because that’s who does the paperwork. She handed me a list of the warranties and plans they recommended for my car. They totaled more than $11K! That was a new low in dealer greed, in my experience. I declined them all. She pressed so hard that I was about to walk away from the deal. They do that because the dealer profit on these plans is huge. In most cases, the dealer benefits far more than the customer.
Good luck and congratulations on the car.
The following users liked this post:
lhykakaxi (01-01-2019)
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