Purchased a CPO Benz with a Mileage Blocker Installed

[Razorsedge1]

I can't think of much worse trade in situation than having car listed as true mileage unknown. If you settle with dealer make sure they fully compensate you for diminished resale value. Good luck.

[swils8610]

If MB finds out it had the blocker on it and that it is TMU they will void the warranty on the car. The ECU has memory in it. The dealer or MB can pull that info. MB won’t cover anything as they don’t know the accurate mileage. Read the fine print in the back of the warranty or owners manual. And yes I’ve seen this happen before.

[swils8610]

Originally Posted by Razorsedge1

I can't think of much worse trade in situation than having car listed as true mileage unknown. If you settle with dealer make sure they fully compensate you for diminished resale value. Good luck.

That’s accurate. The car is worth less than 50% being TMU.

[RoyalOac]

Originally Posted by swils8610

I run 2 dealerships in NY. Make the dealer take the car back. Nothing else should be acceptable. It’s true mileage unknown. I have no idea if you find financed it or not...virtually no bank will finance a TMU car. You really have no idea how many miles are on that car. It added 7k when they unhooked the blocker. Who is to say that’s accurate? We would NEVER sell a vehicle TMU. CPO or not CPO. Also with MB you can’t CPO a vehicle that is TMU. Who knows what else could have been done to the car. Run from that car. Google true mileage unknown vehicles and read what comes up. Get ahold of the GM or dealer owner. Mention the attorney general and dmv. I can assure you NO dealer wants an investigation from the AG or DMV.

Originally Posted by swils8610

The OP has the dealer at his mercy...not because of warranty work or anything else. The OP has the dealer at his mercy because the OP can report the dealership to the AG or DMV. If it was my store I’d be begging the customer to bring the car and refund his money and a little extra for his troubles. The OP has a vehicle that nobody really knows the actual miles on it. Why would anyone buy a vehicle that the actual miles are unknown unless it’s 1k beater. If the title comes back with TMU listed on it it’s worth less than half of a legit car. The fact it’s a MB will make TMU even worse. It’s not a Chevy. It’s a luxury vehicle. Run from that car. As a GM of 2 dealers I wouldn’t want to take it on trade being TMU. If I had I’d take it in for 25% off it’s actual value and hope I sell it at auction.

Thank you for the valuable information.

I spoke to the dealership in person with the GM and the sales rep who sold me this car this afternoon. They could not have been more cordial about the whole ordeal. The GM immediately mentioned a full refund or a full credit on another vehicle in their dealership and other brands that they carry.

I don't think I will want a CPO vehicle anymore and opted for the full refund, and make up my mind later on what vehicle I would want to purchase as a replacement. I already have several vehicles for transportation in the mean time.

[Laszlo]

Originally Posted by RoyalOac

Thank you for the valuable information.

I spoke to the dealership in person with the GM and the sales rep who sold me this car this afternoon. They could not have been more cordial about the whole ordeal. The GM immediately mentioned a full refund or a full credit on another vehicle in their dealership and other brands that they carry.

I don't think I will want a CPO vehicle anymore and opted for the full refund, and make up my mind later on what vehicle I would want to purchase as a replacement. I already have several vehicles for transportation in the mean time.

Holy cow, you bought the car today? Glad it worked out. There’s nothing wrong with CPO, but buyer should use intuition. A new car is always nice!

[Old Geezer]

Originally Posted by RoyalOac

Thank you for the valuable information.

I spoke to the dealership in person with the GM and the sales rep who sold me this car this afternoon. They could not have been more cordial about the whole ordeal. The GM immediately mentioned a full refund or a full credit on another vehicle in their dealership and other brands that they carry.

I don't think I will want a CPO vehicle anymore and opted for the full refund, and make up my mind later on what vehicle I would want to purchase as a replacement. I already have several vehicles for transportation in the mean time.

Glad the dealer stepped up and gave you a full refund. Nobody needs this headache.

[Andad]

Originally Posted by Laszlo

Holy cow, you bought the car today? Glad it worked out. There’s nothing wrong with CPO, but buyer should use intuition. A new car is always nice!

??

[ckaynyc]

Originally Posted by directioneng

??

#readingcomprehension

[swils8610]

Great ending! There are very legit dealers in business. They did the right thing. Good ending all around.

[Brenngun]

A question for those in the know on this thread. If MB can pin point when this device was installed and they can access the DMV records of who owed the car at the time can they sue the owner of record? Would there be any potential for fraud charges by local police?

Also to the OP. Glad it all worked out for you. Smart to take the full refund and take a breath.

[swils8610]

Speaking from a dealer point of view I would go after whoever traded the car in. If the car was purchased at an auction the dealer should have recourse with the auction. At some point it should fall back on the original driver of the car. It’s fraud.

[goin camping]

OP, The dealership stood up and made it right without a fight. All dealerships should do this but not all do.

I'd buy another car from that dealership with confidence. when you find a solid place. Reward them with your trade.

Ask them if they will apply the money to a new car priced at %4 under invoice.

Happy it all worked out for you.

No, I am not in the car business.

[bdex75]

Originally Posted by swils8610

Speaking from a dealer point of view I would go after whoever traded the car in. If the car was purchased at an auction the dealer should have recourse with the auction. At some point it should fall back on the original driver of the car. It’s fraud.

I don’t have to say this as everyone knows that Shannon knows, but I will anyhow.

If this is like every state I have leased/bought cars in, when the previous owner/lessee traded in or turned in the car they signed an odometer statement, attesting to the miles on the odometer.

Assuming for a minute that the original owner leased the car since new, and MB doesn’t install mileage blockers from the factory (this is a joke. ha, ha funny) then the previous owner had the device installed. He/she has defrauded the dealer and I am sure the dealer will look to that individual for recourse.


Sent from my iPhone using Tapatalk Pro

[Chiboy]

Originally Posted by bdex75

I don’t have to say this as everyone knows that Shannon knows, but I will anyhow.

If this is like every state I have leased/bought cars in, when the previous owner/lessee traded in or turned in the car they signed an odometer statement, attesting to the miles on the odometer.

Assuming for a minute that the original owner leased the car since new, and MB doesn’t install mileage blockers from the factory (this is a joke. ha, ha funny) then the previous owner had the device installed. He/she has defrauded the dealer and I am sure the dealer will look to that individual for recourse.


Sent from my iPhone using Tapatalk Pro

I agree with the above, and am glad the dealer took the obvious and correct path right away.

[locutus49]

We are getting ready to buy a new MB SLC 300 (two-seater sports coupe with retractable hard top). No discounts as they are so rare we have to special order one. We live in San Diego area.

[swils8610]

Originally Posted by Chiboy

I agree with the above, and am glad the dealer took the obvious and correct path right away.

Spot on the money!

[swils8610]

Originally Posted by bdex75

I don’t have to say this as everyone knows that Shannon knows, but I will anyhow.

If this is like every state I have leased/bought cars in, when the previous owner/lessee traded in or turned in the car they signed an odometer statement, attesting to the miles on the odometer.

Assuming for a minute that the original owner leased the car since new, and MB doesn’t install mileage blockers from the factory (this is a joke. ha, ha funny) then the previous owner had the device installed. He/she has defrauded the dealer and I am sure the dealer will look to that individual for recourse.


Sent from my iPhone using Tapatalk Pro

Spot on the money!

[RoyalOac]

I actually spoke to the GM about going after the previous leasee and he told me straight up that they cannot go after him/her because of the burden in proof. He said there would be no way to prove that the actual leasee was the person who installed it. I was a bit angry on the dealership’s behalf because they were taken for a ride by that person. I was hoping they would do something to set a prescedent so this doesnt happen again to innocent folks like myself.

[Laszlo]

Originally Posted by ckaynyc

#readingcomprehension

Totally

[swils8610]

Sadly there isn’t much the dealer can do. Burden of proof. If the dealer bought it from an auction or off lease from MB, the dealer may have some recourse. It sucks people do these things. From a guy running two dealership, I’m really happy your MB dealer did the right thing and made you whole again. There are some good dealers out there.! Cheers!

[Brenngun]

Originally Posted by RoyalOac

I actually spoke to the GM about going after the previous leasee and he told me straight up that they cannot go after him/her because of the burden in proof. He said there would be no way to prove that the actual leasee was the person who installed it. I was a bit angry on the dealership’s behalf because they were taken for a ride by that person. I was hoping they would do something to set a prescedent so this doesnt happen again to innocent folks like myself.

This surprises me. I'm not a lawyer however if they can pinpoint the timeframe this thing was installed and who owned the car at the time then I would think the owner at the time would have to answer some questions and explain how this could happen without his knowledge. Unfortunate that it has to be dropped.

[77T]

Originally Posted by RoyalOac

I actually spoke to the GM about going after the previous leasee and he told me straight up that they cannot go after him/her because of the burden in proof. He said there would be no way to prove that the actual leasee was the person who installed it. I was a bit angry on the dealership’s behalf because they were taken for a ride by that person. I was hoping they would do something to set a prescedent so this doesnt happen again to innocent folks like myself.

Glad you got a full refund on this case. Chasing down the previous owner doesn’t set an precedents - just wasted effort.

The dealer isn’t out any money - they will turn that car around with a TMU for the same residual value/credit they gave the prior lessee. Only loss will be the profit they got from you on the original sale. A new mini-deal sale will set it all correct for them.


Sent from my iPhone using Tapatalk Pro

[swils8610]

Originally Posted by 77T

Glad you got a full refund on this case. Chasing down the previous owner doesn’t set an precedents - just wasted effort.

The dealer isn’t out any money - they will turn that car around with a TMU for the same residual value/credit they gave the prior lessee. Only loss will be the profit they got from you on the original sale. A new mini-deal sale will set it all correct for them.


Sent from my iPhone using Tapatalk Pro

Not exactly...the dealer must now disclose to any purchaser it’s TMU. It’s worth a hell of a lot less now. We’d take it to auction and sell it TMU. They’ll loose money on it. No one wins with this car.

[imperio]

Originally Posted by swils8610

Not exactly...the dealer must now disclose to any purchaser it’s TMU. It’s worth a hell of a lot less now. We’d take it to auction and sell it TMU. They’ll loose money on it. No one wins with this car.

Really? So in a situation where the contacted residual is say $40k but the car is now only worth $35k... The dealership that the car gets turned in to has to eat that $5k loss? That really sucks for the final dealership that gets this vehicle or any other vehicles in this situation.

I'm thinking a leased vehicle that has been involved in an accident or two during the course of the lease term would be worth less than residual... Can't be that uncommon a scenario hmmm

[77T]

Originally Posted by swils8610

Not exactly...the dealer must now disclose to any purchaser it’s TMU. It’s worth a hell of a lot less now. We’d take it to auction and sell it TMU. They’ll loose money on it. No one wins with this car.

You’re probably right about that if the dealer sends it to auction. In fact BWM may have a policy with their dealers restricting sales of off-lease vehicles when its TMU.


Sent from my iPhone using Tapatalk Pro

[Time4aRolex]

This one is pretty simple. The car was CPO. As long as the purchaser didn’t install the mileage blocker, this one is on the dealer. They certified the car. If the Dealer wants to go after their purchase source that is their prerogative.

[Watchflair]

Originally Posted by imperio

Really? So in a situation where the contacted residual is say $40k but the car is now only worth $35k... The dealership that the car gets turned in to has to eat that $5k loss? That really sucks for the final dealership that gets this vehicle or any other vehicles in this situation.

I'm thinking a leased vehicle that has been involved in an accident or two during the course of the lease term would be worth less than residual... Can't be that uncommon a scenario hmmm

The bank owns and holds the lease contract not the dealership. So the dealership does not get the hit residual value difference wise.

[swils8610]

When a vehicle comes in off lease we have the opportunity to purchase it for the residual value which 95% of the time is to high and we pass. The bank or lease company will then market adjust the residual value hoping the dealer will buy it then. If we still don’t buy it, the market adjusted residual is put on a website allowing any dealer to buy it for the adjusted price. If still no sale which happens frequently the vehicle is picked up and the bank or lease company and goes to an actual auction. A CPO vehicle doesn’t have to be an off lease vehicle...it can be a trade in or a vehicle purchased at auction or anywhere else the dealer acquires it as long as it falls in the CPO guidelines.

[swils8610]

The fact the MB in this situation is CPO is irrelevant. The dealership just voids the CPO contract. The issue is the TMU and who gets the gum stuck on their shoe. The dealership will most likely try to arbitrate it with the lease company saying it’s TMU and they will try to get the lease company to take it back. Don’t assume the vehicle was turned in off lease at the MB dealership that sold it. Most likely not. If the lease company takes it back, which is likely they will take it to a live auction announce its TMU, take the loss and move on. If the dealer is stuck with it, they could take it to auction themselves and sell it TMU, or sell it retail to a customer and disclose its TMU.

[Burlington]

Originally Posted by CamSLC

Same.



I didn't even know something like this existed for new vehicles.

You’re not alone. Gone are the days of cars being clocked with a drill winding the odometer back. This is high tech stuff !!

Wonder just how wide spread this practice is.