Valuation question - new engine in 2.5 yr-old car

[felix]

Hello - I haven't posted for a couple of years, so please forgive me if I've got the wrong place!

I've got a CLK 350 Sport Cabriolet, bought in June 2006, which has around 35,000 miles on the clock. It's on a lease with a balloon payment which means I can buy it for a set amount next summer - in this case £21k. I'm told that normally the car would actually be worth less than that come next summer.

Annoyingly the engine died last week, and it turns out they're going to have to replace the engine under warranty. Pretty surprised, and not happy, but it may have a silver lining...

My question is how will this affect the value? If it makes the car much more valuable then I might make a profit if I buy it at the fixed price and sell it on privately. Can anyone give me any advice on this?

Many thanks!!

 

[carlsson20]

I dont know about about Mercedes but my son had to replace a complete engine when his 32k miles 04 BMWs died, cost the best part 8k he sold the car with 5k on the new engine after advertising it for quite a while he only got the same as if it was 32k, if anything it tended to put people off

 

[rf065]

if anything it tended to put people off

First thoughts would say it had not been looked after & abused.
That's what I thought when I found out a Cavalier GSi2000 I bought had a new engine.

Russ

 

[felix]

Nope, immaculate otherwise - I'm fairly well trained, just joined IAM... I do 110 miles each way on the M4 once a week, other than that it's in perfect condition. Mercedes are just as perplexed as I am, but probably not as annoyed!

 

[psmart]

Firstly, the markets have crashed, so you may find that the car is not worth 21K or anything near it currently.

Secondly, as per rfo65 and carlsson20, most people will be very suspicious of a car which has had a major ticket item replaced, unless the reason for failure is known and the knock on effects can be ascertained.

I owned an MG Montego Turbo and I had 3 new (not a misprint) engines installed. The muppets didnt know or take time to ascertain the fault, a micro-fracture between the turbo compressor to water coolant and consequently it blew up engines one after the other.

 

[DougCLK320]

I'd say it was probably worth less.
People spending that kind of cash on a car will expect a "matching numbers" car.
Maybe if it had done 250k miles - but at 35k miles, most would consider the original engine as "just run-in".
Doug

 

[Mr Teddy Bear]

The news regarding the reccession has passed you by, I see?

 

[jberks]

sadly it will be worth or less. I had an engine blow at 60 miles old (yes we didn't make 100!) in an audi so I know it happens but its the fact that it's been messed about with that will put people off. Dealer or not, the bonnet's been and pretty much everything under the bonnet will have been disturbed. All the electrical connectors have been disconnected and no matter how well reassembled, there will always be concern that once disturbed, joints and connections could play up.
Given that in the current market, a 350 petrol won't be very popular and I'd check it's true value (get a trade in valuation from another dealer) and then maybe make them an offer. After all, you can hand it back so they've got to stand the loss anyway and if you're happy with the car and the new engine, it's worth more to you than anyone else.

 

[rapide]

yes it will be regarded as a lemon! and as the bottom is out of the market there are loads of motors out there, my advice would be to walk away when the lease is up have stiff drink and think again, all the best.