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Mercedes-Benz Certified Pre-Owned

Program and Reconditioning Manual

Mercedes-Benz Certified Pre-Owned Program and Reconditioning ManualJanuary 2014

TABLE OF CONTENTS

A. MBCPO PROGRAM OVERVIEW

01. How You Can Make Your Star Shine....................................................................................................................................

02. The Mercedes-Benz Goal........................................................................................................................................................

03. Overview.....................................................................................................................................................................................

04. Dealer Commitment ...............................................................................................................................................................

B. WARRANTY AND ADMINISTRATION

01. MBCPO Warranties: Expressions Of Confidence ............................................................................................................

02. Mercedes-Benz Certified Pre-Owned Warranty Coverage............................................................................................

03. Completing the Service and Warranty Booklet for the MBCPO Limited Warranty............................................

04. Confirming Warranty Coverage ........................................................................................................................................

05. Warranty Administration....................................................................................................................................................

C. RECONDITIONING OVERVIEW

01. Building Customer Relationships......................................................................................................................................

02. Reconditioning Strategy.......................................................................................................................................................

D. TECHNICAL INSPECTION

01. Vehicle Appraisal: The Starting Point..............................................................................................................................

02. MBCPO Inspection Process.................................................................................................................................................

03. Certification Stoppers...........................................................................................................................................................

E. APPEARANCE RECONDITIONING

01. Reconditioning is a team Effort ........................................................................................................................................

02. Aftermarket Alert.................................................................................................................................................................

03. MBCPO Appearance and Reconditioning Standards...................................................................................................

04. Unacceptable Damage..........................................................................................................................................................

05. Acceptable Conditions..........................................................................................................................................................

06. CE Reconditioning Guidelines for Qualifying Vehicles...............................................................................................

07. Appearance Reconditioning Guidelines for Qualifying Vehicles..............................................................................

F. MATERIALS AND PROCEDURES

01. Tools and Procedures for Reconditioning to MBCPO Standards...............................................................................

02. Repair Procedures.................................................................................................................................................................

G. CUSTOMER CARE: THE MERCEDES-BENZ WAY

01. Building Customer Trust and Confidence through Customer Care........................................................................

H. PERFORMANCE REPORTING AND MEASUREMENT

01. MBCPO Compliance: Critical for Success.......................................................................................................................

02. Process Improvement Reviews...........................................................................................................................................

03. MBCPO Performance Guidelines Exception Reports...................................................................................................

04. Consequences of Noncompliance with MBCPO Standards.......................................................................................

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A. MBCPO PROGRAM OVERVIEWMercedes-Benz Certified Pre-Owned Program

and Reconditioning Manual January 2014

01. HowYouCanMakeYourStarSHine

With MBCPO, we provide a profit opportunity for you and your Dealership and the unique Mercedes-Benz ownership experience for your Customer. Thanks to successful new-vehicle sales in recent years, Mercedes-Benz Dealers are able to take advantage of an ever-increasing supply of high-quality, pre-owned Mercedes-Benz vehicles returning to the market. This represents an unprecedented opportunity for greater profitability and growth.

We have achieved great success in the Certified Pre-Owned segment, but the market is becoming more competitive every year as luxury and near-luxury manufacturers continue to improve their certified pre-owned vehicle programs. At the same time, however, demographic similarities between new near-luxury vehicle buyers and Mercedes-Benz pre-owned buyers have opened up a whole new target for the Mercedes-Benz brand: upwardly mobile, often young Customers who aspire to the prestige and quality of a Mercedes-Benz vehicle and who would prefer a pre-owned Mercedes-Benz vehicle over a new, near-luxury brand.

If Dealers follow the Customer Care guidelines that have been established for the MBCPO Program (see Section G), many MBCPO buyers will make their next purchase a new or another pre-owned Mercedes-Benz vehicle.

The MBCPO Program also is designed to accelerate demand for all Mercedes-Benz pre-owned vehicles by seeking to increase resale values. Resale values impact new vehicle residual values. This in turn can help lower lease payments for new vehicle Customers who lease. For new vehicle Customers who purchase, higher resale values reinforce their purchase as a wise investment and help forge a more loyal owner. Additional pre-owned sales of warranty-backed vehicles also can help keep Customers loyal to Dealers for maintenance and service. Optional Extended Limited Warranties also present profit opportunities for your Dealership. All of this can help improve our overall competitiveness—and your potential gross profits.

MBCPO presents an integrated approach to marketing and retailing Certified Pre-Owned Mercedes-Benz vehicles.

Designed to be a premier pre-owned vehicle program, it has the full and enthusiastic support and commitment of MBUSA and Mercedes-Benz Financial.

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02. tHeMerCedeS-BenzGoal

Pre-owned Customers are as important as new-vehicle Customers. They are the future of our business and offer an immediate profit opportunity. Every step of the MBCPO process is designed to help deliver the ownership experience that Customers have come to expect of the Mercedes-Benz brand.

Manufacturers’ certified pre-owned programs have helped ease Customer concerns about buying pre-owned vehicles. Our strategy is to surpass our competition and set a new benchmark in pre-owned vehicle marketing. The Mercedes-Benz goal is to provide all of our Customers quality vehicles in a Customer-friendly environment, built on trust and confidence. Most importantly, we must conduct MBCPO business with integrity. This applies to our relationships with our Customers and our colleagues at other authorized Mercedes-Benz Dealerships. Trust is the cornerstone of the MBCPO Program.

03. overview

03.01 Programobjectives

It is our goal to ensure growth and increase your profitability in all areas of the business by winning new, near-luxury buyers and other potential Mercedes-Benz owners who may aspire to Mercedes-Benz ownership. To achieve this goal, the MBCPO Program will focus on these objectives:

• Enhance the Mercedes-Benz brand image

• Increase new-vehicle resale and residual values

• Improve the overall quality of the Mercedes-Benz vehicle population in the United States.

• Increase the number of Mercedes-Benz pre-owned units sold through Dealers

• Create more F&L opportunities

• Generate more Parts and Service sales

• Achieve conquest sales in two markets crucial to our future: Generation X buyers and other potential buyers in the Emerged Markets1

The information in this manual was correct as it went to press. For the most current policies and procedures, please visit the Mercedes-Benz Certified Pre-Owned Program Web site: www.mbcpo.com.

Visit www.mbcpo.com for the most current policies and procedures.

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03.02 MBCPoProgramHighlights

Wide Selection of High-Quality Vehicles: Eligible Vehicles

03.02.01 Up to six model years old, with less than 75,000 miles at the time of sale

• Model year eligibility is calculated as current calendar year – six years = oldest model year eligible

• For example: Calendar Year 2014 – 6 years = Model Year 2008 (and newer models are eligible)

03.02.02 Vehicle must have been originally distributed and sold through MBUSA1

03.02.03 Vehicle must be reconditioned and documented to meet MBCPO Standards

• Rigorous vehicle inspection and certification process

• Reconditioning performed by MBUSA-certified Dealer Technicians

Consult Sections C through F of this manual for details.

03.03 Mercedes-BenzCertifiedPre-ownedlimitedwarranty

CONDITION

TERM

COVERAGE ZERODEDUCTIBLE

TRANSFERABLE

If a vehicle has a remaining New Vehicle Limited Warranty on the MBCPO delivery date (as entered into NetStar):

• The New Vehicle Limited Warranty remains in effect for its original term (four years, or 50,000 total vehicle accumulated miles, whichever occurs first)

• MBCPO Limited Warranty coverage begins after the New Vehicle Limited Warranty expires

• MBCPO Limited Warranty coverage expires five years after the New Vehicle Limited Warranty start date

Engine, transmission, cooling system, braking system, electrical systems, navigation, and climate control2

ü

ü

If the vehicle does not have a remaining New Vehicle Limited Warranty on the MBCPO delivery date (as entered into NetStar):

• MBCPO Limited Warranty coverage starts on the MBCPO delivery date (as entered into NetStar) and expires one year from the MBCPO Limited Warranty start date

Engine, transmission, cooling system, braking system, electrical systems, navigation, and climate control2

ü

ü

Consult Section B of this manual and the Warranty Policy and Procedures Manual for details, terms, and limitations.

1 Dealer demonstration vehicles and vehicles used for hire or commercial use are not eligible for MBCPO certification.

2 Refer to the Mercedes-Benz Certified Pre-Owned Limited Warranty Service and Warranty Information booklet; wear and tear items are not included.

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03.04 Mercedes-BenzCertifiedPre-ownedextendedlimitedwarranties

• TakeeffectwhentheMBCPOLimitedWarrantyexpires

• AreavailableonlyonMBCPOvehicles

• Lastsforeither12additionalmonthsor24additionalmonths.ProgramstartdateJanuary2014

• ProvidecomponentcoverageidenticaltoMBCPOLimitedWarrantycoverage

Consult Section B of this manual and the Warranty Policy and Procedures Manual for details, terms, and limitations.

03.05 Mercedes-BenzCustomerCare

• Mercedes-Benz Roadside Assistance2 (Sign and Drive) is available. For more information, please visit www.mercedesroadside.com.

• Exchange Privilege for seven calendar days/500 miles, whichever occurs first3

• Towing and trip interruption benefits for warrantable repairs for the life of the MBCPO Limited Warranty and MBCPO Extended Limited Warranty (if applicable)4

Consult Section G of this manual and the Roadside Assistance Handbook for details, terms, and limitations.

2 Roadside Assistance repairs may involve charges for parts, service, and towing. At times these services may be performed by an outside, authorized Mercedes-Benz service provider.

3 The Exchange Privilege: All Dealers participating in the MBCPO Program have agreed to provide this exchange privilege: If a Customer is not satisfied with his or her vehicle, he or she can bring it back within seven calendar days or 500 miles from date of sale, whichever occurs first. Under the Exchange Privilege Program, your Customer can exchange his or her vehicle for another Mercedes-Benz Certified Pre-Owned vehicle or new Mercedes-Benz vehicle of equal or greater price. The original vehicle must be returned to the selling Dealer. The original vehicle must be in the same condition (as determined by the Dealer) as when it was delivered. The Exchange Privilege for a vehicle of greater price requires consumer payment of the difference in price between the two vehicles’ purchase prices. Consult Section G of this manual for more details, terms, and limitations. Each Dealer must develop its own applicable Exchange Privilege Form and process for administering the MBCPO Exchange Privilege. Dealers should consult their attorneys regarding state and local legal requirements relating to the Exchange Privilege.

4 Trip Interruption: If warranty repairs occur more than 100 miles from the driver’s place of residence—and repairs require the vehicle to remain overnight at an authorized Mercedes-Benz Dealership while the warranty repairs are being done—the Customer will be reimbursed for his or her trip interruption (for a maximum of three consecutive nights immediately following the vehicle disablement, for up to $300 per day). The funds are specifically intended to defray the costs of accommodations, meals, and substitute travel arrangements. Trip Interruption claims must be presented to and approved by an authorized Mercedes-Benz Dealership. Reimbursement will be provided by an authorized Mercedes-Benz Dealership upon the determination that the request falls within the parameters of the Trip Interruption program. Eligibility for this benefit will not be finalized until it is determined that the required repairs are covered under warranty. Vehicle and repair must be covered by the New Vehicle Limited Warranty, the MBCPO Limited Warranty, or the MBCPO Extended Limited Warranty.


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03.06 SalesandServiceSupportfordealers

• Advertising support in television, radio, and print media

• Available in-store displays and signage

• Vehicle Locator through NetStar

• Window label printing

• Program and Reconditioning Manuals

• Training of key Dealership personnel (consult Section 10 of the Mercedes-Benz Certified Pre-Owned Program Manual for more information)

• Marketing planners

• Internet support via www.mbusa.com and www.mbcpo.com, and the NetStar News Channel

03.07 CustomerSatisfactionProgram

• MBUSA survey of each MBCPO buyer to determine Customer satisfaction

• Monthly reporting summarizing results by Dealer and Mercedes-Benz Sales Consultant

03.08 advertisingandMarketingSupport

MBUSA advertising and marketing are designed to provide a consistent message, tone, and look and feel to the MBCPO Program nationwide. MBUSA’s commitment to Dealers includes:

• Advertising using television, radio, and print media

• Relationship marketing

• Public relations campaigns

• Maintenance of extensive inventory information online at www.mbusa.com linked to the Dealer Web sites

• Individual Mercedes-Benz Dealership Web sites with detailed MBCPO information and live inventory information

• Links to partner Web sites

• Sales Ranking listed on MBCPO.com

We must hold ourselves to a high standard. Dealerships are focal points for establishing a premium brand identity for Mercedes-Benz Certified Pre-Owned vehicles. At Dealerships, physical displays, signage, and point-of-purchase materials are important. On-site materials must convey an image of quality, dependability, value, affordability, reliability, security, and safety. Distinctive MBCPO window labeling also sets MBCPO vehicles apart and provides complete details about their features, components, warranty coverage, and price.


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04. dealerCoMMitMent

MBUSA is committed to providing support in the form of training, intensive advertising, and marketing to help ensure consistent and successful execution of the Mercedes-Benz Certified Pre-Owned Program.

To maintain participation in the MBCPO Program, Dealers must comply with the Mercedes-Benz Certified Pre-Owned Vehicle Program Dealer Participation Agreement, which contains the following requirements, among others:

04.01 allappropriateemployeesshallperformMBCPoCertificationtrainingasrequired

04.02 dealershallmaintaintheminimumMBCPoinventoryrequirements

04.03 dealershallreconditionandcertifyeligiblevehiclesaccordingtothestandardssetforthinthismanual

04.04 dealershallmaintainnetStarreportingofallpre-ownedandCertifiedPre-ownedvehicles

04.05 dealershallmeettheMBCPosalesobjectives

04.06 dealershallmeettheMBCPodisplaystandards

04.07 dealershallmeetandmaintaintheCustomersatisfactionratingsestablishedbyMBuSa

04.08 dealershalloffertheMBCPoextendedlimitedwarrantiestoCustomers

04.09 dealermayinformCustomersoftheMBCPoseven–day/500–mileexchangePrivilegedependingonthestateinwhichthedealershipconductsbusiness.notallstatesallowtheseven-day/500-mileexchangePrivilege.PleaseverifywithyourlegalcounseliftheexchangePrivilegemaybeofferedtoCustomerswhowishtopurchaseanMBCPovehicle.

04.10 dealershallcomplywiththeMBCPodeliveryStandardsforCertifiedPre-ownedvehicles

04.11 dealershallparticipateinMBuSa’swebsiteprogram

04.12 dealershallperformaCarFaXvehicleHistoryreport®oneveryMBCPovehicle

Please refer to the MBCPO Dealer Terms and Conditions for the complete requirements.


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01. MBCPowarrantieS:eXPreSSionSoFConFidenCe

The Mercedes-Benz Certified Pre-Owned Limited Warranty is the foundation of Mercedes-Benz USA’s (MBUSA) premium pre-owned program. It offers Mercedes-Benz Dealers a unique marketing tool that is exclusively theirs. It tells the Customer that MBUSA and its Dealers have confidence in these vehicles.

The MBCPO Limited Warranty and MBCPO Extended Limited Warranties have been structured to protect Customers and be cost competitive for Dealers. You may wish to include one of the MBCPO Extended Limited Warranties as a Dealer-added option in the advertised price of your MBCPO vehicles. Many Dealers have successfully maximized profits in this way.

01.01 MBCPowarrantyBenefits

The MBCPO Limited Warranty and MBCPO Extended Limited Warranties offer several benefits to Customers and Dealers:

Security MBCPO Warranties represent the depth of Mercedes-Benz’s commitment to the Customer. It is value added to the purchase or lease.

Customer Convenience

There is no need to delay repairs until an adjuster can inspect a vehicle. The warranties are honored by all authorized Mercedes-Benz Dealers across the United States.

Dealership Convenience

Claims are processed in the same manner as new vehicle warranty claims. Service personnel will appreciate the fact that the damage codes and administration are familiar.

Quality Certified Mercedes-Benz Technicians perform repairs using only genuine Mercedes-Benz Parts, exchange units, and factory-approved accessories. These parts meet the same quality control standards as the original equipment and comply with all applicable federal and state safety regulations.

Zero Deductible The Customer is not required to pay a deductible on any warranty service; pre-payments are not necessary.

Transferability The warranty “goes with the vehicle” when a vehicle is sold to another Customer. Transfers to Dealerships, brokers, finance institutions including Mercedes-Benz Financial), or other wholesale entities void the Limited Warranty and the Extended Limited Warranty. By removing the warranty and recertifying the vehicle, we ensure consistent quality and warranty coverage for all MBCPO vehicles. All warranties (except any remaining New Vehicle OEM warranties) are deactivated when a Mercedes-Benz vehicle goes through an auction.

MBCPO Limited Warranties are originally distributed and sold through MBUSA, except in Florida where MBCPO Extended Limited Warranties are administered by MVSA Company, Inc., an MBUSA subsidiary.

B. WARRANTY AND ADMINISTRATIONMercedes-Benz Certified Pre-Owned Program and Reconditioning Manual

January 2014

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02. MerCedeS-BenzCertiFiedPre-ownedwarrantYCoveraGe

02.01 MBCPolimitedwarranty

02.01.01 The MBCPO Limited Warranty is not a mirror or an extension of the New Vehicle Limited Warranty

02.01.02 The MBCPO Limited Warranty is included with the vehicle as a part of its MBCPO certification and must be included in the base price of the vehicle; the MBCPO Limited Warranty cannot be sold as a separate line item, and the Customer does not sign any contracts for the Warranty

02.01.03 Provided and administered by MBUSA

02.01.04 Transferable from Customer to Customer in private sale only; void if transfer is to a Dealership, broker, financial institution or other wholesale entity

02.01.05 Zero deductible

02.01.06 Most major components are covered, including:

• Components for engine, transmission, rear axle assembly, electrical systems, and brake system (excluding wear and tear components)

• ETS, ESP, ASD, ASR, 4-Matic, and G-Class 4-Wheel Drive

• Suspension, steering, soft top/retractable hardtop assembly, roll bar system, central locking system, climate control, closing assist, cooling system, and fuel system

• Audio System: head unit, speakers, audio amplification system, and CD player/changer (cell phone components excluded) and antenna system

• Optical Network: Fiber optics and connectors associated with optical componentry

• Comand: control display unit, central processor, steering wheel control system, integrated CD drive, integrated navigation process, GPS antenna system, and navigation CD drive

• MCS: centralized component control unit, single CD player, CD changer, audio amplification system, navigation system, and antenna system (MCS is applicable to the M-Class only)

Consult the Mercedes-Benz Certified Pre-Owned Limited Warranty Service and Warranty Information booklet for a complete listing of covered parts and systems.

02.01.07 If a vehicle has a remaining New Vehicle Limited Warranty on the MBCPO delivery date (as entered into NetStar):

• The New Vehicle Limited Warranty remains in effect for its original term (four years or 50,000 total vehicle accumulated miles, whichever occurs first)

• MBCPO Limited Warranty coverage begins after the expiration of the New Vehicle Limited Warranty

• MBCPO Limited Warranty coverage expires five years after the New Vehicle Limited Warranty start date

Consult the Mercedes-Benz Certified Pre-Owned Limited Warranty Service and Warranty Information booklet for terms and a full listing of exclusions and limitations.


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02.01.08 If the vehicle does not have remaining New Vehicle Limited Warranty on the MBCPO delivery date (as entered into NetStar):

• MBCPO Limited Warranty starts on the MBCPO delivery date (as entered into NetStar)

• MBCPO Limited Warranty coverage expires one year from the MBCPO Limited Warranty start date

02.02 MBCPoextendedlimitedwarranties(MBCPoelws)

02.02.01 Available only on MBCPO vehicles

02.02.02 Two MBCPO ELWs are offered:

• One year

• Two year

02.02.03 MBCPO ELW Component coverage is identical to MBCPO Limited Warranty coverage

02.02.04 Coverage begins when the MBCPO Limited Warranty expires and lasts for either 12 additional months or 24 additional months. *Available after January 15. 2014.

02.02.05 Zero deductible

02.02.06 Available anytime after MBCPO vehicle purchase until the MBCPO base warranty ends

02.02.07 Transferable from Customer to Customer in private sale only; void if transfer is to a Dealership, broker, financial institution or other wholesale entity

02.03 MBCPowarrantyexclusions

The MBCPO Limited Warranty and MBCPO Extended Limited Warranties do not cover the following:

02.03.01 All items not specifically identified as covered by the MBCPO Limited Warranty or the optional MBCPO Extended Limited Warranties

02.03.02 Damage caused by outside influences

02.03.03 Damage due to accidents, fraud, negligence or misuse, improper adjustments, modification, alterations, disconnection, or tampering

02.03.04 Damage due to lack of maintenance

02.03.05 Normal maintenance

02.03.06 Damage caused by other than original equipment parts

02.03.07 Altered odometer

02.03.08 Consequential damage

02.03.09 Repairs at non-authorized dealers

02.03.10 Liability from use of the vehicle


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Consult the Mercedes-Benz Certified Pre-Owned Limited Warranty Service and Warranty Information booklet for complete terms, exclusions and limitations.

02.03.11 Taxes

02.03.12 Some major components are not covered, including:

• Paint

• Interior and exterior trim

• Glass

• Shock absorbers and support struts

• Cellular phones

• All vehicle batteries

Consult the Mercedes-Benz Certified Pre-Owned Limited Warranty Service and Warranty Information booklet and Mercedes-Benz Certified Pre-Owned Extended Limited Warranty application for terms and a full listing of exclusions and limitations.


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02.04 MBCPowarrantyScenarios

Some examples of how MBCPO Warranties will help protect your Customers—depending on the age and mileage of the

MBCPO vehicle they purchase and whether they purchase an Extended Limited Warranty—are on Section B.01.01.

Scenario #1: If an MBCPO Customer purchases a two-year-old vehicle with 30,000 total vehicle accumulated miles

on the MBCPO delivery date (as entered into NetStar):

• The remaining Mercedes-Benz New Vehicle Limited Warranty coverage is for two years or 20,000 more total vehicle accumulated miles, whichever occurs first

• Mercedes-Benz Certified Pre-Owned Limited Warranty coverage will begin when the New Vehicle Limited Warranty expires

• MBCPO Limited Warranty coverage will expire five years from the New Vehicle Limited Warranty start date

• If your Customer also purchased an ELW (either at the time of MBCPO sale or any time before the expiration of the base warranty), coverage begins when the MBCPO Limited Warranty expires and lasts for either 12 additional months or 24 additional months. *Available after January 15, 2014.

Scenario #2: If your Customer purchases a 10-month-old vehicle with 1,000 total vehicle accumulated miles on the

MBCPO delivery date (as entered into NetStar):

• The MBCPO vehicle will have received a reduced MBCPO inspection prior to certification

• The Mercedes-Benz New Vehicle Limited Warranty will continue through its term (four years/50,000 miles, whichever occurs first)

• Mercedes-Benz Certified Pre-Owned Limited Warranty coverage will start when the New Vehicle Warranty expires

• MBCPO Limited Warranty coverage will expire five years after the New Vehicle Limited Warranty start date

• If your Customer also purchased an ELW (either at the time of MBCPO sale or any time before the base warranty expires), coverage begins when the MBCPO Limited Warranty expires and lasts for either 12 additional months or 24 additional months. *Available after January 15, 2014.

Scenario #3: If your Customer purchases a six-year-old vehicle with 55,000 total vehicle accumulated miles:

• The Mercedes-Benz New Vehicle Limited Warranty will have expired

• Mercedes-Benz Certified Pre-Owned Limited Warranty coverage starts on the MBCPO delivery date (as entered into NetStar)

• If your Customer also purchased an ELW (either at the time of MBCPO sale or any time before the base warranty expires), coverage begins when the MBCPO Limited Warranty expires and lasts for either 12 additional months or 24 additional months. *Available after January 15, 2014.

Consult the Mercedes-Benz Certified Pre-Owned Limited Warranty Service and Warranty Information booklet and the Mercedes-Benz Certified Pre-Owned Extended Limited Warranty application for terms and a full listing of exclusions and limitations.


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03. CoMPletinGtHeServiCeandwarrantYBookletFortHeMBCPoliMitedwarrantY

The Mercedes-Benz Certified Pre-Owned Limited Warranty Service and Warranty Information booklet provides Customers with details on terms including all covered items, exclusions, and coverage periods for the MBCPO Limited Warranty.

o The Dealer or a designated employee should enter the required information carefully and completely.

o Enter complete information about the Dealership including Sales, Service, and Parts Department

hours, phone numbers, and e-mail addresses

o Enter vehicle information

o Complete the checklist and certification date

o On the “To the Owner” page, check the appropriate boxes: if the New Vehicle Limited Warranty is still

in effect, if an ELW has been purchased, if the Emission Control Warranty is still in effect

o On the appropriate “General Provisions” page, fill in the appropriate information for your Customer

o Attach appropriate business cards

o Sign and stamp the booklet

04. ConFirMinGwarrantYCoveraGe

Mercedes-Benz Certified Pre-Owned Customer Care continues beyond the sale. Warranty coverage for a

pre-owned vehicle can be confirmed through one of the following:

04.01 validMercedes-BenzCertifiedPre-ownedlimitedwarrantyServiceandwarrantyinformationbooklet

04.02 MBCPolimitedwarrantyorMBCPoextendedlimitedwarrantyrecordedinMBuSa’svMisystem

Add-on warranty repairs should be avoided (consult the Warranty Policy and Procedures Manual).

The reconditioning process should eliminate most causes for claims in the first 60 days of service.

The warranty administration steps shown in the table on Section B.05. should be performed before

a Dealership accepts any pre-owned warranty service requests.


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05. warrantYadMiniStration

CuStoMer

reQuireddealeraCtion

warrantYrePortedinvMi?

dealeraCtion

Has MBCPO Limited Warranty booklet or ELW application

Determine validity of warranty book in VMI

Yes Servicing Dealer: Perform eligible warranty repairs Selling Dealer: Perform eligible warranty repairs


Determine validity of warranty book in VMI

No Servicing Dealer: Call selling Dealer for verification Selling Dealer: Contact MBUSA Warranty Services


Determine validity in VMI Yes Servicing Dealer: Perform eligible warranty repairs Selling Dealer: Perform eligible warranty repairs


Determine validity in VMI No Servicing Dealer: No MBCPO warranty coverage Selling Dealer: No MBCPO warranty coverage

QUESTIONS ON MERCEDES-BENZ CERTIFIED PRE-OWNED WARRANTIES?

Consult the Mercedes-Benz Certified Pre-Owned Limited Warranty Service and Warranty Information booklet and the MBCPO Extended Limited Warranty application for terms and a full listing of exclusions and limitations. Or contact MBUSA’s Pre-Owned Warranty Services Team, Monday-Friday, 9 a.m.-5 p.m. EST, at 877-202-6262 or through NetStar WSG-Online (click on the “eyeball”).


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01. BuildinGCuStoMerrelationSHiPS

When selling a Mercedes-Benz Certified Pre-Owned (MBCPO) vehicle, you are initiating a relationship built on trust and confidence. Properly nurtured, the Customer-Dealership relationship should last many years, strengthening brand loyalty on the part of the satisfied Customer. The strength of the relationship should encourage the Customer to generate referrals for the Dealership and pave the way for new-vehicle purchases over time.

Building trust starts when a Customer enters your Dealership. Your integrity is a prized commodity that adds value to your product. To protect the integrity of the brand, the product, and your Dealership, you must ensure that your Technicians follow the MBCPO inspection and reconditioning process (see C.03. in this section) in restoring each vehicle to MBCPO standards. The inspection and reconditioning process is discussed in this and the following sections of this manual:

• Technical Inspection – Section D

• Appearance Reconditioning – Section E

• Materials and Procedures – Section F

02. reConditioninGStrateGY

MBUSA standards for reconditioning an MBCPO vehicle support quality vehicles and help minimize the need for warranty repairs. These standards also help support the premium a Customer would pay for an MBCPO versus a non-certified, pre-owned vehicle. We know that Customers’ attitudes about purchasing pre-owned vehicles are strongly influenced by the extent of reconditioning performed.

The MBCPO Program policy is designed to ensure:

• Proper selection of vehicles for MBCPO, based on the inspection process

• Dealer accountability for reconditioning MBCPO vehicles to MBUSA-specified standards through Pro-cess Improvement Reviews (PIR)

• Dealer participation of Carcannon consultative reviews

C. RECONDITIONING OVERVIEWMercedes-Benz Certified Pre-Owned Program

and Reconditioning ManualJanuary 2014

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02.01 Salesofpre-ownedvehiclesthathavebeenfullyinspectedandreconditionedaccordingtoMBuSaStandards

The Dealership and its Key MBCPO Personnel must participate in all MBCPO training and certification of personnel as required by the Mercedes-Benz Certified Pre-Owned Vehicle Program Dealer Participation Agreement. Fluent knowledge of the MBCPO Program including, but not limited to:

• Program rules and requirements

• Vehicle reconditioning standards

• Terms, conditions, and limitations of the MBCPO Limited Warranty and the MBCPO Ex-tended Limited Warranties

• MBCPO Delivery Checklist (mandatory for all Mercedes-Benz Dealership individuals who participate in any function of the MBCPO Program)

All Key Personnel—Pre-Owned Managers, Sales Representatives, F&L Managers, Service Managers, and Reconditioning Technicians— must be MBCPO Certified. Testing is required. Minimum test scores, as established by MBUSA, must be maintained by Key Personnel for MBCPO Certification. Consult your local MBUSA Market Manager for details on training requirements.


Dealership Key Personnel must use this checklist as part of their MBCPO training.

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03. tHeMBCPoveHiCleinSPeCtionandCertiFiCationProCeSS

MBUSA requires authorized Mercedes-Benz Dealers to follow each step of the Mercedes-Benz Certified Pre-Owned Vehicle Inspection and Certification Process:

03.01 dealerappraisaloftheMercedes-Benzpre-ownedvehicle.

Before a Dealer considers a pre-owned Mercedes-Benz vehicle for MBCPO inventory, a brief visual inspection of the vehicle and review of its documentation should be conducted.

03.02 everyvehiclethatisappraisedforcertificationmustpassMBuSa’s“CertificationStoppers.”

MBUSA has a stated policy that any of five critical conditions immediately eliminates vehicles from potential certification (see page 23 for details).

• Vehicle has more than 75,000 miles or is more than six model years old (model year eligibility is calculated as the current calendar year minus six years equals the oldest model year eligible; for example, calendar year 2014 – 6 = MY 2008).

• Vehicle Master Inquiry (VMI) indicates a discrepancy with the MBUSA warranty history of the vehicle (buyback in progress, buyback completed, stolen vehicle, totaled vehicle/warranty review, warranty voided). Demonstration vehicles and vehicles not originally distributed and sold in the United States as a new vehicle by MBUSA are ineligible for the MBCPO Program.

• CARFAX Vehicle History Report® is not “clean” (branded titles, flood-damaged vehicles, odometer rollback, salvage history). Vehicles previously used “for hire” and for other commercial purposes are ineligible for the MBCPO Program. When a CARFAX Vehicle History Report® is ordered from CARFAX by a Dealer, the report also is made available free of charge to Customers visiting the CARFAX Customer Web site, the MBUSA corporate Web Site, and the MBUSA-sponsored Dealer Web site. Ninety days after a Dealer orders a CARFAX Vehicle History Report®, the report will cease to be available to Customers free of charge on all three Web sites. For the report to become available to Customers through all three Web sites again, the Dealer must reorder the report (the average turn rate for MBCPO vehicles is 45 days, so a second re-quest may not be necessary).

• The true mileage is unknown (TMU) because documentation does not exist to confirm the mileage on the vehicle’s odometer.

• There is identifiable structural damage (ISD) of any kind.

03.03 A Dealer-specified staff member decides which appraised vehicles will be reconditioned according to MBCPO Standards.

03.04 An MBCPO-Certified Technician inspects the vehicle using the Inspection and Certification Report (ICR).

Technicians are certified through an online testing process. The Technician must be entered into MBUSA’s online TEAM System before taking the MBCPO certification test.


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03.05 theiCrprocessisconducted.duringtheiCrprocess,thetechnicianchecksoffeachitemasitisinspectedandrecordsontheiCrwhetherthatchecklistitem:

• Passed inspection,

• Was repaired or replaced,

• Was or must be serviced according to MBUSA’s maintenance schedule for the vehicle, and

• Does not apply to the vehicle. On the last page of the ICR, the Technician must note any additional repairs that require authorization for repair.

The Technician must pass the ICR report to the person at the Dealership responsible for authorizing such MBCPO repairs before certification. A Dealer-specified staff member reviews the ICR and authorizes or denies any repairs/reconditioning appearing in the Notes section. If so authorized, the Certified Technician performs additional reconditioning.

On the back of the ICR, all items on the vehicle that are excluded from the MBUSA warranty because they are non-Mercedes-Benz or aftermarket components and/or accessories are checked by the Technician. The ICR must also list in the Notes section any body repairs of a cumulative value in excess of 10 percent of the vehicle’s current market value.

If the vehicle does not need additional repairs, or if additional repairs were authorized and completed, the Technician signs the ICR and gives it to the Service Manager for signature. For a vehicle to be certified, the ICR and all reconditioning work must be performed on a qualifying vehicle to bring it up to MBCPO Standards using Mercedes-Benz Genuine Parts, exchange units, and factory-approved accessories. The original completed, signed ICR and supporting repair orders (ROs) must be maintained in Dealer Service files, and a copy must be placed in the vehicle file.

The consequences of noncompliance with MBCPO Standards are stated in Section H of this manual. Consult Sections D and E for MBCPO mechanical and appearance reconditioning standards. The Dealership Service Department’s Workshop Information System (WIS) should be consulted for the latest information and standards for inspection and repair procedures, tools, materials, and safety procedures for specific models and model years.

03.06 thedealerappliesanywarrantablechargestoanexistingMBCPoBasewarranty.

anyvehiclepurchasedthroughauctionwillhaveallnewvehicleelw,CPobaseandCPoelwsde-activated.

Effective June 2006, Dealers are authorized to apply warrantable charges to an existing MBCPO Base warranty of any MBCPO vehicle acquired into inventory with remaining MBCPO Base warranty. This does not apply to any remaining MBCPO Extended Limited Warranty and is offered for only 30 days from the date of vehicle acquisition. If you have questions regarding this policy, please contact the Pre-Owned Warranty Services team at 877-202-6262.

03.07 The Service Manager signs the ICR that establishes the vehicle as certified according to MBCPO Standards.


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03.08 theiCrisplacedinbothSalesandServicefiles.

The ICR lists all items checked during the ICR, non-Mercedes-Benz accessories (not covered by warranty), and body repairs of a cumulative value in excess of 10 percent of the vehicle’s current market value. The selling Dealer is responsible for all MBCPO warranty claims submitted against any vehicle that was sold as an MBCPO vehicle without completion of an ICR and for vehicles sold without an original ICR on file at the Dealership. Any warranty claims processed within 60 days following delivery will be reviewed by MBUSA.

Consult Section H for details on the consequences of noncompliance with MBCPO Program Standards. MBUSA monitors Dealer vehicle certification and documentation through Process Improvement Reviews (PIR) and Warranty Compliance Audits.

03.09 thedealerentersthevehicleintonetStarpre-ownedinventoryascertified.MBuSarecommendsthatvehiclesbecertifiedwithin72hoursofdealershipvehicleacquisition.

Recertificationis required if an MBCPO vehicle is unsold six months after the original certification date as entered into NetStar. NetStar automatically flags MBCPO vehicles that must be recertified and prevents data entry of the vehicle as an MBCPO sale. Activation of MBCPO Limited Warranty and Extended Limited Warranties also is blocked in NetStar until a vehicle ICR is performed and the vehicle is re-entered into NetStar as certified. Dealerships that choose not to recertify the vehicle must immediately remove all vehicle labels and showroom materials identifying the vehicle as certified.

Certification is transferable for MBCPO vehicles traded from authorized Mercedes-Benz Dealer to authorized Mercedes-Benz Dealer. The six-month recertification rule noted above applies. The original, signed MBCPO Inspection and Certification Report must accompany the vehicle and be retained in the selling Dealer’s Service file. Claims resulting from a lack of reconditioning will be denied by MBUSA.

03.10 The MBCPO Certification Label is applied to the driver’s-side doorjamb or B-pillar of the MBCPO vehicle.

03.11 An MBCPO Window Label is printed and placed in the vehicle’s rear driver’s-side window or rear windshield.

• An MBCPO vehicle must never be displayed without its NetStar-generated MBCPO Window Label.

• As required by the terms of the Mercedes-Benz Certified Pre-Owned Vehicle Terms and Conditions, the Dealership’s retail price must be displayed on the MBCPO Window Label.

• The Window Label must not be removed until after delivery (see step 9 for exceptions).

• If an MBCPO vehicle is traded, the NetStar-generated MBCPO Window Label must be removed to prevent improper representation of the vehicle if and when it is displayed at an auction or other automotive environment where the MBCPO warranty does not apply to the vehicle.

03.12 anFtCbuyer’sguidelabelisplacednexttotheMBCPowindowlabelonthereardriver’s-sidewindow.

The guide is federally mandated but state specific. Dealers are responsible for acquiring and using the correct guide for their state.

C. RECONDITIONING OVERVIEWMercedes-Benz Certified Pre-Owned Program and Reconditioning Manual

January 2014

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03.13 theMBCPovehicle’sofficialdeliverydateasenteredintonetStarinitiatestheMBCPolimitedwarrantythatcomeswitheveryMBCPovehicle.

If an MBCPO vehicle retail sale is not reported via NetStar within 30 days of the sale, a $500 administration fee is entered on the Dealer’s Consolidated Dealer Statement.

The MBCPO Limited Warranty and MBCPO Extended Limited Warranty (ELW) are transferable only from Customer to Customer. Title transfers to Dealerships, brokers, finance institutions (including Mercedes-Benz Financial) or other wholesale entities void the MBCPO Limited Warranty, ELW (if applicable) or maintenance plans. Dealers are advised to check their state and local laws regarding the transferability of MBCPO warranties. For details on terms, limitations, cancellation policies, and Dealership responsibilities, consult Section B of this manual and the Warranty Policy and Procedures Manual.

03.14 A copy of the signed MBCPO ELW application (if purchased) must be provided to the buyer at the time of sale or during delivery.

03.15 adealershipSalesConsultantfollowsthedeliveryChecklistoutlinedinthismanual.

03.16 Priortovehiclesale:

• Provide Inspection and Certification Report to Customer

• Disclose any prior repair and service history

• Provide supporting repair orders for CPO reconditioning

03.17 Materials are provided to and explained to the Mercedes-Benz Certified Pre-Owned buyer prior to vehicle delivery by a Dealership Sales Consultant. Materials include:

• CARFAX Vehicle History Report®

• CARFAX Buyback Guarantee®

• Vehicle Owner’s Manual

• Mercedes-Benz Certified Pre-Owned Service & Warranty Booklet

Consult Section D of this manual for details.

03.18 Process Improvement Reviews (PIR) and the consequences of noncompliance are outlined in Section H of this manual.

MBUSA Market Managers are responsible for reviewing PIR summary reports with Dealer Management and ensuring that Dealers agree to and complete the resulting action plans for improvement. MBUSA issues periodic MBCPO Performance Guideline Exception Reports to Regional Management, which is responsible for conferring with Dealer Management on any criteria that fall below MBCPO Standards.

Mercedes-Benz USA, LLC, reserves the right to make changes to the MBCPO process and standards without prior notice.


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01. veHiCleaPPraiSal:tHeStartinGPoint

MBCPO inspection really starts with the vehicle’s initial appraisal. Since the process varies among Dealers, a formal MBCPO appraisal process or report does not exist. A sample checklist is included in this manual (see Section D.03.) to assist Dealers in creating their own appraisal forms.

The appraiser is the first to determine the eligibility of a Mercedes-Benz pre-owned vehicle for MBCPO. Your Dealership’s appraiser should verify that each vehicle passes the first two Certification Stoppers (see Section D.03.).

The skill level of individual appraisers will vary according to their ability to determine identifiable structural damage, paint drips, powertrain soundness, etc. Improving this skill through training will help Dealers to better ascertain and control reconditioning expenses.

02. MBCPoinSPeCtionProCeSS

Under the rules of the Mercedes-Benz Certified Pre-Owned (MBCPO) Program, MBUSA-Certified Technicians must use the Inspection and Certification Report (ICR) during the MBCPO inspection and certification process. The ICR is a printed checklist from Star Tec Info that helps ensure that all major components and systems are inspected and repaired as required by MBCPO standards. It combines the mechanical systems and appearance components into one comprehensive examination.

There are two versions of the ICR report:

02.01 A full report for qualifying vehicles more than 15 months old with more than 18,000 total vehicle accumulated miles

02.02 A reduced inspection report for qualifying vehicles less than 15 months old with fewer than 18,000 total vehicle accumulated miles

C. RECONDITIONING OVERVIEWD. TECHNICAL INSPECTIONMercedes-Benz Certified Pre-Owned Program


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You need to perform a thorough inspection and ensure that your pre-owned vehicles meet all the MBCPO standards. To increase efficiency, you may want two Technicians to work together.

During the ICR process:

o The Technician logs into Star Tec Info and creates a new Online ICR using the VIN, mileage and Stock Number of the vehicle.

o The Technician completes the first page of the online ICR, which is an online checklist of the MBCPO Certification Stoppers. (The incomplete ICR Input Form may be printed at any time to facilitate the inspection process.) It is advisable for the Technician to periodically “Save” any changes made to the input form of the Online ICR. “Saving” allows the Technician to leave and return to the same ICR at a later time if needed.

o Once “Submitted,” the online ICR may not be changed. All complete and incomplete ICRs are saved in the system at MBUSA by Dealer Code and VIN.

o On the last page of the ICR there is a blank section for notes. After printing, the Technician must note any additional repairs that require authorization for repair and then must give the reports to the person at the Dealership responsible for authorizing such MBCPO repairs before certification.

o A Dealer-specified staff member reviews the ICR and authorizes or denies any repairs/reconditioning appearing in the “Notes” section of the ICR.

o If so authorized, the Certified Technician performs additional authorized reconditioning, signs the ICR, and gives it to the Service Manager for signature.

o The ICR must be reviewed with the Customer prior to sale.

o Items on the vehicle that are excluded from the MBUSA warranty because they are non-Mercedes-Benz or aftermarket components and/or accessories should be checked off by the Technician on the online form.

o The online ICR must include (in the “Notes” section) any body repairs of a cumulative value in excess of 10 percent of the vehicle’s current market value.

For a vehicle to be certified, the appropriate ICR and all reconditioning work must be performed on a qualifying vehicle to bring it up to MBCPO standards using Mercedes-Benz Genuine Parts, exchange units, and factory-approved accessories. The original completed, signed technical ICR and supporting repair orders (ROs) must be maintained in Dealer Service files. The consequences of noncompliance with MBCPO standards are stated in Section H of this manual.

Consult your shop’s Workshop Information System (WIS) for the latest information and standards for inspection and repair procedures, tools, materials, and safety procedures for specific models and model years.


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03. CertiFiCationStoPPerS

Certification Stopper 1: Ineligible Vehicle (more than 75,000 miles—more than six model years old)

To qualify, a vehicle must be no more than six model years old and must have fewer than 75,000 total vehicle

accumulated miles. To determine a vehicle’s eligibility for the MBCPO Program, subtract six from the current

calendar year to calculate the last year a vehicle may be certified.

Certification Stopper 2: Discrepancy in Vehicle Master Inquiry (VMI)

The following VMI Warranty Status (WARR STAT) codes bar a vehicle from being entered into MBCPO:

WARRANTY STAT MEANING WARRANTY STAT MEANING

3 Buyback in Progress 8 Totaled Vehicle, Warranty Review

6 Buyback Completed 9 Warranty Voided

7 Stolen Vehicle

VMI also will flag as ineligible a vehicle not originally distributed and sold in the United States as a new vehicle by

Mercedes-Benz USA.


CertiFiCationStoPPerSataGlanCe

Before considering a pre-owned Mercedes-Benz vehicle for your MBCPO inventory, conduct a brief visual inspection of the vehicle and review its documentation. The Certification Stoppers support rigorous inspection.

Five critical factors immediately eliminate a vehicle from the MBCPO program:

1. Vehicle has more than 75,000 miles or is over six model years old

2. Vehicle Master Inquiry (VMI) indicates:

• A discrepancy with the MBUSA warranty history of the vehicle (buyback in progress, buyback completed, stolen vehicle, totaled vehicle/warranty review, warranty voided)

• The vehicle was not originally distributed and sold in the United States as a new vehicle by MBUSA

3. The CARFAX Vehicle History Report® is not “clean” (branded titles, flood-damaged vehicles, odometer rollback, salvage history), or the vehicle was used for hire or other commercial use

4. The true mileage is unknown (TMU) because documentation does not exist to confirm the mileage on the vehicle’s odometer

5. There is identifiable Structural Damage of any kind

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Dealer Demonstration Vehicles/Loaners/CVP Vehicles

The following are the eligibility criteria for CVP service loaners and demo vehicles:

VEHICLE TYPE ELIGIBILITY CRITERIA

CVP Vehicles • Must be retired from CVP loaner status and have CVP loaner indicator flag removed.• Must be reconditioned and entered into Dealer’s pre-owned inventory as a Certified

Pre-Owned vehicle.• Eligible for low-mileage certification program if < 15 months and < 18,000 miles.

Dealer (new car) Demos

• These vehicles are still listed as “New Vehicle” Demonstrators.• When sold, they will be reported as a New Vehicle sale and therefore are not eligible

for the Mercedes-Benz Certified Pre-Owned Program.

Dealer Demos (Vehicles originally reported sold to the Dealership under Market Assistance Programs)

• Must be entered into Dealer’s P.O. inventory when originally reported sold to the Dealership.

• When sold to the ultimate Customer, must be reported as a pre-owned or Certified Pre-Owned sale via NetStar.

• Eligible for any special finance rates applicable for that vehicle through the Mercedes-Benz Certified Pre-Owned Market Support Program.

• When sold as Certified, eligible for a Certified Pre-Owned Extended Limited Warranty (ELW); not eligible for a New Vehicle ELW.

Certification Stopper 3: Discrepancy in CARFAX Vehicle History Report®

CARFAX is an independent company that maintains the largest and most extensive pre-owned vehicle database in

North America. The database features more than three billion vehicle history records from thousands of

nationwide data sources and can help uncover hidden problems such as salvage history, flood, odometer rollback,

major accident damage, washed titles, and more.

In a CARFAX Vehicle History Report®, an “alert” entry associated with one of the problem categories indicates that

the vehicle in question has a potential problem (e.g., that the vehicle does not have a “clean” history). Vehicles

flagged by CARFAX as previously used “for hire” or for other commercial purposes are also ineligible under the

MBCPO Program.

All Dealers must obtain a “clean” CARFAX Vehicle History Report® for a Mercedes-Benz vehicle being considered for

inclusion in the MBCPO program.


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The CARFAX Vehicle History Report® includes information such as:

• Title records

• Odometer readings

• Records from salvage auctions

• Make and model confirmation

• Service and maintenance records

Only vehicles eligible for the CARFAX Buyback Guarantee™ are eligible for certification by MBUSA. Complete

CARFAX Buyback Guarantee™ terms and conditions are available at www.carfaxonline.com/buyback.

Running a CARFAX Vehicle History Report®

To run a CARFAX Vehicle History Report®, you’ll need the vehicle’s 17-character VIN and access through the NetStar

System. CARFAX reports are available 24 hours a day, 365 days a year from the CARFAX Dealer Web site (www.

carfaxonline.com). For assistance running reports or more information about alternative access

methods, contact CARFAX at 800-274-2277.

When a Dealer orders a CARFAX Vehicle History Report®, the report is also made available free of charge to

Customers visiting the CARFAX consumer Web site, the MBUSA corporate Web Site, and the MBUSA-sponsored

Dealer Web site. Ninety days after a Dealer orders a CARFAX Vehicle History Report®, the report ceases to be avail-

able to Customers free of charge on all three Web sites. For the report to be available to Customers through all three

Web sites again, the Dealer must reorder the report. (The average turn rate for MBCPO vehicles is 45 days,

so a second request may not be necessary.)

CARFAX Buyback Guarantee

CARFAX will buy back any vehicle that had a severe problem reported by a DMV that was not identified in the CAR-

FAX Vehicle History Report®. Problems include salvage, junk, rebuilt, dismantled, fire damage, flood damage, hail

damage, not actual mileage, exceeds mechanical limits, and manufacturer buyback/lemon history. CARFAX will pay

the full purchase price of the vehicle, including tax, tags, and fees up to 110 percent of Kelly Blue Book value. Not

covered under the guarantee are warranties, insurance, reconditioning, aftermarket accessories, parts and services

purchased, and other additional incidentals.

As a Dealer, you are protected by the Buyback Guarantee once you run the full CARFAX Vehicle History Report® (VHR). To transfer the Buyback Guarantee to your Customers, provide them with a copy of the report and ensure that the guarantee is registered with CARFAX.

It is recommended to obtain the Customer’s signature on the CARFAX VHR and maintain a copy of the Customer-signed CARFAX VHR in the Vehicle Sales file.


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There are two ways to register the guarantee with CARFAX:

• The Customer can access www.carfax.com and register the guarantee within 90 days of purchasing the vehicle

• The Dealer can access www.carfaxonline.com (Dealer Web site) and register the guarantee on behalf of the Customer within 90 days of sale

Retain one copy of the CARFAX Report in the MBCPO Delivery Folder and a second report to file with the

completed MBCPO Inspection and Certification Report in the Service Department’s Vehicle Folder. For free

Customer brochures that explain the CARFAX Report and the Buyback Guarantee, contact CARFAX at

800-274-2277.

CARFAX Vehicle History Report® data and the CARFAX Buyback Guarantee™ are provided by CARFAX. MBUSA makes no representation regarding such information or services. There may be significant events in a vehicle’s past such as accidents, repairs, or routine maintenance that haven’t been obtained by CARFAX. Neither CARFAX, its affiliates, nor any of their respective employees, agents, third-party content providers, or licensors warrant the accuracy or reliability of any information, service, or materials provided through the CARFAX Web sites or the CARFAX Vehicle History Report®. Complete terms and conditions are available at carfaxonline.com.

Certification Stopper 4: True Mileage Unknown

If a vehicle’s true mileage is unknown, it will not qualify for the MBCPO Program.

Certification Stopper 5: Identifiable Structural Damage

When a vehicle is involved in a significant collision, its overall width or length may be reduced because the

vehicle’s shape has been distorted. To correct this damage properly, the vehicle’s deformed structural members

must be pulled using an approved dedicated fixture bench. Then the deformed components can be removed and the

new replacement components are held in the correct position for installation. Damage requiring such repair consti-

tutes frame damage.

If the collision damage is severe enough and was not repaired using an approved dedicated fixture system, the

vehicle’s performance could decline substantially. Occasionally, improper repair pulls occur and distort the

structure even more. For these reasons, even if repaired properly, identifiable structural damage is an MBCPO Cer-

tification Stopper.

Because all Mercedes-Benz vehicles, except the M-Class and the G-Class, are based on a unibody design, they rely

on welded-together structural components rather than a ladder-type frame for body strength and support. The

unibody design provides ride and handling characteristics that the traditional body-on-frame design does not.

Many models have bolt-on-front crumple zones and bolt-on-front cross members that can be replaced without

welding or paint.


27


The National Auto Auction Association, Inc. (NAAA) has established a recommended Structural Damage Policy that

MBUSA also recommends as a minimum standard. The MBCPO structural damage standards include additional

structural components over and above those listed by NAAA. You can find the NAAA’s Ethics & Standards Manual

at www.naaa.com.

Identifying Structural Damage

On Mercedes-Benz vehicles, it’s relatively easy to identify structural damage because crumple zones absorb energy

during a collision and help dissipate it from the passenger compartment. These crumple zones are built into the

front and rear frame rails and front side aprons, ahead of the shock towers and behind the core supports. Frame

rails that have been in a collision will be deformed immediately behind where the bumpers bolt to the rail, and side

aprons will be deformed.

To identify structural damage or an improper repair, look for:

• Damaged flanges where the bumper reinforcements bolt to the frame rails

• Broken or pulled factory spot welds where core supports are welded to aprons and rails

• Any deformities in sheet metal, such as fenders, quarter panels, and rocker panels

• Cracked or stressed seams and seam sealers that don’t match the vehicle’s other side, especially in the trunk compartment and under the hood

Signs That Structural Damage Has Been Repaired

Even if structural damage has been properly repaired, the vehicle is ineligible for certification as an MBCPO

vehicle. Any of the following clues require close examination for structural damage:

• Welding that’s not done at the factory weld point

• Reshaping

• Drilling or fitting of non-standard brackets or braces

• Different or mismatched tires

• A missing emissions label on the underside of the hood (indicates the hood may have been replaced)

• Missing original labels on the radiator support

• Loose, missing or unmatched bolts (some may be painted, some not painted, some may have different heads)

• Bolt heads with scratches, scratches around the bolt, or indentations on the vehicle body (indicate that the bolt may have been removed and replaced)

• New part stickers where they shouldn’t be (they were not removed when a new part was installed)

• Grind marks on a frame rail or slight indentations (indicating a hammer was used)

• Original production spot welds that appear to have been ground down and spray painted

• Masking tape left behind by a body shop

• Paint that doesn’t match painted areas next to it


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01. reConditioninGiSateaMeFFort

This manual is designed to provide you with the information you need to recondition every MBCPO vehicle according to MBCPO Program requirements. Consistently achieving this goal takes teamwork and understanding that quality work and speed are both important in the reconditioning process. First, Customers expect their vehicles to be a reflection of the Mercedes-Benz name and tradition. And once your department has determined that a vehicle can be brought to MBCPO standards, it’s critical that the reconditioning work be done as quickly and efficiently as possible for the following reasons:

• The Dealer wants the vehicle back in the sales area quickly so it can be sold.

• The Pre-Owned Manager wants to maximize profit on the vehicle.

• The Service Manager must keep vehicles flowing through the service area.

• The Technician must keep labor within the specified operation code time.

01.01 GeneralPolicies

Successful teams have rigorous rules and procedures. Your team needs a set of policies to be successful as well. The following are some suggested general policies:

01.01.01 The MBCPO Inspection and Certification Reports (ICR) must be used for every MBCPO vehicle and maintained in the Vehicle Service File (missing reports result in chargebacks during an audit).

01.01.02 The ICR must be displayed on the vehicle and reviewed with the customer prior to sale.

01.01.03 All MBCPO mechanical reconditioning—except body work—should be done within 72 hours of the vehicle being taken into Dealer inventory.

01.01.04 An MBCPO vehicle will not be offered for sale until it’s been fully inspected and reconditioned.

01.01.05 The Service Department will make repairs using only Genuine Mercedes-Benz Parts, exchange units, and factory-approved accessories.

01.01.06 If a dedicated Pre-Owned Service Department is not set up at your Dealership, an MBCPO-Certified Technician performs the mechanical reconditioning.

01.01.07 The Service Department should treat the Pre-Owned Department like a business partner.

01.01.08 Once a vehicle has been reconditioned to MBCPO quality, it must be reinspected and reconditioned if it is not retailed within six months.

01.01.09 Body repairs performed on a vehicle as part of the reconditioning process whose cumulative value exceeds 10 percent of the vehicle’s current market value must be described in the Notes section of the ICR.

SECTION NAMEE. APPEARANCE RECONDITIONINGMercedes-Benz Certified Pre-Owned Program


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01.02 YourroleontheMBCPoteam

Whether you’re a Detailer, Service Technician, Mercedes-Benz Representative, or Manager, it is important for you to understand your role and responsibilities. Below are some examples of responsibilities crucial to MBCPO reconditioning that reflects the Mercedes-Benz standard. Beyond your specific duties, your job is to examine every MBCPO vehicle from the Customer’s perspective and ask yourself: “Does this vehicle reflect the quality synonymous with the Mercedes-Benz brand name?”

TEAM MEMBER RESPONSIBILITIES

Pre-Owned Manager • Selecting proper vehicles• Submitting the required paperwork on the vehicle to be reconditioned to the Service

Department immediately upon receiving the vehicle• Withholding potential MBCPO vehicles from sale until they have met MBCPO standards• Monitoring the entire reconditioning process• Ensuring quality and timeliness throughout the process• Entering vehicles into NetStar within 60 days of the sale

Service Manager • Designating one person to administer the entire Service Department process• Expediting the vehicle through the process• Keeping the Pre-Owned Manager or designated person informed of the current status of

the vehicle while it is in the process• Approving repairs in a timely fashion• Performing the required inspection on each vehicle presented for reconditioning and

reporting to the Pre-Owned Manager or designated person the extent and estimated costs of the repairs

• Ensuring MBCPO-quality repairs• Returning the vehicle to the Pre-Owned Department or Detail Department, as directed,

immediately upon completion of repairs• Ensuring that the Pre-Owned Manager or designated person receives the actual

reconditioning costs when receiving the vehicle

Service Technician • Performing all of the needed mechanical repairs noted on the MBCPO Inspection and Certification Report applicable to the vehicle

• Ensuring work is done in a timely fashion• Performing the work according to outlined procedures and returning the vehicle to the

Pre-Owned Department• Performing appearance reconditioning only after all mechanical, body, and paint work

is completed• Ensuring that only Mercedes-Benz-approved quality cleaning products are used• Replacing tires that are not OEM equivalent and DAG approved. See tire list on www.

mbusatire.com


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01.03 Servicetechnicianresponsibilities

01.03.01 Performing all of the needed mechanical repairs noted on the MBCPO Inspection and Certification Report applicable to the vehicle

01.03.02 Ensuring work is done in a timely fashion

01.03.03 Performing the work according to outlined procedures and returning the vehicle to the Pre-Owned Department

01.03.04 Performing appearance reconditioning only after all mechanical, body, and paint work is completed

01.03.05 Ensuring that only Mercedes-Benz-approved quality cleaning products are used

01.03.06 Replacing tires that are not DAG approved. See tire list on www.mbusatire.com

02. aFterMarketalert

Only Mercedes-Benz-approved products (such as AMG) are authorized and covered by the Mercedes-Benz Vehicle Service Parts and Accessories Limited Warranty. The Warranty covers factory-approved accessories, except tires, installed on a Mercedes-Benz vehicle operated in the United States under normal use and service to be free from defects in material and workmanship for 12 months, unlimited mileage from the date of original purchase of the accessory. Please consult the Mercedes-Benz Warranty Policy and Procedures Manual for details.

02.01 non-Mercedes-Benzaftermarketaccessoriesthatmaybeunacceptableinclude,butarenotlimitedto:

• Grilles

• Audio equipment

• Wheels

• Cellular telephones

• Tires

• Ground effects

• Tail lamps

• Interior trim items

• Video equipment

• Fog lamps

The MBCPO Inspection and Certification Report has an Exclusion Notice for aftermarket accessories. This section must be filled out by the Technician or Service Manager noting the aftermarket accessories upon completion of the MBCPO inspection. The Mercedes-Benz Representative reviews it with the Customer prior to sale.


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03. MBCPoaPPearanCeandreConditioninGStandardS

Because Customers are first attracted to a vehicle’s appearance, MBCPO vehicles must meet the most

stringent of appearance standards. Be guided by the following examples of MBCPO Appearance Standards.

03.01 Finaldetail

LOCATION INSPECTION RECONDITION

Door jambs Inspect for wax. Remove with a detail brush or toothbrush.

Crevices Inspect for wax. Remove with a detail brush or toothbrush.

Chrome Inspect for wax and spots. Remove with a detail brush or toothbrush and clean as necessary.

Moldings Inspect for wax and spots. Clean as necessary.

License plate frames Inspect for wax residue. Clean as necessary.

All surfaces except painted Check for surface dirt and water spots.

Use Meguiar’s Interior Care to clean, and wipe down the body with Meguiar’s Quick Wipe.

All surfaces Visually inspect all parts of the vehicle.

Return the vehicle to the pre-owned department.

03.02 SheetMetalareas


Deep Scratches Identify deep scratches (more than 0.5 mil) that do not penetrate to the base metal.

Repair scratches.

Deep Scratches Identify deep scratches that penetrate to the base metal.

Repair scratches.

Paint Transfers Locate all paint transfers Remove and buff .

Scuffs and Mars Identify scuffs and mars that penetrate the paint and/or base metal

Repair.

Paint Chips Identify scratches that are greater than 0.25 inches but do not penetrate to the base metal.

Repair.

Paint Chips Identify scratches that penetrate to the base metal.

Repair.


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03.03 Plasticandurethaneareas


Surface scratches Identify any surface scratches in plastic and urethane areas.

Repair per MBCPO standards.

Paint transfer Identify paint transfer markings. Remove and buff.

Deep scratches Identify scratches longer than 2.5 inches that do not penetrate the cladding

Repair.

Mars and scuffs Identify mars and scuffs that do not penetrate cladding or bumper.

Repair.

Paint chips Identify paint chips that do not penetrate the cladding or bumper.

Repair according to your Dealership policy.

Paint chips Identify paint chips that penetrate the cladding or bumper.

Repair.

Surface dents Identify dings and dents. Repair according to your Dealership policy.


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03.04 GlassandGlassreplacement


Non-OEM Factory glass must be replaced Windshield must be OEM Factory to allow MBCPO Certification

Perform in-depth inspection of windshield inside and out evaluating condition and ensure windshield is OEM Factory and conforms to specific vehicle equipment such as rain sensor and Night Vision. Windshield must have OEM Factory stickers present signifying windshield is OEM Factory glass.

• Replace if windshield is non-OEM Factory windshield.

• Replace windshield if there is damage that would prevent passing a state safety inspection.

• Replace windshield if there is a crack anywhere in the windshield.

• Replace windshield if there are any defects in the windshield or glass such as separation of windshield or glass material.

• Replace windshield if chipped (larger than 0.25 inch in diameter). Repair chips smaller than 0.25 inch in diameter.

• Buff all minor scratches that could impair vision or detract from the vehicle’s appearance.

Door and Side Glass:Non-OEM Factory glass must be replacedDoor and Side glass must be OEM Factory to allow MBCPO Certification

Perform in-depth inspection of all door glass, inside and out, evaluating condition and ensuring glass is OEM Factory glass. Glass must have OEM Factory stickers present signifying glass is OEM Factory glass.

• Replace if glass is non-OEM Factory glass.• Replace glass if chipped (larger than inch

in diameter) with OEM Factory glass• Replace cracked glass with OEM Factory

glass.• Repair or polish small scratches and chips.• Buff all minor scratches that could impair

vision or detract from the vehicle’s appearance

Rear Glass:Non-OEM Factory glass must be replacedRear glass must be OEM Factory to allow MBCPO Certification

Perform in-depth inspection of rear glass, inside and out, evaluating condition and ensuring glass is OEM Factory glass. Glass must have OEM Factory stickers present signifying glass is OEM Factory glass

• Replace if glass is non-OEM Factory glass.• Replace glass if chipped (larger than 0.25

inch in diameter) with OEM Factory glass• Replace cracked glass with OEM Factory

glass.• Repair or polish small scratches and chips.• Buff all minor scratches that could impair

vision or detract from the vehicle’s appearance


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03.05 Grille


Grille Check for bent or misaligned grills, discoloration or corrosion

Replace grille

03.06 wheelsandtires


Wheels Evaluate each and check for bent or cracked wheels.

Replace.

Wheels Determine if the wheels are steel construction.

Clean with steel wool and an acid-based cleaning solution.

Wheels Determine if the wheels are alloy construction.

Clean each tire thoroughly with Meguiar’s Wheel Care.

Wheels Visually inspect all wheels for any disfigurements such as cuts, gouges, or scuffing on the outside surface.

Repair.

Wheels Check for any area of the rim whose rims are chipped or cut to the extent that they could lead to leaks or bend in the wheel shape.

Replace such wheels.

Tire Surface Visually inspect all tires to ensure an “original equipment” appearance.

Clean tires with Meguiar’s Interior Care.

Tire Wear Inspect all tires, including the spare, for wear that may affect safety; evaluate if tire has aged beyond its useful life.

Replace as needed.


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04. unaCCePtaBledaMaGe

Customers who purchase MBCPO vehicles have high expectations for the Mercedes-Benz brand. The following types of damage must be repaired or cleaned (as appropriate) per MBCPO standards:

LOCATION UNACCEPTABLE DAMAGE

Bumpers Damage to the bumper that penetrates the outer bumper covering so the underlying foam material is visible

Lamp Lenses Interior and exterior lamp lenses that have surface cracks

Sheet Metal Surfaces Scratches that penetrate the sheet metal finish to the primer or metal

Chipping Chips that penetrate to the bare metal on door edges, door frames or body edges as well as any chipping, dents, or dings that penetrate to the base sheet metal surfaces

Mirror Housings, Trim, and Molding Scrapes or scratches on the mirror housings; damage to the moldings or trim

Mirror Glass (Interior and Exterior) Must be free from damage according to MBCPO OEM Factory standards for Glass in the section above

Cockpit and Trunk Carpeting Stain on the carpeted surfaces or floor mats

Upholstery Marring, cuts, or scuffing to leather seating surfaces


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05. aPPearanCereConditioninGGuidelineSForQualiFYinGveHiCleS

More Than 15 Months Old with More Than 18,000 Total Vehicle Accumulated Miles (full report)

Note: The qualifying vehicle must have a Mercedes-Benz New Vehicle Limited Warranty start date more than one year old (as entered into NetStar).

05.01 engines

For the best results, it is suggested that you use professional cleaning products like Meguiar’s All-Purpose Cleaner at full strength.

o Spray heavy-duty engine cleaner/degreaser throughout the engine compartment*

o Soak for five minutes

o Dry with air gun

o Clean the air cleaner and replace if necessary

* For Hybrid Vehicles—Prior to cleaning the engine compartment, ensure to protect electrical compo-nents and connectors from contact with water and cleaning agents. Corrosion protection such as MB Anticorrosion Wax, may be applied to the engine compartment after every engine clean-ing. Before applying, all control linkage bushings and joints should be lubricated. The poly-v-belt and all pulleys should be protected from any wax.

05.02 exterior&wheels


Entire vehicle and wheel wells Wash. Wash entire vehicle with a product such as Meguiar’s All-Purpose Cleaner; dilute per directions.

External body and wheels Inspect for road tar, old wax, etc. Remove with standard wax and grease remover.

Paint Examine the paint and note whether it needs wet sanding, compound, or cleaner.

Apply wet sanding, compound, or cleaner as needed before waxing the vehicle.

Entire vehicle and chrome areas Wash. Buff, polish, and wax the vehicle and chrome areas with products such as Meguiar’s polish products


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05.03 interior


Interior Check for any trash and debris. Remove.

Interior surfaces Identify unnecessary stickers not legally or MBUSA mandated.

Remove.

Door jambs, hinges, kick panels, visors, etc.

Check for grease or dirt spots. Degrease and clean.

Dash, panels, etc. Check for dirt, smudges, fingerprints, etc.

Leather or vinyl dress all exposed areas.

Rugs and floor mats Carefully inspect for dirt, spots, odors.

Vacuum and clean the rugs and floor mats with odor treatment and cleaner; use spot cleaner and degreaser on any grease.

Under the seats Carefully inspect for dirt, spots, odors.

Vacuum and shampoo under the seats.

Vents, between controls, and other hart-to-get small areas

Inspect for dirt and residue. Clean.

Leather seats Clean all surfaces of leather seats. Apply Meguiar’s Leather Care product to clean, nourish, and protect.

Headliner Check headliner for any dirt or spots.

Clean if necessary.

Ashtray Confirm that ashtray is functioning properly.

Clean thoroughly; replace if missing or broken.

Lighter Confirm that lighter is functioning properly and determine if it appears to have been used.

Replace if missing or appears used.

Knobs Check throughout interior for missing knobs.

Replace.

Ashtray assembly Inspect for dirt and residue. Wipe assembly and surrounding areas with smoke treatment.

Interior glass Inspect for any fingerprints, dirt, water spots, smudges, etc.

Clean all class with glass cleaner.

Mirrors Check all mirror mounts. Tighten if necessary

Screws Check all interior screws. Tighten or replace as necessary.

Seats, carpets Evaluate any seat or carpet damage Repair as necessary.

Carpets, carpeted floor mats, other surfaces

Identify stains and discoloration which cannot be removed.

Replace.

Leather surfaces Identify worn or scuffed leather areas.

Re-dye or replace.

Instrument panels, leather seats, door panels, floor carpeting, wood trim, headliner, upholstery, sun visors

Inspect carefully and identify any cuts, rips, cracks, or fraying.

Repair according to MBCPO standards or replace.

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06. aPPearanCereConditioninGGuidelineSForQualiFYinGveHiCleS

Less Than 15 Months Old with Fewer Than 18,000 Total Vehicle Accumulated Miles (full report)

Note: The qualifying vehicle must have a Mercedes-Benz New Vehicle Limited Warranty start date less than one year old (as entered into NetStar).

06.01 engines

For the best results, it is suggested that you use professional cleaning products like Meguiar’s All-Purpose Cleaner at full strength.

o Spray heavy-duty engine cleaner/degreaser throughout the engine compartment*

o Soak for five minutes

o Dry with air gun

o Clean the air cleaner and replace if necessary

* For Hybrid Vehicles—Prior to cleaning the engine compartment, ensure to protect electrical compo-nents and connectors from contact with water and cleaning agents. Corrosion protection such as MB Anticorrosion Wax, may be applied to the engine compartment after every engine cleaning. Before applying, all control linkage bushings and joints should be lubricated. The poly-v-belt and all pulleys should be protected from any wax.

06.02 exterior&wheels


Entire vehicle and wheel wells Wash. Wash entire vehicle with a product such as Meguiar’s All-Purpose Cleaner; dilute per directions.

External body and wheels Inspect for road tar, old wax, etc. Remove with standard wax and grease remover.

Paint Examine the paint and note whether it needs wet sanding, compound, or cleaner.

Apply wet sanding, compound, or cleaner as needed before waxing the vehicle.

Entire vehicle and chrome areas Wash. Buff, polish, and wax the vehicle and chrome areas with products such as Meguiar’s polish products

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06.03 interior


Interior Check for any trash and debris. Remove.

Interior surfaces Identify unnecessary stickers not legally or MBUSA mandated.

Remove.

Door jambs, hinges, kick panels, visors, etc.

Check for grease or dirt spots. Degrease and clean.

Dash, panels, etc. Check for dirt, smudges, fingerprints, etc.

Leather or vinyl dress all exposed areas.

Rugs and floor mats Carefully inspect for dirt, spots, odors.

Vacuum and clean the rugs and floor mats with odor treatment and cleaner; use spot cleaner and degreaser on any grease.

Under the seats Carefully inspect for dirt, spots, odors.

Vacuum and shampoo under the seats.

Vents, between controls, and other hart-to-get small areas

Inspect for dirt and residue. Clean.

Leather seats Clean all surfaces of leather seats. Apply Meguiar’s Leather Care product to clean, nourish, and protect.

Headliner Check headliner for any dirt or spots.

Clean if necessary.

Ashtray Confirm that ashtray is functioning properly.

Clean thoroughly; replace if missing or broken.

Lighter Confirm that lighter is functioning properly and determine if it appears to have been used.

Replace if missing or appears used.

Knobs Check throughout interior for missing knobs.

Replace.

Ashtray assembly Inspect for dirt and residue. Wipe assembly and surrounding areas with smoke treatment.

Interior glass Inspect for any fingerprints, dirt, water spots, smudges, etc.

Clean all class with glass cleaner.

Mirrors Check all mirror mounts. Tighten if necessary

Screws Check all interior screws. Tighten or replace as necessary.

Seats, carpets Evaluate any seat or carpet damage Repair as necessary.

Carpets, carpeted floor mats, other surfaces

Identify stains and discoloration which cannot be removed.

Replace.

Leather surfaces Identify worn or scuffed leather areas.

Re-dye or replace.

Instrument panels, leather seats, door panels, floor carpeting, wood trim, headliner, upholstery, sun visors

Inspect carefully and identify any cuts, rips, cracks, or fraying.

Repair according to MBCPO standards or replace.

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F. MATERIALS AND PROCEDURESMercedes-Benz Certified Pre-Owned Program


01. toolSandProCedureSForreConditioninGtoMBCPoStandardS

Whether you’re repairing a deep paint scratch or shampooing the rugs, the right tools and supplies help you do a higher-quality, more efficient reconditioning job that meets MBCPO standards. If you’re a relatively new Mercedes-Benz Reconditioning Technician, you’ll find some helpful tips and procedures in this section. If you’re an experienced Mercedes-Benz Paint Repair Technician, you’ll find this information a helpful “refresher course.” Regardless of your experience level, you may find products referred to in this section that can add more luster to the exterior paint and more life to interior materials such as leather and wood.

01.01 toolsandSupplies

Be sure to have these tools and supplies on hand:

EQUIPMENT / TOOLS MISCELLANEOUS SUPPLIES

• Portable work bench on wheels

• High-pressure spray washer

• Electric or pneumatic-powered, dual-action polisher

• Wet/dry vacuum—standard nozzle and crevice tools

• Pad-cleaning tools

• Low-pressure sprayer

• Assorted soft detailing brushes

• Pressurized spray atomizer

• Fluorescent trouble light

• Heat gun

• Electric or pneumatic variable-speed rotary buffers with a maximum speed of 1800 rpm

• Wet shampoo extraction system

• Compressed air blower and 50-foot hose with blowgun valve

• Applicator squeeze bottles with yorker dispenser tip

• Glass scraper with single-edge razor blades

• Plastic scrub brushes of various sizes

• Sprayer system for engine coating

• Foam buffing pads for rotary and dual-action polishers

• Pre-softened 100 percent cotton terry towels

• Terry cloth-covered sponge applicator pads

• Cotton and foam swabs of various sizes

• 100 percent velcro-anchored lamb’s wool cutting pads

• Washing mitts and bug pads

• Spray lubricant such as WD-40

• Assortment of spout funnels

• Variety of adhesive materials

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02. rePairProCedureS

Before you begin repairs, have the vehicle washed and cover any vehicle surface not being repaired. Make sure all the windows are fully closed.

Paint damage can be divided into two major classifications. In general, minor paint damage affects the top coat only and can be repaired without a complete repainting. When paint damage intrudes beyond the first coat, it is usually considered major paint damage and requires repainting.

Before you start repairing the paint damage, you’ll need to know the paint thickness. To determine this, you’ll need several items:

• A combination coating thickness measurement gauge as described in the MBUSA Standard Service Equipment Program Catalog to indicate the amount of surface paint

• A felt-tip marker• Masking tape

To prepare for a high-quality repair, follow these procedures:

o To find a starting point, use the mil gauge at a number of locations on the body panel

o Record the paint thickness in the area of the damage

o With the felt-tip marker, write your measurements on masking tape

o Place the tape at the locations you’ve measured

o While you’re doing the repairs, use the gauge occasionally to verify how much paint you’ve removed

02.01 SurfaceScratches

You can usually repair surface scratches by buffing or polishing. You’ll need:

• A set of foam buffing pads with fine, medium, and coarse surfaces (remember that wool pads are more abrasive than foam pads)

• A full array of products recommended through your Dealership, from mild to abrasive

• Use products from the same manufacturer during a repair to help ensure your desired results.

• It’s recommended that you use the Meguiar’s line of Mercedes-Benz car care products.

Consult your shop’s Workshop Information System (WIS) for the latest information and standards for inspection and repair procedures, tools, materials, and safety procedures for specific models and model years.

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02.02 leastaggressiveScratchremovalProcess

Follow this process before trying more aggressive methods:

o After the paint surface has been cleaned and prepared, apply some polish onto the paint (if you’re using a new or dry pad, also apply a small amount of polish on the pad)

o Trap the polish under the pad by starting the buffing wheel over the paint surface

o Use a back-and-forth motion two to three times the size of the buffing pad

o Maintain a buffing pad spinning speed of 1800 rpm or less for more control and less paint removal

o Let the polish and the buffer’s weight repair the paint; don’t use a lot of force on the paint’s surface

o Since the body edges and body lines don’t have as thick a layer of paint as other body surfaces, polish up to these areas but not on them

o When the polish turns cloudy and hazy, stop buffing and wipe the surface with a clean cloth

o Stop buffing before the polish dries; a dry buffing pad might scratch the paint

o Examine the paint under artificial light and daylight to see if flaws remain

o If the paint needs more buffing, use the mil gauge to check the paint’s depth. If the paint depth is sufficient, apply more polish

02.03 MoreaggressiveScratchremovalProcess

If the “Least Aggressive Process” doesn’t produce acceptable results, you will need use a more aggressive repair process:

o It’s important to use a different pad with each polish; label each pad with your marker so you can tell them apart

o Keep checking the paint thickness with your mil gauge

o If your buffing pad gets dirty, it can add to the paint damage; a short soft nylon bristle brush will clean it

o If a wool buffing pad gets dirty, a star wheel will clean it

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02.04 PaintChipping

First, chemically clean the chipped area to ensure the paint will adhere properly. Then follow these steps:

o Identify the correct color

o Use a small brush that’s appropriate for the chipped area

o Rather than try to fill the chip with one heavy application (such attempts are usu-ally noticed because the area’s color is much darker than the surrounding area) use a number of light coats, let each coat dry for about five minutes before applying the next, and fill the chipped area until it’s just below the surface

o Clearcoat application techniques

• Fill chipped clearcoat areas just a little above the surface

• Let five minutes pass between each layer

o Buffing and polishing

• When the touch-up is completely dry, buff and polish using the least aggressive buffing and polishing method

• Use your gauge to check paint thickness

02.05 deepScratches

Your Dealership’s body shop should repaint and refinish surfaces with deep scratches.

02.06 ScuffingandMarring

You can repair scuffing and marring by following the processes for surface scratches. If these don’t work, it might be necessary to repaint and refinish the panel.

02.07 dingsanddents

Dings and dents may require body work, depending on whether they’re in the sheet metal or polyurethane areas. If you attempt a repair that involves manipulating the ding or the dent, make sure you don’t harm the factory-applied, anti-corrosion protection. And never drill into body panels to remove dings or dents!

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02.08 acidraindamage

Neutralize the acid by spraying a solution of one tablespoon of baking soda per quart of

water over the damaged area; wipe with a clean cloth or saturate a cloth with the solution

and wipe the area

If the paint damage is deep enough, sanding might be necessary to repair acid rain damage:

o To soften the backing and prevent the grit from flaking off, soak #1500-2000 grit sandpaper in clean, soapy water for an hour

o Always use a flexible sanding pad to hold the sandpaper to prevent uneven sanding that may occur when you use your bare hands

o Use light pressure to sand the paint in a straight line only

o Constantly use a spray bottle to spray water to wash away potentially damaging abrasive grit particles that could scratch the surface

o Measure and if the top coat is still level, sand until the scratch vanishes

o After sanding, the surface will feel smooth but look dull

o Use the mildest buffing/polishing compound to blend the finish

02.09 examiningtherepairs

After buffing, painted surfaces will usually look smooth and shiny. There may be some fine swirl marks or the paint may appear cloudy.

o To remove swirl marks or bring out the final gloss, buff with a fine polish

o Compare the repaired area with the other panel; if you can see a difference, your Customers will see it, too

o Examine the painted surface in natural daylight or color-corrected lighting; if you have access, use different kinds of light sources

o Check for hidden scratches by removing any unseen filler material

o Spray the repaired area with a 50/50 mixture of water and rubbing alcohol; dry with a clean 100 percent cotton terry cloth and re-examine for scratches

o Use a scratch-removing polish to remove fine buffing marks

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47


G. CUSTOMER CARE: THE MERCEDES-BENZ WAYMercedes-Benz Certified Pre-Owned Program and Reconditioning Manual

January 2014

01. BuildinGCuStoMertruStandConFidenCetHrouGHCuStoMerCare

Knowing that your Dealership and MBUSA are there for them throughout the ownership experience makes a Customer’s decision to buy a Mercedes-Benz Certified Pre-Owned vehicle even easier. The MBCPO Limited Warranty and Extended Limited Warranties are the basis for Customer Care, which includes eight critical elements (see section G).

There are ways in which you can enhance the MBCPO Program to further solidify your Customer interaction and their satisfaction with your Dealership and their purchase decision. For example, extend the services you already provide for new vehicle Customers to pre-owned Customers to ensure their satisfaction as well. A free first service for lube, oil, and filter change, and a free vehicle wash with each service visit are bonuses that will surprise and delight your pre-owned Customers. Service loaners, pickup and delivery service, and service beepers are other services that help build loyalty to your Dealership Service Department and Customer satisfaction with their Mercedes-Benz Certified Pre-Owned vehicle. Options like these will set you apart from your competition and attract new Customers to your Dealership. MBUSA research indicates that Dealers who have implemented these types of policies have been very pleased with the results.

G. C

ustomer CA

RE: TH

E MER

CED

ES BEN

Z WAY

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01.01 MBCPoCustomerCareexchangePrivilege

(Not valid in all states. Check with your Dealership’s legal counsel to determine if the MBCPO Exchange Privilege can be used in your state.)

Customers who are not satisfied with a vehicle for any reason may return the vehicle within seven calendar days or 500 miles from the date of physical delivery of the vehicle, whichever occurs first, subject to the following terms:

01.01.01 Your Customer can exchange his or her vehicle for another Mercedes-Benz Certified Pre-Owned vehicle or new Mercedes-Benz vehicle of equal or greater price (as compared to the original purchase price).

01.01.02 The original vehicle must be returned to the selling Dealer.

01.01.03 The Exchange Privilege for a vehicle of greater price requires Customer payment of the price differential between the two vehicles (as compared to the purchase price of the original vehicle). The monthly finance or lease payment for the replacement vehicle may exceed the monthly payment under the original contract.

01.01.04 The Customer is responsible for other charges that may be incurred due to any difference between the purchase price of the original vehicle and the purchase price of the replacement vehicle. Customers are also responsible for any early lease or finance termination charges assessed under the original contract, and any additional taxes, license, title, documentary fees, registration, insurance, optional equipment, finance charges, rent charges, and service contracts assessed under the replacement contract.


49


eiGHtCritiCaleleMentSoFMBCPoCuStoMerCare

Customer satisfaction with your pre-owned operation is as essential to the future financial performance of your

Dealership as it is for your new vehicle business. Mercedes-Benz Certified Pre-Owned (MBCPO) Customer Care is

designed to put authorized Mercedes-Benz Dealers out in front of the competition in all areas of after-sale Customer

relations. The key elements of MBCPO Customer Care include:

1. excellenceinalldealership/CustomerinteractionstoprovideCustomerswithasalesandownershipexperiencethatreflectstheMercedes-Benznameandreputation.

2. theMBCPolimitedwarrantyandtheMBCPoextendedlimitedwarranties.

3. SpecialfinancingandleasingratesavailablefromMercedes-BenzFinancial.

4. aseamless,attentivedeliveryprocess.

5. exchangePrivilegeallowingMBCPoCustomersanopportunityforredressiftheydecidetheyarenot

satisfiedwiththeirpurchase.(Not valid in all states. Check with Dealership legal counsel if the MBCPO

Exchange can be used in your state.) Within seven days and/or within 500 miles of the date of purchase,

Customers may exchange the vehicle for another MBCPO vehicle of equal or greater price or a new

Mercedes-Benz vehicle of equal or greater price (the Customer must pay the difference for a vehicle of

greater price).

If an MBCPO Extended Limited Warranty was purchased for the original vehicle:

— Within the seven-day Exchange Privilege window, the Dealer must request cancellation of the original ELW through NetStar’s Electronic Contract System

— If the ELW cancellation request meets all requirements, the Dealer will be reimbursed by MBUSA. If the ELW cancellation request meets all requirements and state law requires, the Customer will be reimbursed by the Dealer

— Dealers should consult the applicable MBCPO Extended Limited Warranty application for cancellation policies that may be mandated in their state

• Vehicles are ineligible for the Exchange Privilege Program if:

— The MBCPO Exchange Privilege cannot be honored in the Dealer’s state of business

— The vehicle is not in the same condition (as determined by the Dealer) as when it was delivered

— The vehicle is not free and clear of all liens and/or encumbrances

— The vehicle was used for livery, taxi, or delivery services after MBCPO delivery

— The Customer has returned an MBCPO vehicle within the previous 12 months to any authorized Mercedes-Benz Dealer


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During the delivery process, it is important that the Exchange Privilege be clearly explained to your Customers.

Also, the selling Dealer must cancel the ELW in NetStar’s Electronic Contract System within the seven-day

window of the Exchange Privilege for a refund. Dealer requests made after the seventh day will be denied by

MBUSA (except in those states that mandate a longer cancellation time period).

The Exchange Privilege must be developed in full detail by the Dealer and must be in compliance with all

applicable state and local laws. When a Customer requests the benefit, the Dealer must supply an Exchange

Privilege Form applicable to the Dealership’s state and local laws. Full terms and conditions may vary by state.

You will need to work with Mercedes-Benz Financial and any other financing institutions you use to gain

cooperation in processing retail and lease contracts during this grace period. In many cases, finance or lease

contracts will not have been funded and the exchange will be relatively simple. In other cases a “substitution

of collateral” may be necessary. For titling requirements, check with the appropriate government agency in

your state.

6. Mercedes-BenzroadsideassistanceforallMBCPoowners.1

• Mercedes-Benz Roadside Assistance2 (Sign and Drive) is available. For more information,

please visit www.mercedesroadside.com.

• Towing for the life of the MBCPO Warranties, reimbursing the Customer for breakdowns related to a

warranted condition only. The servicing or selling Dealer is responsible for administrating payments to

towing companies.

• Trip Interruption Program for the life of the warranty. If warranty repairs occur more than 100 miles

from the owner’s residence and repairs require that the vehicle remain overnight at an authorized

Mercedes-Benz Dealership while the warranty repairs are being done, the Customer will be reimbursed

for his or her trip interruption (up to $300 per day for a maximum of three consecutive nights immediately

following the vehicle disablement). Funds are specifically intended to defray the costs of accommodations,

meals, and substitute travel arrangements. Customer requests for reimbursement must be presented to

and approved by an authorized Mercedes-Benz Dealer.

Reimbursement will be provided to the Customer by a Mercedes-Benz Dealership upon the determination

that the request falls within the parameters of the Trip Interruption Program. Eligibility for this benefit will

not be finalized until it is determined that the required repairs are covered under warranty. The vehicle and

repair must be covered by New Vehicle Limited Warranty, the MBCPO Limited Warranty, or the Mercedes-Benz

Extended Limited Warranty. (The steps a Dealership should take when a Customer requests Trip Interruption

benefits are found on Section G.01.03.)

2 Roadside Assistance repairs may involve charges for parts, service, and towing. At times these services may be performed by an outside, authorized Mercedes-Benz service provider.

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7. theCertifiedMercedes-Benzdealernetwork,ensuringthatwarrantedrepairscanbemadeatauthorizedMercedes-Benzdealershipsanywhereintheu.S.withoutanypre-approval.

8. mBrace,providingon-the-roadconfidenceforCustomerswithonetouchofabutton,helpsdeliver:

• Emergency assistance to summon police, ambulance, or paramedics (including if the driver is incapacitated, through automatic notification to the response center when an airbag or seatbelt-tensioning device is activated)

• Tracking of a stolen vehicle

• A Roadside Assistance Representative

• Concierge service (helps arrange hotel and dinner reservations, tickets for a flight or entertainment, send flowers or gifts, find a babysitter, and more)

• Answers to questions about vehicle operation and service

01.02 tripinterruptionBenefits

Take the following steps if a Customer requests Trip Interruption benefits:

Advise the Customer that eligibility for Trip Interruption benefits depends on whether

the repair is covered under the terms of the New Vehicle Limited Warranty, the MBCPO

Limited Warranty, or the MBCPO Extended Limited Warranty (if applicable)

o Recommend that the Customer save all related travel expense receipts until eligibility is determined

o Obtain all receipts from the Customer

o Contact your local MBUSA Market Team to expedite eligibility

o Reimbursement will be provided to the Customer by the authorized Mercedes-Benz Dealer upon determination by the Dealership’s Service Manager that the request falls within the parameters of the Trip Interruption Program.

Note: Canadian pre-owned vehicles are not covered by the MBUSA Roadside Assistance Program, Canadian pre-owned warranties and Extended Limited Warranties are not honored in the United States. However, Canadian vehicles are covered by Sign and Drive while traveling in the United States. Consult the Mercedes-Benz Warranty Policy and Procedures Manual for details on U.S.-authorized Mercedes-Benz Dealership responsibilities concerning Canadian new and pre-owned vehicles.


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01.03 Consequentialdamage

Primary and Secondary Loss Definitions

Primary Loss:

This MBCPO Limited Warranty only covers the Primary Warranted failed part, as well as

damage to other components which are damaged as a direct result of the failed Primary

Warranted part.

Secondary Loss:

Secondary losses are not covered by the MBCPO Limited Warranty. Examples of Secondary

Losses include but are not limited to Consequential Damages, which are damages / expenses

incurred subsequent to the primary loss.

01.04 roadsideassistanceChargesandlimitations

Your Customers should be advised and reminded that there will be charges for some Roadside Assistance repairs.

• Any parts used • Towing, if necessary

If the repair is covered under the terms of the New Vehicle Limited Warranty and/or the MB-

CPO Warranty, normal reimbursement and warranty procedures will apply.

Payment methods (cash, credit card, or personal check) depend on the policies of the Mercedes-

Benz Dealer or other service provider.

A Dealer Technician will not be expected to make warranty decisions at the scene of a vehicle

disablement. The Customer should be advised of this by the Mercedes-Benz Representative

and told to keep copies of all receipts. Dealerships will provide the appropriate refund to the

Customer in qualifying cases.

Every effort should be made to assist Mercedes-Benz Certified Pre-Owned vehicle owners in a

breakdown situation. However, the authorized Dealer Technician or the tow service provider

will, on a case-by-case basis, determine the accessibility of the vehicle. Additional charges may

be applied for a breakdown location that is not a reasonably accessible roadside location, as

determined by the authorized Dealer Technician or tow service provider.

All Trip Interruption claims must be presented to and approved by a Mercedes-Benz

Dealership. Vehicle and repair must be covered by a New Vehicle Limited Warranty, MBCPO

Limited Warranty, or MBCPO Extended Limited Warranty. Eligibility for this benefit will not be

finalized until it is determined that the required repairs are covered under warranty.

Reimbursement will be provided by a Mercedes-Benz Dealership upon the determination that

the Reimbursement Request falls within the parameters of the Trip Interruption Program.

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H. PERFORMANCE REPORTING AND MEASUREMENTMercedes-Benz Certified Pre-Owned Program and Reconditioning Manual

January 2014

01. MBCPoCoMPlianCe:CritiCalForSuCCeSS

Pursuant to the terms of the Mercedes-Benz Certified Pre-Owned Vehicle Program Dealer Participation Agreement, participating Mercedes-Benz Dealerships must comply with MBCPO policies and procedures, designed to foster lifelong Mercedes-Benz Customers. Satisfied Customers can become loyal Customers and bring new Customers into your Dealership simply by word of mouth. Please become thoroughly knowledgeable on the MBCPO policies in this manual. Process Improvement Reviews, designed to facilitate Dealer compliance with MBCPO Program Standards and guidelines, are discussed on Sections H.02 and H.03 below, as well as PIR Vehicle Review Activities (pages 56-57).

The consequences of noncompliance are outlined on Section H.04.

02. ProCeSSiMProveMentreviewS

Process Improvement Reviews (PIR) are designed to facilitate Dealer compliance and MBCPO performance. There are two sections of the review that are conducted on site at the selected Dealership: vehicle-specific reviews and Dealership process reviews. Selection of Dealerships for PIRs is based on a review of MBCPO Performance Guideline Exception Reports (see below). Not all Dealers receive a PIR in any one year. A dealer may also receive a PIR due to Carcannon consultation scoring.

02.01 Pirvehiclereviewactivities

During a PIR, randomly selected MBCPO vehicles are thoroughly inspected and their documentation is reviewed:

Vehicle Selection—The Reviewer selects up to 30 VINs from the Dealership’s MBCPO inventory from NetStar. A maximum of 15 VINs are chosen to achieve a representative mix of all model years and classes that are eligible for the MBCPO Program.

02.01.01 Vehicle Inspections—The Reviewer performs a physical inspection of each of the selected MBCPO vehicles. Each inspection includes 33 categories that cover compliance with selective Program Standards for exterior and interior appearance, as well as mechanical operation. Within each category there are specific vehicle items reviewed. For example, under Category 1 Glass, the windshield, driver-front, driver-rear, passenger-front, passenger-rear, and rear window are all checked to see if they are chipped, cracked, scratched, or “other.” The Reviewer assigns a pass/fail grade for each category.

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02.01.02 Vehicle File Reviews—For each vehicle, the following files and documents are reviewed: Inspection and Certification Report (I&CR), certification status of the Technician completing the I&CR, additional repair orders, VMI status codes, CARFAX Vehicle History Report®, reconditioning documentation, short diagnostics evaluation test, compression test (if necessary), and glove box materials.

02.01.03 Carcannon Reporting Reviews—Depending on the results of the periodic Carcannon Consultations, a PIR may be scheduled with the dealer. Vehicle file reviews will be conducted by MBUSA as well as inspection of certified vehicles in dealer inventory.

02.01.04 Hot Alerts—When a Certification Stopper is found on a vehicle, in the CARFAX Vehicle History Report®, or in a VMI Vehicle History Report during the vehicle reviews, the Reviewer immediately notifies the MBUSA Market Manager and the Dealer to initiate corrective action. (Consult Section H.04 for the consequences of noncompliance with MBCPO Program Standards. Consult Section D.03. for a full discussion of the Certification Stopper conditions that immediately bar a vehicle from potential MBCPO certification.)

02.02 Pirdealershipreviewactivities

Inventory, certification training, MBCPO Extended Limited Warranty applications, Dealership capacity, and point-of-sale material assessments are also reviewed:

02.02.01 Inventory Reconciliation—The Dealer Management System (DMS) and NetStar are reconciled to determine whether the Dealership’s inventory and the NetStar inventory match (thereby assessing proper inventory and sales reporting).

02.02.02 Certification Training Review—The Reviewer determines whether the current Pre-Owned Manager, Service Manager, and F&L Manager have completed appropriate MBCPO online training. The Reviewer also determines if the appropriate Dealership Representatives who sell new vehicles, pre-owned vehicles, or both are trained and certified according to MBCPO Standards.

02.02.03 Extended Limited Warranty Process Review—The review process includes reviewing the timeliness and accuracy of MBCPO Extended Limited Warranty (ELW) reporting to MBUSA on vehicles chosen for review if CPO ELWs are present.

02.02.04 Process Improvement Reviews—The Regional Market Manager reviews and discusses with the Dealership inconsistencies in the Dealership’s MBCPO Program process. The discussion topics include reconditioning, inventory control, electronic ELW submission, delivery, and Customer relationships.

02.02.05 Pre-Owned Capacity—If necessary, MBUSA specifies Dealership showroom, sales office, vehicle storage, and frontline display capacity requirements in the Dealer Operating Agreement. The PIR Reviewer compares the actual capacity to the Standards.

02.02.06 Point-of-Sale/Point-of-Purchase Material Review—PIR Reviewers inspect MBCPO point-of-sale and point-of-purchase materials and placement at the Dealership and determine if sufficient quantities are on hand and if current branding standards are met.


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02.03 PirdebriefingMeeting

After completing the PIR at a Dealership, the Reviewer and the MBUSA Market Manager jointly prepare a brief summary report of the observed strengths and opportunities for improvement at the Dealership and discuss them with Dealership Management. The MBUSA Market Manager is sent the final PIR Report. The report is divided into different sections, with “pass/fail” ratings shown as graphs. User-friendly, yet comprehensive, the report includes a detailed explanation of the scoring system.

The summary report includes:

• vehicle,process,andoveralldealershipcompliancescores

• topfivenoncompliantvehiclecategories;iflessthanfivecategoriesarenoncompliant,thosecategoriesarelisted

• vehiclefileanddocumentationfindings(documentationpresent,etc.)

• vehicleinspectiongraphsforexteriorappearance,interiorappearance,andmechanical

• electronicextendedlimitedwarranty(numberofdaysfromdeliverytoddr,Customersignature,etc.)

• inventoryreconciliation

• reasonsvehiclewasunavailableforinspectionbyPirreviewers

• trainingcertificationreport

• Pre-ownedcapacityreport

• Point-of-sale(PoS)materialsreport

• top25problemcategories

• vehiclelevelreporting(individualvehicleconditionreport)

The Market Manager is responsible for the following: (1) reviewing the final PIR Report with the Dealership’s General Manager, Dealer Principal, Pre-Owned Manager, or any other Manager as required, (2) ensuring that Dealers agree to and complete the resulting action plans for improvements, (3) entering the plans into the Dealer Network Information Resource (DNIR), and (4) periodically reviewing the Dealership’s status.

03. MBCPoPerForManCeGuidelineeXCePtionrePortS

MBUSA issues periodic MBCPO Performance Guideline Exception Reports to Regional Management Regional Market Teams are responsible for conferring with Dealer Management regarding any criteria that fall below MBCPO guidelines. The reports identify Dealerships that are not meeting Customer satisfaction guidelines and MBCPO certification training guidelines for their Key Personnel (Pre-Owned Manager, Sales Representatives, F&L Manager, Service Manager, and Technicians). Dealers’ performance against business objectives that have not met MBCPO guidelines (such as MBCPO-to-new vehicle sales ratios) are also identified.


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04. ConSeQuenCeSoFnonCoMPlianCewitHMBCPoStandardS

Every step of the MBCPO process is designed to help deliver the ownership experience and the vehicle quality, safety, reliability, durability, and lasting value that Customers expect of the Mercedes-Benz brand. To help ensure consistent MBCPO vehicle reconditioning, ICR documentation, and MBCPO-recommended Customer handling, MBUSA has clearly defined Program Standards and guidelines for all authorized Mercedes-Benz Dealers.

To enforce the MBCPO Standards, MBUSA has stated in the Mercedes-Benz Certified Pre-Owned Vehicle Terms and Conditions Agreement certain conditions that may affect an authorized Mercedes-Benz Dealer’s continued participation in the MBCPO Program.

04.01 noncompliancethatresultsinimproperrepresentationofthevehicle

Through noncompliance with MBCPO Program Standards and guidelines, an authorized Mercedes-Benz Dealer may improperly represent a Mercedes-Benz vehicle as an MBCPO vehicle to Customers (in any way, including but not confined to representation in NetStar, on Web sites, in advertising, on the vehicle, or through showroom materials). Noncompliance that may result in improper representation of the vehicle may include, but is not limited to, the following:

04.01.01 Inclusion or “certification” of a vehicle that is ineligible for the MBCPO Program1

04.01.02 Failure to provide a clean CARFAX Vehicle History Report® for a vehicle, e.g.,

• No report performed for the vehicle

• No report on file for the vehicle

• No “clean” report for the vehicle2

04.01.03 Failure to run a VMI Vehicle History Report or a Report that contains a “Certification Stopper”1

04.01.04 Failure to inspect and recondition a vehicle according to MBCPO standards, e.g.,

• No inspection and reconditioning performed

• Poor inspection

• Incomplete or poor repairs

• Missing repair order to support the Inspection & Certification Report (ICR)

04.01.05 Failure to provide an I&CR, e.g.,

• The ICR is inaccurate

• An ICR was not on file for the vehicle at the time of review

• ICR was not reviewed with Customer prior to sale

• Missing ICR signatures

1 Vehicle eligibility rules and MBCPO Certification Stoppers (five critical conditions that immediately eliminate vehicles from certification) are outlined in sections A and D.

2 In a CARFAX Vehicle History Report®, an “Alert” entry associated with one of the problem categories indicates that the vehicle in question has a potential problem (e.g., that the vehicle does not have a “clean” history).


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04.02 theconsequencesoftheaboveactionsorinactionsmayinclude,butarenotlimitedto,thefollowing:

If the vehicle is eligible for the MBCPO Program but has not been inspected, reconditioned, or certified according to MBCPO standards—and it has not been sold and delivered to a Customer:

04.02.01 MBUSA’s applicable regional Market Team will immediately strip the vehicle of certification in NetStar and notify the Dealer.

04.02.02 The Dealer will be responsible for immediately removing all MBCPO identifying labels and point-of-purchase materials from the area surrounding the vehicle and for pulling all advertising and Web site representation of the vehicle as certified. The Dealer will not represent the vehicle as an MBCPO vehicle until and unless the Dealer inspects, reconditions, and certifies the vehicle according to MBCPO Standards.

If the vehicle has been sold and delivered to a Customer, and MBUSA determines that the vehicle would have been eligible for certification if the proper inspection and reconditioning had been done:

04.02.03 MBUSA’s applicable regional Market Team will immediately notify the selling Dealer.

04.02.04 The Market Team will be responsible for immediately notifying the Customer in writing to: (1) arrange for the vehicle to be brought to the selling Dealership for proper MBCPO inspection and reconditioning, using the process steps detailed in MBCPO Standards and guidelines, and/or (2) achieve a harmonious resolution. It must be clearly communicated to the Customer that it is the Customer’s decision either to stay in the vehicle or to have the vehicle purchased by the selling Dealer for a full refund.


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04.02.05 If the Customer chooses not to keep the vehicle:

• Market Team will immediately strip the vehicle of certification in NetStar,

• Selling Dealer must buy back the vehicle from the Customer,

• Selling Dealer will be financially responsible for all claims for MBCPO Limited Warranty and Extended Limited Warranties (if applicable),

• Selling Dealer will not represent the vehicle as an MBCPO vehicle until and unless the Dealer inspects, reconditions, and certifies the vehicle according to MBCPO Standards, and

• Selling Dealer should obtain legal guidance regarding any legal requirements prior to selling or wholesaling the vehicle in question if the Customer chooses to keep the vehicle:

04.02.06 If the Customer chooses to keep the vehicle:

• The vehicle must be brought in for proper inspection and certification,

• The MBCPO Limited Warranty and Extended Limited Warranty (if applicable) will stay in force with their original start date(s) and end date(s), and

• The Customer must sign an acknowledgement that the vehicle has now been properly certified and that he or she holds MBUSA and the authorized Mercedes-Benz Dealer harmless.

• If an ELW application has been submitted and the vehicle is bought back from the Customer by the selling Dealership, the authorized Mercedes-Benz Dealership will be charged a $500 administration fee on its Consolidated Dealer Statement. The Dealership will forfeit the cost of the ELW and will reimburse the Customer the cost of the ELW.

If the vehicle has been sold and delivered to a Customer and it is determined that the vehicle is ineligible for the Program:

04.02.07 MBUSA’s applicable regional Market Team will immediately notify the selling Dealer.

• The selling Dealer will immediately contact the Customer to arrange to buy back the vehicle. The Dealer will also be financially responsible for all claims submitted for MBCPO Limited Warranty and Extended Limited Warranties (if applicable).

• The vehicle will then be immediately stripped of certification in NetStar. If applicable, a warranty code must be entered into VMI.

• The Dealer should obtain legal guidance regarding any legal requirements prior to selling or wholesaling the vehicle in question.

• If an ELW application has been submitted, the authorized Mercedes-Benz Dealership will be charged a $500 administration fee on its Consolidated Dealer Statement. The Dealership will forfeit the cost of the ELW and will reimburse the Customer the cost of the ELW.


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04.03 noncompliancewithMBCPonetStarreportingStandards

The following actions or inactions qualify as noncompliance:

04.03.01 MBCPO vehicle not DDR’d in NetStar within 30 days of Customer purchase

04.03.02 Inaccurate reporting

04.03.03 Vehicle DDR’d with incorrect or missing ELW package

In the event of noncompliance of reporting standard, the selling Dealership will be charged a $500 administration fee on its Consolidated Dealer Statement for each vehicle.

04.04 noncompliancewithMBCPoProgramStandardsfordealershipPersonneltrainingandCertification.

The Dealership and its employees must participate in all training and certification of Key Personnel (Pre-Owned Managers, Pre-Owned Representatives, F&L Managers, Service Managers, and Reconditioning Technicians) as required by the MBCPO Program. Knowledge of and fluency in the MBCPO Program includes, but is not limited to, the Program rules and requirements; vehicle reconditioning standards; terms, conditions, and limitations of the MBCPO Limited Warranty and the MBCPO Extended Limited Warranties; and the MBCPO Delivery Checklist.

All Key Personnel must be MBCPO certified. Minimum test scores, as established by MBUSA, must be maintained by Key Personnel for MBCPO certification.

Noncompliance with any of the MBCPO Training and Certification Standards can result in the Dealership losing the right to participate in the MBCPO Program


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Mercedes-Benz USA, LLC One Mercedes Drive Montvale, NJ 07645

CPO-14-04 Version 1/2014

All information in this publication is correct as of publication date. The details are subject to change. All rights reserved. Reproduction or translation in whole or part is not permitted without written authorization from the publisher. Printed in USA. ©2014 Mercedes-Benz USA, LLC, Daimler AF, Stuttgart, Federal Republic of Germany

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