Engine has seized. Next steps advice.
 

The history is here https://www.peachparts.com/shopforum/ml-gl-g-wagen-r-class-unimog-sprinter/424495-gle350-engine-failure.html
My 2020 GLE250 57K miles engine has seized. It needs a new engine. Some questions

1. Prior to the failure, it was worth ~33K. Dealer estimate is 28K. Is it worth repairing then?
2. If I had to sell it, how much would it go for and what are the places that buy this?
3. Dealer is quoting 28K. They said they could bring it down to 26K. Its still high, will be asking for a goodwill offer from MB to further reduce the cost. Will it work?
4. Dealer is using a long block engine (12.7K). It comes with 2y / unlimited warranty. How does that compare to a new and used engine? Which of the 3 option is better?
5. To replace the long block engine, labor cost is 11K. Its 33h labor. Does it take that much?

Thanks.

I'd try to push for a goodwill break from MB. The acquaintance of mine with the same engine in his (I think) GLC got a replacement engine from MB for no charge. He was at around 54k miles IIRC.

Looks like MB missed the mark on this engine in regards to design for longevity.

Id love to know the actual failure rate of these -- online we mainly hear the horror stories. This is the M264?

I asked the SA at the local dealer that I have been dealing with for a few years and she did not really say anything but she did kinda/sorta roll her eyes when I asked about the reliability of the 4 cyl turbo gasser. I have not heard of any issues regarding the 4 cyl turbo diesel.

If you have full coverage insurance you should call your insurance man and see what he says. It sounds like it is about totaled to me.

Good advise.

11K for the long block R&R from MB dealer is fine. Especially with unlimited miles...