W203 Lease termination
Thread Starter
Member
Joined: Oct 2005
Posts: 227
Likes: 0
From: Brooklyn, NY
Mine 2005 C230 Kompressor, Dad's 2005 ML350
W203 Lease termination
Hey guys Im leasing a 2005 C230, I want to get out of the lease, how would I go about that and does anyone know what the termination fee is, Ive got 18-19 months left. Thanks for the help
Former Vendor of MBWorld
Joined: Jan 2005
Posts: 583
Likes: 0
From: Cincinnati, OH
Here are your options.
1) The easiest thing to do is to try and find someone to assume your lease. This means another person makes your payments and assumes the responsibility of the lease agreement. This option is relatively new and not all lenders allow it.
This option usually works well if your vehicle is under the allotted miles of the lease agreement. You may also have to provide some monetary incentive for someone to consider assuming your lease. Only consider this option if the assumption alleviates you from all liability of the original lease.
Sites like www.Swapalease.com or www.LeaseTrade.com can assist you with this option.
2) The most popular option is to pay off the lease and sell the vehicle to someone else. This is the reason you need the market value information. In most cases you will find that the payoff is higher than what you can sell it for. This puts you in a negative equity situation where you will have to make up the difference out of your own pocket.
www.FrontRowCars.com is an option for listing your vehicle.
A word of caution when working with a dealer to get you out of your lease and into another car. Know all the numbers and where they come from before signing anything.
3) Drop off the car at the bank or dealer and stop making your payments. This is something you do NOT want to do. It will go against your credit as repossession and it will be years before most good lenders will consider you for another lease or loan. Again, do NOT do this!
Your best option may be to stay in your current lease until the end.
4) If you decide to keep the lease you may be able to lower your payment by re-leasing it using a service like www.LowerMyLease.com.
1) The easiest thing to do is to try and find someone to assume your lease. This means another person makes your payments and assumes the responsibility of the lease agreement. This option is relatively new and not all lenders allow it.
This option usually works well if your vehicle is under the allotted miles of the lease agreement. You may also have to provide some monetary incentive for someone to consider assuming your lease. Only consider this option if the assumption alleviates you from all liability of the original lease.
Sites like www.Swapalease.com or www.LeaseTrade.com can assist you with this option.
2) The most popular option is to pay off the lease and sell the vehicle to someone else. This is the reason you need the market value information. In most cases you will find that the payoff is higher than what you can sell it for. This puts you in a negative equity situation where you will have to make up the difference out of your own pocket.
www.FrontRowCars.com is an option for listing your vehicle.
A word of caution when working with a dealer to get you out of your lease and into another car. Know all the numbers and where they come from before signing anything.
3) Drop off the car at the bank or dealer and stop making your payments. This is something you do NOT want to do. It will go against your credit as repossession and it will be years before most good lenders will consider you for another lease or loan. Again, do NOT do this!
Your best option may be to stay in your current lease until the end.
4) If you decide to keep the lease you may be able to lower your payment by re-leasing it using a service like www.LowerMyLease.com.
MBWorld Fanatic!
Joined: Mar 2006
Posts: 4,278
Likes: 377
From: San Jose area
'19 E63S sedan
The second half of your lease essentially subsidizes the first half. Both interest and depreciation elements are highest in the early months (you're paying interest on the higher value of the newer car and depreciation is more rapid too) but the payments are constant over the life of the lease. That's why it's reasonable that it will cost you to get out of the lease early. It's not fun, but it's fair.
Out Of Control!!
Joined: Aug 2004
Posts: 10,574
Likes: 2
From: Silicon Valley, CA
1999 C280 Previous / 2008 E350
I was in the same situation too last year, I tried to get myself out of the lease but instead I was screw either way and paid the remaining of the lease. I had about 6 month left but the reason I did it because I had the money and plus im saving more to get an E-Class. Do what LC says try to find someone who can take over the lease or pay the remaining Good Luck.....
Former Vendor of MBWorld
Joined: Jan 2005
Posts: 583
Likes: 0
From: Cincinnati, OH
This is always the issue with a subsidized lease residual value. You are better off with a low money factor and a realistic residual value. Your payments may be a little higher but you allow yourself a better economic position if you need to get out of the lease early.
Out Of Control!!
Joined: Dec 2004
Posts: 14,212
Likes: 9
From: Boston, MA
00 MB ML55, 91 Toyota Supra Turbo(sold), 06 E500(gone), 03 BMW M3
is it common for people to get money down on the lease? I have a VERY good lease on my E500... and would love to get some money back on it, is that possible? Or trading it in directly to a dealership?
Former Vendor of MBWorld
Joined: Jan 2005
Posts: 583
Likes: 0
From: Cincinnati, OH
We need to compare your end of lease Purchase Option to the market value. Can you give me some details on it? Current mileage?
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