Lease Bail out options
04-08-2008, 09:03 AM
#1
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Lease Bail out options
What would be more beneficial if wanting to bail out of a lease with less than 5 months to go?
a) Try to sell the car
OR
b) Have someone else assume it for the remainder
OR
c) Suck it up
?
TIA
a) Try to sell the car
OR
b) Have someone else assume it for the remainder
OR
c) Suck it up
?
TIA
04-08-2008, 12:29 PM
#2
Senior Member
Hold on to it for the duration.
Mercedes may waive final two months if you are going to another Mercedes. Check out that option as well.
Good luck.
Mercedes may waive final two months if you are going to another Mercedes. Check out that option as well.
Good luck.
04-08-2008, 04:59 PM
#3
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Good luck finding a moron to assume the last few payments. Payments in the early part of a lease are great bargains, because both the depreciation and interest portions are highest in the beginning of the lease. Payments are constant across the lease only because you're borrowing this extra value with the promise to pay it back at the end of the lease, when the payments are higher than the depreciation and interest warrant.
Anybody assuming the lease at the end is paying more than the car is worth to subsidize your cheap early payments. That's why they, or MB for that matter, should expect a cash payment to make up for these under-market early month payments. People think it's punitive, but it's just the rightful payment for value you received.
If the car's residual is higher than was expected when the lease was signed, you might be able to sell the car and do okay. If not, you may have to suck it up.
Anybody assuming the lease at the end is paying more than the car is worth to subsidize your cheap early payments. That's why they, or MB for that matter, should expect a cash payment to make up for these under-market early month payments. People think it's punitive, but it's just the rightful payment for value you received.
If the car's residual is higher than was expected when the lease was signed, you might be able to sell the car and do okay. If not, you may have to suck it up.
04-08-2008, 06:13 PM
#4
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Thanks for the input everyone.
Not really in a hurry to do anything but just wanted to keep my options open in case the car in the color I'm looking for turns up (only 8 of them produced in the three year run). It isn't a Mercedes so the having the last two months waived is probably out of the question.
I'll probably just suck it up for the last few months in the event one does come along. Thanks again for your responses.
Not really in a hurry to do anything but just wanted to keep my options open in case the car in the color I'm looking for turns up (only 8 of them produced in the three year run). It isn't a Mercedes so the having the last two months waived is probably out of the question.
I'll probably just suck it up for the last few months in the event one does come along. Thanks again for your responses.
04-09-2008, 12:47 PM
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Ling:
If your payments are lower just hold and pay them and do a lease return. I dont know the dynamics of your lease and if you had a large cap reduction or not. You could try to sell your car now but it depends on the current ACV vs your payoff and also what you want for your car with those mods.
I know your car personally and its condition is well above great and the mods to the car would make any enthusiast proud. With that being said why not try to see who would buy it earlier (lease assumption as mentioned is too late) than your lease term. I know one thing, if someone wants the cleanest white C55 in town with immortal BBS LM wheels and KW coils, your car is 2nd to none.
Your pics of the car dont hurt either knowing your skills. EBay FTW!!!! It doesnt cost much to try and you will get some bites I know this.
If your payments are lower just hold and pay them and do a lease return. I dont know the dynamics of your lease and if you had a large cap reduction or not. You could try to sell your car now but it depends on the current ACV vs your payoff and also what you want for your car with those mods.
I know your car personally and its condition is well above great and the mods to the car would make any enthusiast proud. With that being said why not try to see who would buy it earlier (lease assumption as mentioned is too late) than your lease term. I know one thing, if someone wants the cleanest white C55 in town with immortal BBS LM wheels and KW coils, your car is 2nd to none.
Your pics of the car dont hurt either knowing your skills. EBay FTW!!!! It doesnt cost much to try and you will get some bites I know this.
04-09-2008, 07:03 PM
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Ling:
If your payments are lower just hold and pay them and do a lease return. I dont know the dynamics of your lease and if you had a large cap reduction or not. You could try to sell your car now but it depends on the current ACV vs your payoff and also what you want for your car with those mods.
I know your car personally and its condition is well above great and the mods to the car would make any enthusiast proud. With that being said why not try to see who would buy it earlier (lease assumption as mentioned is too late) than your lease term. I know one thing, if someone wants the cleanest white C55 in town with immortal BBS LM wheels and KW coils, your car is 2nd to none.
Your pics of the car dont hurt either knowing your skills. EBay FTW!!!! It doesnt cost much to try and you will get some bites I know this.
If your payments are lower just hold and pay them and do a lease return. I dont know the dynamics of your lease and if you had a large cap reduction or not. You could try to sell your car now but it depends on the current ACV vs your payoff and also what you want for your car with those mods.
I know your car personally and its condition is well above great and the mods to the car would make any enthusiast proud. With that being said why not try to see who would buy it earlier (lease assumption as mentioned is too late) than your lease term. I know one thing, if someone wants the cleanest white C55 in town with immortal BBS LM wheels and KW coils, your car is 2nd to none.
Your pics of the car dont hurt either knowing your skills. EBay FTW!!!! It doesnt cost much to try and you will get some bites I know this.
04-10-2008, 12:47 AM
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Vic, thanks for the advice. I think at this point I'll just ride it out and see what happens. If the other car turns up I'll just suck it up as the payments for the remaining 4 months or so only total ~$3100 at most. Cap reduction was just the minimum so won't be hurtin too much if I absolutely had to bail. Still got a few more events to attend before the end of the year so not that motivated to rid myself of the car just yet.
What color M5?
