Hi All,

I have a 2008 C300 coming off lease in September. I posted in a previous thread regarding the residual and miles ($23,800 and 16,000 miles) and received some really great advice which I used in my recent discussions with the dealer.

I have talked with the dealer a couple of times . Here is the latest:

1. With taxes, I am looking at a buyout of $25K.
2. I asked the dealer if they would certify. They want $3,000.
3. They are pushing a 2011 with less miles allowed for $499/month (I currently pay $540).
4. My car has minor damage from "hit and run" ($1,100 to repair) that they will waive if I lease another car

So...

Option A - Buy without certification $25K
Option B - Buy with certification $28K
Option C - Lease new car $499/month
Option D - Or walk and terminate lease ($1,000 lease termination). My insurance company will fix damage.

My gas mileage since inception is 19mpg, so I am also consider buying a more fuel efficient vehicle, but that's a conversation for another day...

Any thoughts appreciated. Ultimately, I know that it is a personal decision, but I'd appreciate some additional perspectives.

Thanks!

Pepto

 

i was in that situation. i went with a new lease. newer car, full warranty, no accidents. i got a better deal then when i leased my 2008 with more options in the newer car.

when the 2011 lease is up i am planning to get a E class lease return, but we will see it is still few years from now

 

If you exceed the number of miles allowed under the new lease, how much would it cost you per month including the $499? You see, those extra miles cost a mint.

 

That sounds like a very good plan re the E class. My buddy has one. I really like it. They tried tempting me with an E class, but we strayed into the low $700 mark with all the options. Too much for me...

 

Very good point. I don't know and I should. I have no idea what the next 3 years holds in terms of mileage. My driving history is no indication of future mileage. I'll have to check on the cost.

Thanks for bringing that to me attention!

 

Morning Pepto.

Why are you considering buying out your lease when it ends? You'd be better off leasing a new one. At 499/month for a 2011 with miles? You can get a brand new one at my dealership for 349/month I think your cost is way too high. If you are willing to pay that number just wait for the 2012 to have the brand new one in a month. Let me know your thoughts!

P.S. if you go over on the miles I think they are charge you 0.40/per (crazy right?) but you can "pre-buy" them for half off.

 

Thanks for taking the time to comment! Very good input. Exactly what I needed to hear.

Quick clarification, the $499 deal is brand new. I will be allowed less lease miles. I did ask for Nav, but clearly they are asking too much based on your dealership's price.

I hadn't even thought about the 2012.

 

Back a few months ago I saw an ad about leasing a C300 for $399. The fine print stated that it included only so many miles total for the term of the lease. I drive about 15K miles a year. My cost would have worked out to just under $800 a month. Not such a good deal.

With that said, my sister in law probably doesn't put on 7,000 a year. This would have been a pretty good deal for her.

 

If you're considering buying out the lease, which isn't a bad idea IMHO, why would you want to certify the car? Why not just purchase an extended warranty? What is there to certify in your car? All you need is the extended warranty to cover you for any breakdowns or mishaps. To the next owner, that's as good as a certified car because you are the ORIGINAL owner.

 

In a few years, you aren't going to get much for it anyway. I certainly wouldn't spend $3K getting it certified either.

 

Not sure if that's pretty much standard or if it varies a lot depending on the lease.

I'd be sure to find out what the deal is with the proposed lease.

 

JimPap, & I am Jeff,

Yip - the certification issue was my wife's. We previously had a Lexus that was certified. They made such a big deal of the certification that I am sure that stuck in her head. I agree - $3,000 does not make sense.Being the original owner is something that I had forgotten.

The extended warranty or the certification adds to the total cost of ownership which would push me towards a new car.

Great food for thought folks.

 

Pep,

So true don't waste the money on the certification when you are the original owner and can extend the warranty for less. If I were you I'd think you could get a WAY better deal leasing a soon-to-be LEFTOVER 2011 (that dealerships are dying to get rid of by the way)... if you are planning on paying around 500 I don't see why a brand new 12 would even cost that due to low rates for the past few years.

 

+1 on not worth the money to certify. The $3,000 is only going to get you 1 extra year of protection (or 100k miles, whichever comes first). The money will be better spent on an extended warranty.

A few months back, one of the front desk reps in the dealership's Service Department mentioned to me that some customers have paid to have their cars CPO'ed when the factory warranty ran out. Sounded weird at the time, but from what you're saying, maybe this happens more often than I thought.

 

@Ryan9095,

You are exactly right - just found the $349 deal on my dealer's website. Less equipment than I have in my current vehicle, but I think I can live with that. Maybe. The 4Matic is $369 (that might be the right call).

Definitely gives me a reference point to consider. Of course, the offer ends August 2 (I turn in my car in September), but I am sure they will extend or have something comparable.

I am leaning now towards a new lease based on everyone's comments and the lease offers available.

 

Pep,

Don't worry they have had that 349 deal for literally over a year! It's not going anywhere! Also dealerships (especially in this economy) are very flexible for the most part. Make them take the $349/month deal as a base then add your extra options towards that. It shouldn't raise the price that much at all. Remember... they want you in their cars. Leasing if profitable to them so they usually are willing to cut a deal.

Personally, Leasing is definitely the way to go. You get a brand new car to your specifications every 2-3 years, hassle free. The deals right now are so great it doesn't hurt the wallet too much to drive the cars. Keep me updated on what you decide.

P.S. What options does your $349 include and what are you looking to add it? I'll have my dealer budget it out to help you compare/negotiate.

 

Awesome. As you know, dealers always try instill a sense of urgency - "might not be available next month. You never know..." Nice to know that it is a long term deal.

Here is the small print that I suspect is standard for all dealers, but I could be wrong. Since I have an existing lease, they told me that I would only pay the bank fee of $800.

"Available only to qualified customers through Mercedes-Benz Financial Services at participating dealers through August 2, 2011. Not everyone will qualify. Advertised 33 months lease payment based on MSRP of $38,350 less the suggested dealer contribution resulting in a total gross capitalized cost of $36,705. Dealer contribution may vary and could affect your actual lease payment. Includes Destination Charge, Automatic Transmission, and Premium 1 Package. Excludes title, taxes, registration, license fees, insurance, dealer prep and additional options. Total monthly payments equal $11,517. Cash due at signing includes $2,750 capitalized cost reduction, $795 acquisition fee and first month's lease payment of $349. No security deposit required. Total payments equal $15,062. At lease end, lessee pays for any amounts due under the lease, any official fees and taxes related to the scheduled termination, excess wear and use plus $0.25/mile over 27,500 miles, and $595 vehicle turn-in fee. Purchase option at lease end for $24,544 plus taxes (and any other fees and charges due under the applicable lease agreement) in example shown. Subject to credit approval. Specific vehicles are subject to availability and may have to be ordered. See participating dealer for details. Please always wear your seat belt, drive safely and obey speed limits. Special lease rates may not be reflected in lease calculator prices shown on MBUSA.com. Please see your dealer for final pricing. Special lease rates may not be reflected in prices shown on MBUSA.com. Please see your dealer for final pricing."

 

Ok that is a special offer from MB Financial so mine is the same as yours. To be honest it seems like a great deal; you drive a MB for practically 3 years for 15k.

I don't understand what your $800 bank fee is for? Please expound upon that... if you are waiting until you lease ends their shouldn't be any fee? Also, remember this deal is on existing 2011 models that the dealerships need to get rid of (meaning you can't necessarily be too picky with your options). You can always have them eat a few things like the dealer fee, up the mileage, etc. and make sure you ask for your loyalty discount.

Since you have until September I'd personally wait for the 12' models... major facelift and interior upgrade looks gorgeous Although I'm sure they will cut you an even better deal to get rid of one on their lot.

 

$800 bank fee is for MB financial to approve the loan. To be honest, I have no intention of paying that fee. Great point re loyalty discount. I never even thought of that! Boy, am I learning some good stuff.

Lease terminates at the beginning of September. I need to check out the 2012 to see if I like it. Otherwise, 2011 seems like a good option.

 

pepto,

Sounds like you're getting a lot of experience that we can all gain from.

Please keep us up to date as this works out.

 

Will do JimPap, this forum has literally saved me thousands. Big thank you to all of the contributors to this thread. This what discussion boards are all about.

 

So true guys I've only been a member for a few days and I've learned so much already... we are here to help each other/give advice! Regarding the 2012 Pep, there are basically new engine options, a facelift, and a totally new mega upgraded interior that gives a 3-series BMW a run for it's money! Definitely look into it if you're willing to spend out the extra dough or just get a GREAT deal on a 2011 your dealer has left on it's lot. Keep us posted on this process!

 

Just checked out the 2012. I like it. But, I really love getting a deal more! 2011 feels like the direction I'll head in. At least for now.

 

I think we have a decision! BTW here is some food for thought... when I got my first BMW I was able to get out of the lease two months early for free because I was leasing another new BMW from same dealer. You should find out if they would let you turn in your current C now a month early in exchange for taking a 11 off their lot Let me know what you decide/the process. Good luck!

 

Why has no one really answered his question about the $3,000 charge for certifying the car. That is completely bogus and if I were you, I would change the dealership who you buy your cars from completely. My dealer does this for free for me - only requirement is that you buy the car under a different name (such as a wife or relative like a child).

Also, you will get crappy deals on leasing a 2011 right now as they are factoring in the huge hit they will take when the 2012 come out in resale and YOU are paying for it.

Where as if you go to BUY a 2011, you will be getting awesome deals as they will be discounting the car to make up for the 2012 when they come out having a big impact on the 2011 resale value.

Just some food for thought, my sister leased a 2011 c-class with a sticker of $40k with $2,000 total out of pocket due at signing for $351 a month. This was when the 2011 FIRST came out last september.