Lease is up, can't buy the car at current finance rates?
#1
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2011 E350 4 Matic
Lease is up, can't buy the car at current finance rates?
So my lease is up soon and called MB Financial Services (Canada) to inquire about the buy out options and rates.
Turns out that I cannot buy the car out at the current finance rates (1.4% for up to 5 years for previous customers). If i want to finance my car it would be at a rate of over 6%!!
I would be better of returning my car and finance a similar car in order to get the good interest rate, why would they do that? I mean, when they take back my car they will have to get it certified and get it ready for the next customer.
Any idea why they wouldn't offer the preferred rates to end of lease customers?
Turns out that I cannot buy the car out at the current finance rates (1.4% for up to 5 years for previous customers). If i want to finance my car it would be at a rate of over 6%!!
I would be better of returning my car and finance a similar car in order to get the good interest rate, why would they do that? I mean, when they take back my car they will have to get it certified and get it ready for the next customer.
Any idea why they wouldn't offer the preferred rates to end of lease customers?
#2
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So my lease is up soon and called MB Financial Services (Canada) to inquire about the buy out options and rates.
Turns out that I cannot buy the car out at the current finance rates (1.4% for up to 5 years for previous customers). If i want to finance my car it would be at a rate of over 6%!!
I would be better of returning my car and finance a similar car in order to get the good interest rate, why would they do that? I mean, when they take back my car they will have to get it certified and get it ready for the next customer.
Any idea why they wouldn't offer the preferred rates to end of lease customers?
Turns out that I cannot buy the car out at the current finance rates (1.4% for up to 5 years for previous customers). If i want to finance my car it would be at a rate of over 6%!!
I would be better of returning my car and finance a similar car in order to get the good interest rate, why would they do that? I mean, when they take back my car they will have to get it certified and get it ready for the next customer.
Any idea why they wouldn't offer the preferred rates to end of lease customers?
The MBCanada Sales and/or Marketing department have a budget for incentives to help move new units over the curb. They can use it for consumer rebates, cash to the dealer per unit, or to buy-down the finance rate or subvent the lease. Whichever they do is based on their brand and sales strategy. They do this in order to help achieve their sales goals by getting more inventory sold as production is constantly arriving and they need to keep inventory below a certain level (measured in "days supply"....at the current selling rate, how long would the current inventory last).
Your car was already counted as a new car sale. It was sold by MBCanada to MBFinancial (two separate entities and profit centers) in Canada, so it already was considered a sold unit. There is no motivation for them to use budget which is intended for selling more new production to assist with the sale of a used car. Your current car is the dealer's and MBF's issue either for resale at the dealer's profit (not MBCanada's), or to wholesale in an auction once MBF is paid off, or return to MBF and they will wholesale it. And, as a result of not providing this assistance, they assume you will do exactly what you mentioned in your post, which will put another new car out of inventory and on the road.
When you find these kinds of situations, the old maxim, "Follow the money" always prevails. In this case, more is to be made by MBCanada by concentrating their incentive resources on moving new cars than assisting with used ones.
If this is not clear, please ask more questions. Yes, I used to work in the industry.
Last edited by Sportstick; 12-15-2013 at 10:27 PM.
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2011 E350 4 Matic
as usual thanks Sportstick, i would understand that if the 1.4% was the rate for new cars but it is for used cars. Even if i did buy a used car from their inventory they also would be getting one back (if they dont sell it in a auction).
I am looking at 2011 E350's as my first option vs keeping the current car and noticed that a lot of non mercedes dealers mention they purchased it from MB, does that mean that the vehicle didn't pass the MB inspections to become CPO?
I am looking at 2011 E350's as my first option vs keeping the current car and noticed that a lot of non mercedes dealers mention they purchased it from MB, does that mean that the vehicle didn't pass the MB inspections to become CPO?
#5
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as usual thanks Sportstick, i would understand that if the 1.4% was the rate for new cars but it is for used cars. Even if i did buy a used car from their inventory they also would be getting one back (if they dont sell it in a auction).
I am looking at 2011 E350's as my first option vs keeping the current car and noticed that a lot of non mercedes dealers mention they purchased it from MB, does that mean that the vehicle didn't pass the MB inspections to become CPO?
I am looking at 2011 E350's as my first option vs keeping the current car and noticed that a lot of non mercedes dealers mention they purchased it from MB, does that mean that the vehicle didn't pass the MB inspections to become CPO?
Hard to generalize about the E Class cars. It may just be a supply/demand issue for the MB dealers....they have enough on hand, and needed to off-load some to other distribution channels. I would still look for a CPO, though. The E loses value quickly enough that there should be some good buys at the dealers if you want a larger car.