Leasing for a Dummy
02-03-2007, 08:04 AM
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'07 E350W4
Leasing for a Dummy
I have read the "how-to's" but, still don't understand it.
If the lease is based on $4K off MSRP, why is the end of lease buy option price based on the MSRP?
Any benefit with a 27mo, 39mo, etc to end of lease buy?
Lease has the added appeal that it's like a long-term test drive, if I'm not happy with the car, just give it back or, buy it if I am happy.
Cap cost reduction is the same as E=mc2 to me, I worked enormously hard and did extra work for a "C" in Physics
If the lease is based on $4K off MSRP, why is the end of lease buy option price based on the MSRP?
Any benefit with a 27mo, 39mo, etc to end of lease buy?
Lease has the added appeal that it's like a long-term test drive, if I'm not happy with the car, just give it back or, buy it if I am happy.
Cap cost reduction is the same as E=mc2 to me, I worked enormously hard and did extra work for a "C" in Physics
02-03-2007, 10:50 AM
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2015 ML 350
If you buy the car at the end of your lease you will be paying more for the car than you would have had you bought it at day 1. The residual value of the car quoted to you at the lease inception is a fake inflated number to keep your lease payments low. (Since you are only paying for the 1st 36 months of the cars life, and the car is "worth" so much when you turn it in, the monthly payments are "low").
If you buy the car at the end of the lease you will have to pay the "residual" value price quoted to you at the lease inception, which was inflated, to lower your monthly lease payments. Remember, the Residual Value was very high at the beginning to lower your payments? Well, its STILL high, at the end of the lease & why would you want to pay a HIGH price for a used car?
If you plan to keep the car, buy it. Otherwise, lease it & turn it in.
If you buy the car at the end of the lease you will have to pay the "residual" value price quoted to you at the lease inception, which was inflated, to lower your monthly lease payments. Remember, the Residual Value was very high at the beginning to lower your payments? Well, its STILL high, at the end of the lease & why would you want to pay a HIGH price for a used car?
If you plan to keep the car, buy it. Otherwise, lease it & turn it in.
Last edited by Barry45RPM; 02-03-2007 at 12:15 PM.
02-03-2007, 11:29 AM
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'71 Pinto
02-03-2007, 05:47 PM
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'07 E350W4
Is the end of lease price negotiable?
As I said, part of the appeal is to know if the car is worthy of owning for 5-7 years. It's not so easy to sell junk if purchased.
As I said, part of the appeal is to know if the car is worthy of owning for 5-7 years. It's not so easy to sell junk if purchased.
02-03-2007, 05:53 PM
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2010 ML550, 2010 E350 4M, 1966 Corvette Convt C2
I have never purchased any vehicle that I have leased, however I do find that MBCC does in some cases make some overtures of reducing the price if you will purchase it. I have the feeling that they will negotiate to a point as their disposal of the vehicle is at a wholesale level.
