my lease is up - NOW what to do ???
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Joined: Aug 2007
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mercedes 2011 CLS550 with AMG package
my lease is up - NOW what to do ???
I have a 2003 E500 mercedes E500 sport (silver / black) with 87,000 miles. Leased it in 2003 and love the styling etc. If I kept the car I would add the AMG body, paint the brakes red and lower the car, add some carbon fiber, add Nav.)
My lease is up next month and the residual is $27k + local taxes, etc. = balance = $28k
I am over mileage approx. 30,000 miles at $0.14 per mile (which is CHEAP mileage).
- so I can write the bank a check for $4500
- than have to write a check to get into another car (approx. $6.5k)
- so out $10.5k or so.
I drive so many miles and on the interstate that I do not want to pay CRAZY monthly payments for my daily driver.
I was looking at a mercedes E550 and that was over $1,000 per month so I looked at a E350 with the AMG package but I DO NOT like the handling of the car and it is $6.5k down, $650 month / 33 months and $0.25 per mile. I drive 30k miles a year, so the mileage will KILL me. I always lease my cars, but at $0.14 to $0.20 per mile, which is not that bad. BUT $0.25 will be a $10k cost for just the overage in mileage.
Now my options:
A). The bank has a great incentive at 4.9% with NO money down and 60 months = $545 a month. And drive it to the wheels fall off.
B). Pay the $4500 and then go out and lease OR purchase another car. (no idea on what to get for $700 a month with $5k down as a lease. Most leases have big penalties, anywhere from $0.25 to $0.30 per mile)
I have already spent the dollars on 20" wheels, xm, blah blah. With A I do NOT have to come out of pocket (with the exception of service / maint issues).
Any thoughts would be helpful.
My lease is up next month and the residual is $27k + local taxes, etc. = balance = $28k
I am over mileage approx. 30,000 miles at $0.14 per mile (which is CHEAP mileage).
- so I can write the bank a check for $4500
- than have to write a check to get into another car (approx. $6.5k)
- so out $10.5k or so.
I drive so many miles and on the interstate that I do not want to pay CRAZY monthly payments for my daily driver.
I was looking at a mercedes E550 and that was over $1,000 per month so I looked at a E350 with the AMG package but I DO NOT like the handling of the car and it is $6.5k down, $650 month / 33 months and $0.25 per mile. I drive 30k miles a year, so the mileage will KILL me. I always lease my cars, but at $0.14 to $0.20 per mile, which is not that bad. BUT $0.25 will be a $10k cost for just the overage in mileage.
Now my options:
A). The bank has a great incentive at 4.9% with NO money down and 60 months = $545 a month. And drive it to the wheels fall off.
B). Pay the $4500 and then go out and lease OR purchase another car. (no idea on what to get for $700 a month with $5k down as a lease. Most leases have big penalties, anywhere from $0.25 to $0.30 per mile)
I have already spent the dollars on 20" wheels, xm, blah blah. With A I do NOT have to come out of pocket (with the exception of service / maint issues).
Any thoughts would be helpful.
MBWorld Fanatic!
Joined: Mar 2004
Posts: 5,017
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From: Ft. Lauderdale Area, USA
2015 ML 350
If the residual value is realistic (check the newspapers) and if the car is problem free & you still like it, buy it from them. You can sell it later & go to a new body E class in its 2nd year of production, or trade it in on something else, or drive it 'till it dies.
Super Member
Joined: Aug 2005
Posts: 822
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From: Oregon
Harley-Davidson
If you return the car, you will owe $4500 plus the lease-end fees plus any wear and tear they might try to add on. If I were you I would purchase the car for $28k just to avoid throwing away the $5k. You could then sell it for $23k and still break even.
When you leased the car, did you know you were going to exceed the mileage allowance by this much? You may be better off owning your car, not leasing.
When you leased the car, did you know you were going to exceed the mileage allowance by this much? You may be better off owning your car, not leasing.
Thread Starter
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Joined: Aug 2007
Posts: 236
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mercedes 2011 CLS550 with AMG package
I have always leased my cars because I can calculate my exposure to the mileage / loss. The car was $62k and now it is worth approx $18 to $22k or so. So it cost me $5k at signing and $3500 at the end. SO I WIN : )
The only reason I am considering buying the car is because the new leases are $0.25 and the real estate development environment is slow. We have a couple of communities under construction and working on our first retail center so I have to watch cash flow these days : (
I will most likely release the car back to the bank, because at $0.14 a mile to get out today is a very low cost and lease a car or 48 months so my initial deposit will stretch out for 4 years and then the market will be back.
The only reason I am considering buying the car is because the new leases are $0.25 and the real estate development environment is slow. We have a couple of communities under construction and working on our first retail center so I have to watch cash flow these days : (
I will most likely release the car back to the bank, because at $0.14 a mile to get out today is a very low cost and lease a car or 48 months so my initial deposit will stretch out for 4 years and then the market will be back.
