Lease Payments are Paid “In ADVANCE”
Thread Starter
Senior Member
Joined: Apr 2007
Posts: 343
Likes: 0
From: Palm Beach Gardens, Fl
‘08 E-350 Sport, C6 Vette & Harley Davidson
Lease Payments are Paid “In ADVANCE”
I was under the impression that since I got my car on July 12 and the first months
payment was ‘included’ in my 6,000 down payment, that my ‘actual’ first payment
would be due on Sept 12, since normally your first payment is due 30 days from a
purchase .. and I had pre-paid that first payment.
But, NO! I was informed that - with the MB Lease - payments are paid in advance
every month! (Unlike most car and real estate loans, etc.) Simply considering “the
time value of money” .. this certainly yields a higher Internal Rate of Return to the
Lessor.
Now I’m wondering, if ALL of you Lessees are paying “your” payments in advance.
Or - if this could be another quiet little dealer option wherein the dealer may write
it as post-pay OR pre-pay .. where he participates in an extra return.
However, they were happy to inform me that when I have made my last payment,
I still have the car to drive for one more month .. FREE!
jimm
==========
‘08 E350 Sport, P2, Black/black, Parktronic,
Voice, Bluetooth, Burl Walnut, Split rear seat,
Wood/leather steering wheel
payment was ‘included’ in my 6,000 down payment, that my ‘actual’ first payment
would be due on Sept 12, since normally your first payment is due 30 days from a
purchase .. and I had pre-paid that first payment.
But, NO! I was informed that - with the MB Lease - payments are paid in advance
every month! (Unlike most car and real estate loans, etc.) Simply considering “the
time value of money” .. this certainly yields a higher Internal Rate of Return to the
Lessor.
Now I’m wondering, if ALL of you Lessees are paying “your” payments in advance.
Or - if this could be another quiet little dealer option wherein the dealer may write
it as post-pay OR pre-pay .. where he participates in an extra return.
However, they were happy to inform me that when I have made my last payment,
I still have the car to drive for one more month .. FREE!
jimm
==========
‘08 E350 Sport, P2, Black/black, Parktronic,
Voice, Bluetooth, Burl Walnut, Split rear seat,
Wood/leather steering wheel
Last edited by jimm; Aug 24, 2007 at 04:44 PM.
Super Member
Joined: May 2004
Posts: 755
Likes: 2
From: USA
LS7 powered Corvette
Ha, I got screwed something like this.. I posted my previous car on swap-a-lease to get out of it early. I had a payment coming up, so instead of being delinquent I went ahead and sent the money in not knowing when exactly I would be getting rid of the car. Well, I found someone interested and they took over the lease probably 10 days after I had sent my last payment. He paid the processing fee and his "first months payment." I called MB financial to see when I might be expecting a refund and they said, "what refund?"
Almost a Member!
Joined: Jul 2007
Posts: 35
Likes: 0
From: SF Bay Area
'08 E350, '97 Porsche turbo
Think of it this way. Leases (rent) are always paid in advance. If you have ever rented an apartment, was the rent due at the beginning of the month or the end of the month? Remember, you do not own the car, you are only renting it for a period of time like an apartment.
Loan payments are do at the end of the month. Loans are made against something you own.
Loan payments are do at the end of the month. Loans are made against something you own.
MBWorld Fanatic!
Joined: Jun 2007
Posts: 1,936
Likes: 349
From: Huntington NY
S560
Leases are always paid at the beginning of the month. Whenever you here a quote is usually says: "payment based on $x down, $x bank fee, first months payment, tax tags etc not included". I leased my 550 on 6/7/7 and my first bill came with the next payment due 7/7/7...
Thread Starter
Senior Member
Joined: Apr 2007
Posts: 343
Likes: 0
From: Palm Beach Gardens, Fl
‘08 E-350 Sport, C6 Vette & Harley Davidson
I collect my rents at the beginning of the time period.
However, I had never leased a car before so I had just assumed the
payments were at the end of the month, like real estate. Dumb me.
jimm
