Greg_S

I have a 2007 E350 that comes due at the end of the month. MB Credit already offered to lower the buyout $4k to $38k. Book on the car is at about $30k and the dealer I bought it from actually has several for sale for about $37k.

Does anybody know how low MB will go to not take the car back?

j_belll

nice, some good info can turn out from here. i plan to buy out as well

beartrap

I too have an '07 E350 4matic due back on lease in January. I just got a purchase contract from MBFin. Purchase price is $40.5k w/sales tax its $44k. There is NO way I would pay this much for this car! I'm way below mileage but still would not pay this as same cars are selling for much less in the open market.

I asked if I could lease MTM till the new redesign E arrives and they said I could only go six months more but would cost me about $850/month! I currently pay $629/month on a 27 month deal. Not interested. I will likely have the same problem when the lease on my '07 GL450 Premiere Edition ends Oct '08 but will deal with that then since I likely will want to buy it as its loaded with everything I would want and is in perfect condition with low miles.

Please share with us what they offer you. I told them its senseless to return the car and let is sit on the lot with all the others. I might consider buying it for maybe $32k, or leasing for another 6-8 months but at the same or lower monthly rate, not more.

Have others experienced this situation and do you have any advice/suggestions?

thx

Greg_S

We are all in the same boat. I was offered to buy way higher than market OR pay more than I currently am to extend my lease. I know they get a couple grand back of book when they take them back, so I'm going to offer about $31k, book is $30,440.00, and see what they do.

It would be great for someone that has recently gone through this to chime in.

baxterdown

2007 E350 is doing $29,000 and E350 4Matic is doing $31,500 average at auction right now. That is what the bank can expect to get for the cars. Anything above that is gravy to them. It's up to you guys to see how close you can get them to the number above.

By the way, some banks are open to negotiating on lease returns, some are not. I don't know if MBFin does...

Good luck! Keep us posted.

Black.E

Looks like this will be a very informative thread. I too would like to know what happens if one decides to buy at the end of a lease term.

Would you finance the negotiated amount and continue paying payments?

Greg_S

I could do either, but they may find it more appealing to continue to make money on the finance part of it. I could just pay off later if i feel like it.

beartrap

thanks baxterdown for the detail on the current auction value of these cars. You really have to wonder if MBFin is aware of these numbers, and more importantly do they know that we their customers are aware! Its what the market will pay under the present conditions that determines the real street price. No one will pay $40k+ for these cars now, esecpailly when a new model is about to come out as well. To me it would make good business sense to let their customers keep the cars longer at the same or even lower rate by extending the lease and delay the return pain or offer a market rate price to purchase and move it off their books. I would seriously consider buying it however at $30k. Throw in a special low finance rate and extend the warranty and they could have a deal rather than get the car back!

I will know what the situation is within the next 45 days or so and will let others know what happens. Its good to see other are interested and in the same situation. Suggest we continue to keep each other posted on developments...

thx

LaicepsYdobon

From what I understand once your lease is over you are able to re-lease your car with MB Financial but you can only do it in yearly increments. And every time you re-lease your car (every year) it will be considered a new lease and the dollar amount will change that you have to pay monthly.
I'm not sure about buying a car at the end of the lease is a good idea. You might as well do another lease which will get your a brand new car for less money plus the new car will have a 4 year 50,000 mile warranty.

tashakes

Unfortunately, you are assuming that you are dealing with a rep from the bank/leasing company that has at least a sprinkle of business sense.

That is not the case. I have never been able to negotiate a lease buy-out at a lower rate than the contract. Once I went so far as to show the MMR (wholesale auction average price) to the rep and she still said that the price on the contract is the price I would have to pay. If she had any business sense, they would have sold me the car for the same price, save at least a couple of months, disposition fees and auction fees. Would have been overall a better deal for all. I still had access to another car at that price, but probably not in as good condition as mine. I ended up going for a different car, but I would have loved to keep the one I had leased.

These companies would be so much more profitable if they had a couple of good business people at the helm.

I hope you can get them to negotiate to a lower price, and walk away from it if they are not willing to give you a good deal.

Cheers

K-A

I've heard of people being able to negotiate pretty easily these days the remaining buy-out Prices. I will say I don't think you'll be able to negotiate down to $30K though, it looks like '07's are still going in the mid-high $30's on Dealer average with them now dipping into the low $30's and high $20's for cheapo Prices. At least that's how it looked the last time I was checking about a month or so ago.

Please update everyone if you guys are in fact able to get Dealers to go that low though.

*Edit*: Well it looks like quite a few Dealers are selling '07's for about $30K right now with low Mileage even. Alot are still at high $30's to $40+, but obviously they can be had for low low $30's. Didn't see any in the $20's (listed price) though.

Jesus, how much has changed in a month. I got a great deal on my Car but if I would have only waited another 2 months, to think how much cheaper I could have gotten it for, wow....

mbe3504matic

I would never buy a car that I have leased. I always treat my cars like crap... LOL

LaicepsYdobon

That's why I don't buy pre-owned cars because I might end up with one from you I always baby my cars leased or owned. I've learnt that from my father while growing up. I guess it helped that we could not afford a Benz so till this day a Benz is a special car for me that I respect and take the utmost care of. This drives my wife nuts

K-A

Same here ^ I'm not a fan of peeps who treat nice cars like crap, at least ones who consider themselves "enthusiasts". My car is a Lease return, so I can only hope I don't have some careless ex-owner behind me. Either way, my car seems **** so it doesn't really matter I guess.

beartrap

Ideally my preference is to return the '07 E350 4M and get into a new '09 E350 for a 24-27 month term at the same price or less. I dont mind the current model style and the '09's have some nice upgrades to the command/stereo and sport package. The problem is MB is not offering any promo's for this term at this time and I do not want the car for 36+ months and at a higher monthly payment than what I currently have! If I can get an '09 and then return it in 24 months the new 2010 model should have a year under its belt to work out any technical problems with the new car. Then I can safely move into that model when the '09 lease is up. This is what Im trying to do but not sure I can pull it off. I've purchased/leased four cars from my local MB dealer in the last 2 1/2 years so they want to help me out and keep my business. We'll see what happens and will let everyone know the outcome...

thx

LaicepsYdobon

What you've described it totally possible especially now that the MB winter event is less then 2 months away. You should be able to get an E-Class at a very reasonable price. I'm leasing a 4matic 2008 350 P1 package + wood steering wheel for $598 a month (12,000 miles per year - 27 month lease). I'm sure you will be able to do better then me.

Greg_S

what was you drive off cost?

beartrap

Yes this is the deal I am looking for! I am hoping they will have some MB 'December to remember' program (sorry Lexus!) that will enable me to get into a short term '09 E350 for about what I'm paying now. I only have 2 payments left before the car is due back early January. I'm interested in knowing how much cap cost you put down? Also, did they hit you up for the security deposit again and bank fees? I'm hoping since I'm a repeat customer they will wave some of those BS and over priced fees.

Dema

Interesting thread. My previous buy out price of Z4 was $38K and considering that I could buy a new Z4 for the same price I decided to jump to a new car. BMW offered $10K off MSRP at that time.

LaicepsYdobon

$2,800

LaicepsYdobon

I've put down $2,800 before they handed me the keys. I was a returning customer (this was my 3rd Benz) but they only waived one fee for me. I'm not sure what its officially called but when you end the lease for the Benz and get something else you have to pay $500 or $600 as a penalty for leaving the Benz family. If you get another Benz this fee gets waived. This is the only thing I didn't have to pay. I had to pay a security deposit (part of the initial $2,800) and I had to pay for the tire and rim protection plan I've opted for as an additional cost.
Since you only have two more payments left on your car the dealer will be happy to take the lease over for you. I had 6 payments left on my previous car when I talked to my MB dealer and he was happy to take over the lease for me and stick me in a new car. I'm sure once the winter event starts and you show up with only one or two payments left they will be able to work out an amazing deal for you. If you want I can give you my dealers name and phone number because both time he managed to work "miracles" for me and generally goes out of his way to make me happy.

beartrap

So $2800 down with some fees and the wheel/tire plan. Do you know how much was left for cap cost reduction to get to the payment? Also is the payment with or w/o sales tax? I heard that the security fee is waived IF you are coming from a previous MB lease. Not sure about the $750 bank fee. I'm paying right now $629/month with tax for 27 months, 12k miles. I forget what I put down for cap cost reduction but I'm sure it was less than $3k. The dealer said they could use the loyalty program right now and get me out of my current lease (forgive the balance of the payments) but I would need to go into a current program which is 36 months which is more than I want/need. The lesser term deals are not attractive yet. At this point I will sit it out and wait till the winter deals kick in and then see what they will do for me. They have been great to work with (MB of Smithtown) and I've developed a good realtionship not only with the sales rep but the GM that runs the place. We've played golf together at each other's club. The last thing I want to do is consider another car but I made it clear that the term and payment needs to be what fits the budget for this car for what I use it for. I'm sure they will come through.

Thx for the feedback. Please keep them coming. This is a good thread for me and others facing the same situation on their cars.

Greg_S

Well - I have a call into a buddy that buys at the auctions to see what my other options are and should be able to get back to you guys by the end of the week with what the answer is on a buy out offer at $31k.

beartrap

that will be good info to have. Thanks and keep us posted.

Greg_S

They dropped another grand off it, but that still has it at $37k.