End of Lease Options
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Joined: Jun 2004
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From: The OC
04 E320
End of Lease Options
Hi guys, i don't think this was mentioned before. After my lease ends, they said i would get a good deal on another lease vehicle? Has anybody continued a lease and actually gotten a good deal. The salesman said i can run as many miles as i please, and it wouldn't matter if i trade my car in for another lease vehicle. So i'm debating if i should put some mad miles on my car and trade it in for another one when the time comes, or drive under the allowable miles and use my second car. Just some thoughts, thanks.
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Joined: May 2004
Posts: 758
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From: Warren, NJ
'05 E320 CDI;'04 S2k;'94 Supra TT;'10 QX56;'38 Buick;98 Port City Offset Late Model
I'm not expert in MB leases, however:
1. There is no free lunch. Extra miles are extra $$$. I believe that extra miles not included in the lease are 20 cents/mile. That is still way cheaper than the hit on trade-in (more like 35 cents/miles). I think MB may increase the charge over 25k mi/yr average.
2.There are two types of extensions. One is a month-to-month for a few months. I don't know MB's policy, however BMW's is upto 6 months if you get another BMW, 3 months if you don't.
You can also get an additional 1 or 2 year lease. HOWEVER, these leases are at current rates and residuals for a used car. If the original lease was subvented on the residual (and if you have a lot of options it was), this will be very expensive. On our BMW, the lease residual was $29,600, however a 1 year extension had a residual of $21,600. The cost, over $10k/year, was more than a new car!
3. MB (and others) charge $350 if you turn in the car and don't LEASE another. So you save that. I don't think they have any other programs.
Now another thing. If you want to re-lease your car, you would be probably be better off buying it or leasing it from the dealer. The dealer can typically buy the car for less than your residual (dealers offered to sell it to me for $29k even) and can certify it, getting you an extended warranty.
David
1. There is no free lunch. Extra miles are extra $$$. I believe that extra miles not included in the lease are 20 cents/mile. That is still way cheaper than the hit on trade-in (more like 35 cents/miles). I think MB may increase the charge over 25k mi/yr average.
2.There are two types of extensions. One is a month-to-month for a few months. I don't know MB's policy, however BMW's is upto 6 months if you get another BMW, 3 months if you don't.
You can also get an additional 1 or 2 year lease. HOWEVER, these leases are at current rates and residuals for a used car. If the original lease was subvented on the residual (and if you have a lot of options it was), this will be very expensive. On our BMW, the lease residual was $29,600, however a 1 year extension had a residual of $21,600. The cost, over $10k/year, was more than a new car!
3. MB (and others) charge $350 if you turn in the car and don't LEASE another. So you save that. I don't think they have any other programs.
Now another thing. If you want to re-lease your car, you would be probably be better off buying it or leasing it from the dealer. The dealer can typically buy the car for less than your residual (dealers offered to sell it to me for $29k even) and can certify it, getting you an extended warranty.
David
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From: West Hell
Air Force 1s
Can you sell the car at the end of your lease? My residual is about 15,000 on my car and I think I can sell it for $19,000. Can I sell it or do I have to give it back to the dealer so they can make the money off of it?
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Joined: Nov 2003
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From: Socal
E500
Originally posted by HollaBack
Can you sell the car at the end of your lease? My residual is about 15,000 on my car and I think I can sell it for $19,000. Can I sell it or do I have to give it back to the dealer so they can make the money off of it?
Can you sell the car at the end of your lease? My residual is about 15,000 on my car and I think I can sell it for $19,000. Can I sell it or do I have to give it back to the dealer so they can make the money off of it?
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Joined: Nov 2003
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From: Socal
E500
Originally posted by HollaBack
What do you mean by negociate price of car with bank? Sell it to them?
What do you mean by negociate price of car with bank? Sell it to them?
There is a payoff amount of your vehicle. At end of lease you usually can negocaite the purcahse price with the bank. For example: your payoff amount is $15,000, maybe you can offer $13,500 see if the bank will sell the car at that price.
If you still don't understand. I'll suggest just return the vehicle back to bank. There is no reason of doing something that you don't know how it works. Just keep it simple.
Last edited by rusnakmb; Jun 17, 2004 at 02:29 PM.
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Senior Member
Joined: Nov 2003
Posts: 398
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From: Socal
E500
Originally posted by nguyen_joe
Well my other concern was that, when the lease ends on my e320, would i get a special lease price if i leased a slk or something.
Well my other concern was that, when the lease ends on my e320, would i get a special lease price if i leased a slk or something.
Currently, the CLK has special lease program. I am sure MB will come up a special lease program for SLK soon, since this is the last year model for SLK. For now, S and CLK have special lease program.
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Joined: May 2004
Posts: 758
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From: Warren, NJ
'05 E320 CDI;'04 S2k;'94 Supra TT;'10 QX56;'38 Buick;98 Port City Offset Late Model
In your lease agreement is a residual. Most leases (actually all the leases I know of) allow you to buy the car for the residual price at the end of the lease. In he case of MB Financial, you actually have to pay $350 if you don't buy the car or lease another MB through them.
Now, when you buy it you will have to pay sales tax (except, I imagine, in states where you have to pay full sales tax on a lease) and new registration and title transfer fees (since the car was originally owned and licensed by the leasing company).
So if you lived in NJ and KNEW you could get $19k (someone was actually offering that cash in-hand), and you could buy the car for $15k, you would also have $900 in sales tax and maybe $200 in licensing fees.
David
Now, when you buy it you will have to pay sales tax (except, I imagine, in states where you have to pay full sales tax on a lease) and new registration and title transfer fees (since the car was originally owned and licensed by the leasing company).
So if you lived in NJ and KNEW you could get $19k (someone was actually offering that cash in-hand), and you could buy the car for $15k, you would also have $900 in sales tax and maybe $200 in licensing fees.
David
