Johnny Mo

I think I have a pretty good feel for where most of the forum guys will be on this one, but I figured I'd ask anyway.

My current car - 2011 E350 4M, Sport, P2, Pano, Split Seats, Rear Side Air Bags (pretty much loaded) Lease expires end of August 34k miles right now, by end of Aug will likely be closer to 36k.

I can buy it out and be very happy OR, I have the opportunity to buy a 2011 leftover E550 4M, Sport, P2, Pano, Multi Contour Seats. No real show stoppers on options that I can think of. No miles on it - never titled, full warranty - would be approx $9k more than my buyout on my E350.


What do you guys think? Would it be worth the extra $9-10k to upgrade to a similar 2 year old car with no miles and the v-8? Translates to about $200/month more. BTW I have winter wheels & tires at home that would fit either and also means less wear on the existing tires on the current car.

My options are relatively simple - I'm buying one or the other - would like to get out of the leasing cycle at some point and own my car.

Thoughts?

threeMBs

Even if your choice were (your current) used E350 with 36K miles vs. a brand new (same year) E350 for about extra $10K (including tax difference), I would choose brand new. The fact that you're getting E550 basically free, makes that "choice" IMHO realy easy.

steph280

Yeah this is a no brainer.

BM2BZ

agree w/threembs and steph280. only options you have now which the e550 doesn't have are split seats and rear side airbags but you also don't have multi contour seats and v8 now. so i don't really think your ride is that much more fully loaded that the e550 that you feel like no real show stoppers on options. unless you want to order a 2013 w/all the options. otherwise, go w/the e550 and you'll be a happy camper .

dfordham

Fresh warranty is worth a couple of thousand of that 9K.

Regards,
Don

K-A

I was gonna go into this saying buy out the Lease, as if you look through the smoke and mirrors, it'll be cheaper than going in on a new Lease and starting the process over again (even if the new Lease is cheaper), but seeing your specific example, it's a no brainer. 0 Miles VS 36K Miles might be worth the same difference if you were talking your EXACT same car. Being a V8 just sweetens the value aspect that much more. Definitely the E550 deal sounds better.

BenzE350

You didn't provide enough information to make an informed decision. An objective person could only make a recommendation if you let us know what the buyout price is for your current car, and the purchase price for the new 2011 550.

Just because the 550 is only $9K more does not mean that is is a good deal.

Correct?

K-A

.... I actually thought $36K was the buyout, which now thinking about it is not gonna happen on a 2011 E350 especially off of a buyout (I'd assume well over $40K on what was probably a 24 month Lease?). Now I realize that 36K is the MILEAGE he'll have at the end of the Lease. Curious to know the buyout as well????

adrien

What's the story on the 550? How confident are you in how it has been stored?

Not to rain on the parade, and I agree with others on it sounding like a better deal...but there are many parts on a car that deteriorate with age, especially plastics and rubber. These are very good cars, but the tires, for example, may not live out their wear lives, wipers would need replacing, etc. Of more concern are things like how electrics and engine was cared for. Was it ever run? Has oil been changed? coolant?

If it's from a dealer and has full warrantee, I wouldn't worry too much, but since I'm me I'd ask for new tires, wiper blades, and possibly coolant and oil. And I'd ask an independent mechanic whether I'd forgotten anything...

mikemargolis

The least expensive car you'll ever own is the one you own right now.

(I've never leased anything, so maybe you don't own any car right now?)

If you want a new one, get a new one. Spend the $9000 or however you justify a new 24 month rental.

Me, I'd pick a new one, and pay for it instead of renting it. Then at the end of 24 months, you still own a car.

Johnny Mo

Thanks for the input so far guys - a little more info for you:

the car is from a MB dealer - my wife works there so no worries on them doing the right thing little things like wipers etc.

The buyout on my 350 is $46k + another 1k or so to make it CPO. The 550 is around $57 but if I buy that I will "hopefully" get the dealer to eat my over mileage which is about another $1k and the lease termination fee of $600.

So those are the specifics - the MSRP on the 550 was a little over $70k. If my wife can work some magic with the factory guys I can try and get another $1k in loyalty money, but I think they've pretty much exhausted all incentives on the car already and since it's an '11 the factory is basically out of it.

At the end of the day I think it is still better to go with the 550 since I plan to own it - and in 6 yeears time it will have 36kmiles less than my current 350 - thus retaining more of its already higher value.

K-A

Definitely the 550. The real kicker is the E350's mileage. 36K, while still a baby for this kind of car, is quite a lot in such short time considering you now have to buy the car starting with 36K, therefore backtracking that mileage back to 0 is worth a lot right there.

BM2BZ

wait a minute, your wife works at the dealer? doesn't she have some bad a$$ leasing terms? why buy and pay about the same as regular customers?

Johnny Mo

Yes she does and yes she does - but since she takes a loaner (and the owner is awesome he gives her a new GL every 6 months) the dealership doesn't participate in her Master Certified program - so it kind of cuts the benefit. The fact that we only have the 1 car makes it easier to splurge, but I also feel like we should own 1 car and not keep leasing - although that option did come up.

Problem with the new lease option is that I am pretty specific about options on the car I want (and definitely don't want) so it usually has to be special ordered - the leftover '11 550 is a fluke - possibly a special order that was cancelled too late. Having to special order a car puts me in a spot where the lease rates and employee programs could change before I take delivery (good or bad) and there are NO employee incentivesd on 550's or AMG's...trust me that was one of the first things I asked about.

BenzE350

OK, now we have the relevant information. You simply need to determine if $57K is a good price for a 2011 550 with zero miles that originally listed for $70K. My guess is that this is an OK price - but you could probably negotiate lower. Always helps to check around - even if your wife works at your dealer.

The $46K buyout on your 350 is WAY TOO HIGH. Check the market.

Good luck.

threeMBs

I think people get off this thread's topic by bringing "is it a good deal" into this disccussion. There is no question that buying any car after lease's end normally is not a good deal. It clearly is not in this case (actually realy bad as specified by OP above). By the same token, buying a "leftover" but still new '11 E550 for above price might not be the best value either. However, the specific question posed was "which one" and it was hinted that no third option was considered. With this in mind, E550 is the only choice here (unless extra $10K is a financial stretch, which it seems to me is not the case here).

K-A

Lease end buyouts are always high, especially since M-B artificially raises the residuals to ensure artificially cheap Lease payments, but I understand if someone doesn't mind spending a few grand more for a car they've owned since new. I'm thinking of MAYBE doing the same thing. 2011 E's prices have a wide range, but lots of CPO cars around where I am are going for mid to even high $40's, some lower $40's, but CPO's especially should be within a few grand near his buyout price. Problem is, 36K miles is a bit high for a 1-2 year old car and makes the deal a technically very bad deal. However, O/P has owned the car since new, so the mileage isn't as big a factor in terms of non technicals. Though, you can probably get a brand new 2012 soon with heavy incentives for high $40's, which makes the most sense..... though, it won't be on a well loaded car (it'll be a normal/bare bones model).

alsyli

+1.

I must admit I don't know much about leases (I've only purchase one car myself), but isn't part of the equation how much you've already spent on the lease? I'm assuming you've gone way over your mileage limit, so, if you can get the dealer to waive some of those penalties/fees, then you've minimized your losses. But, the way I see it, you're still losing $ (or perhaps, at best, breaking even). I'm assuming the amount you spent on your lease + the purchase price of the 2011 E550 actually would've brought you pretty close to the *MSRP* of the E550 you're thinking of buying....

BenzE350

Just because the OP has indicated that he is "buying one or the other" does not exclude the benefit of trying to negotiate the best price for the option he selects.:roll eyes:

Knowledge is power.

K-A

This is why I don't like Leasing, being someone who tends to like to grow attached to a good car and try and prolong it if so. I did the math on how much it would cost if I bought my car out, and I got a great deal on it (10% off of MSRP on a P2/AMG Wheel Pack car), and between the Lease payments ($560 a month WITH taxes which is the lowest I've ever heard of on a P2 car), and the high Residual, not to mention my 2010 E that I had for a year..... I'm looking at full MSRP of a well loaded E550.

IMO, Leasing VS buying and holding just doesn't always add up. Even at $600 a month (not counting down payments), after 6 years you're looking at $45K out of pocket and nothing to show for it, put in down payments, and you're well over $50K.

Had I just bought my car initially, it woulda been just over $50K, and even in 6 years I could probably get half that or close to it. Then again, I did invest some of that money and have done well with it so far (knock on wood), so idk.

BenzE350

With apologies to the OP for going off topic...

I have over 30 years professional experience in the leasing industry (not cars). The answer to this question is too complicated, and involves too many variables to answer in a brief forum response.

However, in general, if you think you are going to own a car for 5+ years - you should probably purchase it.

Remember the benefit of leasing is in the use of the car - not in the ownership. In KA's example, he is able to drive a new MB that has an MSRP of over $60K for only $560 / month.

Your mile most definitely will vary.

SolidGranite

I bought a 2011 E550 for 58k that had a sticker of 72.5k back in February so 57k isn't bad but you may be able to do better.

Johnny Mo

Well boys - thanks for all the input - my wife spoke to her boss (owner of the dealership) and he said "your husband wants it - no problem - tell the boys (GM/Sales Mngr) I said to make it happen, get him in that car by the weekend" they are taking my last 2 payments, my over mileage and my lease term fee. Someone is going to be a happy camper this weekend. Happy Birthday---- to me!

Dema

Congratulations! Happy independence day.

BenzV12

Good news, sorry for the late reply but I waited for the things to settle down and I would not give you better idea than our friends

Kudos to the dealer as well

Happy driving and birthday