Who's considering buying out after Lease's up? Any tricks of the trade(get cheaper)?
Thread Starter
Out Of Control!!
Joined: Jun 2008
Posts: 10,557
Likes: 24
From: Earth
Porsche Macan S SportDesign / Ex M-B's: 11 & 10 & 06 E350's, 02 S500
Who's considering buying out after Lease's up? Any tricks of the trade(get cheaper)?
So obviously at least those who bother to post their figures up on message boards have worked out savvy deals. I myself have a great monthly rate, which comes on the back of a hugely high residual value after the 33 month Lease (due in 3/2014 at $38,xxxK).
I'm happy about the nice monthly, and current situation where my money isn't tied up into a car, but come 3/2014, I'll have a decision to make. I do know that I don't want to Lease again (don't like the idea of spending $20+K during each Lease interval and having nothing to show for it, it's a personal thing and of course we all vary when it comes to Lease VS buy).
Saying that my car stays pristine, low mileage, and I decide that I want to buy it, but not at that ridiculous price, and saying MBUSA doesn't negotiate. I've heard people say that you can return a car to a Dealer, have them take it, put a price on it, and you immediately buy it as a CPO for a more fair market value? Anybody done this? Is it a fool-proof plan or any catches to be aware of?
Already started pricing out alternatives, and even at $38K buyout, it's relatively super cheap compared to anything else I'd consider (which would be well over $70K). I won't be considering another E-Class simply because I've already had 2 W212's, and even though it'll be a facelift model by that time, if I don't buy this one out, I'll force myself to try something else out.
I'm happy about the nice monthly, and current situation where my money isn't tied up into a car, but come 3/2014, I'll have a decision to make. I do know that I don't want to Lease again (don't like the idea of spending $20+K during each Lease interval and having nothing to show for it, it's a personal thing and of course we all vary when it comes to Lease VS buy).
Saying that my car stays pristine, low mileage, and I decide that I want to buy it, but not at that ridiculous price, and saying MBUSA doesn't negotiate. I've heard people say that you can return a car to a Dealer, have them take it, put a price on it, and you immediately buy it as a CPO for a more fair market value? Anybody done this? Is it a fool-proof plan or any catches to be aware of?
Already started pricing out alternatives, and even at $38K buyout, it's relatively super cheap compared to anything else I'd consider (which would be well over $70K). I won't be considering another E-Class simply because I've already had 2 W212's, and even though it'll be a facelift model by that time, if I don't buy this one out, I'll force myself to try something else out.
Newbie
Joined: Jul 2012
Posts: 10
Likes: 0
Prius
Originally Posted by K-A
So obviously at least those who bother to post their figures up on message boards have worked out savvy deals. I myself have a great monthly rate, which comes on the back of a hugely high residual value after the 33 month Lease (due in 3/2014 at $38,xxxK).
I'm happy about the nice monthly, and current situation where my money isn't tied up into a car, but come 3/2014, I'll have a decision to make. I do know that I don't want to Lease again (don't like the idea of spending $20+K during each Lease interval and having nothing to show for it, it's a personal thing and of course we all vary when it comes to Lease VS buy).
Saying that my car stays pristine, low mileage, and I decide that I want to buy it, but not at that ridiculous price, and saying MBUSA doesn't negotiate. I've heard people say that you can return a car to a Dealer, have them take it, put a price on it, and you immediately buy it as a CPO for a more fair market value? Anybody done this? Is it a fool-proof plan or any catches to be aware of?
Already started pricing out alternatives, and even at $38K buyout, it's relatively super cheap compared to anything else I'd consider (which would be well over $70K). I won't be considering another E-Class simply because I've already had 2 W212's, and even though it'll be a facelift model by that time, if I don't buy this one out, I'll force myself to try something else out.
I'm happy about the nice monthly, and current situation where my money isn't tied up into a car, but come 3/2014, I'll have a decision to make. I do know that I don't want to Lease again (don't like the idea of spending $20+K during each Lease interval and having nothing to show for it, it's a personal thing and of course we all vary when it comes to Lease VS buy).
Saying that my car stays pristine, low mileage, and I decide that I want to buy it, but not at that ridiculous price, and saying MBUSA doesn't negotiate. I've heard people say that you can return a car to a Dealer, have them take it, put a price on it, and you immediately buy it as a CPO for a more fair market value? Anybody done this? Is it a fool-proof plan or any catches to be aware of?
Already started pricing out alternatives, and even at $38K buyout, it's relatively super cheap compared to anything else I'd consider (which would be well over $70K). I won't be considering another E-Class simply because I've already had 2 W212's, and even though it'll be a facelift model by that time, if I don't buy this one out, I'll force myself to try something else out.
Posted from Mbworld.org App for Android
Thread Starter
Out Of Control!!
Joined: Jun 2008
Posts: 10,557
Likes: 24
From: Earth
Porsche Macan S SportDesign / Ex M-B's: 11 & 10 & 06 E350's, 02 S500
Really, I'd love the new 911 as it's the only thing that's really tugging at the heart strings that's come out lately. However, they come with a few premiums!
Member
Joined: Oct 2009
Posts: 231
Likes: 3
2017 E300 • 2016 Tesla Model S 75D
I've heard people say the "At the end of the lease, you have nothing to show" before but you also have to look at the fact that you paid much less than if you would have financed, so it's not comparing apples to apples. Take the difference in the payment you would of had, put it in savings, and then at the end of the lease you can see you have XX in the bank.
Obviously if you finance a car for say 60 months and then keep it for a few more years, then financing is the way to go. But if you finance for 60 months to only turn around and trade that car in for something else that you finance for 60 months, I don't know if you really come out ahead. Worse yet, if you finance for 60 months but then want something new after 24-48 months, you'll likely be upside down when getting into a new car.
Really depends on the individual and what they want.
Obviously if you finance a car for say 60 months and then keep it for a few more years, then financing is the way to go. But if you finance for 60 months to only turn around and trade that car in for something else that you finance for 60 months, I don't know if you really come out ahead. Worse yet, if you finance for 60 months but then want something new after 24-48 months, you'll likely be upside down when getting into a new car.
Really depends on the individual and what they want.
Senior Member
Joined: Jan 2008
Posts: 459
Likes: 6
From: N.J USA
2010 E550.. Gone but never forgotton - E63 AMG..
KA- I'm dealing with the same situation only I have much less time to decide on what I will ultimately do with my car.. Lease is up in December.. I'm strongly leaning towards buying it out, the residual for my 550 is only $ 37,800.. For that price I can't see anything else that I can get that would be remotely close to my 212/550.. I will have to look into purchasing an extended warranty aswell. The only car that I would consider is the 535 with mpack. Every time I see that car it turns my head. It's beautiful.
Thread Starter
Out Of Control!!
Joined: Jun 2008
Posts: 10,557
Likes: 24
From: Earth
Porsche Macan S SportDesign / Ex M-B's: 11 & 10 & 06 E350's, 02 S500
KA- I'm dealing with the same situation only I have much less time to decide on what I will ultimately do with my car.. Lease is up in December.. I'm strongly leaning towards buying it out, the residual for my 550 is only $ 37,800.. For that price I can't see anything else that I can get that would be remotely close to my 212/550.. I will have to look into purchasing an extended warranty aswell. The only car that I would consider is the 535 with mpack. Every time I see that car it turns my head. It's beautiful.
For your buyout price, I would DEFINITELY jump on it.
Unless you aren't happy with the car, or tired of it, etc. I mean, you can probably sell it afterward and make some money! That is a GREAT buyout price, which I'm sure comes on the heels of a much higher Lease payment you've had to endure from being one of the early adopters (my 2010's Lease was also pretty high, and the residual low, yet my 2011's Lease is a lot lower, with a much higher residual).If you think about it, by buying it out, you get MB Financial "back" in terms of reaping the value aspect out of your car.... if you give it back to them, they got a new-body-style higher Lease rate (before major incentives got thrown at 2011+ models), and they get it back for VERY cheap.
Get it! My residual, for comparisons sake, is friggin' $38K after 33 months! F'ing ripoff! It's due to such an artificially low Lease payment, of course.
Trending Topics
Senior Member
Joined: May 2008
Posts: 325
Likes: 18
From: Canada
W213, C238
MB World Stories
The Best of Mercedes & AMG
Manual Mercedes? 6 Times Sindelfingen Let Drivers Have All The Fun
Verdad Gallardo
Mercedes SLR McLaren 722 S Is Extremely Rare Example Modified by McLaren
Verdad Gallardo
8 Classic Boxy Mercedes Designs That Have Aged Like Fine Wine
Verdad Gallardo
Flawlessly Restored Mercedes 190E Evo II Heads to Auction
Verdad Gallardo
Electric Mercedes C-Class Unveiled: 11 Things You Need to Know
Verdad Gallardo
Mercedes EQS Gets A Major Update: Everything You Need to Know
Verdad Gallardo
5 Underrated Mercedes-Benz Models That Don't Get the Love They Deserve
Verdad Gallardo
Mercedes 300D Has Pushed Well Past 1 Million Miles and It Ain't Stopping
Verdad Gallardo
10 Most Reliable Mercedes-Benz Models You Can Buy Used
Verdad Gallardo
Super Member
Joined: May 2008
Posts: 655
Likes: 2
Mercedes e350 BlueTec
I don't understand the negative tone about a higher residual. A lease is a lease. After so many months, you have the option of buying it out for the residual price or turning it in. It was that higher residual that let you pay less per month...and I bet you liked that. Now you are griping because you liked those lower payments but you are griping about the residual. Come on....try to understand leasing and financing just a little, vs looking at what you want to look at and griping or comparing leases based on the residuals...that's as bad as comparing leases based on the monthly payment (which is what car dealers sell). Both are terrible, no actually useless ways to compare leases.
With cars, whether you buy them outright, finance them or lease them, the only thing that you can and should compare is the total real monthly charge over the life of ownership. That way, you can take into account down payments, residual costs, payments at the end to turn a car in, origination fees and so on. Assuming you like two cars equally, that's the way to compare them.....not MF's not residuals...and please, not monthly payments.
With cars, whether you buy them outright, finance them or lease them, the only thing that you can and should compare is the total real monthly charge over the life of ownership. That way, you can take into account down payments, residual costs, payments at the end to turn a car in, origination fees and so on. Assuming you like two cars equally, that's the way to compare them.....not MF's not residuals...and please, not monthly payments.
Thread Starter
Out Of Control!!
Joined: Jun 2008
Posts: 10,557
Likes: 24
From: Earth
Porsche Macan S SportDesign / Ex M-B's: 11 & 10 & 06 E350's, 02 S500
it's 10K per year, I think it comes out to around 30K miles or so. Currently I'm at almost 13K after 10 months, but that's mainly due to a lot of cross State driving of which I'm not doing so much in the car anymore, so the mileage racking up might slow down a lot.
As for the residual, I understand how it works, and true, it is what gives me the great Lease payment. It's really an annoyance I have toward myself and the situation I'll be in as if I let the car go after the Lease, I "win" in terms of getting the better end of the deal. If I buy it out, I essentially undo the great terms of the Lease that I got and they get the better end of the stick.
Of course this is hypothetically saying that I'll want to buy the car out, however I'm trying to plan that scenario out to be "armed" in the case that I do want to continue with the car.
As for the residual, I understand how it works, and true, it is what gives me the great Lease payment. It's really an annoyance I have toward myself and the situation I'll be in as if I let the car go after the Lease, I "win" in terms of getting the better end of the deal. If I buy it out, I essentially undo the great terms of the Lease that I got and they get the better end of the stick.
Of course this is hypothetically saying that I'll want to buy the car out, however I'm trying to plan that scenario out to be "armed" in the case that I do want to continue with the car.
Senior Member
Joined: May 2008
Posts: 325
Likes: 18
From: Canada
W213, C238
it's 10K per year, I think it comes out to around 30K miles or so. Currently I'm at almost 13K after 10 months, but that's mainly due to a lot of cross State driving of which I'm not doing so much in the car anymore, so the mileage racking up might slow down a lot.
As for the residual, I understand how it works, and true, it is what gives me the great Lease payment. It's really an annoyance I have toward myself and the situation I'll be in as if I let the car go after the Lease, I "win" in terms of getting the better end of the deal. If I buy it out, I essentially undo the great terms of the Lease that I got and they get the better end of the stick.
Of course this is hypothetically saying that I'll want to buy the car out, however I'm trying to plan that scenario out to be "armed" in the case that I do want to continue with the car.
As for the residual, I understand how it works, and true, it is what gives me the great Lease payment. It's really an annoyance I have toward myself and the situation I'll be in as if I let the car go after the Lease, I "win" in terms of getting the better end of the deal. If I buy it out, I essentially undo the great terms of the Lease that I got and they get the better end of the stick.
Of course this is hypothetically saying that I'll want to buy the car out, however I'm trying to plan that scenario out to be "armed" in the case that I do want to continue with the car.
Thread Starter
Out Of Control!!
Joined: Jun 2008
Posts: 10,557
Likes: 24
From: Earth
Porsche Macan S SportDesign / Ex M-B's: 11 & 10 & 06 E350's, 02 S500
That't the thing, it'll be right when the facelift comes out.
I'm not happy about the ditching of the quad lights and lower part of the Ponton fender as purported so far, so not sure how much I'll like it, but I guess we'll have to wait and see....
I'm not happy about the ditching of the quad lights and lower part of the Ponton fender as purported so far, so not sure how much I'll like it, but I guess we'll have to wait and see....
Senior Member
Joined: Nov 2010
Posts: 466
Likes: 1
E350
I'm shocked to see the resident mbworld cheerleader thinking of switching camps.
Don't look at it like this - you actually "win" either way. At the end of the lease you can purchase at the pre-negotiated buyout price. If the car is worth less you walk away with the knowledge that you saved money on the lease. If the car is worth more you can purchase with the knowledge that you immediately have equity in the car, and could sell at a profit. Win / Win.
It's really an annoyance I have toward myself and the situation I'll be in as if I let the car go after the Lease, I "win" in terms of getting the better end of the deal. If I buy it out, I essentially undo the great terms of the Lease that I got and they get the better end of the stick.
Super Member
Joined: May 2008
Posts: 655
Likes: 2
Mercedes e350 BlueTec
you have a total of 27,500 miles on a 10k 33 month lease.
If you lease with a high residual and then buy the car, the total cost of the car is probably within dollars of leasing at a lower residual and buying the car.
The leasing company only "wins" if they can sell the car for more than the residual value at the end of the lease. If they can't sell the car for that much, they will take a loss on their books.
If you lease with a high residual and then buy the car, the total cost of the car is probably within dollars of leasing at a lower residual and buying the car.
The leasing company only "wins" if they can sell the car for more than the residual value at the end of the lease. If they can't sell the car for that much, they will take a loss on their books.
Member
Joined: Dec 2006
Posts: 108
Likes: 0
From: MPLS
2016 E350
Cycles
If the normal ebb and flow of MB finance holds true your next E will have a lower residual. In 2011 the residuals rose significantly because used values were way up. I've leased 3, three different ways and bought 2.
2002 First was a cash purchase of a demo E430 -$10k off sticker, sold 3 years later for $28k with a roughly $20k depreciation or about $670 a month. Most expensive monthly out go.
2007 Second one was a one pay check up front for 33 mos for a E350 w/leather and P1 only $16k across 33 months. $8k off and almost negative interest, not negative, but like .0007. Less than $500 a month.
2009 Third was the same car as #2 minus leather, first and tags drive off and $540 a mo for 36. Residual was ridiculously low, like 48% across 36, but MF was also less than .00100 so payment worked. Discount was 10%, plus E trunk money and loyalty $. Bonus at the end was used values went up and car was worth $27.5 vs the $25 or so residual. Rolled the gravy into the next one.
2011 got a fully loaded P2 and leather car w/about 1.5k cap red from the previous car, $9k discount off $62k and a very high residual of $44k for 24. But my payment is, get this, $490 plus tax.
You cannot beat the monthly outgo for the car you get when you lease the E class. I would not buy one outright again unless I was going to hold the car for over 8 years.
Don't stress over the residual. You can see that it really doesn't matter in the long run if you're leasing. Do not lease and then buy unless you're ahead like my 2009.
Another component that really helps the equation is great discounts and getting one off the lot. Buying 5 or 6 cars from the same dealer also helps.
2002 First was a cash purchase of a demo E430 -$10k off sticker, sold 3 years later for $28k with a roughly $20k depreciation or about $670 a month. Most expensive monthly out go.
2007 Second one was a one pay check up front for 33 mos for a E350 w/leather and P1 only $16k across 33 months. $8k off and almost negative interest, not negative, but like .0007. Less than $500 a month.
2009 Third was the same car as #2 minus leather, first and tags drive off and $540 a mo for 36. Residual was ridiculously low, like 48% across 36, but MF was also less than .00100 so payment worked. Discount was 10%, plus E trunk money and loyalty $. Bonus at the end was used values went up and car was worth $27.5 vs the $25 or so residual. Rolled the gravy into the next one.
2011 got a fully loaded P2 and leather car w/about 1.5k cap red from the previous car, $9k discount off $62k and a very high residual of $44k for 24. But my payment is, get this, $490 plus tax.
You cannot beat the monthly outgo for the car you get when you lease the E class. I would not buy one outright again unless I was going to hold the car for over 8 years.
Don't stress over the residual. You can see that it really doesn't matter in the long run if you're leasing. Do not lease and then buy unless you're ahead like my 2009.
Another component that really helps the equation is great discounts and getting one off the lot. Buying 5 or 6 cars from the same dealer also helps.
Last edited by A C; Jul 31, 2012 at 10:12 PM.
Thread Starter
Out Of Control!!
Joined: Jun 2008
Posts: 10,557
Likes: 24
From: Earth
Porsche Macan S SportDesign / Ex M-B's: 11 & 10 & 06 E350's, 02 S500
Thanks, good info. ^^
It just seems increasingly likely to me that when my Lease is up and my $38K residual is all the more real (and huge), a buyout won't be a realistic option to consider. Only reason I'm considering flattering the notion of a buyout is that if I'm still fully happy with my car and don't see anything else pulling my strings enough to pay up for it, or don't feel the desire to try something else just for the sake of it, then it would make sense to just buy what I got, as I think the car will look and function great for as long as it wants to.
It just seems increasingly likely to me that when my Lease is up and my $38K residual is all the more real (and huge), a buyout won't be a realistic option to consider. Only reason I'm considering flattering the notion of a buyout is that if I'm still fully happy with my car and don't see anything else pulling my strings enough to pay up for it, or don't feel the desire to try something else just for the sake of it, then it would make sense to just buy what I got, as I think the car will look and function great for as long as it wants to.
Senior Member
Joined: Aug 2005
Posts: 344
Likes: 45
From: Florida & New Jersey
2017 E300 4matic Sport
Thanks, good info. ^^
It just seems increasingly likely to me that when my Lease is up and my $38K residual is all the more real (and huge), a buyout won't be a realistic option to consider. Only reason I'm considering flattering the notion of a buyout is that if I'm still fully happy with my car and don't see anything else pulling my strings enough to pay up for it, or don't feel the desire to try something else just for the sake of it, then it would make sense to just buy what I got, as I think the car will look and function great for as long as it wants to.
It just seems increasingly likely to me that when my Lease is up and my $38K residual is all the more real (and huge), a buyout won't be a realistic option to consider. Only reason I'm considering flattering the notion of a buyout is that if I'm still fully happy with my car and don't see anything else pulling my strings enough to pay up for it, or don't feel the desire to try something else just for the sake of it, then it would make sense to just buy what I got, as I think the car will look and function great for as long as it wants to.
Thread Starter
Out Of Control!!
Joined: Jun 2008
Posts: 10,557
Likes: 24
From: Earth
Porsche Macan S SportDesign / Ex M-B's: 11 & 10 & 06 E350's, 02 S500
When you are 30 days out from end of lease, begin talking to your dealer (and other dealers in your area) as to what can they do to buy it for less than the residual and CPO it for a total amount that might be less than your stated residual amount (and the stupid $595 fee).
Super Member
Joined: Oct 2008
Posts: 803
Likes: 2
From: Saskatchewan
1969 280S, 1991 300E
I've heard people say the "At the end of the lease, you have nothing to show" before but you also have to look at the fact that you paid much less than if you would have financed, so it's not comparing apples to apples. Take the difference in the payment you would of had, put it in savings, and then at the end of the lease you can see you have XX in the bank.
Obviously if you finance a car for say 60 months and then keep it for a few more years, then financing is the way to go. But if you finance for 60 months to only turn around and trade that car in for something else that you finance for 60 months, I don't know if you really come out ahead. Worse yet, if you finance for 60 months but then want something new after 24-48 months, you'll likely be upside down when getting into a new car.
Really depends on the individual and what they want.
Obviously if you finance a car for say 60 months and then keep it for a few more years, then financing is the way to go. But if you finance for 60 months to only turn around and trade that car in for something else that you finance for 60 months, I don't know if you really come out ahead. Worse yet, if you finance for 60 months but then want something new after 24-48 months, you'll likely be upside down when getting into a new car.
Really depends on the individual and what they want.
Exactly.
What happens if you finance the car and 6 months after buying it, you have a massive accident, but the car is not written off? Now you are the owner of a car that is worth a whole lot less than one that hasn't been smashed. With a lease, u are not penalized when you return it to MB, as long as the car has been repaired.
MB lease also have GAP protection built in, so if the car is written off & the actual value is less than the lien, the GAP is covered.
You also only pay taxes on your monthly payments with a lease, so by the end of your term, you haven't paid tax on whatever your residual is.
If you only keep your cars 2-4 years, leasing is the way to go. If you're a 5+ year type owner, finance it.
Super Member
Joined: May 2008
Posts: 655
Likes: 2
Mercedes e350 BlueTec
Exactly.
What happens if you finance the car and 6 months after buying it, you have a massive accident, but the car is not written off? Now you are the owner of a car that is worth a whole lot less than one that hasn't been smashed. With a lease, u are not penalized when you return it to MB, as long as the car has been repaired.
MB lease also have GAP protection built in, so if the car is written off & the actual value is less than the lien, the GAP is covered.
What happens if you finance the car and 6 months after buying it, you have a massive accident, but the car is not written off? Now you are the owner of a car that is worth a whole lot less than one that hasn't been smashed. With a lease, u are not penalized when you return it to MB, as long as the car has been repaired.
MB lease also have GAP protection built in, so if the car is written off & the actual value is less than the lien, the GAP is covered.
This does not apply to one pay leases which are handled differently financially. A one pay lease is set up like a bank account and your monthly payments are deducted from it. If your car is totaled in month 6 of a 12 month lease, then you are assumed to have only paid 1/2 of the money and you will get the other 1/2 back....and any gap will be covered by insurance.
