WAY Over Mileage - Dealer gave me a good Option.. Thoughts?
 

Hey All.. I currently have a 2013 Palladium Silver, E350 P1, and P2, Pano Roof, Sport, AMG Wheels, etc.. Pretty sweet ride.. I got it on a 27 month lease, with 12k miles.. I pay $670/month all in. It was a $62k sticker car.

I'm 18 months into the 27 month lease and I already have 27k Miles on it.. So I'm technically driving at about 1550 miles a month.. If I continue driving this much, I'll be at 41,850 miles at end of lease.. At .25c a mile, I'll owe $3700..

I went into Mercedes today in Delray Beach, FL.. They offered me a deal..

Take a Steel Grey, 2014 E class, with P1, sport, AMG wheels (no pano, no P2), with $4,000 down (includes first month payment so nets out at $3250 down) and 15,000 miles..

So basically I'm getting the new body style which honestly I don't really love, lower optioned car, but 15k miles a year for 27 months.. Really I'm paying for the overage now, then later, but also getting out of my lease 9 months early based on incentives and an early "roll through" credit, which is a loyalty thing.

Kind of stuck on what to do.. I kind of wanted to get into a different car at the end of the lease, and paying $750/month for this car doesn't sound like a great deal even with 15k miles, does it? Another 2 years isn't a big deal, but it's not a short period of time either, when I have car ADD.

Just wondering what your take is on it, and if you have any feedback/thoughts on what you would do?

So the next 9 months will cost you $670x9=$6030 plus the 3700 or 9730 so $1081 a month. That sounds like a lot until you spread it out over the full 27 months - $18090 plus the 3700 for 21790. That works out to $807 a month.

The new car is $3250 plus 20250 or $23500 or $870 a month

Thanks for that. Super helpful. So basically I'm doing a direct swap because with the new car I'm getting 15k miles/year but a less optioned car. Hmmm.

Yes. Also, will you be happy with a P1 after a P2? I for one can not go backwards on features. I did this once and always regretted it until the day I got rid of it. Just my 2cents.

A little worse than a direct swap since you are paying more a month under the new lease compared to the all-in cost of the old lease. That combined with your desire to get into a different car in 9 months, you probably should just ride out the current lease watching your miles and then move on to something you want.

Don't lease

Leasing is a great option for people who want cars under warranty and who drive a fixed mileage.

The OP has another issue with the new option. 15k miles a year are 1250 a month. He is driving 1550 a month or 300 over per month.

That overage is 8100 miles and that works out (at .25 a mile) to another $2025 or $75 a month.

Add that to the $870 a month and he is at $945 a month.

Dealers know how to present the numbers so that it looks pleasing to the eye - $750 a month is much less than $100 more that you're paying now and you're getting a newer car with more miles.

You can easily rationalize those extra $80 a month. "One Starbucks a day @$4 is $80 a month for a 5 day work week. That $4k down is also insignificant because it includes the first month's payment and hey, you're getting more miles and you won't have to pay on those extra miles on your current lease."

The bottom line is that the down payment on the new car roughly equals the expected overage on your current car and the new car will cost you more money, you'll still have excess miles at the end of the lease and your getting fewer options.

Plus the extra money at the end of the lease for the miles as 15000 miles / year will not cover 1550 miles / month.


I would just pay for the mileage at the end of the current lease. With the posted math it is even less than just the down payment on the new more expense lease. And paying the current lease at the end will free you from it all, i.e. you can go lease whatever you want next time.


The sales strategy MB and other car dealers is exactly what we see here. Give the customer a "deal" which in the end is no deal at all and they keep the customer hooked on their product.


I would not go with the new lease they offer.

I think you have a slight error in your math.


You have driven 27 000 miles in 18 months. This equals to 1500 miles/month. With this rate you will accumulate another 13500 miles and with $0.25/miles it comes to $3375, i.e. $650 less than the down payment on the new lease for the less equipped car with higher monthly payment.


Don't go with it!

You are about 9 months away from your current lease end.

Wait 3-4 more months until the Winter sales event comes around.

Reason: Mercedes usually have 6 months pull-ahead lease waiver when you get into a new car. The chances are you will only rack up another 5000 miles of overages. The impact is only $1250 and the rest of the lease payments will be waived by MBFS.

Tip: Apply for the MB AMEX Platinum card and you'll get 2000 miles waiver as card member benefit and you'll get a $1000 silver start certificate to use towards your new Mercedes, so you are left with 3000 miles of overages which the winter sales event incentives will be more than enough to cover the differences.

Research on thepointsguy.com w.r.t. maximizing your AMEX membership fee

Does MB waive overage fees if you lease/purchase another MB? I've only leased a couple times, and they've always been BMW's. I've turned them in over my allowed mileage and BMW always waived the charges as long as I purchased or leased another BMW.

One time I turned in a leased BMW 18 months into a 36 month lease with 40k miles on it (lease term was 36 month, 36k miles) and bought another BMW, they waived the mileage fees and didn't make me pay the remaining 18 lease payments either.

So maybe MB will do the same if you purchase/lease another MB?

Overages are "waived" by how much the dealer is willing absorb for you.
When you turn in a 18 out of 36 month lease, the dealer basically bought it off BMWFS books so mileage is no longer an issue with respect to your lease contract.

No p2 for 2014....it's only p1

no pano?!, no deal ...

Seriously for me, it's the smiles-per-mile factor you need to take into consideration with a less-than-fully featured car. Yes, there may be mileage fees to pay, but enjoy this car and get a better deal on a car with the features you love when next time comes around.

+1

i agree with most of the options KEEP ur car and i suggest maybe looking on swap a lease or something and assuming someone lease for a short term is you wanted to maybe be in another car in anticipation for a newer model! i dont think the downpayment AND higher monthly cost is a good deal. it sounds like dealer speak to me

Since you like the car, call MB Finance directly and have they make you an offer to buy the car. You don't need to work through the dealer. Be sure to purchase an extended warranty.

This thread is six months old. I doubt the OP is still looking for opinions.