ocpun

My neighbors 2013 e350 with 33k mileage lease is almost over and I'd like to purchase it. Before i do, can anybody help me get the car fax report? I'd like to see exactly what package and options were added as well. Also how much should I offer for it OTD? I'm assuming I should be able to pull a great deal from my local MB dealer (Fletcher Jones in Newport Beach) since my parents just bought a brand new GLC and a brand new GLE 2-3 months ago, if i call that same sales person. Any feedback would be greatly appreciated!

VIN #WDDHF5KB1DA767164

babacah

Your only option to buy this car may be the lease end amount in your neighbors contract. If this vehicle gets turned in it's likely owned by Mercedes Benz Finance and will need to go to auction.

I admit I'm not totally familiar with how this works through Mercedes Benz but had experience with other makes. Perhaps the dealer that receives the turn in has an option to purchase and they use an average auction value.

Assuming the dealer can keep the car and you want the CPO benefits you wouldn't be able to buy for the lease end amount. The dealership would need to run the car through their shop, perform any needed maintenance (tires, service), repairs (should be ok under 4/50 warranty) then add the CPO warranty cost plus some dealer profit (have to make something for the effort).

The lease end buyout may or may not be a good deal. Leases are kept low using high residuals which can make a good lease deal a bad lease end buy. Do you know the buyout?

JALLEN4

If Fletcher Jones was the original selling dealer and the car is turned in there, they will be given the opportunity to purchase it from Mercedes. That value is between the dealer and Mercedes Financial and you will not be a party to it. A visit to management by you and the present owner could give you an insight as to what to expect.

ocpun

I'm not sure what the lease end buy out is. I can always ask my neighbor what exactly he was paying for his lease or would giving fletcher jones a call help?

ocpun

Fletcher Jomes was the original seller and the car is being returned there. Would giving the sales person that sold my parents two brand new Benz a call help?

cetialpha5

I think you could also just have your friend transfer the lease to you and you just buy it out at the end. That way you don't have to mess with CPO and if it still has some of the original warranty left, you can just buy an extended warranty which is discussed in the extended warranty forum. You can get a 7/70 or 7/100 extended warranty.

babacah

lease end purchase price will be clear in the contract. Yes, by all means call the salesman and see what they can work out for you. You may end up with the car and a CPO warranty for less than your neighbor could purchase his car for at end of lease. My guess is the residual on the lease will be above current market value on the car.

ocpun

What exactly is the difference from buying it out at the end of the lease compared to buying it CPO? Wouldn't buying it CPO be better since they inspect and repair the vehicle? Also it comes with 1 year CPO warranty.

cetialpha5

Technically yes, but if they have to spend money to recondition it to CPO status, then you're just paying more for a CPO car. Also it's not clear which is actually better, CPO or extended warranty. You'd have to read the two to see which is better. CPO you don't get any money back if you cancel it, extended is pro-rated if it's canceled. CPO is also unlimited miles but extended is only 100k. You just have to run the numbers on the scenarios.

babacah

There is no CPO with lease buyout. There is a price set in the contract and you have the option to purchase at that price or turn in. No extended warranty.

A CPO car is taken through the CPO certification and the warranty is added, all of that adds to the price of the car plus the dealer must make their profit. Since your walking in handing them a deal you may get a discount on the normal add on for all of this but you will pay.

cetialpha5

You get the balance of the original factory warranty. If you check in the warranty forum, if you still have some of the original warranty left, you can buy an extended warranty. There are several people mentioned in that forum that will discount it. They also discount the extra 2nd and 3rd year of the CPO warranty, you have to run the numbers to see which way it's going to go. It might be hard to know what the numbers will be once the dealer gets their hands on it.

ocpun

Would it be cheaper purchasing the car at the end of lease buyout or CPO? Also if I did the lease buyout, does it go through any inspections like CPO? I don't mind spending a little more for a peace of mind. I'm actually not a fan of buying used cars but since it's my neighbors, I know he took good care of it.

ocpun

Is it even possible to get this exact car CPO? It is being returned to Fletcher Jones, where it was originally leased.

thefisch

If you only want this car, then taking over the lease if the only way you'll get it for sure. You could go to dealer with with neighbor and see if they can arrange something but that will cost you more. I would be surprised if the dealer would give you any info on a car that you are not the owner of.

First step is to ask neighbor for purchase option price at end of lease. And they should have the sticker so you can see all the options, etc. Honestly, it could be higher than what you could buy another CPO on the lot.

There is not a lot of risk with a 3 year old CPO. Most of them should have maintenance records. Don't overpay just because you've seen the car for 3 years.

Personally, I am not too keen on doing business with neighbors - no need to complicate my life further.

ocpun

Just spoke with the salesman who sold my parents two vehicles recently. Unfortunately he's off today and tomorrow but said he would get all the information for me and see what he could do. In the mean time ill ask my neighbor for the purchase option price at the end of the lease and the sticker to see all the options. I will definitely take what you said into consideration about not overpaying for this exact car because there might be other CPO e350 for cheaper. Honestly after doing some research on this forum, I'm not looking to pay anymore than 25k for a 2013 CPO e350 sedan. I've noticed someone paid 24.5k OTD for a 2013 CPO e350 sedan and this was a few months ago, so I'm hoping its cheaper now. https://mbworld.org/forums/e-class-w...350-owner.html

Once I get all the information I need, I will update everyone.
Thank you for everyones feedback and every response is great appreciated!

JALLEN4

The purchase option price on the lease was set at the time of the lease and would have nothing to do with the current market value. The dealer will have the option to buy the unit when it is turned in and most likely the current value is considerably less than the purchase option.

The dealer can then make it a Certified Unit by doing the required inspection and paying a fee to Mercedes for the Certification. They will also bring all service up to date, detail the car, make any necessary repairs, and do any cosmetic repairs needed. Obviously they will also wish to make a profit.

All of this does not mean the vehicle will be tremendously more expensive than the lease option price and does mean it should be competitive with the pricing of similar units they have in stock. Dealers sell cars generally based on market value and not what they pay for them. All things being equal, a car whose history you know and one that is certified would be preferable to some random unit you find on a lot.

Proflig8tor

So let us know what the residual on the lease was.

I just picked up a 2013 E350 CPO Sport that did not sell on the dealer's lot because it has 41K miles on it. Bought it through a dealer using Manheim and got it for $22.8. Still, by the time I bump the dealer a profit, pay the auction fees and transportation I'm in for $26k OTD (Georgia has a 7% sales tax, but if you buy something for less than they think it should cost they use a book, which is above ACV ... pray you don't live in this State if you buy a used car ... BTW I wrote the legislator who put that turd of a Bill through the State House and told him that he is worse than Pumpkin Spiced beer)

While doing a little due diligence it turns out the CPO process was basically a B service and new tires.

If you buy through an auction house you lose the goodies (warranty and paperwork) that registers the car as a CPO, although once in CarFax, always in CarFax.

Happy hunting.

ocpun

Just spoke with the salesman that sold my parents two brand new cars over at Fletcher Jones this year. Residual on the lease is about $32000.

ocpun

Thanks for the great info! I just spoke with my dealer over at Fletcher Jones MB in Newport Beach. He told me residual on the lease is about $32000 and my neighbors lease is up on Oct. 16th. Based on the information that you gave me, that dealers sell cars generally based on market value and not what they pay for them, I politely told him I was looking to purchase the vehicle CPO based on my knowledge of the current market value of around $25000 OTD. He instantly said no that would not be possible and that I was a smart guy and understood that MB Financial or the bank would not be willing to take a $7000 loss... Therefore i asked him how much he thinks it was going to cost me then and he said he's not sure because they would have to wait until the lease was up and then his general manager would have to make an offer for the vehicle to MB Financial, then inspect the vehicle for any problems, recondition everything that needs to to be CPO, and then make a profit (basically everything you said lol). He also asked me if i knew if my neighbor was going to purchase or lease another MB after the lease was over because he wanted to save both of us money by coming in and getting our cars together through him lol.

I'm confused as to how a lot of people on this forum got their 2013 e350 CPO recently for around $25000 OTD. I also see on mypreowndmercedes.com that majority of 2013 e350 CPO with under 40000 miles listed under $30000. Every e350 that I'm talking about including the one i want is very similar in terms of mileage, options/package, and 1 owner car fax with maintenance service recorded. Lets say my dealership buys the car from MB Financial for $32000 because "the bank can't take a $7000 loss" and reconditions and gets it verified to be CPO. They then have to make a profit so the car is now well above $32000. Who's going to buy that car at that price when its 2 models old and its current market value is $25000?

The specs on my neighbors 2013 e350
4dr RWD Sports Sedan
33k mileage
Iridium Silver Metallic/Black MB tex
P1
AMG styling package (front spoiler, side skirts)
wheel package (18in AMG rims and sport steering wheel)
rear spoiler
pano roof
keyless go
comfort box

http://www.vindecoderz.com/EN/check-...HF5KB1DA767164

Proflig8tor

Don't feel bad. Most 2013's with mileage in the thirty thousands are going to be about $30,000, or just under. You could ask an independent used car dealer if they would let you bid through Manhiem for $500 to $1,000 but that's a take what you get - no whining process. The car we picked up was a Mercedes CPO, but the CPO benefits dropped dead when the car went through the auction.

There are a lot more 2014's on the market than 2013's. A current search in the US shows 483 2014's and only 67 2013's. 185 of the cars are being sold by Mercedes-Benz Financial.

Although you could probably do about as well on cargurus.com. I've seen some great deals there, especially if you expand your search area.

Our car arrived today and we're really enjoying it.

babacah

Mercedes may not want to take the hit on that car but wholesale is at least 10k less than residual so they really don't have a choice.

Best I found for a 2013 CPO under 40k was $28,000. Honestly the 2014's are about the same price now so have you considered that route. Depending on in service date you could have a couple years of new car warranty before your CPO kicks in. I went that route in March and got 66 months of warranty unlimited miles between new and CPO.

thefisch

The only person who would take a hit on that car is you OP if you take over that lease @ $32k. Walk away and get yourself another car.

Sometimes the residual on a lease is a good deal but most of the time it's an inflated price.

JALLEN4

I will give you some "about" numbers. Mercedes will sell the dealer the car around a price they think it will bring at auction. They will try to save the expense of handling. The dealer will likely pay $22,000-23,000 for the car. If it does not need tires, they will spend around a $1,000 for recon and around $1,500 for the certification. They are going to be looking at somewhere around a $3,000 profit.

The car should be purchased somewhere between $27,500-29,000 certified. That is a better price than paying $25,000 for a non-certified unit from a non-Mercedes dealer or buying a random car from an auction and taking a chance it is alright.

ocpun

most of the CPO 2013 e350 under 40k are around 27500-29000 but aren't prices negotiable? After yesterday's phone call I actually went back to mypreownmercedes.com and looked at the 2014s and noticed they're around the same price as well. If I can find one with P1, under 40k mileage, and maybe a few options, I would definately consider if it's under 30k and around the same price as my neighbors 2013 e350 CPO.

cetialpha5

You should read some reviews on both. 2014 was the facelift and had a bunch of changes. Some don't like the eco start/stop which stops the engine when you're at a light, can't be permanently shut off, you have to hit the button every time you start the car. They also went to LED so the bixenons with the headlamp washers are gone. A loaded 2013 with bixenons and keyless go is probably better than a base 2014, but maybe you can find a loaded 2014. Use this vin decoder to find out what options the car really has. Half the time the dealers are quoting stupid things like power seats and garage door opener which they all have.

http://www.vindecoderz.com/EN/Mercedes-Benz