Better to pay Prepaid Maintenance and Acquisition Fee at Leasing Signing?
07-19-2017, 02:02 PM
#1
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Thread Starter
Better to pay Prepaid Maintenance and Acquisition Fee at Leasing Signing?
Is it better pay the entire amount for Prepaid Maintenance up front at lease signing?
(a) Or add the prepaid maintenance fee to the adjusted capitalized cost and capitalize this fee?
(b) If yes, then why?
Is it better pay the Acquisition Fee up front at lease signing?
(c) Or add the Acquisition Fee to the adjusted capitalized cost and capitalize this fee?
(d) If yes, then why?
Thank-you in advance for your assistance on this matter.
(a) Or add the prepaid maintenance fee to the adjusted capitalized cost and capitalize this fee?
(b) If yes, then why?
Is it better pay the Acquisition Fee up front at lease signing?
(c) Or add the Acquisition Fee to the adjusted capitalized cost and capitalize this fee?
(d) If yes, then why?
Thank-you in advance for your assistance on this matter.
07-19-2017, 05:16 PM
#2
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Location: Charlotte, NC
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2021 GLE350, 2021 E350 / Used to drive: 2019 E300, 2020 GLE350, 2019 E450 Wagon(s), 2017 E300 Sedan
Probably better minds than mine on this forum, but here is my take. The more you can capitalize, the lower your risk in the event of a total loss. So - I put everything but the kitchen sink into the adjusted cap cost. Yes, you pay a finance charge on it and your monthly payment is a bit higher, but I look at that as cheap insurance. If the car is deemed a total loss, the gap insurance is covering the difference between the lease balance at time of loss and the insurance proceeds. I keep my up front cash, the gap insurance carrier + my insurance carrier bear the risk of loss.
07-19-2017, 05:24 PM
#3
MBWorld Fanatic!
Is it better pay the entire amount for Prepaid Maintenance up front at lease signing?
(a) Or add the prepaid maintenance fee to the adjusted capitalized cost and capitalize this fee?
(b) If yes, then why?
Is it better pay the Acquisition Fee up front at lease signing?
(c) Or add the Acquisition Fee to the adjusted capitalized cost and capitalize this fee?
(d) If yes, then why?
Thank-you in advance for your assistance on this matter.
(a) Or add the prepaid maintenance fee to the adjusted capitalized cost and capitalize this fee?
(b) If yes, then why?
Is it better pay the Acquisition Fee up front at lease signing?
(c) Or add the Acquisition Fee to the adjusted capitalized cost and capitalize this fee?
(d) If yes, then why?
Thank-you in advance for your assistance on this matter.
(a) capitalize it
(b) if you capitalize it into the lease you will only end up paying a percent of the total cost equivalent to the depreciation (often only 30-40% of the total PPM cost)
AF
(c) depends on the MF...I recently paid the Acquisition fees upfront despite getting a MF of only 0.00012
(d) I did not wan to pay interest on these fees
