Sandeep Kumar

Hi,

I leased a Mercedes C300 4dr Sedan Sport (P2 package) in Dec 2016 with a 3 year/10K mile contract. The lease is about to expire in 2 months (Dec 2019). The car is in excellent condition with no repairs to date and has less than 14K miles on the odometer. I am pretty confident it won't exceed the 15K mark before my lease expires.

I am happy with the car and fits my needs. I don't see buying a bigger vehicle for the next 3 years. I was wondering if buying out the car is a good option considering the condition and miles? Also, my warranty is good for 1 more year. Should I consider getting a 2 or 3 year extended warranty?

MSRP = 47,500$

Lease amount = 18,500$

Residual value = 29,000$

Any inputs would be greatly appreciated.

PS: I spoke to a couple of dealers. They are quoting 2500$ for a certification which gives me 2 years of warranty. Also, they are willing to waive off the remaining lease payments and first month finance payment (amounts to 1,400$). All amounts are in USD.

chassis

Extended warranties are not financially advantageous for most consumers. Search this site, this is discussed extensively.

$29k is a high buyout price. You can do better by buying the same vehicle from a third party. However you know how your car was maintained, not true with a third party purchase. Let’s say the $29k buyout price was $5k higher than what you could find in the market. Is that premium of value to you?

I bought an earlier vehicle that we leased from new, at the end of the lease. Great decision. I didn’t cross shop, I just forked over the money and drove away happy.

rraisley

While that is true, many here have stated that they would never own a MB out of warranty.

chassis

Yes rrraisley, it's a question of whether the owner wants to spend money on an insurance policy (the warranty) with reduced coverage compared with the original manufacturer's warranty, or save the money and pay whatever repair is needed.

The odds are in the insurance (warranty) company's favor, that premium payments will exceed warranty claims, meaning most consumers are financially worse off when purchasing additional insurance (warranty). Informing oneself of the nature of extended warranties is a helpful practice.

rraisley

I agree, and had intended to buy and keep my new MB for years to come, but was, for example, warned against having the Air Body Control without a warranty, being told one shock would cost about what I would pay for the warranty. And with all the electronics on them these days? I'm not taking a chance; I can afford the warranty. Don't know if I could all the repairs. A friend of mine got a used MB from CarMax (GL550 I think) and had over $8,000 of uncovered repairs in the first six months. She now drives a Ford Edge and loves it.