cougar69

Dear all,

I am thinking of buying out my leased GL450 by the end of this year. The residual value is about $39K... Is it possible to negotiate it down with MBUSA? Has anyone done that before? Please advise. Thanks.


Cougarcougar

DCubed

There was a time when the U/C market was in trouble and the banks were willing to deal to hedge against the auctions but now is not one of those times. The U/C market is healthy right now and if you think 39K is not a fair price for your GL then dont buy it. 99% of all leases are "closed end" so you know what you are in for at the end of the lease...helps from them asking for more at the end of the lease which they probably could do right now as 2010s retail in the mid to high 40s.

FastMoneyPlaya

The used car market is strong now because the economy is weak and many people dont have the cash to buy new, or cant get financing because they dont have equity in their homes anymore. So the strong demand for used is keeping prices firm which means negotiating down lease buybacks arent as common as in the past. $39K for a 3 yr old GL is a decent price

cougar69

Thanks.

cougar69

So true...

FastMoneyPlaya

Furthermore, there is an indicator called the Manheim Index which shows how strong the used car market has been in the past year or two:

http://www.manheimvalueindex.com/Use...hly_Index.html

DCubed

If this was completely true we would not seeing huge increases in the marketplace monthly, its not 100% there but there are good signs of life in the economy...hopefully it will continue to go the right direction. I think we will see continued growth as people held off buying a car as long as they could to ride out the storm and now they need cars.

RaceHorse

I'm sure there are a few different ways to look at it. Don't think for a second that most (If not all) GL leasees and owners will be offered incentives on the new 2013 model. I'm sure as always many will find a way to afford what they feel they need, the latest and greatest. In addition, dealers love to focus on "what you can afford per month" The new redesigned 2013s could result in a a surplus of older GLs in the up coming used car market with less of a demand for driving the older body style. A new model may not follow the normal trend of the market in a weak economy, only time will tell.