Residual Value
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Joined: Jun 2017
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GLC 300
Residual Value
At the end of the lease, is it possible to negotiate a lower price than the contract's original residual value or is the residual value always fixed by Mercedes at the beginning of the lease?
Thank you
Thank you
Out Of Control!!
Joined: Sep 2018
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From: unbegrenzt
2017 GLE350 4MATIC
My opinion is no, strictly speaking.
In practical terms, you can turn the vehicle in at the end of the lease, wash your hands of it, then start negotiating a sale. Or start negotiating now, with the idea that you make it clear to the salesperson that you will turn in the vehicle, sign the papers to exit the contract at its natural completion, then buy the vehicle. There is some risk involved, in the event the salesperson, relying on your lack of intent to commit to buying the car for the buyout price, that it is sold from under you.
How much do you expect to benefit in a negotiation? Have you checked asking prices on cargurus for similar spec, year and mileage vehicles?
In practical terms, you can turn the vehicle in at the end of the lease, wash your hands of it, then start negotiating a sale. Or start negotiating now, with the idea that you make it clear to the salesperson that you will turn in the vehicle, sign the papers to exit the contract at its natural completion, then buy the vehicle. There is some risk involved, in the event the salesperson, relying on your lack of intent to commit to buying the car for the buyout price, that it is sold from under you.
How much do you expect to benefit in a negotiation? Have you checked asking prices on cargurus for similar spec, year and mileage vehicles?
Member
Joined: Apr 2014
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18 GLC300 4M
Depending on the terms within your Lease Agreement, and that you should read and understand, you may be able to continue making the monthly payments that will extend the lease either indefinitely, or to a limit that would be listed in the agreement.
i did this with a car that we leased but drove infrequently and compiled only about 20K miles by the end of the 36 mos. lease. Plus, we liked the car so, I let it “ ride”. Around the time of the 40th month, the financial organization that funded the lease, (the dealer is generally not involved , other than for maintenance once you take the car ), called me and offered me a reduced price to buy the car.
They do not want to carry an unsold automobile in their inventory of loans, that is a very bad thing, so, they’re motivated to make a deal. I held out for a full year, then negotiated a price that was about half what the Leasing Company told me was the minimum they would take at the time the original lease terminated. Of course I paid cash for the car then and kept it for another 5 years. Sold it privately and got a good price because it still had only 70K.
i did this with a car that we leased but drove infrequently and compiled only about 20K miles by the end of the 36 mos. lease. Plus, we liked the car so, I let it “ ride”. Around the time of the 40th month, the financial organization that funded the lease, (the dealer is generally not involved , other than for maintenance once you take the car ), called me and offered me a reduced price to buy the car.
They do not want to carry an unsold automobile in their inventory of loans, that is a very bad thing, so, they’re motivated to make a deal. I held out for a full year, then negotiated a price that was about half what the Leasing Company told me was the minimum they would take at the time the original lease terminated. Of course I paid cash for the car then and kept it for another 5 years. Sold it privately and got a good price because it still had only 70K.
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A gaggle of MB's
Well.... your Lease Contract with Mercedes Financial means Residual Value at the end of the lease cannot be renegotiated with Mercedes Financial - with Mercedes Financial your residual/buy-at-the-end price is fixed.
Now - often at Lease End - a Mercedes Dealer can secure your turn-in for a bit less than your Residual Value - in several cases each year when customers have wanted to keep their turn-in - I have them agree to pay the service cost to bring it to Certified Spec - pay my cost for Certification - and they are buying their turn-in worst case just a bit more than Mercedes Financial residual BUT all service/tires etc done - and added Certified Warranty - and Mercedes Certified Finance rates if those are strong
Now - often at Lease End - a Mercedes Dealer can secure your turn-in for a bit less than your Residual Value - in several cases each year when customers have wanted to keep their turn-in - I have them agree to pay the service cost to bring it to Certified Spec - pay my cost for Certification - and they are buying their turn-in worst case just a bit more than Mercedes Financial residual BUT all service/tires etc done - and added Certified Warranty - and Mercedes Certified Finance rates if those are strong
