Help/Advice Lease End Buyout Dealer Fees
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Newbie
Joined: Aug 2021
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GLC 300
Help/Advice Lease End Buyout Dealer Fees
I want to purchase my 2018 GLC 300 when the lease ends this month, and the dealer is trying to increase the price and add fees. MBFS told me they would email me the payoff, and it never arrived. When I called MBFS again, I was told I have to work through a local dealer, because they’re not licensed in my state. I called the dealer I leased from several times, and no one would call me back. I tried another dealer who is trying to charge me $1400 above the buyout option price, plus a $698 doc fee. They also tried to add on an MBC appearance package for $549. My lease states I have the option to purchase the car at a specific price plus a $150 purchase option fee. I understand the final price will include taxes, and taxes aren’t included in the above numbers. What is going on? It sounds like a big scam to me. I appreciate any help.
Junior Member
Joined: Apr 2021
Posts: 39
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2021 GLC300
It definitely sounds the like dealer is trying to screw you. Unless I'm wrong, the dealer you signed the lease with has to honor that contract just as you honored your end of it. They may be trying to "convince" you to not want to buy out the lease because they can turn around and sell if for way more than your pre-determined price. The used car marked it crazy right now.
On my last lease (a 2018 Golf R), I had the option of buying it at end of lease for 26k. I already had my new 2021 GLC so I just turned in my R. The dealer had it on their lot within 24 hours selling for 36k. It was only 39k brand new. It sold in less than a week.
If it's possible, I would visit the dealer instead of just calling.
On my last lease (a 2018 Golf R), I had the option of buying it at end of lease for 26k. I already had my new 2021 GLC so I just turned in my R. The dealer had it on their lot within 24 hours selling for 36k. It was only 39k brand new. It sold in less than a week.
If it's possible, I would visit the dealer instead of just calling.
Thread Starter
Newbie
Joined: Aug 2021
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GLC 300
Thank you! I called the original dealer and even talked to the person who originally sold me the car. He’s the Finance Manager now, and he wasn’t interested at all. It’s unbelievable that I have to beg people to let me buy my car. I’m most frustrated with the unethical business practices. The requirement to purchase through a dealer wasn’t disclosed when I signed the contract, and the contractually agreed sales price at the end of the lease isn’t being honored. I’m ready to report them to the Consumer Protection Agency, the Better Business Bureau and anyone else I can find. It’s just bad business, and they’re taking advantage of people who don’t know any better. Fortunately, I don’t give up easily!
Member
Joined: Mar 2007
Posts: 157
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From: Suffern, NY
2020 GLC300 & 2009 SL550 (previously had 1999 CLK / 2006 E500 / 2011 GL450)
There are some even more shady things happening in lease end practices since Vroom and Carvana came on the scene. Couple that with the crazy used car inflation that occurred since COVID and here we are in a world where captive finance companies are now joining the fray of having two different payoff amounts — one for the customer to purchase, and another for dealers / wholesalers. It used to be the wholesaler got a better price when the car wasn’t worth as much as the customer buyout (often the case), but now it’s the other way around. This is legal as the buyout price is only for the customer, and doesn’t give a third party the right to that price.
That said, I’ve not seen a situation where the customer had to pay more if they were buying the vehicle. That just seems illegal based on the original lease providing the customer an End of Lease Purchase Option for a set amount, which is required on a Closed End Lease (closed end leases have specific terms at the end, and I believe all car leases in the US have to be closed end).
The lease contract should outline the process for purchasing the vehicle at lease end. That is a legally enforceable agreement between the lease and the lessor, and if they can’t honor it on their end due to a technicality, it’s incumbent on them to find the solution — their inability to fulfill their part of the bargain doesn’t then fall on the customer.
That said, I’ve not seen a situation where the customer had to pay more if they were buying the vehicle. That just seems illegal based on the original lease providing the customer an End of Lease Purchase Option for a set amount, which is required on a Closed End Lease (closed end leases have specific terms at the end, and I believe all car leases in the US have to be closed end).
The lease contract should outline the process for purchasing the vehicle at lease end. That is a legally enforceable agreement between the lease and the lessor, and if they can’t honor it on their end due to a technicality, it’s incumbent on them to find the solution — their inability to fulfill their part of the bargain doesn’t then fall on the customer.
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Member
Joined: Jun 2017
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GLC 300
Sorry that you are having a difficult time. I was leasing a 2017 GLC 300. At the end of the lease in June 2020, I decided to buy it. I paid the price set in the lease document, plus $150 for some paperwork, also included in the lease document. If I recall correctly, I dealt directly with MB for the purchase, not with the local dealer. The only time I heard from the local dealer about my GLC 300 2017 was that they wanted to buy it back from me in 2021 for more than what I paid for at the end of the lease. I would see if other dealers in your state would honor what the lease document indicates.
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MBWorld Fanatic!
Joined: Oct 2009
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From: Colorado
'21 AMG53 wDPP & ARC, 19 GLC300 - Former-03 C240,2 ML BlueTecs,20 GLE450 E-ABC,15 Cayenne D,17 Macan
If you want your out-of-lease car to be CPO'd, there will be some charge by the Dealer. The CPO checklist must be performed, and (b) I believe they subsidize the CPO as a buyers incentive. Not sure about part b here.
Member
Joined: Mar 2007
Posts: 157
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From: Suffern, NY
2020 GLC300 & 2009 SL550 (previously had 1999 CLK / 2006 E500 / 2011 GL450)
then the CPO warranty is a cost to the dealer. I’ve heard of some BMW dealers charging around $1.5-2k to CPO a car a few years back and a little more than half of that was the cost of the warranty.
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From: Colorado
'21 AMG53 wDPP & ARC, 19 GLC300 - Former-03 C240,2 ML BlueTecs,20 GLE450 E-ABC,15 Cayenne D,17 Macan
All of those "extended coverages" are actually insurance companies, so they vary in coverage, just like a health insurance policy.
If you go that route, become familiar with the terms "Exclusionary" and "Inclusionary." "Exclusionary" policies usually cover more than the other.
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GLC 300
Thank you for the explanation. I got it worked out yesterday at the dealer who leased me the car. They wouldn’t handle it over the phone, so I ended up driving 2.5 hours, waited for 1.5 hours and then had it resolved in 15 minutes. They were surprised I had to go through the dealer too. They honored the RV amount and fees, and I’m happy it’s over.
MBWorld Fanatic!
Joined: Oct 2009
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From: Colorado
'21 AMG53 wDPP & ARC, 19 GLC300 - Former-03 C240,2 ML BlueTecs,20 GLE450 E-ABC,15 Cayenne D,17 Macan
Thank you for the explanation. I got it worked out yesterday at the dealer who leased me the car. They wouldn’t handle it over the phone, so I ended up driving 2.5 hours, waited for 1.5 hours and then had it resolved in 15 minutes. They were surprised I had to go through the dealer too. They honored the RV amount and fees, and I’m happy it’s over.
Did you not lease the vehicle through a Mercedes dealer? MB Financial?
Thanks for the insight.
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Joined: Oct 2009
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From: Colorado
'21 AMG53 wDPP & ARC, 19 GLC300 - Former-03 C240,2 ML BlueTecs,20 GLE450 E-ABC,15 Cayenne D,17 Macan
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This might sound ridiculous because obviously it is, some dealership tries to charge the leasee the extra mileage on top of the buyout amount because of the "conditions" of the contract here in Canada. I hear about it a lot. It is absurd but it does happen.
