roughyear

my wife wants out of her ML500 because of the terrible gas mileage.

she's thinking of going hybrid or maybe a diesel ML... how can i get her out of this lease with 6months remaining for little cost??

sosh

Thats difficult but sometimes if you are going to purchase/lease another MB they will let you do this. With only 6 months to go she may have a shot at it. See the dealer. However mileage is not terrible and not too much different than the 350 or for that matter the 320CDI. The additional cost of diesel fuel (3.85 seen posted yesterday) and the inconvience of finding a diesel pump are things to consider. As for the hybrid, will she like a very small vehicle and one with quite limited power?? After an ML500 she is likely to be dissapointed. From an economic standpoint is she (or you) willing to take a shot to get out of the lease just to save a few pennies? Does not make lots of sense to me.

red00lght

I agree with Sosh (of course we are both biased as owners of ML500's). After test driving both, I think the Diesels are excellent vehicles, but I prefer the power of the V8 and the quietness and I'm getting within 5 mpg of the diesel and using cheaper gas. To opt out early seems like it is spending alot of dollars just to save some pennies.....

m1kefries

I have a 2007 ML320CDI and before I bought it compared it to the 350 and 500. The 350 just doesn't have enough power and although the 500 has plenty the gas milage was terrible compared to the diesel. I currently get an average of 27.5mpg on the highway and 24.5mpg in mixed driving. This was a great deal when diesel was cheaper than regular unleaded, but is pretty much a wash these days. Still I can't complain for everything the car is and does, the economy is pretty good.

Now that I have strayed a bit..... My answer to the original question is that everything is negotiable. I got out of a 48 month lease on a Toyota Sequoia to get into my ML. I was only 24 months in and way over on milage, but I caught the dealer at the right time and negotiated well. The only hit I took on the Sequoia from my calculations was about 2k for the miles I was over on the lease.

Now is a great time to negotiate since car dealers do not seem to be moving many cars. This will make them more receptive to things that they wouldn't normally accept. Good luck and enjoy what ever new ride you get.

baxterdown

A "clean" deal on your new car is your best option. If you pay your ML bill online, check your account to see what's the car's current "buyout" price. To that amount, substract your State's sales tax (because dealers don't pay the sales tax you pay if you buy the vehicle).

Take your ML to CarMax and see how much they give you for the truck and compare that to your buyout. If it's close enough, I suggest you sell it to CarMax and go get yourself a new car without a lease trade-in.

If you tell me the MY of your ML500 I can try to find out how much it's going for at auction (which is what CarMax most likely will offer you).

sosh

That makes sense if it were not for sales tax on the trade difference instead of on the entire amount. The savings on a trade can be substancial as opposed to an outright purchase at the 6 or 7 percent rate.

baxterdown

Sosh, there is no sales tax trade difference on a lease. That only applies to a purchased vehicle where you've paid the tax at purchase time. On a lease, the lessee pays the sales tax with every payment.

With the above said, if a lessee chooses to purchase a leased vehicle, he/she will have to pay the sales tax on the remainder of the vehicle's value(total price with finance minus payments to date). Most leasing companies quote buyout prices including that sales tax. However, dealers don't pay that sales tax. Therefore, their buyout is "lower" than the amount quoted to the lessee.

sosh

I am very aware of the sales tax situation on a lease. However my response was to the poster that suggested the car be bought out from the lease and then traded. If its bought out the purchased would be forced to pay sales tax even if he owns it for a few minutes. If its MB leasing they will not agree at least its been my experience to sell the car to a third party, just to the leasee. Thus sales tax will have to be collected by the appropriate state. Then if the car is sold to the third party and the ex leasee will have to pay sales tax on the entire purchase of his next vehicle.

EX-BEEMER

You might want to look at lease swap companies like leasetrader.com

There are willing buyers who will just take over your lease payments for a small transfer fee.

roughyear

I live in Maryland.... and i can tell you this. I paid the ENTIRE sales tax of 5% on the TOTAL value of the truck when it was registered 2yrs ago!!!! i said to the lady at the DMV, why am i paying the ENTIRE sales tax on the TOTAL VALUE of the truck when i'm only leasing the truck for 36months ( ~50% residual)???? her answer "that's just the way we do it"

i looked over the lease from MBFinancial (awhile ago) and i don't think there was sales tax added to the MONTHLY payment, but i'll be sure to pull out the lease and look it over again!!!!

The ML500 is an 2006 model.

sosh

This will vary state to state. In PA a purchaser pays the 6 or 7 percent tax on the cash difference. A lease is taxed at 9 percent of the lease payment and MBCC does collect the tax on each payment with the monthly lease fee.

ajm0623

in illinois, you have to pay the sales tax on the entire price as well - not just the "leased portion." i've never leased before - and when i found out that it was the case on the taxes - combined with what i consider usery money factor rates from mb financial - i scrubbed the leasing option and went back to my old ways - and paid cash for the car. unlike the other cars i've bought, however, i plan on keeping this one for a very long time. I LOVE IT!

oinick

With only six months remaining on the lease it is likely that a dealer will cut you a deal to get you out of your current car early if you are willing to get into another MB.

I have done this the last two or three times with BMWs coming off lease and it is painless. They have been happy to do it to lock me up in another lease and keep a happy customer.