roughyear

lease is up on the ML500, wife doesn't want it anymore b/c of poor mpg and prem. gas.

i asked MBUSA about reducing the buyout, which is $36k!!!! but they say "we don't renegotiate" payoff amount!!!!

i tell them they're crazy if they expect someone to pay $36grand with todays gas prices.... but they're not willing to drop it one buck

oooo well... they can eat the truck at auction, which probably won't fetch $25k

now will look for another suv, though smaller and more fuel efficient.

lkchris

You're not the only person with difficulties ridding themselve of an over-engined gas guzzler.

Lots of folks are downsizing because many companies are eliminating offering leasing.

MB Dave

vw tiguan i love that car or passat cc

red00lght

I recently sold my ML500 06 at the stealership for 31k on a tradein for a lease. I know I got ripped off, but I just didn't have the time/patience to sell it privately.
I'm now in an 08 infiniti g35 lease and am very happy. The leases on the benzes were double the price (or more) and the g35 was just a refreshing change for me.
I bring all this up because I'm figuring they were going to get 32-33k min at the auction for the 06 ml500 based on what they gave me for mine....but that is a guess. Pretty sad how quickly that thing dropped in value.

baxterdown

2006 ML500 at auction

$29K avg with 38K miles avg
$33K avg with 19K miles avg

am_beagle

I really don't think that they will auction off those trucks in the US. Do you realize how much those used MLs, MLs and Rs....cost in Asia, South America and Europe ? You would be surprised.....Cheers.

roughyear

really??? would MBUSA actually ship the MLs overseas to sell??? WOW!!!!

if they're so expensive overseas, how do people afford them?? i would think the ones who could afford the expensive trucks/cars, would just buy new ones!!!

baxterdown

Roughyear,

Used luxury vehicles is a HUGE market overseas. Especially in places like Latin America. To answer your question above; new cars are so expensive abroad because of import duties which sometimes amount to 300 and 400% of the car's value.

On the other hand, for every year of use, some governments give large discounts. Sometimes to the tune of 30 and 40% per year of use. So, where a new ML might pay US$180,000 just in import duties (no, I am not kidding and/or exagerating) a 2006 ML might pay little or nothing.

am_beagle,

Leased cars are no longer owned by the manufacturer. But, instead, by the finance company. In some cases it's Mercedes Benz Financial. In others, large banks like Chase. Those companies are not in the business of exporting and/or selling cars. Their only focus is financing.

When a car is turned back in at the end of the lease, it goes to auction. Period. Some finance companies give dealers an opportunity to pick up a car that has been turned into their store before it goes to auction. Some others don't. But, the bottom line is that they want to get rid of that car as quickly as possible.

Also, remember that the price the finance company is giving their customer includes sales tax. So for example, the $36k they quoted Roughyear are really only about $33k. In addition, lease contracts are not straightforward and the buyout price might reflect additional profit for the finance company.

All and all, they have the whole thing figured out. Auction prices are very stable and all finance companies know pretty much what a particular car will be worth three years down the road.

Hope this clarifies some of your questions, guys.

j.

peacemf

my parents paid £35k for our x5 (2002 model) which is around 68,413.43USD.

AND that lacked sat/nav!!!
we brought it in 2005 i think...

Now its worth around £10k around 19,545.34 USD

so yeah second hand car market is BIG in europe!
I'd rather pay £35k instead of £60 for the same car, only to have lost £10k the second i start the car from the dealers!

am_beagle

[Hope this clarifies some of your questions, guys.

j.[/QUOTE]

Thanks a lot, Baxter. You should be an insider.

baxterdown

You're welcome.