How would one increase the residual value of the vehicle?
Thread Starter
Junior Member
Joined: Jan 2012
Posts: 34
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From: Toronto, ON, Canada
2013 GL350BT ( on order)
How would one increase the residual value of the vehicle?
I am planning to order a MY13 GL350BT, going to lease it, with a trade in, but how would one increase the residual value of the car. Do i add leather, rear dvd... etc?
And what happens at the end of the lease, example I want to lease a new car, would they subtract the value of previous car to the new car? Kinda confused.
Thank You.
And what happens at the end of the lease, example I want to lease a new car, would they subtract the value of previous car to the new car? Kinda confused.
Thank You.
Senior Member
Joined: Jun 2010
Posts: 343
Likes: 1
From: Rancho Santa Margarita, CA
C250,GLK350
I am planning to order a MY13 GL350BT, going to lease it, with a trade in, but how would one increase the residual value of the car. Do i add leather, rear dvd... etc?
And what happens at the end of the lease, example I want to lease a new car, would they subtract the value of previous car to the new car? Kinda confused.
Thank You.
And what happens at the end of the lease, example I want to lease a new car, would they subtract the value of previous car to the new car? Kinda confused.
Thank You.
Senior Member
Joined: Jul 2012
Posts: 411
Likes: 103
535
If you want to lease a new car, it would be separate from your current lease.
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Joined: Mar 2005
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From: Toronto
MY17 E43 Matte Selenite/Macchiato Beige, MY16 GLE350d Tenorite/Crystal Grey, MY17 B250
To get a higher RV, reduce the term and/or reduce the annual mileage. Options do not change the RV, although some options are not fully residualized (ie: designo).
Super Member
Joined: Aug 2012
Posts: 595
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From: Boston area
2019 GLS450
As for at lease end, as was touched on by someone else, you have no ownership in the vehicle. In a perfect world, taking the lease to full term and being at or under the allotted miles & w/o damage, you then turn it in and walk away. However, you have options, even when over the miles. I think Mercedes offers to pull you out a few months early. Even during the term, there's a payoff amount so if at some point your payoff is less than the book value, you can even trade it with some positive equity. At the end of the term if the book value is more than your residual value, you may choose to buy it at the residual value (which is already determined at the beginning of the lease) and you can sell it on your own. On the other hand, if the book value is lower than the residual, that's a gamble that the leasing company takes. Always remember to negotiate a lease just like a finance purchase as some dealers try to play games with the numbers to get you at a monthly cost you want while they still charge full sticker.
Thread Starter
Junior Member
Joined: Jan 2012
Posts: 34
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From: Toronto, ON, Canada
2013 GL350BT ( on order)
Actually, some options do increase the residual. Before taking this 2012, we were looking at ordering a '13. We were on the fence about the pano roof till we found out that, to use his words, "MB gives a bump up of 1 point". So it would've only added $16/mo to our lease payment. I never got to question it further as we ended up getting this one w/ the P2 pkg & the dealer adding the factory running boards for $51k. Also, when in the finance office, the prepaid maintenance does get residualized. We passed on that but took the tire and wheel insurance which does not.
As for at lease end, as was touched on by someone else, you have no ownership in the vehicle. In a perfect world, taking the lease to full term and being at or under the allotted miles & w/o damage, you then turn it in and walk away. However, you have options, even when over the miles. I think Mercedes offers to pull you out a few months early. Even during the term, there's a payoff amount so if at some point your payoff is less than the book value, you can even trade it with some positive equity. At the end of the term if the book value is more than your residual value, you may choose to buy it at the residual value (which is already determined at the beginning of the lease) and you can sell it on your own. On the other hand, if the book value is lower than the residual, that's a gamble that the leasing company takes. Always remember to negotiate a lease just like a finance purchase as some dealers try to play games with the numbers to get you at a monthly cost you want while they still charge full sticker.
As for at lease end, as was touched on by someone else, you have no ownership in the vehicle. In a perfect world, taking the lease to full term and being at or under the allotted miles & w/o damage, you then turn it in and walk away. However, you have options, even when over the miles. I think Mercedes offers to pull you out a few months early. Even during the term, there's a payoff amount so if at some point your payoff is less than the book value, you can even trade it with some positive equity. At the end of the term if the book value is more than your residual value, you may choose to buy it at the residual value (which is already determined at the beginning of the lease) and you can sell it on your own. On the other hand, if the book value is lower than the residual, that's a gamble that the leasing company takes. Always remember to negotiate a lease just like a finance purchase as some dealers try to play games with the numbers to get you at a monthly cost you want while they still charge full sticker.
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Joined: Aug 2012
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From: Boston area
2019 GLS450
You can let the dealer do whatever you like, they'd be more than happy. However, I haven't done it myself yet, but from everything I've read, it's an easy diy. There's a few threads I've come across on here suggesting to buy the def elsewhere, grab one bottle from the dealer to use the top as a filler neck. I'm not 100% sure myself yet. Still working on removing the seat backs to put in my own tv's...
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From: Toronto
MY17 E43 Matte Selenite/Macchiato Beige, MY16 GLE350d Tenorite/Crystal Grey, MY17 B250
Actually, some options do increase the residual. Before taking this 2012, we were looking at ordering a '13. We were on the fence about the pano roof till we found out that, to use his words, "MB gives a bump up of 1 point". So it would've only added $16/mo to our lease payment. I never got to question it further...
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Super Member
Joined: Aug 2012
Posts: 595
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From: Boston area
2019 GLS450
Spoke w/ him again & I'm still not sure what he meant about a point bump or whatever. However, I specifically asked if an option or color combo can raise the residual percentage. The answer is no. If the RV of a specific model is say 58%, then any option you add, you're only paying 42% of it.
MBWorld Fanatic!
Joined: Mar 2005
Posts: 2,034
Likes: 20
From: Toronto
MY17 E43 Matte Selenite/Macchiato Beige, MY16 GLE350d Tenorite/Crystal Grey, MY17 B250
Super Member
Joined: Aug 2012
Posts: 595
Likes: 38
From: Boston area
2019 GLS450
