skymast

I'm looking at a '14 lease return at a dealership. How much flexibility do you think I have in terms of negotiating a deal on a lease return vs a comparable car they have in their inventory that they own? Thank you!

pjw1967

Are they going to make it a CPO? They way I understand it, when a Mercedes is leased, the dealer acts as the agent of Mercedes, so Mercedes still owns the car. At the end of the lease, MB auctions off the car. You can see this on the MB CPO site by looking at the Carfax reports. Here's a local S550 showing that it was sold by MB at auction.

https://www.carfax.com/VehicleHistor...UG8CB1FA132296

Unless there was something unique about the lease, the dealer likely owns the car. If you have access to the Carfax you can see for yourself. With all that said, making it a CPO can add a considerable cost. How much is real or imagined is a guess. The dealer showed me the CPO cost internal invoice and it was $1,800! But you get the extended warranty that adds 1 yr and you can purchase an add'l 2 years if you intend to keep the car. Would be curious to know exactly what they tell you about the lease, what the Carfax says, and if it can be a CPO. Good luck.

pjw1967

Here's one nearby me where it looks like the original leasing dealer bought it at the end of the lease and now has it for sale as a CPO.
https://www.carfax.com/VehicleHistor...UG8CB1FA129737

Socalsteve

Bought mine at a local dealership. CPO lease return after 23 months, so a 2015. They were asking $80k for a MSRP OF $123k. Car had 21k miles and looked and smelled brand new. I got it for $73k. $50k off the sticker price.

I'm sure depending on mileage, options, conditions and if it is a CPO vehicle, you can do even better than that for a 2014.

Lots of lease returns around now. Feels like it's a buyers market as well as the face lifted model is coming out soon.

Good luck!

pjw1967

Socalsteve makes a very good point. In looking at GL's and ML's, the pattern seemed to be that the very highly optioned cars seemed to be discounted more. In other words, the rarer options were depreciated more. You'd find '14 ML's with roughly the same mileage and an original MSRP of $60 going for $39k, while the one I bought (non 4matic) had an MSRP of $68.5 and was listed at $41.5k. So $8,500 of add'l options only cost $2,500 more.

alphainfinity

I just purchased a 2015 S550 4matic for 74k and ran the CPO warranty out to 2021 with UNLIMITED mileage. It makes absolutely zero sense to buy a new S550 or for that matter any new Mercedes when the CPO deals are so good. Why take the depreciation hit on the new car and have to deal with a limited factory warranty?

pjw1967

So true. But we old schoolers shy away from leasing cars new. The younger folks seem more comfortable with leasing. I look at CPO's all the time, and the majority seem to have been leased.

Tuscan1311

Hey I'm looking to get a 15 s550 this summer and I'm wondering is the CPO UNLIMITED mileage warranty bumper to bumper? Also, will it be over $4k? I see alot of s550 on the MBUSA inventory site and just want to know what I'm talking about when I walk in the dealer. Thanks

pjw1967

Yes. As I understand it, whatever was covered before the 4yr/50k ran out is covered for an extra year, so 5yr/unlimited. At time of purchase, we were offered an add'l 2 yrs for $3,500, so ttl 7 yr/unlimited. I would imagine $4k for the 6th and 7th yrs is likely. There are dealers mentioned on this site who will sell you the add'l 2 yrs at hopefully less than you would have paid the selling dealer. Check the Carfax for the in service date as that's is when the clock starts ticking.
http://www.autotrader.com/car-shoppi...es-benz-239524

Matthayes3741

My '14 was a lease return with a fair amount of options (warmth and comfort, edition 1 with nappa leather, air balance, premium 1, burmester sound (without 3D), driver assist with distronic plus). It was also a CPO and I bought an additional two years for ~$3500. My car stickered at $65 (~22,000 miles).

I only wish it had 3D camera, MBc, and night vision. I'd like to hear the 3D sound system but am okay with what I have for what I listen to. I'm also not sold on the edition 1 7 spoke wheels.

Socalsteve

FYI, upgraded sound is 3D. Comes standard with Burmester. I have the 3D and it is really amazing ( even though you do lose storage space in a few areas ).

Matthayes3741

Thanks SoCal Steve. I've edited to correct this.

I bought there were three sound options... guess not

Rockland

i would rather buy a new car. Just like I would rather buy new clothes, new watches, etc. Just because you want to buy used stuff does not mean that it makes zero sense to buy new stuff. You can just as easily get a great price on a new car and grossly overpay on a used car. Every deal needs to stand on its own and be judged accordingly.

Mike5215

Depreciation is the issue for me on a new buy, less so on a lease (where MB pads the residuals). The S is so well built and the materials are so good that a two year old example with 30,000 miles doesn't look or drive any different than a brand new one after being on the road six months.

CPO eliminates the other reason for buying new, namely the risk of owning one out of warranty. I can't see paying $120,000 for a new S that, even well kept, is worth $60,000 in three years, but still looks and drives great.

Now if I actually had $120,000 to spend on a car, I probably wouldn't care about depreciation. The thing is I want the $120,000 car, but can only comfortably afford the $60,000 version.

Manofsteelpt

For some ppl with more disposable income, they only buy new. Not everyone wants to take that huge depreciation hit. Every deal is different, yes. The fact that you're going to lose 40+% on that new S in a few years is indisputable though.

I'm big into watches myself. Being a serial flipper, I tend to buy preowned though. Softens the blow when I'm looking to dump it for a new piece or I get bored of it. Just like new cars, most luxury watches lose a good amount from their new price.

Florian1

Picked up a '15 CPO with 11K on the clock for 75K, threw in a CPO wty and was just under 80K for very new car.

F

Socalsteve

You will NEVER come close to getting a " great deal " on a new car when the minute you drive off the lot it loses at least 10% of its value that instant, no matter what you paid for it.

On high end German cars that still look, feel, smell and drive brand new even after a couple years, it truly makes no financial sense to buy new. And, with CPO, you are actually getting a better warranty than a new car. It's win-win!!!

Rockland

Not true. I built and ordered a new 2017 BMW 750i. MSRP was $113,745. I paid $92,300. So, no way a CPO used car beats my deal. Your mileage may vary.
Since we all have different skill sets and luck.

MTrauman

This conversation about new vs used/cpo is just hilarious.

Better said that one will NEVER get a great deal on any car. For that matter we should walk everywhere and never use cars.

Late model autos are the worst investment in the world. Collector cars are where the money is.

With all that said, I buy new S550s because I want to and can afford the $137k msrp (my 16 S class). I understand the financial numbers as a CPA with a law degree. I own an asset management and financial planning company and can tell you the worst investment (based on ROI) in the world are late model S class cars new or used but I will buy a new one every 3 to 6 years and have done so for 25 plus years. They are one of the best cars in the world. I love my S Class.

Rockland

I wholeheartedly agree. I also got a JD, own an insurance brokerage, AND I am from Pittsburgh. So I am always right. 😏

MTrauman

I guess we know each other then--right Jack?

Rockland

Yes Mark lol. Let's Go Pens🏒

Socalsteve

Huh? I got a nicer car ( S Class ) that had a msrp of $$123,000 that I got for $73,000 and that included a better warranty then a new car comes with.

So, my $50,000 off retail beats your deal hands down. No luck, just know how to find great deals on great cars.

Btw, I've done similar deals on the three CPO 911's I've owned.

Rockland

Steve,

Your bought a used car. USED. You do not know what the dealership owned the car for, therefore you have zero clue how much you overpaid. When I was a finance manager in the car business all the big gross deals were on used cars. All the heavy hitter salespeople sold used cars. The new cars had no margins. The used cars we made big gross profit on. Your used car might have been bought wholesale for $64,000 for all you know. You just "think" you got a good deal. You will never know. While some record dealer was smoking weed and farting in your used car for two years, I was driving my new car and enjoying it while you were waiting for the record dealer to stop partying and farting in your $60,000 USED car. Which you paid $73,000 for.

Socalsteve

Ok, not even sure how to respond to this. I'll leave it at the CPO process weeds out ( pun intended ) vehicles that have been abused in any way. I am 110% sure that had their been a whiff of anything but the smell of sweet German leather, the dealership would have passed on purchasing this lease return. The fully loaded S Class that I purchased looked, smelled and drove like it was brand new. That is one of the beautiful aspects of buying a high end German vehicle.

All that being said, if the dealership made money off the sale of the vehicle ( which I'm sure they made some ) then that's fine. They are in business to make a profit. I ended up getting a fully optioned S Class with an extended warranty that feels practically new for $50k off the MSRP. I'd do it again in a heartbeat! I'll never buy a brand new car again.