Off lease MB's
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From: Philadelphia, PA
2015 S550, 1987 420 SEL
Off lease MB's
I was wondering do all off lease S550's go the certified route or not. If not, why is that especially if the mileage is still considerably still low. Any feedback is welcome. Thanks.
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The certified cars are the exceptionally clean ones that also have very low miles, they also only keep the cars that do not have extensive problems. most of the certified cars that Ive seen also at most will have the bumpers redone.
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what do you mean? Is it something to consider you mean? Im a big condition person if the cars not perfect I don't want it. I try to find the car and color I want with the least amount of miles, Its hard when your picky.36k is a bit high for a 13 but I just bought a 10 w 34k so if the price is close I would assume your better off with the 13. Also Cpo is only good for a year and you def pay for that reconditioning...Tires, brakes, touchups etc. at 36 k the car is prob dure for its first service, I know my dealer did the full fluid flush on the car including the trans, brakes and new tires so I think Im good w that for a while.
Thread Starter
Senior Member
Joined: Jul 2014
Posts: 390
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From: Philadelphia, PA
2015 S550, 1987 420 SEL
what do you mean? Is it something to consider you mean? Im a big condition person if the cars not perfect I don't want it. I try to find the car and color I want with the least amount of miles, Its hard when your picky.36k is a bit high for a 13 but I just bought a 10 w 34k so if the price is close I would assume your better off with the 13. Also Cpo is only good for a year and you def pay for that reconditioning...Tires, brakes, touchups etc. at 36 k the car is prob dure for its first service, I know my dealer did the full fluid flush on the car including the trans, brakes and new tires so I think Im good w that for a while.
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s550 Diamond white amg pano
make sure u have a carfax before u go, also I would ask for a paint meter reading on all panels before I drove 2 hrs. I hate the smaller dealers, Ive just never had a good experience
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Thread Starter
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From: Philadelphia, PA
2015 S550, 1987 420 SEL
The carfax is included on their website and they are a preferred Carfax dealership. I checked their ratings and reviews and they seem to be very admired by previous purchasers. I just have to investigate as fully as possible.
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From: Philadelphia, PA
2015 S550, 1987 420 SEL
Off lease vehicles typically go back to the manufacturer. A 3rd party dealership is getting cars that came back to Mercedes and for whatever reason Mercedes wholesaled them out rather than keeping them in used inventory or certify them. Could be mileage, condition, a CarFax hit, etc.
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There's a dealer down here called "offleaseonly.com" or something and their pitch is that everything they sell is a high dollar lease turn in. I'm guessing most of that inventory is actually straight up wholesale auction cars, and not lease turn-ins.
Telling buyers the cars are "off-lease" solves one huge marketing problem with late model used luxury cars, namely "why'd the previous owner get rid of it?'. Well the damn lease was up. That's the only reason. "Was it well cared for?" Of course...you know how important it is on a lease to keep the car serviced and in good condition. "Why is it so cheap?" The other guy ate the depreciation for you!
Most leases go back to the franchised dealer. I'm not sure it's even possible to build an entire business around selling nothing but lease turn ins.
Telling buyers the cars are "off-lease" solves one huge marketing problem with late model used luxury cars, namely "why'd the previous owner get rid of it?'. Well the damn lease was up. That's the only reason. "Was it well cared for?" Of course...you know how important it is on a lease to keep the car serviced and in good condition. "Why is it so cheap?" The other guy ate the depreciation for you!
Most leases go back to the franchised dealer. I'm not sure it's even possible to build an entire business around selling nothing but lease turn ins.
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Joined: Jul 2014
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From: Philadelphia, PA
2015 S550, 1987 420 SEL
There's a dealer down here called "offleaseonly.com" or something and their pitch is that everything they sell is a high dollar lease turn in. I'm guessing most of that inventory is actually straight up wholesale auction cars, and not lease turn-ins.
Telling buyers the cars are "off-lease" solves one huge marketing problem with late model used luxury cars, namely "why'd the previous owner get rid of it?'. Well the damn lease was up. That's the only reason. "Was it well cared for?" Of course...you know how important it is on a lease to keep the car serviced and in good condition. "Why is it so cheap?" The other guy ate the depreciation for you!
Most leases go back to the franchised dealer. I'm not sure it's even possible to build an entire business around selling nothing but lease turn ins.
Telling buyers the cars are "off-lease" solves one huge marketing problem with late model used luxury cars, namely "why'd the previous owner get rid of it?'. Well the damn lease was up. That's the only reason. "Was it well cared for?" Of course...you know how important it is on a lease to keep the car serviced and in good condition. "Why is it so cheap?" The other guy ate the depreciation for you!
Most leases go back to the franchised dealer. I'm not sure it's even possible to build an entire business around selling nothing but lease turn ins.
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On the other hand Mb and bmw lease returns are crapshoot and hit the market in wide range of condition. Lease receiving dealers can cpo choice cars but most of them are offered as-is.
Last edited by alx; Mar 8, 2015 at 11:12 PM.
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No bank would buy you a car and then rent it back to you based on what they hope the car will be worth at the end of the term, and then hope to be able to resell it. Nor are banks in the business of inspecting, refurbishing, selling or otherwise disposing of used cars.
If you lease a Mercedes, it will be thru MBFS, not a third party bank.
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Car leases aren't funded by banks. They're funded by the manufacturer's in-house finance division. This is because the manufacturer sets the residual which in turn determines the monthly rent.
No bank would buy you a car and then rent it back to you based on what they hope the car will be worth at the end of the term, and then hope to be able to resell it. Nor are banks in the business of inspecting, refurbishing, selling or otherwise disposing of used cars.
If you lease a Mercedes, it will be thru MBFS, not a third party bank.
No bank would buy you a car and then rent it back to you based on what they hope the car will be worth at the end of the term, and then hope to be able to resell it. Nor are banks in the business of inspecting, refurbishing, selling or otherwise disposing of used cars.
If you lease a Mercedes, it will be thru MBFS, not a third party bank.
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Car leases aren't funded by banks. They're funded by the manufacturer's in-house finance division. This is because the manufacturer sets the residual which in turn determines the monthly rent.
No bank would buy you a car and then rent it back to you based on what they hope the car will be worth at the end of the term, and then hope to be able to resell it. Nor are banks in the business of inspecting, refurbishing, selling or otherwise disposing of used cars.
If you lease a Mercedes, it will be thru MBFS, not a third party bank.
No bank would buy you a car and then rent it back to you based on what they hope the car will be worth at the end of the term, and then hope to be able to resell it. Nor are banks in the business of inspecting, refurbishing, selling or otherwise disposing of used cars.
If you lease a Mercedes, it will be thru MBFS, not a third party bank.
The best thing a buyer can do is get a pre-purchase inspection done on the car BEFORE you buy it whether it is from a Mercedes dealer or independent dealer.
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Pretty much every time. Find me a bank that will buy a new Mercedes and rent it back to me for half its value over two or three years, and then take it back and try to sell it for the other half of its value.
Manufacturers make leases and the cars are returned to them. They may decide to wholesale the car out after it's returned, and then you may see it on another dealer's lot. Or, someone with a lease may decide to just trade the car in and pay off any lease balance plus the residual just like they're trading in a bank financed vehicle, but on a MB lease all roads lead back to MBFS.
Lease rate is driven by primarily by residual value. Monthly rent is the capitalized cost of the car (cap cost), less the residual, divided by the lease term, plus the money factor (essentially interest described in another way.)
No bank is willing to bet on what the residual will be. Manufacturers set the residuals based in part on what they expect the car to be worth at the end of the term, and in part to drive sales of a certain model. MB and BMW are notorious for overstating residuals both to boost sales and to give the impression the cars don't depreciate as much as they actually do.
Manufacturers make leases and the cars are returned to them. They may decide to wholesale the car out after it's returned, and then you may see it on another dealer's lot. Or, someone with a lease may decide to just trade the car in and pay off any lease balance plus the residual just like they're trading in a bank financed vehicle, but on a MB lease all roads lead back to MBFS.
Lease rate is driven by primarily by residual value. Monthly rent is the capitalized cost of the car (cap cost), less the residual, divided by the lease term, plus the money factor (essentially interest described in another way.)
No bank is willing to bet on what the residual will be. Manufacturers set the residuals based in part on what they expect the car to be worth at the end of the term, and in part to drive sales of a certain model. MB and BMW are notorious for overstating residuals both to boost sales and to give the impression the cars don't depreciate as much as they actually do.
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Sorry but this is incorrect. Almost all major banks will offer leasing on new cars. It is true that Mercedes Financial leases most of the Mercedes but not all of them. Chase, US Bank, 5th Third, and a lot of others do lease new cars. Also the dealer that accepts the lease return has first option to buy that car if it is a MBFS car, after that it will go to auction (usually Manheim) where most dealers will bid on them. Some people will ask "why that grounding dealer didn't want that car, there must be something wrong with it" . Well most franchise dealers will only stock so many used cars, there is a lot more coming in off lease then the franchise dealers can handle.
The best thing a buyer can do is get a pre-purchase inspection done on the car BEFORE you buy it whether it is from a Mercedes dealer or independent dealer.
The best thing a buyer can do is get a pre-purchase inspection done on the car BEFORE you buy it whether it is from a Mercedes dealer or independent dealer.
I may be uninformed but I really don't see how a bank could take on that risk...guessing the residual and then agreeing to take the car back and wholesale it.
If I'm mistaken I apologize. I've done equipment leases from banks but at the end I own the equipment and no residual valuation exists (usually $1 at the end of the lease buys the equipment) but nothing like a car.
Just to make sure I'm not completely talking out of my a$$ I called Chase for a car lease quote and was told they do fund leases through a manufacturer with whom they have a relationship, (Chase funds Mazda's leases for example) but again all roads lead through and back to the manufacturer on a lease. Chase, according to the rep I spoke with, does not do direct consumer leasing on autos. They offer financing and refinancing on new and used autos.
Last edited by Mike5215; Mar 9, 2015 at 11:45 AM.
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E55 Wagon, E550 Conv
That is correct, the big banks usually do not do direct consumer leasing but will do deals with different dealers in different regions. For example, US Bank may do leases for certain manufactures in FL but will not do them in GA. When the lease is up, there is usually a list of dealers on their network that the car can be taken to for drop off. The cars are usually inspected prior to lease end by one of the banks independent inspection companies.
