Deals on purchasing a lease return?
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Senior Member
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From: Nashville, TN
2013 G550
Deals on purchasing a lease return?
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!
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From: TX
2023 GLE3502W, 2024 GLC3002W, 1967 Pontiac GTO 4 sp (sold...sniff)
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.
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.
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From: TX
2023 GLE3502W, 2024 GLC3002W, 1967 Pontiac GTO 4 sp (sold...sniff)
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
https://www.carfax.com/VehicleHistor...UG8CB1FA129737
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From: Marina Del Rey, CA
2015 MBZ S 550
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!
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From: TX
2023 GLE3502W, 2024 GLC3002W, 1967 Pontiac GTO 4 sp (sold...sniff)
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.
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GLE300D, GL 350BT
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?
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From: TX
2023 GLE3502W, 2024 GLC3002W, 1967 Pontiac GTO 4 sp (sold...sniff)
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?
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From: middletown new york
S500 4 matic
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?
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From: TX
2023 GLE3502W, 2024 GLC3002W, 1967 Pontiac GTO 4 sp (sold...sniff)
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
http://www.autotrader.com/car-shoppi...es-benz-239524
Last edited by pjw1967; Mar 23, 2017 at 05:48 PM.
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From: California (central coast)
2014 S550
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.
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.
Last edited by Matthayes3741; Mar 26, 2017 at 10:27 AM. Reason: See SoCal Steve's comment below
Senior Member
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From: Marina Del Rey, CA
2015 MBZ S 550
My '14 was a lease return with a fair amount of options (warmth and comfort, edition 1 with nappa leather, air balance, premium 1, upgraded 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.
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.
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Volvo XC90
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?
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2016 C300
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.
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.
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S63
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.
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.
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From: Marina Del Rey, CA
2015 MBZ S 550
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.
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!!!
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Volvo XC90
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!!!
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!!!
Since we all have different skill sets and luck.
Last edited by Rockland; Jun 28, 2017 at 09:52 PM.
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'25 S63 AMG E Performance, '26 CLE 53 AMG
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!!!
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!!!
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.
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Volvo XC90
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.
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.
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'25 S63 AMG E Performance, '26 CLE 53 AMG
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From: Marina Del Rey, CA
2015 MBZ S 550
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.
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Volvo XC90
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.
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.
Last edited by Rockland; Jun 30, 2017 at 09:24 AM.
Senior Member
Joined: Jan 2017
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From: Marina Del Rey, CA
2015 MBZ S 550
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.
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.
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.
