jhpmbusa

Has anyone paid a the full amount of the lease upfront? Just wondering how much of a savings this may come out to be? Would it technically be 0 percent interest on the lease amount then?

cetialpha5

Why would you want to do that? Guess how much you get back if the car is totaled. Usually the whole point of the lease is to put down as little as possible. You can do multiple security deposits to lower the money factor. The S&P 500 is up about 16% so far this year.

ua549

Every situation is different. There can be tax advantages of a single payment versus monthly payments.
Single payment leases can be a smart move since they do not show up as a balance sheet liability.
Bottom line is that some people/entities can't/won't take on a debt burden.

nashvilletn

you save a full point on your MF if you do a one pay

jhpmbusa

So the current money factor offered is .00119 what would the discount of the full point equal to? .00109?

jhpmbusa

As a lease deal, I am not liable for how much the current market value of the vehicle is when totaled. Just confirmed with the dealership.

cetialpha5

I believe the problem with a large down payment on a lease is that you don't get it back if the car is totaled. Ask what happens if it's declared a total loss after a month. What's recommended is to put down the max in terms of multiple security deposits. I believe you do get those back if the car is totaled. That also ends up lowering the money factor. It's a gamble either way, you're also gambling that some idiot won't smash into you while playing with their cellphone.

dbtk

I would verify this with Mercedes Benz Financial. I often do single payment leases. The single payment monies are held in a separate account from the value of the car. If the car is totaled your insurance company and MBFS (thru their own gap insurance) covers the cost of the car. The balance of the unused months of the single pay lease is refunded to you. I have also returned a single pay lease ahead of a its maturity date (in the case of an LAP-lease accelerator program and received the unused months prorated lease payment back to me in a form of a check).

dbtk

And yes, it can significantly reduce your MF. My MF on my S550 is 0.00001 for a 30 month / 10K miles per year lease.

jhpmbusa

Yes, this is correct. Why would they keep the full amount of the remainder if the car has been totaled? Just doesn't make any sense to me. Thanks for your input!

rocky raccoon

I had a leased car stolen some years ago. I called the leasing company and told them "Someone stole your car." Their response was "Do you want another one?". I doubt that the response would have been the same if I paid it all up front.

jhpmbusa

Don't get it. What would you suppose their response would have been then? Thanks

E63guy

So much FUD here. Ridiculous.