Go Back  MBWorld.org Forums > Mercedes-Benz SLR & SL Roadsters > SL-Class (R231)
Purchase at Lease End or Buy a 2020 SL450? >

Purchase at Lease End or Buy a 2020 SL450?

Notices
SL-Class (R231) 2013 on: Discussion on the SL550

Purchase at Lease End or Buy a 2020 SL450?

 
Old 05-11-2019, 01:35 PM
  #1  
Junior Member
Thread Starter
 
Join Date: Aug 2006
Location: Las Vegas
Posts: 57
Received 3 Likes on 3 Posts
2017 SL450; 2012 Porsche Cayenne Turbo; 2005 Lexus SC430
Purchase at Lease End or Buy a 2020 SL450?

The lease on my 2017 SL450 expires this December [2019], and I am now facing a dilemma -- do I purchase my vehicle for approximately $73,000 (including sales tax, etc.) at the end of the lease or do I order its 2020 model year replacement? Here are the pertinent facts: (1) I drive the car approximately 300 miles per month, so by December the odometer will show around 10,800 miles; (2) the car is in perfect condition, both in appearance and in performance -- it is the antithesis of a "lemon"; (3) I will be 73 in December; (4) if I were to get a 2020 version, it would be an exact copy in engine, paint color, interior and options (including Magic Sky and ABC); and (5) since I want a sporty two-seater hardtop convertible and cannot afford a Ferrari Portofino, there aren't any other options viable for me.

Usually when I have acquired a new vehicle, the major part of the inducement for its purchase has been its new features, enhanced performance, etc. In this case, the reason for its purchase would be solely to have a vehicle with three years' newer parts. On the cost side of the analysis, I can obtain a 48 month loan @$1,658/month; I'll own the 2017 outright in four years. Alternatively, I can lease the 2020 replacement for three years at around $1,600/month, but after three years, I'll have nothing (i.e., no equity) for all those payments.

My own sense is that, since I am very happy with my current SL450, I should simply purchase it at the end of its lease and refinance rather than lease a new one. Am I missing something?
jmeyersnv is offline  
Old 05-11-2019, 04:00 PM
  #2  
Junior Member
 
Join Date: Jan 2019
Posts: 49
Received 12 Likes on 8 Posts
SL550
73k is quite high for a buy out on an SL450, no?
I'd wait for the new 2021 model.
Keon is offline  
Old 05-11-2019, 04:31 PM
  #3  
Junior Member
Thread Starter
 
Join Date: Aug 2006
Location: Las Vegas
Posts: 57
Received 3 Likes on 3 Posts
2017 SL450; 2012 Porsche Cayenne Turbo; 2005 Lexus SC430
The last thing in the world I want is another four-seater soft-top convertible -- shades of the 1958 Thunderbird to me. As for the price being too high, upon its purchase I have to pay 8-1/4% sales tax, which is around $5,500, as well as the purchase price.
jmeyersnv is offline  
Old 05-11-2019, 04:40 PM
  #4  
Senior Member
 
bob55's Avatar
 
Join Date: Dec 2010
Location: South Florida
Posts: 346
Likes: 0
Received 25 Likes on 22 Posts
2013 SL550 (Lux Sport), 2006 CL55 AMG (Muscle). S550 (Wife's Sedan)
For me that scenario would be a 'no-brainer' decision....I would definitely just buy the current 2017 SL450!
bob55 is offline  
Old 05-12-2019, 12:39 AM
  #5  
Member
 
Join Date: Oct 2018
Location: Washington DC
Posts: 197
Received 90 Likes on 65 Posts
2015 SL550, 2018 G63
I bought my 2015 550 at lease end. It was a bit over market but I didn't care. I decided I wanted an SL for the long term and wanted off the wheel, had rolled out of a 2013 SL previously. No regrets. If you like the car buy it.
places is offline  
Old 05-12-2019, 07:11 AM
  #6  
Junior Member
 
Join Date: Oct 2018
Location: Orlando, FL
Posts: 58
Received 5 Likes on 4 Posts
2017 550SL - 2018 560S
I'll turn 72 this summer and purchased my 2017 SL550 CPO this past November; could not be more satisfied with the car. I have never enjoyed a vehicle this much in my entire life. Personally, I'd buy out the lease, with the knowledge you know every mile your current car has been driven. Sure it's a bit aggravating to pay over the current open market value but that is common on almost any lease. In four years, you'll own this car that you enjoy so much and you'll never even think about the price you paid to buy out the least.
fun33 is offline  
Old 05-12-2019, 08:35 AM
  #7  
Member
 
Join Date: Aug 2010
Location: Connecticut, USA
Posts: 109
Received 17 Likes on 17 Posts
2014 E550 Cabriolet
Jonathan,

I'm in exactly the same situation as you, including the fact that I'm 73 years old, and my '17 SL450 is a leased car. I took delivery in May of 2017 and have exactly one year left on the 3 year lease. The car is perfect in almost every way. I replaced: the run-flats with some Michelin sport tires; added an amplifier for the rear speakers; added a Race Chip tuning module; and a few weeks ago had the car ceramic coated. I put on about 1000 miles a month, as I drive it throughout the year, except during rain or snow. My buyout, which is what I plan to do, is about $56,000. I couldn't be happier with the car, and intend it to perhaps be my last ride. Of course I'll probably sell my '68 Porsche, because I'm just getting tired of it, after owning it for the past 40-something years.
jetjok is online now  
Old 05-12-2019, 10:49 AM
  #8  
Junior Member
 
Join Date: Jun 2004
Posts: 18
Likes: 0
Received 2 Likes on 1 Post
I would definitely consider the buyout if you love the car but DON'T treat the residual as your buyout price. This is a new sale. I doubt they will get 72 for it if they sell it so negotiate a price based on what the car is worth. The fact that MB gave you a high residual (in order to get a lower payment and sell the car) at the start should have nothing to do with this completely new transaction between you and the dealer. Decide on a price that it's worth to you, and offer them that.

Just my 2 cents.

Jake
jakepratt is offline  
Old 05-12-2019, 11:30 AM
  #9  
MBWorld Fanatic!
 
Streamliner's Avatar
 
Join Date: Oct 2010
Location: Southern CA
Posts: 2,826
Received 400 Likes on 302 Posts
2016 E350 Sedan, 2018 S560 Sedan, 2019 SL450
When my wife’s 2016 E350 Sedan was coming to the 36 month lease end, I got the dealer to “CPO” the car. In effect, the dealer took it in as a lease return, gave it the big CPO inspection, serviced it, replaced two tires and a few incidental items and then sold it back to us, at a price several thousands less than the residual, and we got an additional year of warranty to boot! The dealer made money, we saved money, it was a win/win situation. You might look into it, if you decide to keep the car.
Streamliner is offline  
Old 05-12-2019, 03:26 PM
  #10  
MBWorld Fanatic!
 
Join Date: May 2002
Location: Midwest.
Posts: 5,006
Received 477 Likes on 377 Posts
'18 E63s ED1, '17 SL550, '14 ML350
Originally Posted by Streamliner View Post
When my wife’s 2016 E350 Sedan was coming to the 36 month lease end, I got the dealer to “CPO” the car. In effect, the dealer took it in as a lease return, gave it the big CPO inspection, serviced it, replaced two tires and a few incidental items and then sold it back to us, at a price several thousands less than the residual, and we got an additional year of warranty to boot! The dealer made money, we saved money, it was a win/win situation. You might look into it, if you decide to keep the car.

That is the exact way to go! We used to negotiate direct with MB but now the dealer is the middle man.
Wolfman is offline  
Old 05-12-2019, 10:26 PM
  #11  
Junior Member
 
Join Date: Mar 2017
Location: Virginia
Posts: 37
Received 1 Like on 1 Post
2017 C300 Cabriolet
Have'nt done the math, but might it have been less expensive to have bought/financed the car instead of leasing and, then, buying at lease end?
PHSWOOD is offline  
Old 05-13-2019, 12:41 AM
  #12  
MBWorld Fanatic!
 
Streamliner's Avatar
 
Join Date: Oct 2010
Location: Southern CA
Posts: 2,826
Received 400 Likes on 302 Posts
2016 E350 Sedan, 2018 S560 Sedan, 2019 SL450
Originally Posted by PHSWOOD View Post
Have'nt done the math, but might it have been less expensive to have bought/financed the car instead of leasing and, then, buying at lease end?
Probably, but leasing gives one better options down the line. I leased mine. I doubt I will return it at lease end, but you never know. What if the new SL is just too good to resist? I doubt that it will be, but if it is, I’ll be ready to pounce.
Streamliner is offline  
Old 05-13-2019, 08:49 AM
  #13  
MBWorld Fanatic!
 
eddieo45's Avatar
 
Join Date: Feb 2004
Location: Milton, MA USA
Posts: 2,186
Received 19 Likes on 19 Posts
me: 2015 SL400; wife: 2015 C300 4Matic; kid: 2010 ML350
Originally Posted by Streamliner View Post
...leasing gives one better options down the line....
well, I'm certainly in a different price range than you gentlemen that buy/lease new, but I've never seen the appeal of leasing. had I leased my wife's 2015 C300 (purchased with cash, new), I'd have been faced with a decision last year: buy it at the price they ask or turn it in, pay fees, and replace it. Instead, the 3rd (and 4th) anniversary of purchase passes without notice and we can keep, sell or trade....
eddieo45 is offline  
Old 05-14-2019, 02:42 AM
  #14  
Senior Member
 
Join Date: Jan 2017
Location: God's County (Yorkshire)
Posts: 414
Received 33 Likes on 31 Posts
2017 SL 400 with lots of fruit
If you can afford it (in the current market) it is generally always better to pay cash.

Your money in the bank is probably making a lot less interest than what they will charge you to finance a car.

Unless you are going to release equity from a good portfolio that is making more interest than you will pay the dealer it is a no brainer to pay cash.

My son always buys on a lease with a balloon payment - dealers give a good deal on the purchase price because they think they are going to make money on the finance - he then settles the car in full after a couple of months and only has to pay one month interest a penalty.

Last edited by rorywquin; 05-14-2019 at 02:44 AM.
rorywquin is offline  
The following users liked this post:
eddieo45 (05-14-2019)
Old 05-14-2019, 08:45 AM
  #15  
Member
 
TennesseeZ4's Avatar
 
Join Date: Sep 2014
Location: Franklin, TN
Posts: 151
Received 32 Likes on 27 Posts
2008 E350; 2013 SL550; 2013 Chevrolet Traverse
You like the vehicle, would just replace with a newer version; both IMO constitute reasons to negotiate the purchase process with the dealer. MB does not really want the car back, see diminishing sales numbers in this forum; so the value is to get it off the books. They should accept a lower price; and if you can do what SL suggests, get it rolled into a CPO, all the better with the warranty coverage. Good luck with the purchase!
TennesseeZ4 is offline  
Old 05-14-2019, 10:23 PM
  #16  
Junior Member
 
Join Date: Mar 2015
Posts: 38
Likes: 0
Received 3 Likes on 3 Posts
SL400
When I turned in my 2015 last year, there was absolutely zero room to negotiate. The residual was over market value. Even though it got hit in an accident, it was a really rare color combo, Mars red with Titanium Pearl Designo leather. I might have bought it at the right price. It was properly repaired. MBFS was completely unmovable.

It turned up about 5 months later, after being passed around the wholesale auction circuit, at a local used car lot that specializes in higher-end cars. It was easy to spot, not many Mars Red SL400 - with dark interiors. I spotted it driving by. LOL, it was indeed, my old car. It was being advertized for $22k less than the residual. So you know the used car lot got a deal at auction. It also sat on that lot for months. No one wants an SL with an accident on the Car Fax. It had only about 800 miles more than I turned it in with, had never been sold since turn-in, according to Car Fax. The goofy car lot put "AMG" emblems all over it. Crooked too. LOL, I don't get it.

I do miss the SL though, a lot. Shopped them a lot prior to turn in, but they dropped Mars red, leaving only the Designo Cardinal, which I didn't care for. Also really hard to find one in anything other than black, silver/grey or white. Never have figured that out. It looks so awesome in Mars Red.

Bought a used 2011 911 Cabrio, which has also turned out to be a really great car. Very different than the SL, which I was really happy with.

Sadly, this is a numbers deal. If you can buy the same car, for less than the residual, then do it and turn yours in. I got a killer corporate deal on mine. My net out of pocket for the entire lease was minimal, even in light of the high residual. Or heck, you never know, your car may turn up in used inventory in a few weeks after turn in for a better price.

Last edited by nuketopia; 05-14-2019 at 10:26 PM.
nuketopia is offline  
Old 05-15-2019, 09:11 AM
  #17  
MBWorld Fanatic!
 
eddieo45's Avatar
 
Join Date: Feb 2004
Location: Milton, MA USA
Posts: 2,186
Received 19 Likes on 19 Posts
me: 2015 SL400; wife: 2015 C300 4Matic; kid: 2010 ML350
Originally Posted by nuketopia View Post
When I turned in my 2015 last year, there was absolutely zero room to negotiate. The residual was over market value. Even though it got hit in an accident, it was a really rare color combo, Mars red with Titanium Pearl Designo leather. I might have bought it at the right price. It was properly repaired. MBFS was completely unmovable.

It turned up about 5 months later, after being passed around the wholesale auction circuit, at a local used car lot that specializes in higher-end cars. It was easy to spot, not many Mars Red SL400 - with dark interiors. I spotted it driving by. LOL, it was indeed, my old car. It was being advertized for $22k less than the residual. So you know the used car lot got a deal at auction. It also sat on that lot for months. No one wants an SL with an accident on the Car Fax. It had only about 800 miles more than I turned it in with, had never been sold since turn-in, according to Car Fax. The goofy car lot put "AMG" emblems all over it. Crooked too. LOL, I don't get it...
Great story, and I would have enjoyed it even more if you had bought the car back! Of the 8 MBs I've owned, I bought 6 of them at auction. When I found my SL the CarFax told me it was an auction car and I searched local auction records, unsuccessfully, to learn what it had sold for. It's incredible how much less MBFS will accept at auction than they try to charge lessee at lease end, and I have a theory as to why: the dealer and MBFS have a vested interest in keeping buyers/leasers of NEW MBs paying top dollar. I think dealers (and maybe some new MB buyers/leasers) look down their noses at secondary market buyers (like me). CPO cars not only retail for more money, but also keep customers at dealer service departments, the real profit center.....
eddieo45 is offline  
Old 05-15-2019, 04:11 PM
  #18  
MBWorld Fanatic!
 
Join Date: May 2002
Location: Midwest.
Posts: 5,006
Received 477 Likes on 377 Posts
'18 E63s ED1, '17 SL550, '14 ML350
I know it's a fundamental debate of buying vs leasing, new vs. used or CPO but there is not one solution for all as each of us have different priorities. Buying a car after lease end; the cars can typically be had for less than the posted lease residual but it requires a good dealer relationship. They ground the car and look at the internal purchase price (unknown to customer). If there is enough of a spread for them and you to make money, it's a deal. This could mean $5-$10k off the known residual.

Btw, I just looked at our old lease again. It wasn't a great deal because it was the first facelift custom-ordered SL and it was getting late into the summer (wife not being happy without a drop top) but even then the cost of having the car was less than $300 a month. This is the non-depreciation component of the lease. With zero risk on depreciation, this is crazy cheap! Price of a dinner
Wolfman is offline  
Old 05-15-2019, 05:19 PM
  #19  
Senior Member
 
bob55's Avatar
 
Join Date: Dec 2010
Location: South Florida
Posts: 346
Likes: 0
Received 25 Likes on 22 Posts
2013 SL550 (Lux Sport), 2006 CL55 AMG (Muscle). S550 (Wife's Sedan)
Originally Posted by Wolfman View Post
Btw, I just looked at our old lease again. It wasn't a great deal because it was the first facelift custom-ordered SL and it was getting late into the summer (wife not being happy without a drop top) but even then the cost of having the car was less than $300 a month. This is the non-depreciation component of the lease. With zero risk on depreciation, this is crazy cheap! Price of a dinner
Not quite following your "less than $300 a month" calculation....Care to elaborate on that?
bob55 is offline  
Old 05-15-2019, 05:21 PM
  #20  
Senior Member
 
bob55's Avatar
 
Join Date: Dec 2010
Location: South Florida
Posts: 346
Likes: 0
Received 25 Likes on 22 Posts
2013 SL550 (Lux Sport), 2006 CL55 AMG (Muscle). S550 (Wife's Sedan)
Duplication Error....Deleted!

Last edited by bob55; 05-15-2019 at 05:50 PM.
bob55 is offline  
Old 05-15-2019, 07:16 PM
  #21  
MBWorld Fanatic!
 
Join Date: May 2002
Location: Midwest.
Posts: 5,006
Received 477 Likes on 377 Posts
'18 E63s ED1, '17 SL550, '14 ML350
Originally Posted by bob55 View Post
Not quite following your "less than $300 a month" calculation....Care to elaborate on that?
Sure. I am disregarding registration, taxes, fees for simplicity...

A lease is mainly consists of two sections; 1. the cost of depreciation of the car and 2, the rent charge - this is the markup that you pay for actually using the car.
Unlike a purchase, the depreciation of the car is decided upon by the manufacturer. They will tell you how much the car is worth after a defined time/mileage period. Example: 3 years at 15k miles equals 56% residual value. Depreciation is 44%.

So even if the lease interest would be free, a $100k car would cost $44k over 3 years.
Now comes the rent charge; this equals the interest (Money Factor). This is the $300 I mentioned (actually $281 in our example)

What most people don't understand in a purchase, wether new or used, is that you will not know the depreciation of the car until you sell it or trade it. Most just think about the discounted selling price and interest rate and that is how they rate "the deal"
In most cases, the purchase depreciation is dramatically higher (even on CPO vehicles) than a lease vehicle, so even a cash purchase without financing may end up to be a higher cost for the duration.
Wolfman is offline  
Old 05-16-2019, 05:11 AM
  #22  
Junior Member
 
Join Date: Mar 2015
Posts: 38
Likes: 0
Received 3 Likes on 3 Posts
SL400
My SL was the only car I've ever leased. I don't regret it. Like I said, it was under a corporate partner discount. I signed my name and drove out with it, paying only some initial fees for registration. Had I bought it for cash (and I would never lease a car that I could not do so) and rode out the risk, I'd have taken a much, much bigger hit on the value at 3yrs due to being rear ended. I had it repaired as nicely as possible by a great shop. Pretty hard hit too.

I'd probably have leased or bought another, had Mars red or similar been available. No idea why they all seem to black, grey/silver or white.
nuketopia is offline  
Old 05-16-2019, 09:24 AM
  #23  
MBWorld Fanatic!
 
eddieo45's Avatar
 
Join Date: Feb 2004
Location: Milton, MA USA
Posts: 2,186
Received 19 Likes on 19 Posts
me: 2015 SL400; wife: 2015 C300 4Matic; kid: 2010 ML350
Originally Posted by Wolfman View Post
Sure. I am disregarding registration, taxes, fees for simplicity...

A lease is mainly consists of two sections; 1. the cost of depreciation of the car and 2, the rent charge - this is the markup that you pay for actually using the car.
Unlike a purchase, the depreciation of the car is decided upon by the manufacturer. They will tell you how much the car is worth after a defined time/mileage period. Example: 3 years at 15k miles equals 56% residual value. Depreciation is 44%.

So even if the lease interest would be free, a $100k car would cost $44k over 3 years.
Now comes the rent charge; this equals the interest (Money Factor). This is the $300 I mentioned (actually $281 in our example)

What most people don't understand in a purchase, wether new or used, is that you will not know the depreciation of the car until you sell it or trade it. Most just think about the discounted selling price and interest rate and that is how they rate "the deal"
In most cases, the purchase depreciation is dramatically higher (even on CPO vehicles) than a lease vehicle, so even a cash purchase without financing may end up to be a higher cost for the duration.

I still don't get it. You calculate that the car "cost" you $281/mo because the other $1222/mo was, what, inevitable? My last car was my 2009 CLK550, bought 4 years old for $24,520. I sold it almost 6 years later for $9900; THAT was about $225/mo....
eddieo45 is offline  
Old 05-16-2019, 12:48 PM
  #24  
MBWorld Fanatic!
 
Join Date: May 2002
Location: Midwest.
Posts: 5,006
Received 477 Likes on 377 Posts
'18 E63s ED1, '17 SL550, '14 ML350
Originally Posted by eddieo45 View Post
I still don't get it. You calculate that the car "cost" you $281/mo because the other $1222/mo was, what, inevitable? My last car was my 2009 CLK550, bought 4 years old for $24,520. I sold it almost 6 years later for $9900; THAT was about $225/mo....
Absolutely, depreciation is inevitable and most leases have higher residuals than ACV. On a luxury car for sure. Guess how much a 3 year old SL550 with 45k miles today goes for today? $70k?

I don't know the new price of the CLK but at 4 years the owner likely took a bigger bath then if leased. I assume low sixties new? After 4 years the cars depreciation was more than 60%. You had it for another 6 years where it lost another 60%. If the first owner leased the car, he would have paid less than taking the hit at 4 years...

And as Nutktopia points out, even the smallest record on CarFax/AutoCheck you might as well take out another 20-30% in value. On a lease, who cares. Ordered a car with an unpopular color but you loved it? Zero impact...

Last edited by Wolfman; 05-16-2019 at 12:51 PM.
Wolfman is offline  
Old 05-16-2019, 01:03 PM
  #25  
Senior Member
 
bob55's Avatar
 
Join Date: Dec 2010
Location: South Florida
Posts: 346
Likes: 0
Received 25 Likes on 22 Posts
2013 SL550 (Lux Sport), 2006 CL55 AMG (Muscle). S550 (Wife's Sedan)
Originally Posted by Wolfman View Post
.
Now comes the rent charge; this equals the interest (Money Factor). This is the $300 I mentioned (actually $281 in our example).
That $300 per month number you threw out there seem like nothing but 'voodoo math' to me!

Obviously, the cost to drive a new SL includes all aspects of the acquisition, not just the 'rent charge' or 'money factor' you have suggested above. You can't simply ignore the built-in depreciation cost when calculating the actual costs to buy/own the car.

In reality, nobody ever gets by paying just $300/month as you suggested. That's ludicrous. Depreciation is a 'real cost' that is passed along to the Buyer. Luxury cars like the SL, have very rapid rates of depreciation which of course, is very well-recognized by the MB Dealers. As you pointed out, the Dealer sets the depreciation costs the Buyer must pay at the start of the lease.

Last edited by bob55; 05-16-2019 at 01:28 PM.
bob55 is offline  

Thread Tools
Search this Thread
Rate This Thread
Rate This Thread:
You have already rated this thread Rating: Thread Rating: 0 votes,  average.

Quick Reply: Purchase at Lease End or Buy a 2020 SL450?


Contact Us - About Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

© 2019 MH Sub I, LLC dba Internet Brands

We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.
 
  • Ask a Question
    Get answers from community experts
Question Title:
Description:
Your question will be posted in: