Average Buy-Out cost after Leasing? - Mercedes-Benz Forum

 
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post #1 of 9 (permalink) Old 11-02-2007, 08:51 AM Thread Starter
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Average Buy-Out cost after Leasing?

Has anyone every purchased a vehicle after leasing it?

I am looking at an 2006 SLK280, and the seller wants someone to take over his lease.

The sticker on the car was 47K, and he has paid 14K in lease payments so far, with another 12K due over the next 18 months.

so that would be 26K in payments, any idea what the buy out would be at the end of the lease?

Thank you for any help on this.
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post #2 of 9 (permalink) Old 11-02-2007, 09:54 AM
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The $27K in payments isn't a strong indicator as to the purchase price at lease termination. Before moving forward, you may wish to know the what the existing lease states. Aside from the purcase price, you may be interested in the lease turn in requirements, any lease end fees, the lease transfer fee, and the credit app fee.

In the end, the car is worth market value or less. This is regardless as to what the bank or current lessee says.
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post #3 of 9 (permalink) Old 11-02-2007, 10:10 AM
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His lease should state exactly what his buyout is. It is rarely a good deal to buy a car out at the end of a lease.
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post #4 of 9 (permalink) Old 11-03-2007, 05:10 PM
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Originally Posted by mr.xpowerseller View Post
His lease should state exactly what his buyout is. It is rarely a good deal to buy a car out at the end of a lease.
That's the way I understand MB leases too, but I don't know anything about the other automobile manufacturers. For what this is worth, my preferred dealer sells 60% lease vs. 40% purchase; my saleman told me that.

I have also been told that a lot of MB dealers pass on buying the formerly leased cars because MBUSA wants so much for them (also info from one of the salespeople).

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post #5 of 9 (permalink) Old 11-03-2007, 08:15 PM
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Originally Posted by Musikmann View Post
That's the way I understand MB leases too, but I don't know anything about the other automobile manufacturers. For what this is worth, my preferred dealer sells 60% lease vs. 40% purchase; my saleman told me that.

I have also been told that a lot of MB dealers pass on buying the formerly leased cars because MBUSA wants so much for them (also info from one of the salespeople).
Yes, you are correct. Most new car dealers pass on buying lease turn-ins because they are vastly overpriced and sometimes damaged or previously damaged during the lease term.
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post #6 of 9 (permalink) Old 11-18-2007, 10:09 PM
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Quote:
Originally Posted by MarcusF View Post
The $27K in payments isn't a strong indicator as to the purchase price at lease termination. Before moving forward, you may wish to know the what the existing lease states. Aside from the purchase price, you may be interested in the lease turn in requirements, any lease end fees, the lease transfer fee, and the credit app fee.

In the end, the car is worth market value or less. This is regardless as to what the bank or current lessee says.

Actually, the "worth" of the car has little to do with the market value. What you need to look at is that little thing on the front of the lease agreement called the "Residual". Regardless of the market, the residual is guaranteed at the inception of the lease. Most people are not happy with the residual but if they went through Mercedes-Benz Financial, they can extend the lease from 6-12 extra months most times allowing them to pay the principal down with a zero, or next to zero interest rate. A lot of people Extend, drop the residual, and buy because they end up having equity in the car after the extension. Just some food for thought.
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post #7 of 9 (permalink) Old 11-19-2007, 02:48 AM
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Originally Posted by AMG_MAN View Post
Actually, the "worth" of the car has little to do with the market value. What you need to look at is that little thing on the front of the lease agreement called the "Residual". Regardless of the market, the residual is guaranteed at the inception of the lease. Most people are not happy with the residual but if they went through Mercedes-Benz Financial, they can extend the lease from 6-12 extra months most times allowing them to pay the principal down with a zero, or next to zero interest rate. A lot of people Extend, drop the residual, and buy because they end up having equity in the car after the extension. Just some food for thought.
I'm a little confused by your statement. How can the "worth" of any item have little to do with market value?

"Worth" is the monetary value of an item. "Market value" is the price that a commodity can be expected to bring when sold in a given market.

If the residual is higher than market value (the same car can be readily purchased for less), why would a buyer knowingly pay the higher price? If the residual is below market value, that would make the monetary value of the car less than market value.

As I stated, "In the end, the car is worth market value or less. This is regardless as to what the bank or current lessee says." Paying higher than market value for items is a rather unusual fiscal policy.
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post #8 of 9 (permalink) Old 11-19-2007, 07:11 PM
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To clarify,
I should have said that the "market average" does not necessarily reflect to what you owe...whether you owe 20, and the market is 15, or you owe 15 and the market is 20...In the end, that car will sell for what the residual is....Now if you dont agree that the residual is a fair amount, than you have the ablity to just return the car, let it go to the auction, and let the dealer buy it and mark it up 20%. But I can tell you from experience that when you enter into negotiations to purchase the car off of a lease, the buyer has little bargining power other than just not buying it. If the dealer always dropped to the market value, they would rarely turn much of a profit.
Bottom line- If your not happy with the residual, look into an extention with a low interest rate that gives you the best possible residual...Or just turn it in.
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post #9 of 9 (permalink) Old 11-24-2007, 03:13 PM
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Ive leased and or ballooned 3 Mercedes. The buyout is always higher than market value. Mercedes Credit will have an exact buyout figure which is based on months leased and agreed mileage.
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