HELP!! MBCC Lease - what is your excess mileage rate in your lease??
How negotiable is the "Excess Mileage" rate on the MBCC lease? I have my dealer coming back to me to "correct" an error they made on my lease for the new 2005 ML350SE I just got - they are asking me to initial a change in the rate from $0.20 to $0.25 / klm.
I called MBCC and they "declined" to advise me of a rate, which makes me suspect that it is really up to the dealer to set the rate.
Since the lease is signed and sealed and I have the car, I really don't want to give in on this issue without a really good explanation - if it is an honest mistake, that is one thing (and I will consider approving the change) - but if they really only want to try to extract another pound of flesh since I negotiated a pretty good deal, well then I'll say "too bad" live with the rate.
The Dealership GM claims that MBCC is refusing to advance their leasing commission unless I initial the change to $0.25 / klm. That does not sound right to me.
RE: HELP!! MBCC Lease - what is your excess mileage rate in your lease??
If I were motivated to be a good guy, and I am not suggesting I would, I would multiply my predicted overage X .05 and demand that CA dollar figure in "upgrades" for the vehicle. If they do that, then everyone is invested in your excess miles. Free maintenance (if it's an '05) is an option, doesn't really cost them anything, and saves you a few hundred over the life of the lease. Just a thought.
__________________ 1974 280 (gone)
1982 380SL (schwarzekatz)
1984 300TDT (why did I get rid of the best one?)
1992 300E (gone and forgotten)
1993 190E (daughter drives)
1994 E320 Wagon (gone and forgotten)
2002 ML320 (thank goodness for extended warranty)
RE: HELP!! MBCC Lease - what is your excess mileage rate in your lease??
If the contract is signed it's a DONE DEAL!! Everybody had already signed off on this and it got past everyone at the dealer,TOO BAD BUDDY double check your work next time,and hey good for you its not everyday the customer gets one over on the STEALER DEALER!!WOO HOO!!!![:D][:D][B)]
RE: HELP!! MBCC Lease - what is your excess mileage rate in your lease??
Its not a done deal unless MBCC has signed the lease. Have they?? Do not know what the charge is is KM's but in the US its .15 for any mile over till you get to I believe 3000 miles over, then it goes to .20. The dealer has no input on the lease mileage charge so the error is most likely a typo. In this case MBCC is most likely not accepting the leease as printed. I believe that if push came to shove they could actually repo your ML. Why not be an honest upstanding guy and allow the change before it gets nasty.
RE: HELP!! MBCC Lease - what is your excess mileage rate in your lease??
As Sosh pointed out, if MBCC has not signed and accepted the lease, then technically there is no contract. Some fine print in something you signed should have noted that the dealer is only an agent for the paperwork and MBCC has final approval, blah, blah, blah. By the way, I assume this is the rate for excess mileage over 1,000 miles because the first 1,000 excess miles are usually much less pricey. And, these numbers can be determined by the dealer within certain guidelines. MBCC offers them various lease programs, and my guess is that the finance manager confused the residuals and money factors from one program with the excess mileage charges from another.
Believe it or not, having to adjust a finance contract after the sale is not a rare occurrence. The dealer generally tries to send the customer home in the car that day, so they sometimes do the paper work without final approval from the finance company. An experienced finance manager can look at your credit score and pretty much know what tier a given creditor will put you in for rate, term and credit limit. The problem is that creditors sometimes do odd things, finance manager sometimes make mistakes, and then there’s always the occasional “shady� deal where they meet your deal by quoting a rate they know you don’t qualify for only to call you a few days later with the choice of a higher rate or taking the car back (the customer will rarely return the car because it’s too embarrassing).
Years ago, the creditors were not open on weekends or after hours so the dealer’s finance manger could really never get a “true� credit approval until the next business day. Nowadays, creditors have underwriters on call 24x7, but sometimes it can still take hours to get a final approval, so occasionally customers drive off the lot and have to come back for finance contract changes.
If you refuse to approve the change, then you don't have a valid contract and they can require you to return the vehicle and possibly even charge you for the "wear and tear" while it was in your possession. Of course you could then turnaround and sue them for misrepresentation, but then really no one will win. The best thing to do is make out like this is going to be a huge problem for you. Try to deal directly with the dealership’s general manager, but if that’s not possible, then at least the sales manager or finance manager. Cite the fact that you had calculated your budget based on the quoted excess mileage fees and this will now put the vehicle out of your budget. Also complain about how difficult it will be for you to get back to the dealership with your busy schedule.
Don’t refuse to sign, but make it clear you need some compensation for their mistake. Make them “speak first� to offer that compensation, but if they won’t, then ask for something that has little value to the dealer, but high value to you, such as a free A service or an accessory that has a labor charge for installation (accessories don’t have much markup, but labor does). Finally, don’t “hate� the dealer for this. Selling and financing automobiles is a very complex business and mistakes will happen. Just play their game and make it all about the money. Good luck!
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