Buying a lease out after 1 month?

Ask the Hackrs Buy/Finance
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1

So Mercedes still offers a $7,500 rebate if you lease an electric car from them. That rebate is unavailable for purchases. The leases at Mercedes are still awful even with that rebate and I would prefer to purchase the car. The dealership recommended that I lease the car to get the rebate then after the first month just finance the buy out.

I’ve leased a lot of cars in the past and obviously never considered this strategy before. I am not even sure what the buy out would be on Month 1 of a lease, is it simply the agreed upon purchase price of the car or am I missing something?

2

acquisition fee + buyout fee

3

So you save $7500 but pay $1000 or so, that’s a good deal.

BUT your loan on the car might not be at the best rate after a month. (Rates are going up)

4

My uncle did this to get the lease rebates that he couldn’t get with a straight cash purchase. Bought it out a month later.

1 Like
5

The only Mercedes EV currently assembled in North America is the EQS. It should qualify for the full $7,500 Federal tax credit if purchased before 1/1/2023. I would be very surprised if Mercedes is still offering a $7,500 rebate on any other model EV lease.

https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit

6

I think 1 or 2 people might have done that with a 4xe wrangler :sunglasses:

7

Don’t lose sight of the big picture. What’s the resale on this car going to be?