My lease is about to end and I was hoping I can get more information regarding what are the exact components to a “dealer payoff.” Specifically, what else goes into the calculated number other than residual value and any remaining base payments. I also am a little confused as to how MSD’s factor into the calculation - does the price they quote me NOT factor in the MSDs? The MSDs will be separately returned by MBFS once the dealer has bought out the car.
Am I also correct in assuming that the “Equity” in a car is what the dealer is willing to pay for it (negotiable) vs what is the dealer payoff. This would apply for trade-in for another car from the same dealership or straight buyout. I.e. - if the dealer payoff is 30,000 and they are willing to pay 33,000 for the car - my equity is 3K and they would apply that at the time of trade-in or if they were to buyout the car without any further transaction.
Here is the info below:
2019 Mercedes Benz C300 4MATIC
Residual value: 29,643.65
Mileage: 25,000 (5K demo car, 36/10 lease)
Lease payment: 283/month ( Leasehackr score of 15 when i got it! If only we went back to 2019).
Payments left at time of trade-in or buyout: 0 or 1
With MB the dealer payoff should be the same as your personal payoff (not including any taxes your personal payoff may include). You can easily see your payoff online at MBFS, just click request payoff quote.
With MSDs each scenario is different depending on the bank and dealer. I have a MB lease also, when I look at my payoff online it includes MSDs, however when I shopped it to dealers earlier this year the payoff quote the dealer pulled did not have MSD’s included. Always double check and know your numbers.
And you are correct about the equity, if the payoff is $30k and the dealer buys it for $33.5k then you are realizing $3,500 in equity. You can either get a check for this and walk away or apply it to a new deal.
Leasehackr score of 15 when i got it! If only we went back to 2019).