Finance office add-ons

Hi, new user here, first post, and getting ready to attempt my first lease. I’m a bit apprehensive as I’m not the best negotiator but have to studying this forum for some time.

My brother-in-law leased a Mercedes a couple of months back and mentioned that the finance office tried to sell him an upgraded maintenance package which would have added $100/month to the lease which he declined.

I know most dealers make a lot of money with finance dept. add ons, but didn’t think these things would be offered when a lease is involved.

Is this a common practice and will there be other add-ons pushed?

Yes that is a very common practice. Negotiate everything over email and only go into the dealership to sign. Don’t budge from what you agreed on.

Of course they’re offered. The dealer needs to try to make money somewhere considering that the vast majority of their profit comes from stair-step incentives and hitting quotas. All kinds of add-ons will be pushed, and naturally, you don’t really want any of them.

Agree, typically they are overpriced. Some people here like the tire and wheel protection. if you tend to be the type to blow out tires often it may be worth it depending on who the coverage is through and what they cover.

In regards specifically to Benz, the prepaid maintenance is negotiable and can be added to the cap cost, so it will be part of the residual calc. For example if the maintenance negotiated price is $1000 and residual is 60%, effectively you would only be paying for 40% or $400 (plus interest etc).

Thanks all for the feedback. Good to know that going in.

If they residualize MBFS maintenance correctly and don’t mark it up —- it adds ~$15 for a 4 or 6 cylinder car, ~$20 for an 8 cylinder benz. Everything else is high profit junk.

I like warranties even though most consider them a waste of money. The warranties more than paid for themselves in repair cost of my last beaters.

That being said I plan on getting the Wheel and Tire protection and the Wear and Tear protection on my next lease.

A few things to keep in mind. You do not need to purchase a protection package at time of leasing or even from the same dealership. Not all protections are the same. Get the manufacturer warranty not a third party.

For my future lease I was quoted $1,000 for a third party protection package that included Wheel and Tire as well as Wear and Tear protection. Reading reviews on this third party company made it apparent that they sucked.

A quick search online I found another dealer that sold the manufactured warranties nationally and at a much discounted rate. For a much better protection package that covered much more and could be used anywhere in the US it would cost $500. When I pushed the dealership I am likely going through for a manufactured protection packaged they quoted me $1500 and would not budge on price.

This for for a Dodge (Chrysler product) so other brands may work a little differently of course.

Yes, there was a long list of mostly unnecessary and even some redundant offers on the list, including insurance that was basically a duplicate of my regular auto insurance. When I questioned why in the world I would need a second insurance policy I could see the guy was struggling to keep a straight face. I like the additional wear and tear for peace of mind but even that price ended up being negotiable. Just be willing to keep saying No, No, No lol.