Seeking your valuable insights regarding my upcoming lease end. My current lease is set to expire at the end of February, with a one-month extension already granted. I might be in US for another 3-6 months (very uncertain at this moment) and go back to my home country. Basically, I need car for another 3-6 months. As I consider my options, I would greatly appreciate your guidance on the most suitable course of action.
Current Situation:
Mercedes GLB 250 2021 AWD
MSRP - ~49k ( parking assist, 3rd row etc)
PPM and lease care included as well.
Lease ending - 02/28/2024
Monthly payment (incl tax) - 405 (12k miles/year)
No MSDs and first month DAS. No Down payment.
Current Mileage - 20000 (way short of 36k allowed)
Residual Value - 28,900
Lease Purchase Quote - 31,750 ( Residual value + tax)
Online Quotes - ~26,000 - 28,000 ( Not sure if this involves tax)
Lease end date: End of February (with a one-month extension)
Negative equity: Approximately $1,000 to $3,000 based on current car prices
Options Considered:
Purchase the car and sell it when I leave: Given the negative equity, I am unsure if this option is financially viable. I would appreciate your advice on whether it is advisable to proceed with this option, considering the potential loss.
Transfer lease: I have explored the possibility of getting into a transfer lease from another party for a shorter duration, ideally around 6 months. However, I understand that finding a suitable match may be challenging.
Alternative options: I am open to exploring any other viable options that may align better with my circumstances. Please let me know.
Option 1: You would have to sell at just the right moment and be done with the transaction. Totally feasible, but you have a lot to lose.
Option 2: If you can find the right option, you can always turn in early (check what your options are for early turn in). You are unlikely to find one with a really short terms as a lot of banks won’t allow a transfer during the last few months of the lease.
Option 3: Provided above – I would think the best option for the most peace of mind. You don’t have to go through the process or purchasing a car and then selling it, and you do not have to spend hours trying to find the perfect lease take over.
I requested for a lease extension. They said they cannot do any more unless I am in talks with a car sales person for another lease ( 3 months extension). I am not sure how strict they are if I just provide the number and name ( since my dealership has been sending messages to consider talking to them).
They can only extend beyond 3 months if I am waiting for a car that is not available at the moment.
Sorry for being naive here but how does this work?
I go the mercedes website, choose the options and order it online ( or through a dealership)? Do I not need to pay some amount here?
I call the MBFS and tell them I am waiting for the car and extend my lease for 6 months( Will they not see how long the car is going to take to come and extend that much).
How do I say no to taking the possession of the car?
Thank you.
If you have a good relationship with your current dealer, then the first thing I would do is just ask them if they can help you out.
Tell them you really like your current car but are only going to be in the US another 3-6 months and would really like to just extend your lease until you leave. Ask if they can attach your name to a car they order for the purposes on getting a lease extension with MBFS.
You wouldn’t give them any money now and wouldn’t be under any obligation to take whatever car when it comes in.
Do people really do this? How do we expect the car insurance to cover the owner in a “I loaned it to a stranger for 3 months” scenario? Or when the driver gets a photo ticket, or drives it north to Canada to get some Labatts Bleu at Duty Free? Or they get a moving violation while driving a stranger’s car and the registration belongs to someone else?
This is doable with your own rental contract - definitely not just a handshake - but I would never entertain either side of this transaction under any circumstance.
According to a 25-car host, they do it all the time.
Do people not get tickets in rented and borrowed cars all the time? What exactly would the problem be? It’s not like the owner reported the vehicle stolen and therefore the cops threw the renter in jail like cough hertz cough
You’re right there might be more risk for the host depending on the contract and their ability to enforce it, but for a renter I don’t see how this would be any different from any other rental.
Undoubtedly has a separate/stand-alone rental agreement and all their cars are under a business with appropriate insurance. Someone running their own rental agency is setup for that, most solo hosts are not.
Yes and they can present a rental agreement which shows they’re authorized to drive the car, and if needed it’s properly insured.
