I’m doing a lease transfer through Mercedes-Benz. The transferee has been approved through Mercedes Benz and they sent me the paperwork to fill out and send back. My question is how do I get my security back? Do they give me the security deposit back through personal means or can MB facilitate that?
If MB can’t, my concern is that we transfer the lease and he doesn’t pay me the security deposit. His concern is that he pays the security deposit and doesn’t get the car…
Thanks!
Yeah he needs to pay you the MSDs before you transfer it. New lessee gets them back at end of term.
There are probably secure third parties that will facilitate the exchange. I don’t have any recommendation but perhaps others do.
Use an Escrow service and/or write up a contract to protect both of you. MB doesn’t care as long as one of you are legally responsible for paying the monthly payment.
Aside from a written contract stating at the conclusion and I will receive the security deposit… is there anything else?
I’ve never set up an escrow acct and don’t want to jump through any unnecessary/ overkill options…
My understand is that when MB processes the paperwork, it is done. There isn’t a final sign off allowed me collect the security deposit before it gets released.
Just want protect myself and the new owner…
Correct, once the paperwork is submitted, it’s pretty much done unless it’s rejected for some odd reason. It is an odd transaction for both sides so there needs to be a good amount of trust.
How much in MDS are we talking about? You can use an escrow service where you outline the terms and they hold the money until they are fulfilled. Think it costs a few hundred bucks depending on the amount.
$3150… I’m considering maybe doing half down on paperwork submittal with a notarized doc stating the remainder at delivery… especially since the notary will already be there for the paperwork anyways
Wouldn’t the contract spell out out how the new owner will receive the MSDs back at lease end?
The contract does state the MSD’s and are refundable, But it takes a several days for the paperwork to process… so giving 3150 without driving off with the car isn’t the most comfortable way of doing it for the new owner
The only other thought is to receive the security deposit, send the documents electronically, and give him the car… again it takes several days for it to process so if something got kicked back, I would have to retrieve the car… and give back the security deposit
Tell him to give you the MSD ahead of time - Shake his hand and do it with a Gentelman’s agreement
Gentlemen’s agreement with a stranger over $4k and a $50k car?
If I’m the new lessee, I’m not paying them upfront without the car in my possession. You have those awkward couple of days where the transfer is being processed but not technically completed yet.
A simple contract protects the new lessee as well, including expected condition (if there are any known issues) in case it’s famaged during the transfer process and expected mileage when transferred so mutually beneficial.
Seems like you guys are both local which is great, but would still be hesitant to give you any money until I know the transfer is approved or I have to chase you down to get my money back. Getting it all when you turn over the car isn’t crazy because you just don’t give him the car if he doesn’t give you the money but at that point is technically responsible for it. He would have to legally get the car from you and that is where the contract is relevant.
I did this in the past by asking the new owner to bring cash at the time of key exchange. I will not release car even if that legally belongs to new owner. Worst comes, I can damage the car and he’ll be responsible for it. Not to threaten him, but he has to live up to his word of giving back the agreed amount & not play games. If he does then damaging car is justified. Lastly, dont accept check, cash is best.
Edit: I haven’t had issue with collecting security & I never mentioned about damaging the car. I assumed the buyer just understood that.
Agreed. I used an Escrow account for the MSDs when transferring my 328d to someone on the other side of the country, and it made that portion of the transaction very easy.
What Escrow account service did you use to get MSDs. I’m the original lessee and I’m doing a transfer to another person out of state.
I’ve used escrow.com. I believe PayPal owns it, was a very easy process. I only do escrow if they owe me over $5k. Anything under that I just have the new buyer bring cash when they pick up the transfer
The new buyer (transferee) wants to do Venmo for $3100 security deposit upon pick up of car so it’s easier to confirm funds. Is that a good plan?
No. Cash or cleared funds is all I would accept. If he venmoed me 3 days before and it was in my account I would take it.
Why not @Jrouleau426 Venmo’s cannot be charged back.
Venmo can be clawed back at any time. Do not use Venmo if you care about your funds.
Cash or certified check only.
After reviewing venmos terms it seems they can only reverse with the recipients permission. I still would prefer cash, wire transfer or escrow.com depending on the size of the transaction.
If the payment is made via credit card, and the payor files an issuer chargeback on the transaction, the payee is liable for the chargeback at any time it occurs. If the charged back funds are not available in the payee’s Venmo account, they can send it to collections.
Chance it if you’d like, though!