Auction value, which largely sets the price you can realistically expect to get on a trade in/if you sell to a dealer.
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Would depreciation be a concern, if the owner wants to own this car anyway, but tries to get a better price with early buy-out?
IIUC, the scenario you describe is that the car is too poor, so the actual depreciation curve is very sharp. In this case, I agree we shouldn’t buy it. And maybe we even shouldn’t lease it.
So is your original plan early buy-out, and then resell? And now you decide not to do so, because the reselling value is too low?
You definitely shouldn’t buy it, and you probably shouldn’t lease one unless you intend to drive it to disposition within the terms of the lease.
Actually, I remember there’s an Purchase Option page on MB lease, which has a sub-term “Before scheduled termination”. I think this is the early buy-out option, but don’t recall there’s any penalty. So the 4% may not exist.
I just sold my 1 month old EQE SUV lease to Carvana. There was no penalty from MB. MSRP was 85k and lease pay off was $68k after a month. I had 13% dealer discount plus April incentives. God bless Carvana that saved me from EQE.
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What made you so eager to get out?
What did Carvana buy it for?
Bought it for 69k
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It was too small after having it for a few weeks. Bought eqs suv instead
Is the buyout price just RV+35xmonthly base payment+ purchase option fee? No penalty, right?
The 4% with mercedes seems to vary regionally
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Yep, the 4% fee depends on which state the lease was initiated in.
MBFS also charges the full disposition fee on early buyouts.
So say you lease an EQ whatever where your total cap cost was $80k, you make 2 or 3 payments so your current payoff before taxes/fees/penalty is now $79k. Your total early buyout price would be the sum of the below items:
$79,000 payoff
$3,160 early buyout penalty (4% x $79k)
$595 disposition fee
$XXX tax
Buying one of these out right after signing seems like a horrible idea for a variety of reasons.
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Yes no penalty. Tbh I don’t think even the purchase fee was added to lease pay off. It was lower than I expected. My lease was 24 and had made 2 monthly payments. The pay off was a bit less than RV+ 22 monthly payments (excluding tax)
I was planning on driving this thing around for a free for like 2 months, then buyout and sell immediately when my other vehicle arrived. I still think my math works out because of the incentives MB is offering on top of my dealer discount but need to do more investigation.
May I ask how many miles you had on it?
But the thing is my cap cost is 60. So early buyout with the 4% and remaining depreciation of my 13 month lease term, on top of no NJ sales is still not terrible…
About 600 miles
Hmm, okay. Did you try any other car buying service? I’m trying to judge my buyout situation, whether its possible to get out in the green in 2-3 months.
I have to be okay with both situations if I sign the lease: either ride it out the whole way or buyout and sell after 2-3 months (if the numbers work out)
yes, I tried Carmax, a few MB dealers, Algo, Auto Nation. Carmax was $3k less than Carvana and the rest were horrible around 7-8k less. It is really risky tbh and I am not sure Carvana will buy these high again once they see the market value is lower. I wouldn’t count on getting out of the lease loss-less