So I am trying to break down the payoff quote I received from MBFS. Based on the contract, the payoff is the sum of: the residual value, the balance of lease payments, 4% fee equal to the balance of the lease payments, a vehicle turn in fee $595 (ridiculous), a purchase option fee $150, AND an arbitrary number based on Section 7 of the contract. MBFS tells me this number is $3k this month but they are unable to explain how they come up with this number. Does anyone know?
Is waiting until lease-end an option for you?
They charge the $595 disposition fee, even if you sell it to a third party? Crazy. I need to look at my lease contract again!
Definitely an option but this is really to satisfy my own curiosity. I thought my payoff was slightly high at first glance which is why I started digging into it. When FS told me there’s a mysterious $3k fee and could not actually provide me with the calculation, it made me even more interested. Section 7 seems to give them somewhat free reign unless this agent/supervisor combo were completely inept.
Yep. Even the FS rep thought it was crazy that they charge this. By definition, it is a turn in fee and yet you aren’t turning in the car if you purchase it yourself.
What on earth??? And this random $3k fee??? Makes me happy I’m considering different brands next time around!
If you waited until the lease end, would they still charge that extra $3k? Just wondering because that’s something I need to consider with my lease.
No. According to FS and this makes sense, Section 7 does not apply starting in the final 3 months of the lease.
Having fees on top of fees on top of fees is one thing. But to not be able to explain how a large chunk of those fees is arrived at is crazy to me. They actually told me to speak to the dealer to see if they have more information on a fee that FS is charging lol
I believe early termination means end the lease early by turning it in and not paying the balance? Am I wrong?
Wouldn’t paying the residual value & the balance of the lease essentially be buying out the car?
Interesting. I believe most true pull ahead offers with MBFS begin 3 months out too…
What is the disposition date on your lease? How early are we talking?
Adjusted lease balance, purchase fee, residual value, sales tax (if purchasing yourself) all makes sense. The “turn in” fee is ridiculous. The ambiguous early termination fee doesn’t seem right.
The Early Termination section on the contract has different fees than those listed in the Early Purchase section. The Early Purchase section does not even mention Section 7 at all… may need to call and speak to a different rep to get clarification.
14 months out. Not that this is something I am eager to do, but when the numbers didn’t match up, I figured I’d pose the question to the experts on here for insight.
Reviewing my contract with MBFS. Section 9 under Disclosures states that if the vehicle is purchased at lease end, MBFS adds a $150 Purchase Option Fee. There is also a space for a Processing Fee, but is filled as N/A on my contract. I wonder what factors would make that fee applicable?
Looking at the Purchase Option section of the lease, there is nothing stating the added fees don’t apply within 3 months of lease end. It states that the disposition and 4% etc. would be applied if purchased at any point prior to the actual lease end.
So this makes sense: you’re terminating your lease early, this is the assessment.
Not 14 months early
I don’t see here this lease is being sold/traded for another MB, which a pull-ahead requirement, and it’s too early.
Start getting quotes from MB dealers to purchase your car if you are trying to get out of it. Otherwise if you are grounding your lease early, you have to pay the assessment.
Got it. So what you’re saying is you are not allowed to buy out a car that is in a current lease contract?
Not looking to ground the car, just trying to get an idea of what my payoff consists of. Based on the contract, there is a $3k discrepancy between the quoted payoff and my calculation. Was told this is based on an “early termination charge” that is $3k this month, but they are unable to tell me how that is calculated. Also not listed below as far as I can tell.
Got it. Did you call and request a payoff, or login and generate the payoff instructions? If the latter, can you share the breakdown?
For early termination or dealer buyout that makes sense. Direct to MBFS 
.
The online payoff information is pretty opaque. They list the amount inclusive of sales tax and nothing else. I should have actually written down everything that the agent on the phone was saying and not just cross referenced my notes. I’ll call back and see if I have better luck with someone else.
If not for that random $3k, the negative equity situation on this car becomes somewhat manageable, especially if I am able to negotiate a good discount on a new car. I’d like to know why they’re tacking that onto other early purchase fees.
And then you usually owe an amount determined by the early lease termination clause.
In certain states you owe the lesser amount between (A) remaining contractual obligations and (B) negative equity after the car is sold at auction.
You sure it’s not taxes? Usually payoff values include taxes.
