Mercedes Benz Payoff Quote Breakdown

Ask the Hackrs
21

Current MBFS lessee here. The 4% fee is on the adjusted lease balance, which is a different thing than the sum of remaining payments.

The adjusted lease balance is essentially your current payoff without any of the taxes/fees added.

What is the car in question? If your current payoff is around $75k then If I had to guess that’s where the $3k is coming from.

Also when I pull up my payoff online it is inclusive of everything but taxes (I live in a state where MBFS doesn’t include taxes in the payoff amount).

I remember I was shocked how high my payoff was the first time I checked 2 or 3 months into the lease, then I read the contract and saw the 4% penalty and it made sense.

22

Thanks. I thought the 4% was based only on the total of lease payments remaining but you’re saying it’s based on the total of lease payments and residual?

23

Def not taxes. This is something they’re labeling an early termination charge.

24

It’s 4% of the adjusted lease balance, which is essentially your current lease payoff not including any of the taxes or fees.

So if your payoff right now would be roughly $75k before taxes/fees then the all-in payoff would look something like:

$75k payoff
$3k early termination fee (4% x $75k)
$150 purchase fee (or whatever is in your contract)
$XXX sales tax (based on your local tax rate)

The sum of those things is what you will owe to buyout the car early.

25

Thanks man. Makes perfect sense in that case.

Do you know if the MB dealer payoff includes this?

26

Yep, the dealer payoff will include everything but sales tax.