hi there, i’m new to this forum but definitely excited to learn from you all. i’m currently leasing a GL350 with 7 payments left (as of today, come 11/1, it’ll be 6). anyway, i was curious to see what the payoff amount is and for some reason the amount listed does not add up to my residual and remaining payments. the payoff amount is $5k more. anyone come across something like this? i called MBFS but the guy on the phone couldn’t tell me anything. many thanks.
Maybe MBFS includes tax in the payoff amount?
If your desire is to get another mercedes Lease, the pull ahead will likely increase to 5 payments during the winter dream event starting November 3rd
Could be early termination fees. They get pretty nasty outside of 6 mos.
If you escalate with MBFS on the phone they will get a specialist to break down the payoff for you to the nickel.
There shouldn’t be any early termination fee for a buyout.
Actually that’s precisely what the early term fee is for. It’s not just for involuntary early term. Voluntary term, including trading a car in early, may incur early term fees.
In my MB lease there is a 4% penalty for an early buyout. So for example if there are 10 payments left at $500 per payment = $5000 worth of payments, there would be a 4% penalty = $200.
$5K penalty? That is obscene. But if it’s in the contact you signed, there’s not much you can do about it. ALWAYS READ THE FINE PRINT.
Or it could be sales tax as well. If you take out sales tax, does the number match what you think it should be?
Thanks for replying. It explicitly states no taxes included in payoff. So it must be the penalty. Payments pre tax are just under 900/month so with 7 payments left I can see how that 4% would make a big dent. Really sucks…
Just doesn’t make sense to penalize someone if they would like to go ahead and “purchase” the car
Yes, the local dealership told me about this - it’s only for 2017 models though. 2018 models offer only 3 month pull-ahead. As an aside, anyone know if MB discontinued the MF discount for autopay?
The discount is still in effect (or at least it was 2 months ago).
But even if you have the 4% penalty, that’s nowhere close to $5K. There’s something funky going on there.
As for why MB does the penalty? Same reason people climb mountains…because it’s there 
Most people don’t even read that stuff and for the few that do (like me) it’s not a deal breaker. And there is a second “penalty” as well, of $150 if at the end of the lease I purchase the car. Leasing companies would rather you not purchase, period.
Yes, discontinued…
I agree. Not that this would have been a deal-breaker for me when I leased the car but I guess it’s good to know from now on. It’s becoming more and more apparent that they would like to get me into another lease before this one ends…makes sense from their part.
So I finally got an answer. It does include taxes (despite website saying otherwise). Thanks to everyone for their help! Besides going into another Mercedes, does anyone know of good conquest offers? I know of Porsche (6 mos I believe). Anyone else?
Thanks!
We had the same thing on our Audi payoff. Were you able to find out if you have to pay the sales tax if you trade-in or sell the car to a place like Carmax/other dealer?
Volvo may still have their pull ahead on S90s
I didn’t ask but it basically seems like you end up buying the car and hence paying taxes and then doing a traditional trade at that point.
just an update (posted somewhere else but thought I’d add here:
Hi folks, just leased a 2017 GLS 450 (demo with 300 miles) today and wanted to get some constructive feedback.
Year, Make, Model, and Trim: [2017 Mercedes GLS450]
MSRP: [$84,730]
Selling Price: [$77,690]
Rebates: [$0]
Trade-in: [$0]
Months: [36]
Annual Mileage: [7500]
MF: [0.00111]
Residual: [$49,143]
Security Deposit: [$0]
Total Due At Signing: [$1080]
Monthly Payment (incl. tax): [$1080]
Zip Code: [37215]
Sales Tax Rate: [7%]
Leasehackr Score: [7.3]
Just as an aside, I was turning in a prior Mercedes lease that had $3000 worth of body damage (per body shop estimate) which was not counted against me. There was 5-payment pull ahead and I had 6 left, meaning the last payment ($960) was rolled into the price as well. Lastly monthly payment includes a maintenance plan that cost $850 but was residualized. I’m relatively new to this but I think I got a decent deal. Thoughts/advice for next lease? Many thanks.
Dealer win. Left about 5-8 grand on the table
5-8 grand?!?
Please explain