It’s a hack. Like, you know, what this site is all about.
Cars that don’t require expensive maintenance don’t really have that much fat to trim. There are small savings at the dealership level like service coupons or discounts for prepaying, like a local Nissan dealer has “7 oil changes for the price of 5”
It doesn’t always. Sometimes a dealer will try to sell you a 4-yr plan on a 3-yr lease (we’ve seen that here). At other times, they will try to sell it do you at full price, unless you know to ask to residualize it.
Oh you have to ask for it to be Residualized, I see.
I don’t know if you have to ask for it to be residualized w/ an MB dealer. I think some their dealers are prob just better at being more forthcoming w/ that info then are other dealers…
But, if they don’t offer, then definitely ask.
I have no idea if/how it would work w/ other brands.
I don’t think the uninformed buyer has to worry about it being not residualized as much as they need to know the selling price of the contract.
Any markup above MSRP isn’t residualized and comes straight out of your pocket.
Hey,
Sorry, but can you elaborate on what kind of markups are you referring to? Like random mats etc charges?
they are talking about the extra items like Prepaid Maintenance and W&T warranties.
Thanks. Yeah, I got that but what does markup above MSRP mean? I did not get that part.
Really??? I hadn’t realize that. Yikes.
Not @max_g, but I assume what they mean is that the PPM actually has a “real” MSRP, even if it’s not listed on the mbusa website anymore. Let’s say $1100 for a 3-yr plan. The dealership can ask $1500 for it, and, if I’m understanding it correctly, the extra $400 you quoted isn’t residualized.
This wasn’t the case with my lease I think. They gave me PPM for 2000 and 1000 for lease care for 3yr and added it to car MSRP. I believe they residualized the whole 3000 as my my monthly payment increased by ~35/month.
That math doesn’t add up and I’m pretty sure Leasecare cannot be residualized, that came entirely out of pocket.
This is interesting. I had no idea. Do you think PPM above MSRP is also not residualized?