I haven’t locked into a payment method yet (and won’t until I take ownership in late January). The salesperson told me that the $7500 I’d save on the lease EV credit would get eaten up by the MF for the lease itself. So at the moment, it doesn’t make sense to lease and then pay the payoff amount after Month 1.
If the MF decreases in January, it might be an option. But he told me that the MF for my particular car is currently equivalent to about 7-8% APR.
Your salesperson doesn’t understand how early lease buyouts are calculated, so they gave you information that would cost your thousands of dollars if you listened to them.
And why does MF matter, if you are doing an immediate buyout?
Because if the dealership was to inflate it, so does the payoff?
Stop talking to morons. The rent charge or “MF” will cost you thousands over the life of the lease.
It costs next to nothing between the day the lease is signed and the day the next payment is due.
Payoff does not include unearned interest and the dealer doesn’t know she will do buyout right away.
Hmm, maybe I’m asking him the wrong question then. Once January rolls around and I get closer to taking ownership of the vehicle, what are the best questions to ask for the lease with immediate buyout option?
But it really doesn’t inflate the payoff, other than a minor amount from the first payment.
The only question to ask of the dealership is for a copy of the contract to review. There is no reason to ask them avout immediate buyouts.
Hmm… Maybe you should not ask him any questions, but tell him what you want?
I’m confused by why you need to wait until January.
There are questions to think about for yourself right now before asking the dealer anything:
Does the pre-incentive selling price of the car change w/ finance vs. lease?
Are there any incentives for financing that do not apply to leasing?
Are there any incentives for leasing that do not apply to financing?
The answer to the first one should be “no,” the answer to the second one is “presumably not, for this model at this time,” and the answer to the third one is “absolutely.”
That’s what @max_g was saying that it’s basically a mathematical impossibility for a cash-only purchase to be cheaper than a lease w/ immediate buyout.
@max_g You’re 100% correct… except that’s not I meant. I was talking about the salesperson-turned-financial-advisor’s fuzzy math not adding up. He made $6,400 (credit less acq fee,) disappear. Accidentally or otherwise, still wrong.
@evitawylie all you need to worry about is the lowest cap cost on the car you want and making sure the math genius doesn’t sneak in any snake oil garbage to pad his profits. And, yes, do it now as opposed to waiting until January. Lastly, keep checking what’s available locally. You might be able to find something else to your liking and strike a deal before the year end when the dealers might be highly motivated to move an extra unit or ten.
I must be a terrible negotiator. I called the salesperson this morning to tell him I wanted to pay as much upfront as I could (something outrageous like $60k) so I could lease it for the least amount and take advantage of the $7500 PHEV lease credit.
Here is what he told me, whether right or wrong.
He said that with a lease from MB, the contract explicitly states that the lessee is obligated to pay the stated amount agreed upon in the monthly payments with no exceptions. So, if my monthly payment is $1000, and I want to buy out the lease early, I am still obligated to pay the remaining months multiplied by $1000 (plus the residual value and any early termination fees). There is no discount, and I cannot just pay the cap and forget about the interest or MF. The interest or MF is non-negotiable and has to be paid no matter what.
In addition, the most I am able to put down is 20% of the MSRP.
Does any of this sound right? Or is he trying to pull a quick one?
I think in luxury segment GLE 450e is the best one out there. I so wish X5 catches up in regards to range and DC fast charging.
GLE does win on EV range and back seat, but the X5 50e has 100 more hp and is way faster. I don’t think DC fast charging is of any real use on a car with 40 miles of ev range. With 60 miles, eh maybe a little but I still don’t think so.
Stop talking to the salesmen about your lease to buy scenario. Theyre clueless.
If you really be a dick, ask him to explain why he is giving you information that is in direct violation of the contract terms and why he is telling you that MB would be violating the consumer leasing act of 1976 by charging costs above and beyond the contract terms.
DC charging is irrelevant to a PHEV. When it runs out of electric power, you run on gas. That’s literally the whole point of a PHEV.
Otherwise you’d get a BEV.
@evitawylie alresdy told who not to talk to but you keep on wasting everyone’s time correcting the misinformation you are getting.
The only thing that matters in your scenario is that the bank won’t accept a down payment that takes the net cap cost below RV. So there is a limit to what down payment you can make on a lease. But does it matter whether you’re writing a big check at lease inception or a couple weeks later for the payoff?
Just DM me
I agree, for some reason it seems like only sales managers get trained on leases. Adding in complexity like the fed credit with early buyout seems to be something the general auto sales channel wasn’t ready for.
Tesla just made it easy on their staff by barring people from acquiring a leased vehicle with a buyout (if originated through Tesla’s affiliated financing channels) .
Nah, theyre usually clueless about early buyout terms as well.
The issue simply comes down to they don’t bother to read the lease contracts, particularly the parts that don’t affect them.
