The current buyout would actually be lower than the residual value, with the buyout increasing each month until the end.
LOL have you seen the wholesale values on these? Adj MMR is in the 50s.
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Nope, didn’t plug in any numbers (guess OP can do it), just assuming that if he made lump sum payment, he had to pay for 24 mo’s depreciation upfront and get big discount on MF based on that huge upfront payment. Also assuming his RV on contract is calculated based on a wholesale amount at the lease termination 24 months after inception. I have never done lump sum one pay leases, wouldn’t make any sense to me, but surely they did the math and factored in RV of the car in 24 months into it? Or are those type of leases complete screw ups?
The RV is fixed at signing. My best guess is that RV is somewhere in the 70s region. So even if OP wanted to buy it out and sell it, it would be at a massive loss.
perhaps, I didn’t do the math. But that RV in 70’s, I assume, is RV at lease termination, not RV today. And since COVID at least the RV and carmax are matching (at least for cars I run through it). So, his 70’s RV, if it’s accurately calculated, should be the value he would get from carmax if he appraised it at the lease end (assuming the market stays as is now).
The rv is assigned at lease signing and has no bearing on reality.
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That’s not how RVs work. Mercs RV is not rooted in what the market for the car is currently. Again, the current Adj MMR is in the $50k range.
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RV is just an estimate, and it’s not even necessarily their best estimate.
They can overestimate RV if they want to boost volume via leases, and it’s considered less detrimental to the brand than an equivalent rebate upfront.
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I am not into straw man arguments, if anyone wants to attack a straw be my guest.
As to RV, isn’t the RV on lump sum one payment lease the same it would be on any regular lease deal, which is an estimate of RV at the time of lease termination (I am asking, I don’t know how the lump sum lease deals are done)?
Under normal lease terms he would have a current payoff on his car. Since he already paid his entire depreciation and rent charge upfront, isn’t his current buy-out on his current lease based on the RV he has on his contract (which would be an estimated RV of his current car 24 months after lease signing)? Again, this is not an assertion but a question, I have never done lump sum deals, nor do I suggest that RV is set in stone by Gods, or that it fluctuates through the term of lease, or that it is 100% accurate estimate of the wholesale value of the car now or in future or any other nonsense.
Yes. 1010101010
The issue is that the current value of the vehicle in the open market is well below the RV specified in the contract - so even though he has bought down close to (or below RV) due to heavy discounting/trunk money and rebates, he is still under water. $110K MSRP with a 73% RV = $80k, for a vehicle which is currently worth $55-60K.
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OP, I just saw your post from May, when you were very happy with EQS deal you have got with huge discounts.
Can you post your current numbers? What is your pay-off quote when you log in to MBFS?
Is it the same (as I assume) as your residual value at the lease termination, per your contract?
Also, go to Edmunds.com and click on “Appraise my car”, enter your vin, mileage and specs and post here the Carmax appraisal as well as Edmunds estimate of your car’s current value.
It will make it easier for all to analyze your situation and give you more or less relevant/useful advice.
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I don’t think his RV is 73%. Below is what he had posted in May, when he shared his deal on LH. His residual is 61%. He paid $14,017 to drive the car off.
61% of MSRP is $62958.10 and unless they royally screwed him on lease buy out after getting that huge lump sum from him, he should be able to buy his car now for $62958 (since he already made all the payments, including for depreciation and rent charge).
I did Nationwide search on cars.com and didn’t find anything for less than $69995 (or 70K) unless the Carfax shows “Branded title, buyback/lemon”. He used the car since April, and under his lease terms paid $584.04 for depreciation and rent charge. That’s $2920.20 so far. To break even, he would have to sell this car for $74,000 today (11096+62958). If he fetches 70K instead, he is losing $4000 (or effectively pays $800/mo extra for depreciation, on top of his lump sum payment). He is not in the greatest shape, but I guess he made a conscious decision to get into that car 5 months ago, and sometimes there is a price to pay for decisions made.
MSRP: $103210
Selling Price: $83120
Incentives: $11,000 (EV+Sams)
Residual: 61%
Acq Fee: $1095
Terms: 24/10k
One Pay Total: $14,017
15 months left of free charging
I paid the total w/ a new AMEX Biz Platinum scoring about 176k AMEX points to boot
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Well, then he is in more trouble than I thought if he wants to get out of that lease. He will have to absorb the difference between his total costs and current value of the car. I wouldn’t trade, I would just keep the car until the lease was over. I wouldn’t trade in any of my leases if I had negative equity, with the exception of racking up tens of thousands of miles above the limit. Then I would have killed its value anyway and it would make sense to sell it to highest bidder I could find. OP doesn’t appear to be in such position. He just wants to swap the car out of convenience, and if so will have to consider if he wants to pay a price to do that.
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List it on swapalease.com
I’ve gotten several cars from there prior
They have to apply for MB credit app and $600 transfer fee. Here in California many people would pay you what you paid and take it over
How does the OP get around the fact that, unless they live in CT, they can’t transfer an MB lease?
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I’ve taken over 3 leases last 8 years but I live in California. I’m not sure about CT but something doesn’t add up I thought lease transfers were up to the leasing company and not the state. I would go to swapalease.com and filter the search for leases in CT and that’ll give you the answer I suppose.
MB changed their policies on lease transfers in 2020. CT has a state law that requires they still be allowed, otherwise they haven’t processed them in years. When exactly did you last transfer a MB?
2020
But call/email them. I just checked. There are plenty of MBFS leases for transfer on that site