• filter:
  • Page :
  • 1
  • Text Only
  • Search this Topic »
Voting History
rated:
I am sure these have existed and are nothing new but today I saw an advertisement for a consumer open end lease. I assume they make this very clear. Why would anyone agree to such terms?

Available only to qualified customers through Mercedes-Benz Financial Services. Monthly payment discount available to first-time lessees only. On select models. Plus tax, title, license, and dealer fees. Security deposit included. $0.25 per mile over 30,000 miles. $5,043 due at signing includes $549 first month's payment, $3,699 capitalized cost reduction, and $795 acquisition fee. An extra charge may be imposed at the end of the lease term where the lessee's liability (if any) is based on the difference between the residual value of the leased property and its realized value at the end of the lease term. With approved credit. Not all customers will qualify. Not available with some other offers. Residency restrictions may apply. See dealer for details.†Expires 1/31/17

Member Summary
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
Me: I'd like to return my lease vehicle.

MB: The actual value of the vehicle is less than the residual on the lease agreement.

Me: What's it worth then?

MB: Actual value is $15,000 instead of $35,000 on the lease agreement. You owe $20,000.

Me: Okay, I'll buy it for $15,000 and sell it to Carmax for $16k. Pocket $1k for doing less than a few hours of work.

Extreme example, but nonetheless shitty clause. †Lessee is ALWAYS better off returning a leased vehicle to the highest bidder.

rated:
Is this a situation where the lessee gets the risk of low resale value and the lessor gets the rewards of high resale value?
Or does the lessor pay the lessee if the resale value exceeds the residual value?

rated:
speedracer714 said:   Me: I'd like to return my lease vehicle.

MB: The actual value of the vehicle is less than the residual on the lease agreement.

Me: What's it worth then?

MB: Actual value is $15,000 instead of $35,000 on the lease agreement. You owe $20,000.

Me: Okay, I'll buy it for $15,000 and sell it to Carmax for $16k. Pocket $1k for doing less than a few hours of work.

Extreme example, but nonetheless shitty clause. †Lessee is ALWAYS better off returning a leased vehicle to the highest bidder.

† I don't see how that gets you out of owing them $20,000 as in your example.

rated:
I've heard that BMW typically gives good residuals upon return. Is that true??

rated:
Depends if you get it during a 'special' then the residual is most likely more than the value.

Hondas and Toyotas usually give good return value.

rated:
It a standard auto lease, and seems to just have confused use of†ß†1013

The real problem here is leasing a 52k car at over 650/mo ...it can be done for far less

rated:
The manufacturers are pretty good about predicting the residual. Even if they are wrong you would be better off buying the car, and then selling it in a few years 98% of the time.

rated:
pietromoon said:   
The real problem here is leasing a 52k car at over 650/mo ...it can be done for far less

† how?

rated:
rufflesinc said:   
pietromoon said:   
The real problem here is leasing a 52k car at over 650/mo ...it can be done for far less

† how?

††https://leasehackr.com/blog/2015/9/19/how-i-managed-to-lease-a-6...

rated:
The key is to not get attached to any particular vehicle. Look at a range of acceptable vehicles and lease from whoever has the best subsidized lease deals from the manufacturer's finance company. There are amazing lease deals possible if you are willing to go with what happens to have the best deal active when you are ready to get a new vehicle.

rated:
The whole point of leasing an expensive vehicle is to avoid the huge depreciation...

rated:
here we go... the leasing trolls found the thread

rated:
Considering someone who can afford $1000/month will use a New ID on Fatwallet.

rated:
gnopgnip said:   The manufacturers are pretty good about predicting the residual. Even if they are wrong you would be better off buying the car, and then selling it in a few years 98% of the time.
††
Can you explain?†

rated:
elizabethwangotron said:   Hello, I want to buy an F-type coupe Jaguar and I found this deal here https://dsrleasing.com/car-listings/2017-jaguar-f-type-coupe-automatic-s-british-design-edition-lease-729-mo/ A friends of mine pays much more for this model than this offer. The payment is only $1009. What do you think guys?
††
Stay away. †I used these guys, and my payment turned out to be twice what they were claiming. †Also, I'm pretty sure they went to my house while I was out of town and sexually abused my Golden Retriever. †

rated:
Moosy said:   
gnopgnip said:   The manufacturers are pretty good about predicting the residual. Even if they are wrong you would be better off buying the car, and then selling it in a few years 98% of the time.
††
Can you explain?†

††
It's hard for him to explain because he's not making any sense. If the manufacturer predicts a high residual, then you pay less over the course of the lease and the manufacturer eats the loss when the car is turned it. For instance if they estimate that the car is worth 60% at the end of the lease and it's worth 50%, you paid for 40% and got to use 50%. On the other hand if they say it's worth 50% and it's really worth 60% at trade in, that means you paid 50% and it was only worth 40%. You can get some of that back by just buying the car at least end. That's just a bad deal though, the best deal is when the manufacturer selects an artificially high residual and you can confirm that by checking to see what used cars of the same model are selling for now that are lease returns. Then the manufacturer is basically subsidizing the cost of the lease and eating the loss at the end. That's why leasing can be good, take 10% off at the top and the if the residual is too high, you're getting another bonus when turning the car in and if you apply the rebate just to the lease period, the lease works out cheaper than buying.†

The craziest part of an open ended lease is that the greatest depreciation takes place at the beginning of the lease, but the payments are averaged out over the life of the lease, you're actually paying more by keeping it longer.†

rated:
You're too bumped dude.. That's too much!

rated:
Hello guys, Iím planning to buy latest BMW on leasing from past 2 months but I canít found any good deal on it. So, Can anyone tell me the good car leasing dealer?

rated:
ryanthompsonastic said:   Hello guys, Iím planning to buy latest BMW on leasing from past 2 months but I canít found any good deal on it. So, Can anyone tell me the good car leasing dealer?
† The dealer nearest your house.

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017