Does the Mercedes Benz Lease Loyalty/Accelerator program actually reduce your payoff ?

davidmck1

Getting ready to lease a new E350 today. I have my payoff amount and wondered if the 5 payment loyalty amount would be deducted from the gross payoff. I am not getting a straight answer from the dealer.

Michaell

davidmck1 said:

Now I am confused as I just spoke with MB financial and they told me that it reduces the payoff amount. Let me share with you where I am on my lease for a new MB E350 sport. MSRP 58,205.00 Selling price $45,345 Doc Fee $499.00 Acq. Fee 495. Cap cost $46,399. 36 month 10 k per year. Residual value $33,176.85 Money factor0.00030 payment without tax $391.15 no money down other than first payment plus 39.00 for tag and title. This looks very good to me and this is brand new. Your thoughts?

I get the same payment.

Michaell

davidmck1 said:

I have 11 payments left with a 22,500 residual. my payoff from MB Financial is 27,700 payments are $435.00 per month. I assume as long as I am leasing another MB that they will multiply 435.00 x 5 and subtract from the 27,700? Thanks for trying to help clarify.

Ah, now I see. You have more than 5 payments left on your lease. Normally, the accelerator program is applicable when you have 5 or fewer payments to go. You may have to reach out to the dealer to see if the program can even be used in your situation.

Michaell

davidmck1 said:

Getting ready to lease a new E350 today. I have my payoff amount and wondered if the 5 payment loyalty amount would be deducted from the gross payoff. I am not getting a straight answer from the dealer.

The way I understand it, it doesn't reduce your "payoff" amount, simply covers up to the last 5 lease payments to be made. This is an MBFS incentive to the dealers, so the dealer isn't out any money.

And, neither are you.

davidmck1

Now I am confused as I just spoke with MB financial and they told me that it reduces the payoff amount. Let me share with you where I am on my lease for a new MB E350 sport. MSRP 58,205.00 Selling price $45,345 Doc Fee $499.00 Acq. Fee 495. Cap cost $46,399. 36 month 10 k per year. Residual value $33,176.85 Money factor0.00030 payment without tax $391.15 no money down other than first payment plus 39.00 for tag and title. This looks very good to me and this is brand new. Your thoughts?

tampadarling

The 5 payment loyalty should reduce your Lease Balance to zero, yes. But the overall payoff, that your dealer will have to remit to MB Financial, will still have the Residual Value left over. There would probably be a Disposition Fee and any Excess Wear and Tear too. Most of what I just said was already covered here, but just trying to explain it in a different way I guess.

davidmck1

I have 11 payments left with a 22,500 residual. my payoff from MB Financial is 27,700 payments are $435.00 per month. I assume as long as I am leasing another MB that they will multiply 435.00 x 5 and subtract from the 27,700? Thanks for trying to help clarify.

mlevine

davidmck1,
Is the other vehicle a lease? If so then you have 11 payments left. You are entitled to 5 payment lease accelerator and hence 6 payments left. There is $2,610 to be accounted for which may taken into consideration in your lease as part of discount money available or depending on the model of your old lease could have positive equity. MB does not charge disposition fees if you get into another MB model. There is also a tendency to not charge you wear and tear even items like tires if you get another MB. I hope his helps. I also hope that I have understood your current situation correctly.

mlevine

davidmck1,
When you lease, the residual value is the payment necessary if you want to buy that vehicle at the end of the lease. You should be only responsible for the remaining payments which would be 6 x $435.00. Sometimes a dealer will help you with these payments as explained above.