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Is it better to buy my lease

returningreturning FremontPosts: 26
edited December 2019 in Mercedes-Benz
Hello

Not sure if this is a good place to ask this question. Our lease for GLE350 2017 AWD will end next month. We are not sure if we buy it or just return it. To buy it we need to pay around 36500. The original MSRP was $61000

What really matters is how much maintenance cost we need to pay each year? I was told even one tire is around $1500.

We searched the current trade in price for 2014 ML 350, which is around 18500. If our GLE350 is also $18500 3 years later, that seems fine, because 36500-18500=18000. It sounds like leasing it for another 3 years with 6000 each year, which is 500 each month. But it will cost much more if maintenance cost is high.

So, our questions are:
1, What is my GLE350 RV 3 years later? Does it worth $18500?
2, Does it sound like a deal to lease an old gle350 2017 with $500 each month? Our original lease is around $630 each month.
3, What is approximate maintenance cost?

Thank you.

Comments

  • kyfdxkyfdx Posts: 180,588
    returning said:

    Hello

    Not sure if this is a good place to ask this question. Our lease for GLE350 2017 AWD will end next month. We are not sure if we buy it or just return it. To buy it we need to pay around 36500. The original MSRP was $61000

    What really matters is how much maintenance cost we need to pay each year? I was told even one tire is around $1500.

    We searched the current trade in price for 2014 ML 350, which is around 18500. If our GLE350 is also $18500 3 years later, that seems fine, because 36500-18500=18000. It sounds like leasing it for another 3 years with 6000 each year, which is 500 each month. But it will cost much more if maintenance cost is high.

    So, our questions are:
    1, What is my GLE350 RV 3 years later? Does it worth $18500?
    2, Does it sound like a deal to lease an old gle350 2017 with $500 each month? Our original lease is around $630 each month.
    3, What is approximate maintenance cost?

    Thank you.

    1) No one can tell the future
    2) Your scenario doesn't account for the time value of money. $18K depreciation doesn't factor in finance costs.
    3) Weren't you paying for maintenance during your lease? Or, did you purchase a maintenance plan?

    Lease costs are relatively fixed. While owning costs can be variable. You are trying to compare apples to oranges, especially with a used car vs. a new car lease. And, a $1500 tire (not true,by the way) would be out of your pocket, buy or lease, right?

    I would guess a new 2020 GLE would be closer to $800-$1000 per month to lease... so, again, apples to oranges.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • spicymikeyspicymikey Orlando FLPosts: 96
    Almost in every circumstance the answer is no. Maufacturers offer you a very unrealistically high residual value when you lease a car. There are legitimate business reasons for that and we won't go into it here. But that leaves you with a buy out that is much higher than the street value. There have only been 2 times in 30 years where my car was worth more than the payout. And even then, I just bought it so I could sell it for a profit and take the money to lease another vehicle.
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