Would like to have your opinion!!

Tiktik · September 2021

Hello, this is the first post for me here and thank you for your time!!

Currently, I have a lease 2018 GLE 43 coupe and the lease ends this month. The buy out is 39k. A few dealerships offered me 60k for this.

Now, I am looking for a new lease GLE 52 coupe but all dealership said that they have 10-15k mark up on top of the mrsp…due to the shortage of inventory and high demand. I got a few lease quotes from few dealerships but the payment is like crazy. (I’m from South Bay, CA by the way)

I thought that maybe I could sell my current GLE, get the 21k (39k goes to MF), and use that for the down payment for the next lease but I am not sure if this is the best option.

Since I am not expert on this, I wanted to have your idea what you would do. (Maybe financing a new car or wait for this trend ends after buying out the current lease, or just extend the current lease…?)

Much appreciate your time!!!

kyfdx · September 2021

Tiktik said:
Hello, this is the first post for me here and thank you for your time!!

Currently, I have a lease 2018 GLE 43 coupe and the lease ends this month. The buy out is 39k. A few dealerships offered me 60k for this.

Now, I am looking for a new lease GLE 52 coupe but all dealership said that they have 10-15k mark up on top of the mrsp…due to the shortage of inventory and high demand. I got a few lease quotes from few dealerships but the payment is like crazy. (I’m from South Bay, CA by the way)

I thought that maybe I could sell my current GLE, get the 21k (39k goes to MF), and use that for the down payment for the next lease but I am not sure if this is the best option.

Since I am not expert on this, I wanted to have your idea what you would do. (Maybe financing a new car or wait for this trend ends after buying out the current lease, or just extend the current lease…?)

Much appreciate your time!!!

Get quotes from Carvana, Vroom and Carmax. They can buy your car directly from MBFS, and you won't have to do anything but provide them your registration and lease statement. But, if you are in the last month of your lease, there may be restrictions on who you can sell it to.

But, assuming you clear a big chunk of money, you'll have to make a decision independent of what you do, next. No point in overpaying, just because you've realized a windfall.

Tiktik · September 2021

kyfdx

Thank you for your response.
One of the dealerships just gave me this break down for the new lease and I am wondering if this is a good deal or any spot to negotiate.

2021 GLE 53 Coupe
MSRP: $90945
Selling Price: $105945 (They marked 15k)
Residual: 54%
Down Payment: 15k
MF: 0.00200
Cap Reduction: $9976,16
Sales Tax: 1059.84
License/Reg Fee: $1041
Up Front Luxury Tax: “In PYMT”
Acq Fee: $1095
Dealer Document Fee: $85
36 months/10000 miles per year
Monthly Payment (Inc Los Angeles Tax): 1743.01

They said they used Tier 1 for this.

I know that the mark up is ridiculous because of all the dealerships around LA are doing the same.

If you can advice me on this deal, that would be great.
I have not asked about MSD yet.

Thank you!

Tiktik · September 2021

kyfdx said:

Tiktik said:
Hello, this is the first post for me here and thank you for your time!!

Currently, I have a lease 2018 GLE 43 coupe and the lease ends this month. The buy out is 39k. A few dealerships offered me 60k for this.

Now, I am looking for a new lease GLE 52 coupe but all dealership said that they have 10-15k mark up on top of the mrsp…due to the shortage of inventory and high demand. I got a few lease quotes from few dealerships but the payment is like crazy. (I’m from South Bay, CA by the way)

I thought that maybe I could sell my current GLE, get the 21k (39k goes to MF), and use that for the down payment for the next lease but I am not sure if this is the best option.

Since I am not expert on this, I wanted to have your idea what you would do. (Maybe financing a new car or wait for this trend ends after buying out the current lease, or just extend the current lease…?)

Much appreciate your time!!!

Get quotes from Carvana, Vroom and Carmax. They can buy your car directly from MBFS, and you won't have to do anything but provide them your registration and lease statement. But, if you are in the last month of your lease, there may be restrictions on who you can sell it to.

But, assuming you clear a big chunk of money, you'll have to make a decision independent of what you do, next. No point in overpaying, just because you've realized a windfall.

@kyfdx

Thank you for your response.
One of the dealerships just gave me this break down for the new lease and I am wondering if this is a good deal or any spot to negotiate.

2021 GLE 53 Coupe
MSRP: $90945
Selling Price: $105945 (They marked 15k)
Residual: 54%
Down Payment: 15k
MF: 0.00200
Cap Reduction: $9976,16
Sales Tax: 1059.84
License/Reg Fee: $1041
Up Front Luxury Tax: “In PYMT”
Acq Fee: $1095
Dealer Document Fee: $85
36 months/10000 miles per year
Monthly Payment (Inc Los Angeles Tax): 1743.01

They said they used Tier 1 for this.

I know that the mark up is ridiculous because of all the dealerships around LA are doing the same.

If you can advice me on this deal, that would be great.
I have not asked about MSD yet.

Thank you!

Michaell · September 2021

Tiktik said:

kyfdx said:

Tiktik said:
Hello, this is the first post for me here and thank you for your time!!

Currently, I have a lease 2018 GLE 43 coupe and the lease ends this month. The buy out is 39k. A few dealerships offered me 60k for this.

Now, I am looking for a new lease GLE 52 coupe but all dealership said that they have 10-15k mark up on top of the mrsp…due to the shortage of inventory and high demand. I got a few lease quotes from few dealerships but the payment is like crazy. (I’m from South Bay, CA by the way)

I thought that maybe I could sell my current GLE, get the 21k (39k goes to MF), and use that for the down payment for the next lease but I am not sure if this is the best option.

Since I am not expert on this, I wanted to have your idea what you would do. (Maybe financing a new car or wait for this trend ends after buying out the current lease, or just extend the current lease…?)

Much appreciate your time!!!

Get quotes from Carvana, Vroom and Carmax. They can buy your car directly from MBFS, and you won't have to do anything but provide them your registration and lease statement. But, if you are in the last month of your lease, there may be restrictions on who you can sell it to.

But, assuming you clear a big chunk of money, you'll have to make a decision independent of what you do, next. No point in overpaying, just because you've realized a windfall.

@kyfdx

Thank you for your response.
One of the dealerships just gave me this break down for the new lease and I am wondering if this is a good deal or any spot to negotiate.

2021 GLE 53 Coupe
MSRP: $90945
Selling Price: $105945 (They marked 15k)
Residual: 54%
Down Payment: 15k
MF: 0.00200
Cap Reduction: $9976,16
Sales Tax: 1059.84
License/Reg Fee: $1041
Up Front Luxury Tax: “In PYMT”
Acq Fee: $1095
Dealer Document Fee: $85
36 months/10000 miles per year
Monthly Payment (Inc Los Angeles Tax): 1743.01

They said they used Tier 1 for this.

I know that the mark up is ridiculous because of all the dealerships around LA are doing the same.

If you can advice me on this deal, that would be great.
I have not asked about MSD yet.

Thank you!

In my opinion, $15K over MSRP would end the conversation.

When did CA institute a "luxury tax" for leases? That's news to me.

You're probably better off buying out your lease, if that's the kind of quote you're going to get.

Tiktik · September 2021

@Michaell said:
In my opinion, $15K over MSRP would end the conversation.

When did CA institute a "luxury tax" for leases? That's news to me.

You're probably better off buying out your lease, if that's the kind of quote you're going to get.

Thank you for your advise!
Yes it looks like it. They said that there’s no luxury tax it’s just the software shows it as default. But they are not willing to negotiate on the 15k over msrp as obviously there are some buyers still buying at the price I guess.

Do you know if there is some chance that I can have some discount on this buying out? Any CPO warranty?

Maybe my plan for the new lease for now is to wait on the inventory backed up a little bit so that the mark up decrease.

Michaell · September 2021

Tiktik said:

@Michaell said:

In my opinion, $15K over MSRP would end the conversation.

When did CA institute a "luxury tax" for leases? That's news to me.

You're probably better off buying out your lease, if that's the kind of quote you're going to get.

Thank you for your advise!

Yes it looks like it. They said that there’s no luxury tax it’s just the software shows it as default. But they are not willing to negotiate on the 15k over msrp as obviously there are some buyers still buying at the price I guess.

Do you know if there is some chance that I can have some discount on this buying out? Any CPO warranty?

Maybe my plan for the new lease for now is to wait on the inventory backed up a little bit so that the mark up decrease.

Can’t negotiate the buyout price; it’s fixed in the contract you signed.

Talk to the dealer about CPO.

peroz18 · January 2022

I personally would refrain from leasing when the prices are marked up over MSRP. My consideration is that the residual is calculated based on MSRP, so that mark up (e.g. $15K) is spread over the term of the lease --say 36 months. It is basically paying ~$420/mo for 3 years just because of the supply issues. I'm sure some are not concerned about this, but I think it is asinine.

peroz18 · January 2022

I personally would refrain from leasing when the prices are marked up over MSRP. My consideration is that the residual is calculated based on MSRP, so that mark up (e.g. $15K) is spread over the term of the lease --say 36 months. It is basically paying ~$420/mo for 3 years just because of the supply issues. I'm sure some are not concerned about this, but I think it is asinine.

Would like to have your opinion!!

Answers

Helpful Tools

Most popular vehicles