lease ending soon... buy?

[Prettybg]

Hello,

I'm looking for suggestions/opinions.

I am currently leasing a 2011 GL450. My lease ends on 5/13/14. The buyout is $45,300 including my april pmt. KBB estimated value at $42,000. I only have 21,000 miles on it. It's in excellent condition, no dints, dings or anything.

Should I buy it even tho it cost more than what KBB values it at today? pros? cons?

Thanks in advance.

[Remember0]

Funny thing...just wrote something on lease termination in my guide here: http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-or-Refinancing-a-Car/td-p/2898...

MB USA probably won't negotiate with you though due to their policy (read the section on termination for context). I think it comes down to the car itself. Was it a good car you see yourself driving for a while longer? If so, makes sense to buy. Do you want a new car instead?

What KBB version is that? Retail? If that's the retail and not the good value trade-in, MBUSA is going to take a hosing if you don't buy it. I'd see if a dealership isn't willing to buy from MBUSA and sell to you for a little above wholesale value. If you have a car dealer for a friend or someone who has access to Manheim, see if they can give you a print out of Manheim MMR. Else, wholesale value is around KBB trade in good condition. See if you can't get the dealer to sell it to you for 3k over good condition KBB trade-in MAX on the spot (aka same day as turn in)...

With the dealer, mention that you've seen Manheim prices and MMR (use that abbreveation) even if you haven't haha. You'll look like you know what you speak of even if you don't lol.

[Prettybg]

I knew someone would comment with EXCELLENT info!! Thank u!

[Creditaddict]

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@Prettybg wrote:

Hello,

I'm looking for suggestions/opinions.

I am currently leasing a 2011 GL450. My lease ends on 5/13/14. The buyout is $45,300 including my april pmt. KBB estimated value at $42,000. I only have 21,000 miles on it. It's in excellent condition, no dints, dings or anything.

Should I buy it even tho it cost more than what KBB values it at today? pros? cons?

Thanks in advance.

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I think 2nd poster gave you the best info but Id just add if you actually have interest in keeping the car more long term have you talked to MB? a lot of times they can offer special financing and a lot of times easier financing to keep the car instead of turning in... although I see you have access to Navy so MB might not be able to beat that... just depends on if you can get that much financing from navy and if you want it... I assume it's going to be a jump in payment to buy it now vs what you have been leasing it for.

[Remember0]

I doubt anybody is going to be able to beat DCU's new 1.24% for 65 months promo (with a EQ over 675).

Maybe for a new car, a captive can offer 0% or 1% financing. But for used or a lease buyout, I'd go ask DCU first. I'm not sure what they're thinking, but they certainly can't be profiting much @ 1.24% for 65 months.

[Prettybg]

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@Creditaddict wrote:

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@Prettybg wrote:

Hello,

I'm looking for suggestions/opinions.

I am currently leasing a 2011 GL450. My lease ends on 5/13/14. The buyout is $45,300 including my april pmt. KBB estimated value at $42,000. I only have 21,000 miles on it. It's in excellent condition, no dints, dings or anything.

Should I buy it even tho it cost more than what KBB values it at today? pros? cons?

Thanks in advance.

---

I think 2nd poster gave you the best info but Id just add if you actually have interest in keeping the car more long term have you talked to MB? a lot of times they can offer special financing and a lot of times easier financing to keep the car instead of turning in... although I see you have access to Navy so MB might not be able to beat that... just depends on if you can get that much financing from navy and if you want it... I assume it's going to be a jump in payment to buy it now vs what you have been leasing it for.

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Thanks for replying! Just weighing my options as I still have a lil more time. I would love to keep it, never had any problems with it. I just figured mb wouldnt offer anything more since it wasn't offer when I called and asked for my end of lease optigons. All they said was my buyout price or turn it in. Should I call back and ask about special financing? I looked at the rates for navy, it wld be a used car rate at 5.49 or something like that. I called and that's what they told me And yes my monthly pmt wld be tooooo high. 

[Prettybg]

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@Remember0 wrote:

I doubt anybody is going to be able to beat DCU's new 1.24% for 65 months promo (with a EQ over 675).

@Maybe for a new car, a captive can offer 0% or 1% financing. But for used or a lease buyout, I'd go ask DCU first. I'm not sure what they're thinking, but they certainly can't be profiting much @ 1.24% for 65 months.

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I called them too, was told a used car rate would be 3.99 for 65 months if approved. I want to keep my truck but don't want to pay soooo much more monthly. Seems like I may be turning it back in 

[Remember0]

Wait, DCU has 1.29% posted on their website? They have a higher rate if you use it to buy out your lease?!

You could also look into other banks or local CUs...What's your FICO look like?

Also even 35k @ 65 months @ 4% can't be much higher than what you pay now? I imagine you MUST be paying 600-ish at least now?

EDIT: And yes, I'd call and ask if they have special financing. Also ask if they can negotiate buyout price. Mention that the wholesale values (Manheim MMR) are FAR below what they are asking you. And if one rep says no, try calling back tomorrow and the day after to see if you get a different answer. Worst thing they say is no. Then like I said in my guide, try calling dealers to assess how they work for lease turn in. Finally, if nothing works, try negotiating the price with the dealer at turn in.

[Prettybg]

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@Remember0 wrote:

Wait, DCU has 1.29% posted on their website? They have a higher rate if you use it to buy out your lease?!

You could also look into other banks or local CUs...What's your FICO look like?

@Also even 35k @ 65 months @ 4% can't be much higher than what you pay now? I imagine you MUST be paying 600-ish at least now?

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I called them last Friday. Just checked the site, you are right. Must have posted after I called. I'm paying 560 rite now total (I know I probably won't get that low again.) I'm on with mb now asking about special financing.

[Remember0]

Don't forget to ask about negotiating the lease end purchase price because the car is worth MUCH less wholesale (MMR) than what they are offering you.