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You are in the Prices Paid - Buying & Leasing Experiences
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Mercedes-Benz M-Class, Car Leasing, SUV
#101 of 1615 2006 ML350 Lease gone bad!
Oct 02, 2006 (8:37 am)
I need advice. I leased a 2006 Mercedes ML 350 1 year ago for 4 years for $1023 a month under my company name. The total lease amount is $54,000 in which I put $8000 down and have paid easily $21000 already for this stupid SUV. Now I have this SUV for another 3 years what in the heck do I do? My credit score is 615 which in today's world means bad credit. Any advice would be great. I'm only paying this much because of my credit score. Can I trade down or trade it in on a lesser value car at mercedes or another auto maker?
Thanks ahead of time. My credit is what got me in trouble. I don't want to refinance like the salesman said to do when my credit score improves which it has since I leased the ML I think my score was 570 then now it is different in all reporting agencies. 640 650 610 which I think my average when I bought my partner's mini cooper 2 months ago was 615. I'm just sick of paying this ML note every month?? What to do. I have 3 years left. Do they let you down size your car to a cheaper car to lower your note?
#102 of 1615 Re: 2006 ML350 Lease gone bad! [kandc]
Oct 02, 2006 (3:34 pm)
Wholly Mackerel !!!!! Your paying over $1000/month for a ML350 after putting down (probably 3k for taxes and stuff and 5k for capital reduction). Even with bad credit your payments shouldn’t have been much over $800/month (in my option), but dealers will do anything people are willing to “sign” to do.
I’m going to suggest 3 things… none of them are that great and because I don’t know what our pay off is I’m kind of shooting in the dark. All of them are going to require you to take “a hit” and loose some $$$ … but your paying over $1000/month so even if you have to loose $8-10k (and that’s probably close to what it will be), you can recoup that kind of loss in less than a year.
1) If you need another car to replace it…. Consider going to a desperate American manufacture like Ford or GM, pick out a new model that you can live with (preferably a model that they are having trouble selling…. Like a Humvee) and they will more than likely give you a trade in price close to what you might get by selling it your self. People are reporting good deals on both sides of the purchase (trade and price for the new car) from dealers who “have” to move slowly moving inventory. Not the Toyotas or Hondas of the world though. The blue book values for your ML350 (and I made some assumptions that it was pretty loaded) is currently $38-40k. Your payoff can’t be more than $45k. If you can get $36-$39k from a dealer as a trade in I would do it just to get out of this crazy lease that seems to be at 20% interest (I am interested in what money factor they gave you).
2) Best option…. Sell it yourself …hopefully get $40k plus… payoff the lease and take the inevitable loss. If you keep it for another 3 years your losses will be HUGE.
3) I don’t know what your company is… but many intervals use company credentials to shelter liabilities. If you don’t care about your company name any longer… just walk away… let them repossess the white elephant … and the company will take the credit hit.. not you. I would usually never suggests such a path, but because the dealer ripped you off (IMHO)… I wouldn’t loose to much sleep worrying about the poor dealer.
But one thing appears pretty obvious to me… you’ve got to get rid of the truck. DO NOT KEEP PAYING OVER $1000/mo FOR THAT TRUCK. For that kind of payment you should be driving something a lot nicer. After 4 years you will have more than paid for it (roughly $54k or more) and you won’t even own it. I don’t think I was much real help, but your in a tough situation. Good luck….
#103 of 1615 thanks Kris 17
Oct 02, 2006 (5:00 pm)
I am a co signer on the lease under my company. Yeah I fiqured I got screwed. I put $8000 down with some left over from the previous lease. What manufacturer do you think I can trade it in with? I was told you can't get out of a lease unless you trade it in with the same manufacturer? Help again please. I really appreciate your help.
Oct 04, 2006 (8:31 am)
say that I don't think anybody forced you at gunpoint to sign this horrible lease deal. You did it on your own without doing research and knowing how leasing works. Don't do another thing until you've gone to the "10 steps to leasing a new car" thread on this website. Ultimately you are losing more money by keeping it but don't rush out and do something silly. I know I sound like a jerk but take some responsibility and educate yourself so things like this won't happen again. Car dealers take advantage of people who LET car dealers take advantage of them.
Slow down and make an informed, and educated move. Good luck and let us know how you do.
#105 of 1615 Re: Odd ML350 Lease [scottlma]
Oct 07, 2006 (9:23 pm)
Scott --kris17 is forgetting about the depreciation component. Big part of the payment. You can't just use the equivalent interest rate on a lease.
I ran your numbers and came up with approx $506 + $30 tax = $626 total. So $699 is a bad deal. You'd better learn how to work the numbers yourself so they can't take advantage of you.
So what's the new selling price at $1,000 over invoice? Critical number to a calculation. You also need to tell us the acq fee they're using, since that is added to the negotiated selling price.
Usually the purchase option at lease end is the residual, and your purchase option price is lower, so that's good.
Also, recognize that $5,000 divided by 39 = $128 per month. So if you had no cap cost reduction, your payment would just increase by that amount. Pay them now, or pay them over time. Your choice.
#106 of 1615 Latest lease deal
Nov 16, 2006 (11:31 am)
Do you happen to know the latest lease deal on the ML350?
Nov 27, 2006 (10:20 pm)
I just walked into a Dealer in Los Angeles today. Here you go the deal;
MRSP 51000, 27 Mth Lease, $4500 drive off, 10K / Year, the monthly pay is $545 without tax, with 700 MID FICO.
Does anyone know a better leasing program? Please HELP !!
#108 of 1615 new ML500 lease question
Nov 30, 2006 (1:58 pm)
this is what i was quoted for a new lease on a ML 500 pck gr 2 +exterior appearance group:
trade in 14591
terms 39 mo
rate 0.003815 (i have excellent credit...i was told this is MB tier 1)
net cap cost 43209.92
can i have some help deciding if it is a good deal or not?
i am brand new at thos leasing thing and not too familiar with rates and costs...
#109 of 1615 Re: new ML500 lease question [automobile1]
Dec 02, 2006 (5:32 am)
Couple of points:
They are making money of the "rate" - more commonly called the money factor. With tier one credit the money factor on that car is .00325. Dealers often mark this up because the consumer has no idea what they should be paying.
Unless you have money to burn (likely several thousand dollars) you should NEVER trade in a car. They are probably planning on making thousands on this part of the deal.
Also - IMHO it is never worth putting money down on a lease. All you are doing is saving the interest expense on whatever you use to reduce the cap cost. You will end up fighting (probably unsuccessfully) to get it back if you total the car.
The residual is correct, but make sure that they are calculating the residual based on the MSRP, not the purchase price. Residual values have no connection to what you pay for the vehicle.
I just finished purchasing a ML500 and frankly think that I got a much better deal on a similar model. Feel free to contact me at molearygrimeslog.com if you want some assistance. I can also send you an excel spreadsheet that will let you plug your own numbers in to double check the dealer.
#110 of 1615 Is this correct?
Feb 08, 2007 (7:13 pm)
Just read the latest ML350 lease offer at MBUSA. They charge a $795 acquisition fee plus a $595 vehicle turn-in fee. Almost $1400 in charges for the privelage of leasing!!
Are my eyes deceiving me