If you are prepared, your lease end process should be simple and easy. It is best to begin the process six (6) months prior to expiration. Mercedes-Benz of Buffalo sends a lease expiration awareness letter around this time inviting you to review your options. This important first step will help you make an informed decision on what to do with your current vehicle. Based on the mileage of your current vehicle, our dealership can present five (5) lease end options to consider:
Five (5) Lease End Options
1. Return and lease a new car.
2. Trade leased vehicle for equity.
3. Purchase the car for the “residual” amount.
4. Extend the lease for a limited amount of time.
5. Return the car and walk away from it.
Return and lease a new car:
Mercedes-Benz offers a wealth of incentives and programs to maintain your loyalty. Mercedes-Benz of Buffalo will assess your current lease status evaluating the multiple lease incentives you can qualify for. The many benefits to simply returning your current car and leasing a new vehicle include:
1. Most advanced style and technology.
2. “Pull Forward” payment waivers
3. Over mileage waivers
4. Disposition waivers
5. Updated warranty
6. Maintenance Inclusion
Trade leased vehicle for equity:
Many people are unaware of the possibility to earn equity in their leased vehicle. If the wholesale value is worth more than the lease buyout you may have equity. This equity can be applied to your new lease or purchase. The probability of this occurring is rare, yet is something Mercedes-Benz of Buffalo always assesses for you at lease end to maximize any benefits you have coming.
Purchase the car:
If the car still fits your current needs, has been generally repair free, and you like the car; buying it is an option. Mercedes-Benz of Buffalo can enroll your current lease into their Certified Pre-Owned Program. This is a great advantage to any customer deciding to purchase their vehicle off lease. Depending on the model and programs, you can qualify for extended warranties, vehicle inspections, reconditioning, special finance rates and payment waivers. This process should be set up through the dealership, these benefits are not offered if you opt to purchase directly from the leasing company.
Extend the lease:
Another relatively unknown option you have is to extend the lease short-term. Extending the lease makes sense if you’re at a point of uncertainty in your life. Peoples’ lifestyle is in constant flux, maybe you’re getting transferred, anticipating starting a family or you know you’ll be getting a bonus in the next month or two. Extending the lease can bridge this valley of uncertainty, offering needed time to make a more informed decision. Normally, extensions are arranged through the lease company, and the process and policies can vary.
Return the car and walk away
Prepare for an inspection. Before the inspection takes place, you can help yourself by having the car professionally cleaned, waxed, vacuumed and detailed. Mercedes-Benz Financial lease inspections are performed at the dealership. The inspector will check the car’s interior, exterior and mechanical condition. “Normal wear and tear” is expected. “Normal” includes dings, minor dents, small scratches, stone chips in the paint finish and reduced tread on the tires. Tire wear is particularly important. Tires should be matching and have certain tread depth. Excessive wear includes such items as broken or missing parts, dented body panels or trim, damaged fabric, cracked or broken glass, poor quality repairs, unsightly alterations, tire or wheel damage or less than 1/8-inch tread, or mechanical or electrical malfunctions. Additional cost include a “disposition fee”. This fee is charged by the leasing company to pay administration, transport, and auctions fees associated with the disposal of the lease turn-in. Over-mileage of 25 cents per mile is also charged plus any applicable taxes. You’re responsible for the repairs. If you begin the process early enough, you have the option to shop for repairs yourself.
There are advantage and disadvantages to each of the five (5) choices. There are many factors to consider when determining which option to exercise. Please contact me at 716-817-6544 to assess your situation and recommend options that best suit your needs.