POV End of Lease and WAY Over Miles

[@NotBackstretch]

all this stress over a demo CLA....

[@DJ-ws6je]

that's cuz he works way more than he is paid to do. it's called underemployment

[@LewTitterton]

The "stress" makes for a video that is both more entertaining and informative. I find the auto business fascinating, particularly selling luxury cars, as there are tremendous financial considerations and calculations to make, but you also have to massage the fragile egos of customers who are either rich, or pretend to be.

[@BenzsandBowTies]

The stress is seeing someone delay a decision when I know it’s not in their best interest to do so!

[@kevinsboxster2310]

This is another great educational video. I have not leased a car, but I have wondered what would happen if you didn't comply with the terms of the lease. Now I know. It is better to learn from other peoples' mistakes than your own.

[@BenzsandBowTies]

Leasing, especially for luxury cars, is a fantastic option. Just make sure to do the math on how many miles you really need

[@Nick210]

Obviously you pay. What else is there, jail time?

[@onebridge7231]

Rolling into another lease is a horrible solution for this woman. She needs to return the car immediately and find a way to come up with the excess charges. Then go buy a decent car within her means or take public transportation or Uber or bicycle or walk. She absolutely does not need another MERC.

[@johneldorado]

I'm sure in these situations, all the car's required maintenance has been performed. No way she skips an oil change.

[@OhioPalmTrees]

Are you actually required by contract to bring it on for maintenance?

[@jamesross160]

Of course, you don't own it. Even banks require it in the contract or call your loan

[@BestCaseHypothesis]

@@OhioPalmTrees In a lease? Yes.

[@Dan-gj1hz]

If shes missing payments and 23,000 miles over her lease on a Base model CLA…she 100% did not do oil changes on time.

[@SamWesting]

@@Dan-gj1hz Depends. She might have signed up for a pre-paid maintenance plan, which would cover the cost of oil changes for the life of the lease.

[@1jbunceiii]

the amount if bad decisions that I see people do with leases is staggering

[@BenzsandBowTies]

What about bad decisions on purchases? I see more of those

[@marcuscostello5635]

​@@BenzsandBowTies as a raw number or by percentage?

[@wahswolf88]

I found this to be very interesting behind the scenes stuff.

[@joelowens5211]

Problem is people live above their means trying to project an image that is a mirage. You buy 100k and make 700k to 1 million a year then typically not a problem. You buy a 100k car making 100k a year and any little blip happens in your life it all comes crashing down.

[@appleiphone69]

That is why people should only buy cars costing 1/3 of their gross annual salary. 80k car, 240k yearly salary.

[@Aerzon1v1]

Instead they finance it for 7 years.

[@artyfuffkin7805]

Coming to work at my dealership one day a couple drove up in 2 cars this 3000gt they put the keys on the wiper and drove off quick the car had 125k mi ,90k over allowed

[@Sevenduece]

Is it possible to factory order a vehicle for a lease?

[@BenzsandBowTies]

Absolutely!

[@YA-xi9nf]

I think financially she is doing great and she should get 2 cars! Or maybe call Dave Ramsey and he will give her the talk😅

[@jerrylundegaard2592]

Ramsey will direct her to call Timeshare Exit Team for assistance.

[@Simple_man_65]

So, listed on Marketplace in Santa Rosa Beach, Fl. Is a 2022 G63 Cardinal Red for 367,000 dollars that sound about right? 😅

[@BenzsandBowTies]

4x4 Squared? That would be the MSRP if so

[@BrianWeekley]

Very educational. Thanks

[@Goodtime711]

My wife’s lease is up . 300 glc. 2021 . 30k miles . Buy out 28 k should probably buy it out . I’m in Connecticut.dealers stressing me out

[@tomd.2982]

cool POV.. interesting to watch

[@jjb64fl]

Is a Demo the same as a CPO? There are a few 2024 CPO S580s near me...they are listed in the low 100s what are the best deals?

[@BenzsandBowTies]

Not necessarily.. all demos can be CPO’d but not all CPO’s are demos

[@ThomasPaine-wc4we]

Demos are typically the loaners they offer when your car is being serviced

[@bradshores9617]

Does it make sense for her to just purchase the vehicle for her residual value? I’m not sure how the current lease was structured but maybe she should just buy it and drive it for another two years?

[@marcelhorstmann6435]

most likely the financially best option for her, but certainly not the financially best option for a dealership that will lose out on a transaction.

[@stephkent2736]

You also have to find someone who will finance you for the residual value.

[@georgepetrillo7316]

It depends on what the buyout is. The buyout and what the lease payments paid could easily exceed what the depreciated price of the car is after the lease term. In short, paying way more than what the vehicle is worth by the time the lease is up.

[@BenzsandBowTies]

This is a great question. Many people go this route because it seems like their only option from a monthly payment perspective. Problem is, he car is worth FAR less than residual especially due to the huge mileage overage, which means you’d be buying it out and instantly massively upside down, which is just kicking the can even further down the road and making things significantly worse.

[@BenzsandBowTies]

I understand the thought process here but trust me when I tell you 9/10 people buying out their lease is bad for the dealership not because we “miss out on a deal” but because the person is putting themselves in a very, very bad situation which will later be attributed to us (out of frustration) which can then have a very negative ripple effect. It may seem hard to believe but the consulting we do with our clients is not aimed at “getting a sale” but ensuring that their needs / wants are met without doing something financially reckless.

[@NoFoxGiven1]

Happened to me with A manual 2015 Jetta. I had it with 15k miles a year and turned it in wjth 56k miles 🤣 owed VW like $4500 turning it in and had a car payment for 2 more years. Bad mistake

[@flashoflight8160]

You’re like judge Fleischer of the dealership world. 😂

[@DreaminRides]

This is off topic a little, but what is your discount on a custom order GLE580?

[@BenzsandBowTies]

7.25% plus any applicable incentives at time of delivery

[@MrBlackNupe]

A CL mf’n A?! Are we being PUNK’d?! All this over a CLA?! Is this customer in high school?!

[@jimmywalters3071]

This is why I would never lease a car .. come on 32,000 miles for a 3 year lease is nothing.. why have a new car with payments and really can't go anywhere in it.

[@BenzsandBowTies]

@@jimmywalters3071 leasing does not cap your miles, you have the choice to do more miles per year so you aren’t restricted

[@jimmywalters3071]

@@BenzsandBowTies but it can be difficult to judge as life is always changing and vacation trips pops up....many of us don't travel by airplanes.

[@charlottetrades3367]

And why does it get worse, BowTie? Because the Teutonic Wonder of the World depreciates like a two ton piece of scrap metal thrown into the water. 🌴

[@joez.2794]

Unless you always have enough cash on hand, leases are designed to force your hand.

[@joshuaduncan1477]

I am in love with this channel. so extremely fascinating how financially stupid high income earners can be.

[@hudsonbronner]

You would be amazed at how many Mercedes drivers are not high income earners. People pursue 3-point-star status regardless of the financial stress it places on them.

[@turnne]

@@hudsonbronner This particular example definitely doesnt look like a high income earner....they lost me at " deferred " payments

[@Mr_Smackle]

the real high income earners are driving Volvos and toyota land cruisers, no joke lol

[@turnne]

@@Mr_Smackle LOL...thats not true. A company I used to work for..just about every executive owned a Mercedes S class. Really...they could have paid cash for one with just their annual bonus. That was top of the mansions that some of them lived in

[@danu9092]

@@turnnelol exactly. High income earners are in S class, GLS, AMG. Not in volvos or CLA

[@aightm8]

Excess wear and tear and excess miles. Essentially charging for the same thing twice there. You did specifically say wear and tear and not damage. Wear and tear accrues with mileage lol

[@KGBPov]

DO NOT lease a vehicle if you drive a lot

[@BenzsandBowTies]

High mileage leases are not bad, what’s bad is when someone contracts for the incorrect miles so save a few bucks a month

[@deanmitchell9568]

First minute and half went over my head but you explained it well in the end and what I am hearing is don't go over your damn miles?

[@hudsonbronner]

Two people buy the same car on the same day; both pay cash. Three years later they both go to trade in their car for a new one--one has 30,000 miles, the other 90,000. The 90,000 mile trade-in is going to have a lower value; no matter what, mileage costs money, just in a lease it's predetermined (.25/mile +tax or whatever the penalty is). Even if they drove the cars until the wheels fell off, the car driven fewer miles would last years longer.

[@stephkent2736]

Or know you got a hell of a lease deal and will buy it out in the end.

[@hudsonbronner]

@@stephkent2736 there’s no free lunch on an end of lease purchase; if the residual buyout is low, it just means you paid more for depreciation during the term of the lease

[@BenzsandBowTies]

That’s right!! Contract for the proper miles and all is well

[@brianbouser1957]

What happens if she wrecks the car and make sure its totaled

[@1bluensx]

Great question!

[@brianbouser1957]

@1bluensx accidents happen everyday pal

[@mattcreamer785]

It just might all go away

[@jerrylundegaard2592]

The insurance company will pay the value of the vehicle. If that value is less than the amount she owes on the lease plus the residual value she will need to pay the difference. If for example, she owes $6,000 on the lease and the residual value is $30,000 she will owe the leasing company $36,000. If the insurance company pays $25,000, she will owe the leasing company $11,000 ($36,000 less $25,000). If she had GAP coverage, GAP would pay the $5,000 difference between the residual value and the insurance pay off. She would owe the $6,000.

[@davidr8309]

@@jerrylundegaard2592 wouldn’t Mercedes require her to have gap insurance on the leased car?

[@deeaysumner]

Hey only option to deal with a staggering debt is to dig a deeper hole? This isn’t sustainable.

[@mT_atvF5KCVHlk]

That is pretty high mileage for a lease. They are better off just financing next time

[@CustomerService-ni6wi]

Lease a second car with no trade. After you take the new lease, return your old car and walk away. take the credit ding because by 3 years time from now credit will be easy to get again and the default wont matter.

[@imrindar]

Maybe that works if you have no money or assets, but I highly doubt that's the case here. If this customer walks away from what sounded like about $8000 in negative equity, the financial institution just sues her, get's a judgement, get wages garnished, bank accounts garnished, etc. Also, maybe after three years her credit score is decent or even good again, but you better believe a loan officer or underwriter will look at that voluntary repo and think twice about approving a vehicle loan or lease.

[@discoinerror5886]

They owe fees on 23,000+ in excess mileage on the lease though. There is no drop it off and walk away - they’re probably going to be cutting a $5,000+ check at turn-in just to end the lease unless they can roll that into an incentivized lease on a new car. This is the whole point of the video…

[@turnne]

@@imrindar They wont garnish accounts...But it will impact her credit score and guaranteed to raise prices on things like car insurance and homeowner's insurance. Also if she looks for another job, some prospective employers view the applicant credit history as a litmus test of how good an employee they will be and make hiring decisions based on that.

[@turnne]

@@discoinerror5886 Exactly...and I am sure the dealership will figure out a way to roll that negative equity into a new lease

[@imrindar]

@@turnne For an $8000 balance, or potentially even more with with fees and interest, they will 100% seek a judgement against her and garnish wages and accounts. I saw it first hand at least dozens of times in my former career as a banker. I literally sat at a desk with people who had similar judgements against them.

[@Akrane23]

Why does it have to be a lease return.. seems shady to say that

[@BenzsandBowTies]

Good point, it doesn’t have to be, but its market value vs the residual value (buyout) is a significantly worse situation so it would be unwise to go that route.

[@vwjetta0000]

Leasing is and always we’ll be a scam, it’s always in the house’s favor

[@gimaru1]

Sounds like leasing is a bunch of BS.

[@BenzsandBowTies]

No no, leasing is wonderful! It just must be thoughtful.. we must be honest with ourselves about how many miles we really need

[@gimaru1]

@ what’s wonderful about it? I may consider leasing in the future if it’s really wonderful but from what I’ve seen in 3 years I would pay 75-80% of the full cost of the car without owning it.

[@timsep1]

@@gimaru1if you don’t want a new car every 3 or so years then lease. And especially if you’re responsible enough to drive the proper allotted mileage then it’s a great option. I’d rather know that when I am at lease end this is my payoff I will have if I want to stay in it or I work with the dealer to slot into a new model for near the same payment. I’ve never had to do major maintenance because it’s all covered and I’m out before the warranties are up. Do your basic maintenance and you’re fine. Don’t beat the crap out of the tires and you’re also fine.

[@Shoooder1]

When the Butcher has pork chops they are $4.99 a pound. When the Butcher is out of pork chops, they are $1.99 a pound. 😅

[@BenzsandBowTies]

How it goes!

[@Shoooder1]

@BenzsandBowTies Are you waiting for the prices to go up or the selection to go down? That was my favorite one to ask.

[@daynacoppins3065]

it's all fake/BS Lease drama to make this guy look like a RockStar

[@BenzsandBowTies]

Interesting

[@tl7975]

Putting over 50k on it and it still runs is quite the feat.

[@BenzsandBowTies]

Hey now!

[@JeffreyMiller1969]

Another lease BEAR TRAP

[@BenzsandBowTies]

Leasing is wonderful just need to contract for proper miles

[@Dan-gj1hz]

Do you not understand how leases work? 😆

[@JeffreyMiller1969]

@@BenzsandBowTies Said best by a salesman. 😂 Figuring out how many miles you are going to drive over a 3 or so year period is like figuring out what age you're going to die. ⚰️

[@dforrest4503]

Oof

[@joeguirey]

high end rent a wreck . . for suckers