SW17LS

Just keeping everybody in the loop. My local dealer does have a 2015 w/ luxury package that interests me, its Atomic Silver with a black interior and has ML, which mine doesn't.

As you saw from my other thread I'm going to need to buy tires. If its possible to do it now it probably makes sense to. I still have 11 payments remaining, so it may very well be impossible but we'll see.

I'm paying $700 a month on a 36 month (which was a great lease back then, not so much now), if I could get into a 2015 on one of these 27 month leases even if I had to make the same payment, the total cost vs waiting until the end and leasing one, assuming that I can get a $600 lease on a 2016 refreshed model would only cost me $1,500 more over the 15 months I'd have the 2015 beyond the end of this lease. When you factor in I'm going to spend ~$1,000 for new tires and an alignment, and the potential that it could need brakes over the next 12 months...it would be worthwhile.

But...I may be really upside down to where it wouldn't make sense...in which case I'll wait.

Keep you posted.

ItzFilyO

Well ur book price is around $37K, what's ur current payoff?

If they go by the 11 remaining payments that's $7700 upside down already.

jkeller

Is it an AWD? And just me thinking, 11 months left on your current car times out perfectly for next years refresh model. I'm betting that next years AWD model will get the 8 speed transmission.

SW17LS

The residual is $34,600, I have 11 payments remaining of $700, so the payoff is going to be somewhere in the neighborhood of $42k, so its definitely underwater. The question is are the current lease deals good enough to absorb that negative equity and deliver the same payment? I doubt it but we'll see.

Yeah its AWD. Yeah the 2016 refresh will be out, deals won't be quite as good as they are now because it will have just come out. I would likely have to turn it in instead of trade it in, so I'll have to pay full sales tax.

I'd assume wait for the 2016 refresh, but I will have spent $1,000 on tires, potentially $500 on brakes. If I leased a 2015 for 27 months I'd be done at a time when I would have killer deals on a 2017 GS, the all new E Class and 5 Series should be out as well as the new LS in case I wanted a great deal on a leftover 2015/2016 LS.

My guess is it will be impossible. Well impossible isn't the word...it'll be possible the question is would my payment be more.

bclexus

Don't forget that Maryland residents pay the full 6% sales tax on the book value of the leased vehicle, just like you were buying the vehicle instead of leasing it for a specified amount of time. That's over $3k additional cost alone, and throw in another $250+ for documentation, title and transfer fees, other taxes, registration/inspection, etc.

$1,000 for new tires on the current lease that still has 11 months to go may not look so bad...

islandbeef

Meh, I'd wait.

Wait until 2017, when the 2016 refresh kinks are straightened out.

SW17LS

Oh yes, I'm well aware. Trading in the 2013 instead of turning it in mitigates that though. For instance, lets say they give me $38k for it. If the purchase price of the new GS is say, $56k ($62,800 MSRP)...then tax is only claculated on the difference, $18,000 for a total of $540.

All of that stuff is rolled into the lease, and its going to be paid whether I trade now or wait for next December. In fact, if values are as I expect they will be in December I'll have to turn the 2013 in instead of trading it in, so doing it now saves me $2,280 in taxes, which helps offset the negative equity.

I'm a wheeler dealer from way back

I can't wait until 2017, my lease is up in December of 2015. In any event I will have to either buy this or lease something else in December of 2015.

ItzFilyO

I heard u can extend ur lease for another year (6 months at a time). Is that true? Anybody ever done it?

islandbeef

If you end up buying it after your lease is up, I think your monthly payment should be less than your $700. With your savings you can add more mods or buy a nice Swiss watch?

SW17LS

You can extend it up to 6 months, 3 months at a time. Still wouldn't get me to when a 2017 would be out...it won't be out until at best September/October of 2015.

I wouldn't be worried about a first year refresh 2016. I bought a first year all new model 2013 and had no issues.

I'm not really worried about the payment itself, its just about extracting the best value out of the situation. If I could avoid spending $1,000 to put tires on the car for basically somebody else's benefit, thats a plus.

Its not going to be a great deal to buy it. Essentially $35k when all is said and done, a year from now when it has a total of 45k or so miles...thats going to be more than its worth. If I bought it, my goal would be to keep it for a long time.

jjscsix

Maryland may be different, but in Texas if you do a trade on a lease with the same leasing company you only pay tax on the difference.

Good luck SW. That is exactly what I did on my 2010 GS lease. I traded it 7 months early on my BMW because I knew the car would need tires if I waited. The cars resale value was so strong the BMW dealer gave me $600 more than my lease payoff for it.

SW17LS

In MD you have to trade it in vs turn it in. If I turn it in at the end of the lease I don't get any sales tax savings, even if its the same leasing company.

Yeah thats what happened with my 2010 ES when I got the GS, I got $1,000 more than the payoff even with 7 remaining payments. But, the residuals were lower then...I think the residual on that ES was like 50% or even 49%. The residual on my GS is 58%...harder to hit it on a trade.

SW17LS

My guess is essentially they will have to sell me the 2015 for MSRP and absorb the negative equity on the 2013. The question will be is a 2015 at MSRP going to lease out the way my 2013 did with 10% off the sticker? We'll see...

LexRuger

Good luck. I wouldn't mind getting out of my GS a few months early. This thread gives me hope.

SW17LS

I'll report back as soon as I hear from my guy. If its doable he'll find a way. It was more just seeing something in their inventory that I'd want to even explore it.