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I have paid a lease in full before only because it was a company car and you don't pay the interest over the 3 years so I saved a decent amount in the long run for the company.


Let me describe your scenario with an analogy.

What you have done is actually placed a $20,000 bet. However, the payout is only $20,000 so even if you win the bet you just get your money back. No house in Vegas would ever try to get away with a game of chance like that because they know it is completely and totally unfair and deceptive against you.

Honestly, there is nothing O.K. with prepaying an entire lease. It is simply a $20,000+ bet with no upside because you just get your money back and a huge downside in that you could lose your entire $20,000+.

If I was you I would go into the dealer and say that you changed your mind and want to buy the car out. Try to negotiate the buyout down from the residual value. If they won’t budge then just cut your losses and take a low interest loan out for the residual amount.

What this will do is switch it from a lease to a loan. Now your insurance company will pay off the entire value of the car instead of just paying of the residual amount if it ever gets totaled or stolen. Honestly, the situation you are in right now is just simply too big of a risk.
 

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But denting a financed car will make you lose money the same way. If you try to sell it you'll be out that dents price. If you turn in a lease or sell a leased car to a new dealer for a different car that dents going to just come off the price. It's all the same hit.

I modded my Buick regal GS 2012. Turned it back into the dealer no prob! It's just a used car to them, nothing more, nothing less. If actual Buick found out they can't do anything. I'll walk into my bank, get a check cut for the pay off, hand it to Buick and tell them to get lost. It's still my car but now my bank will hold the title unlike PNC that Buick had me go through.
Well you lucked out with your dealer not caring. But a lease is basically a rental from a bank not the company, and a GM lease (and I am sure a MB lease) specifically states no modding, so Im just saying what the lease agreement says. Its not guaranteed a dealer is going to look the other way on a mod. And its not GM that sets rules for modifications it's the Bank (ALLY, PNC, which ever). For a MB, its MBFS. So the bank can hold your money hostage. The dealer pays the bank the residual to hold the car in their used car lot. The dealer wont care for the mods, the bank may if it means it depreciated their commodity. Again, your experience is pretty lucky, because usually banks and /or dealers try to squeeze as much money they can get out since their contract with you is coming to an end.

And I agree with you, collision work will cost you your selling price if your selling, or cost you in wear and tear costs in a lease. But hopefully, if you get in a collision, you have insurance to repair it. And even if you repair the collision, by financing the car, it stays on Carfax or whatever and affects equity down the line. In leasing, its stays on the CarFax, but who cares, youre not counting on the equity.

And if you talking about small dents and dings, most leases follow the credit card rule. Anything smaller than a credit card, is allowed in a lease. If you have something as big as credit card when selling a financed car, the potential seller may ask for a reduction because the overall appearance of your car is bad.

So if you anticipate some form of accidental issues but cant stand lost equity, just lease, less headache about keeping it pristine.
But if you want to Modify, plan on keeping the car, and dont care that Equity is at risk every time you drive, then finance.

Damages costs the same in both scenarios, but it depends if you care about equity, or just enjoying a vehicle.
 

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I have paid a lease in full before only because it was a company car and you don't pay the interest over the 3 years so I saved a decent amount in the long run for the company.
You may have saved some money in the long run but you took a GIGANTIC gamble with a significant amount of the company’s money by doing that.
 

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Yeah, Money factor is one thing the CLA250 and 45 differ on, like .0023 or something.
.0023 ….. I just threw up in my mouth a little. That high of an interest rate makes me sick to my stomach. That is over 5.5%!

Also please note that this is the “buy rate” for the AMG CLA45. I don’t care if you have a perfect credit score and are married to the dealer’s daughter. You aren’t going to get better than that interest rate/MF on the CLA45.
 

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.0023 ….. I just threw up in my mouth a little. That high of an interest rate makes me sick to my stomach. That is over 5.5%!

Also please note that this is the “buy rate” for the AMG CLA45. I don’t care if you have a perfect credit score and are married to the dealer’s daughter. You aren’t going to get better than that interest rate/MF on the CLA45.
Get ready to lose your lunch...
A dealer actually quoted me .00230 on a CLA250 before running credit or anything. Suffice to say, we parted ways. Haha
 

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Get ready to lose your lunch...
A dealer actually quoted me .00230 on a CLA250 before running credit or anything. Suffice to say, we parted ways. Haha
Did you ever get a real number on MF? You do have some different dealer choices, don't you?
 

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Did you ever get a real number on MF? You do have some different dealer choices, don't you?
I think all the tristate New York, New Jersey, Connecticut region dealers know my name. I went to the other coast as well in California. With help of BaconAle, I also expanded my search out to Maryland as well.

If it was a standard delivery, I wouldnt have much issue, but Euro Delivery is like the Cross to the Vampires that are dealers.
 

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I think all the tristate New York, New Jersey, Connecticut region dealers know my name. I went to the other coast as well in California. With help of BaconAle, I also expanded my search out to Maryland as well.

If it was a standard delivery, I wouldnt have much issue, but Euro Delivery is like the Cross to the Vampires that are dealers.
We want pictures when you have to go back to some of those dealers in disguise. My suggestion, go as Madame Curie. They almost never spot me when I wear that one.
 

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Hopefully not to this extent...

 

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I guess the euro delivery plus lease is not something dealers want to mess with. You'd think it should be an easy paperwork shuffle and submission...
 

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I guess the euro delivery plus lease is not something dealers want to mess with. You'd think it should be an easy paperwork shuffle and submission...
100% Correct, those dealers that have done Euro Delivery usually have people that finance. Leasing apparently is something new to all of them.
 

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I guess the euro delivery plus lease is not something dealers want to mess with. You'd think it should be an easy paperwork shuffle and submission...
It's obvious that there is almost no profit to be had for the stateside dealer. He is only making money on the fees and whatever the MF spread gives. I would think the SA gets very little for his trouble.
 

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It's obvious that there is almost no profit to be had for the stateside dealer. He is only making money on the fees and whatever the MF spread gives. I would think the SA gets very little for his trouble.
Are you saying that car dealers don't do something for nothing??? I can't believe it....
 

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Haha, well with Euro they still get their 3% hold back and .0002 Money Factor markup, so they still make money on Euro Delivery. But it just, rather than get away with lower discounts, they must abide by discounts set at 7% and no destination.
 

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My advice is to take a loan for investment only if you are sure in your idea and you have plan b how to pay the load soon. In my opinion there are a lot of nice banks or companies which give a really advantageous credits and loans. Competitive factor between banks force them to reduce prices for loans. So 5% in year is not a big price for a chance to invest money in your dream. Check this to find the company you like most https://foxycredit.com/no/ferratum-lan.
 
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