Ending a Mercedes-Benz lease in Florida: return it or buy it out

Your two options

Mercedes-Benz USA lists two lease-end paths: return the car and move into a new Mercedes-Benz with your dealer's help, or purchase it, with your dealer or MBFS walking you through it. The purchase price is set in your lease agreement on the day you sign, so it doesn't move with the market.

That fixed price is what makes the decision. If your car is worth more today than the purchase price in your lease, that difference is equity: you can buy the car and keep it, or put that value toward your next one. If it's worth less, handing it back lets the leasing company carry the loss. Send me your lease's purchase price and the car's mileage and I'll tell you which side you're on.

The four steps, starting about four months out

MBFS lays out lease end in four steps, starting about four months before your maturity date:

• Schedule the pre-inspection. It's free, done by an independent company (OPENLANE), at a time and place you pick, like your home or office.
• Review the results, and decide whether to fix any excess wear at a Mercedes-Benz dealer before you return the car.
• Return the car to a dealer, and remove it from your Mercedes-Benz app account.
• Get your lease-end statement by mail. It lists any charges for extra miles or excess wear.

Wear, mileage and the credit card test

Excess wear and use standards are set out in your lease agreement. MBFS suggests a quick check before the inspection: lay a standard credit card over a scratch or dent. If the card covers it completely, you won't be charged for it.

Extra miles are separate. They're charged at the rate in your lease, and none of the credits or protections below waive them. If you're going to be well over, it's worth talking before the lease ends, because a buyout or an early move into another car can work out better than paying the overage.

Before you hand the car back, remove it from the Mercedes-Benz app (pick the car in your garage, then Remove Vehicle). That disconnects it from your account and turns off its Digital Extras.

Credits for staying with Mercedes-Benz

Two MBFS credits apply when your next car is a Mercedes-Benz:

• Up to $500 toward excess wear and use charges when you replace the off-lease car with a new Mercedes-Benz
• Up to $595 toward the turn-in fee when you lease or finance your next Mercedes-Benz through MBFS

First Class Lease Protection, if you bought it

First Class Lease Protection is an optional MBFS product that can only be added when you sign the lease. If your lease has it, it waives covered excess wear and use charges up to $7,500 in total, with no deductible: dents and dings, scratches through the paint, bumper scuffs, windshield damage, worn or damaged leather or carpet, missing parts up to $200 each, and one missing key fob.

It doesn't cover extra miles, and it doesn't waive damage from a single event over $3,000. Check your lease paperwork for the addendum; if it's there, mention it at the inspection.

Buying it out in Florida: sales tax applies

In Florida, buying your car at the end of the lease is a sale, so sales tax is due on the purchase price. Florida's rule on leased cars says the sale of a vehicle that was a lease vehicle is taxable unless it's sold to a dealer for resale, and the Department of Revenue has applied that to a lessee buying out their own lease.

That means 6% state sales tax plus your county's surtax. In Broward the surtax is 1% on the first $5,000 only. You'll also pay to move the title into your name. The full breakdown is in my Florida sales tax and fees guide.

While you leased, Florida taxed your lease payments rather than the full price of the car. The buyout is the first time sales tax applies to the car's price itself.

When your lease ends in South Florida

If your Mercedes-Benz lease is ending in the next few months, from Boca Raton to Fort Lauderdale, tell me the month and the car. I'll go through return versus buyout with you using your lease's numbers, look at what's on the lot at Mercedes-Benz of Pompano if you want to move into something new, and line up the return so you're not driving around on an expired lease.

Questions people ask

Is the Mercedes lease-end inspection free?

Yes. MBFS describes the pre-inspection as complimentary. An independent company, OPENLANE, does it at a time and place you choose, starting about four months before the lease ends.

Do you pay sales tax on a lease buyout in Florida?

Yes. Florida treats buying the car at the end of the lease as a taxable sale, so the 6% state sales tax plus your county's surtax applies to the purchase price.

How much excess wear does Mercedes forgive?

MBFS credits up to $500 of excess wear and use charges when you replace the car with a new Mercedes-Benz. If your lease includes First Class Lease Protection, it waives covered charges up to $7,500, excluding extra miles and single events over $3,000.

What is the Mercedes credit card test?

Lay a standard credit card over a scratch or dent. If the card covers it completely, MBFS says you won't be charged for it at lease end.

Keep reading

• Florida car sales tax, title and registration fees
• Mercedes Certified Pre-Owned: the warranty
• Buying at Mercedes-Benz of Pompano
• See what's on the lot