A man who was 45,000 miles over the allotted mileage on his lease ended up getting an electric car. A salesman has gone viral for explaining why this was the best-case scenario. TikTok user @ridinwithintegrity regularly posts car-sales-related content and recently ruffled feathers with a series of clips about the aforementioned road warrior. Leasing a car is a lot like looking after a Mogwai from the “Gremlins” movies: They come with very simple, but strict rules you’d best follow to avoid a massive headache. First: Don’t return your vehicle with any damage. And if it is damaged, get it repaired at a trusted shop beforehand to avoid any dealership charges. Second: Do not go over the mileage in your agreement. Unfortunately, the person referenced in the viral clip didn’t follow these rules. Benz Way Over Miles The sales rep begins his video by setting the stage for a nightmare lease return. He says the driver brought his vehicle back a whopping 45,000 miles over the agreed-upon amount. He says the man’s lease agreement was for 36 months with 12,000 miles per year. However, he brought the car back with 81,000 miles, meaning he clocked in an average of 27,000 miles per year. Next, the sales associate breaks down just how much money the driver will be on the hook for if he turns the car back in. He says that in “mileage penalty alone,” he’ll have to fork over a whopping $11,250. The car also needs new tires and sustained damage. “They will charge him for that as well,” the TikToker states. He continued, “Remember, we don’t own the car; the bank does.” The salesman highlights this point as a means of addressing the criticism he received in the comments section of another video he posted on the same lease return. Breaking it Down Moreover, he elaborated on the driver’s situation, explaining how he had gotten himself into such dire straits. The sales rep says that a promotion at work necessitated that the leasee drive his car much more than he originally thought. “However, he got a pay raise. So, he knew that he was gonna be over mileage, but he was OK with that. So, it was a risk versus reward scenario,” the rep tells viewers. FROM THE TRENDING NEWS DESK Viral bits from across the social media landscape Our team of experts tracks what's trending so you don't have to—from viral videos to online debates that have everyone talking. Next, he says the number of miles the man will need to travel has lowered because the man is retiring soon, “so he just needs a vehicle to get around town.” This, he explains, is why the patron ultimately decided to get an electric car. Taking Advantage of the EV Incentive Additionally, the sales associate described why getting the customer an EV after he accrued negative equity on his lease was advantageous for the customer. That’s because he made the cut-off for the federal EV tax credit that’s set to expire on Sept. 30th. With a combination of federal and state EV tax credits, the customer could pay off his negative equity by rolling the credits into the monthly EV lease payments. This is because dealers will often factor in these rebates into the end lease price itself. It’s why qualifying Fiat 500e drivers in Colorado were able to lease the pint-sized electric offering for free at one time. The TikToker explained further: “An electric vehicle right now, to the end of this month, offers a $9,500 rebate. S,o what that’s going to do is help offset the negative equity he has in a trade. Not only will it take care of his negative, but it will also give a little bit of cap cost reduction, which will help lower his payment.” All things considered, the salesman says trading in the Benz and signing on the dotted line for an EV at this time was the best-case scenario for the driver. Going Over Mileage on a Lease The first three years of a vehicle’s existence are typically the worst for depreciation. Kelley Blue Book writes that a car will lose up to 20% of its value after just 12 months, and up to 60% of its brand-new value after five years. And when it comes to luxury vehicles like Benzes, even this Mercedes dealer admits its offerings tend to experience steeper value plunges than other car brands. So, the customer referenced in @ridinwithintegrity’s video certainly found himself in a difficult situation. After all, he leased a vehicle that already had its most valuable years in its rear-view mirror. Then, he put on more than double the miles he was contractually allowed without penalty. Autotrader writes that typically, dealerships charge anywhere from 15 cents to 25 cents per mile over the previously agreed-upon amount. Judging from the $11,250 mileage charge the driver was hit with, it seems that Mercedes charges an amount close to the higher end of the range. Motor1 has reached out to @ridinwithintegrity via TikTok comment for further information.
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