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2013 and earlier-Mercedes Benz E-Class Prices Paid and Buying Experience

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Comments

  • ghstudioghstudio Posts: 931
    edited November 2011
    Thanks for the example Dewars... Purchase makes sense when you plan to keep the car for 5 years....I keep a car 2 maybe 3 years at the most...I like change. Leasing makes sense for me because a) I can deduct part of the cost; b) I know what my car will be worth after 24,30,33,36 months (not that I get the money, but it's the residual value). I am almost positive that the residual value on my 2011 bluetec is far in excess of what a dealer will be able to sell the car for in 24 months.

    I believe that most people don't take multiple security deposits because a) they are unaware of the option; b) they think that paying the money up front lowering their monthly payment is wonderful; c) dealers don't understand multiple security deposits; d) dealers know that a low monthly payment sells car, so they push money down.

    abacom...sounds like you made the right financial decision for your situation. For those like me who like to change cars, multiple security deposits are almost always a great option.

    Finally, if you look at Dewar's example...you save $1400 over 2years by loaning Mercedes $5000. that's over 12% per year on that $5000. Compare that to just keeping that money in a money market account, CD or bank account for two years...earning less than 1%.
  • Great discussion on leasing options! Thanks.

    Does anyone have the latest lease terms?
    I'm looking at a 2012 E350 4matic, I'd like to know the terms on both the gas and the Bluetec.

    Also, when you talk about multiple security deposits, how much per deposit? how much of a reduction do you get in the rate per deposit?

    You state that you get the deposit back at the end of the lease, do you earn interest on the deposit?
    thanks!
  • ghstudioghstudio Posts: 931
    edited November 2011
    There is no bluetec 4matic in the US....so that's not an option.

    Each security deposit towards your maximum 10 security deposits is your calculated monthly payment rounded up to the next $50. Different dealers seem to do this different ways and no one seems to know how it's supposed to be done. In my case, they said that each security deposit was my monthly payment including tax (no rounding up). Others have had their monthly payment without tax rounded up to the nearest $50. In both cases the discount for the multiple security deposits is used to calculate the monthly payment and the security deposits.

    Each security deposit reduces your MF by .00007 so if you take the maximum of 10, your MF is dropped by .0007. This drop in MF can amount to $50 a month saving. No, there is no interest on the security deposits...the "interest" is the $50/month that you are saving. That is an effective interest rate in excess of 10% in most cases.

    Mercedes dealers seem to play with money factors and acquisition fees....they raise them to inflate their profit. The acquisition fee should be $795...if your dealer is charging more, he is keeping it as profit. Tougher to determine is when the dealer marks up the money factor. Unless you determine the rate for your tier by looking at the finance manager's screen or some document from Mercedes Finance, assume that they are marking that up for even more profit. Some dealers use Tier 2 as the base rate which is wrong....your base rate is based on your credit tier and good credit is Tier 1.

    Finally, multiple security deposits aren't applicable to "promotional rates"...however they still can result in lower cost, but only if the dealer doesn't mark up those money factors.

    Confusing I know...but mercedes finance does not enforce anything with their dealers and they seem to accept any lease the dealer writes, whether it follows the rules or not. This becomes even more obvious if you buy mercedes insurance as part of your lease. Some dealers include it as a "feature" so like any other feature, if you are charged a MSRP for service of $1000 and your lease has a 60% residual, you will only pay $400 for that service. Sounds great and it is...but some dealers won't do it that way, some dealers will tell you that mercedes will only allow you to residualize $600 of the maintenance and others will tell you that you have to pay the entire $1000 over the length of the lease. It doesn't matter which is correct because different dealers do it different ways....and mercedes finance seems to accept it no matter how the dealer does it. You just sort of have to wing it and see what your dealer will do for you.

    It's a financial swamp out there. Dealers don't understand Mercedes leasing program, some don't understand multiple security deposits, some don't know that you can residualize at least part of maintenance, but they do understand how to mark what they do know up to make more profit. I wish I could give you accurate answers, but the fact is that since mercedes finance pretty much accepts anything, it's just up to you to negotiate whatever you can. Hopefully there's some useful information in this and my other posts to help.
  • Thanks for the update, let me restate to see if I understood correctly.

    Max of 10 security deposits
    Each deposit is equal to your monthly payment
    Each deposit reduces your MF by .00007

    So if your monthly payment is $600 and I want the max, then I put down a depost of $600 x 10 = $6000?

    MB holds my deposit for the duration of the lease and returns it to me at the end of the lease?

    Is that correct?
  • ghstudioghstudio Posts: 931
    edited November 2011
    You got it.... but understand that there seems to be no fixed policy by dealers and/or mercedes on the actual amount of each security deposit. In my case, I paid my actual monthly payment including tax as each security deposit with no rounding. Others have paid their monthly payment (not sure if it was with or without tax) rounded up to the next $50. Based on posts in this and other forums, Mercedes finance seems to accept whatever the dealer does.

    Be careful about saying that you're putting money down....you are not. You are making multiple security deposits. Putting money down is just paying in advance so your monthly payments are smaller and you don't get that money back. Big difference. I know you know this...but don't confuse the dealer by using the wrong words.
  • ucsfucsf Posts: 2
    edited November 2011
    Can someone tell me if the $4,000 Conquest Cash applies to the 2012 E350? I know the $2,000 Conquest Cash applies to any new 2011 or 2012 models. Thanks.
  • kyfdxkyfdx Posts: 27,921
    The $4000 was on 2011 E-Class models... The 2012 E-Class only has $2000.

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • rrosenbecarrosenbeca Posts: 2
    edited November 2011
    Working this deal:
    E350 Sedan Luxury P1
    $48900 negotiated price
    30 month lease 12K miles/yr.
    MF .00192 for tier 1a credit
    Autopay reduces MF by .00001
    Dealer says "Mercedes doesn't do MSDs anymore."
    Options: $795 Acquisition, $448 license fees
    Option 1: $1852.81 cap cost reduction/downpayment @$546.85/month incl tax
    Option 2: $3719.59 cap cost reduction/downpayment @$523.58/month incl tax
    Does California allow MSDs?
    Does MF look right?
    Any advice is appreciated. Thanks.
  • kevinc5kevinc5 Posts: 204
    2011 OR 2012?
  • ghstudioghstudio Posts: 931
    As far as I know, multiple security deposits are OK in California and Mercedes has not "stopped taking them".....the dealer is just too lazy to look up how to calculate a lease with MSD's...and frankly if they are not truthful about this, I'm not sure I'd do business with them at all...what else are they not telling you or not telling you correctly.

    Don't make any capitalized cost reduction...it's a fake savings..you are just prepaying money so divide that capitalized cost reduction by the length of the lease and add that to your monthly payment because that's what you are paying. It's just a bad idea to prepay that money in case the car is totaled of stolen....you lose gap insurance.

    Autopay reduces the mf by (I think) .0001 certainly not .00001.

    The current promotional mf on gas e350's is .00165, I think not what you were quoted. If you do multiple security deposits, I think the mf would be .00225 less .0007 or .00155 so maybe it's not worth loaning Mercedes all that money just to save .0001...I'd have to look at the numbers.

    Sounds like the dealer is trying to find every way to make extra dollars.....again, I think I'd find another dealer who wants to deal with you fairly.

    Also, look into buying the mercedes service because you may be able to residualize it and pay only a portion of the "msrp". Ask your dealer, when you find a good one, to calculate the lease with and without service. I said calculate...not guess on a piece of paper because mercedes lease calculator does funny (good) things with maintenance that aren't logical but work to your advantage. (read back thru this board because this is a "your experience may vary" item).
  • I'm in CA, and I leased an E350 bluetech at the end of Sept, and I can attest that some dealers will accommodate MSD. I had a similar issue as local San Diego dealers were reticent to provide MSD, yet I found several dealers in OC that were willing. I chose MB of Long Beach as not only did they honor MSD, but they also did MSD off of the buy rate MF at the time which was 0.00192. So, coupled with autopay, the MF was 0.00112.

    Cheers!
  • Sorry to be so slow in making a reply;but I spend most of my time on BENZ.ORG. Re.E350. My 2010 would also get to approx 29mpg oh hwy. My 2011 seems to get 5-10 % better milage on both city & hwy. Also best mileage is on 100% gas--NO 10% ethenol. Had to make the same 200 mi trip and had E10. Mileage dropped to 29mpg.

    Now have about 1600mi on odo and will post when I have more info.
  • richardnvarichardnva Posts: 74
    edited November 2011
    Per Ghstudios comment, I'm surprised they didn't make you include the prepaid maintenance as part of the lease deal. I've read here that it's required for new leases. Even if it's not, sounds like a worthwhile investment. If you don't maintain it properly there could be penalties at the end of the lease.
  • ghstudioghstudio Posts: 931
    I believe that they can't require it, by law....that would be a tie in sale. What they can require is that you perform maintenance somehow /somewhere and follow their required maintenance schedule.

    However, in my case, they didn't even offer the mercedes maintenance plan, they offered a "better" plan for the same price. However, I found out that it was not residualizeable. I confronted the finance manager (that's the correct word) with the fact that they didn't offer me mercedes maintenance which was residualizable (to my benefit, perhaps not to theirs) and after a brief discussion, they calculated out what the lease would have been with the mercedes maintenance and refunded me the difference. So no, they didn't require it, they didn't even offer it :)

    It may or may not be a worthwhile investment for some....but on my bluetec, I think I effectively paid $200 for the A and B service I'll need during the lease. That does not include bluetec fluid (which I will add myself)...and I might get tire rotation as well....that's hazy but I'm not asking.
  • abacomikeabacomike South FloridaPosts: 3,499
    edited November 2011
    On a BlueTec (Diesel), maintenance is critical due to the diesel engine (diesels tend to be "dirtier" running engines than gasoline engines). I'm very surprised they did not offer you the maintenance plan, especially in the fianance department, because the finance people (at most dealerships, all finance personnel who present leases, finance contracts and/or title applications, etc., have the title of "finance managers") make a "kick-back" on items sold to the customer such as maintenance, tire/wheel insurance, extended warrantees, and other forms of insurance, etc. In fact, in the dealerships where I was a sales manager, the finance manager(s) is required to present the customer with an AFTER-MARKET menu, which the customer must sign-off on as proof it was presented to the customer! If the finance person makes a commission, remember, the dealership also makes a kick-back as well. Thus, by not offering the Mercedes Benz maintenance plan to a customer, the dealership could be losing opportunities for additional profits, not just the finance person!

    Tire rotation is usually a part of the A and B services at most, if not all, dealerships. As a side note, tire rotation inclusion on the sport models is worthless due to the fact that you cannot rotate the tires on the sport models because front tires are a different size than the rear tires.

    If the scheduled services can be residualized on a lease, it is definitely worthwhile considering the fact that the cost of an A service is about $325 and a B service is about $400+. This all depends upon the length of your lease and the number of miles you are expecting to drive during the lease term.

    2014 Mercedes Benz CLS 550 - best car ever! 2nd best car ever, my 1967 Corvette Stingray Coupe with 435 hp.

  • abacomikeabacomike South FloridaPosts: 3,499
    I have 900 miles on the odometer on the 2012 E350 sedan so far, and on Sunday, with an uninterrupted trip on I95 here in south Florida of 135 miles in cruise control at 65mph, I got 33.2 miles per gallon on a round trip. To me, THAT'S PHENOMINAL considering the fact that I owned a 2010 and a 2011 E350 sedan where the best I was able to do was 29 mpg! An increase of 12 - 15% in fuel economy with oil prices sky-rocketing right now at over $103 a barrel is going to pay-off in "spades", to be sure! This new "Blue Efficiency Engine and Transmission" in the E350's has improved fuel economy sustantially (as I stated above) while, at the same time, has increased horsepower by 12% (from 268 to 302) in th 2012's.

    Unfortunately, here in Florida, it is almost impossible to get pure gasoline because the state legislature passed an "ethanol" bill under our previous governor requiring all gasoline sold in Florida to have a minimum of 10% ethanol. So long as the federal govenment provides subsidies for ethanol producers, pure gasoline will be difficult, if not impossible, to find here in the state of Florida or most other "flat" states (non-mountainess terrain) like Iowa, Illinois, Indiana, etc.

    As for the 2011's over the 2010's, I must have had a poor performing engine in my 2011 in order to get better fuel economy in my 2010 than the 2011.

    2014 Mercedes Benz CLS 550 - best car ever! 2nd best car ever, my 1967 Corvette Stingray Coupe with 435 hp.

  • ghstudioghstudio Posts: 931
    abacomike...they did offer me maintenance, just not mercedes maintenance. The difference is that mercedes maintenance is residualizable and the "better" maintenance package is not. I took the only maintenance package offered for $800...a couple of days later, after stumbling on how mercedes handles maintenance, I pointed out to them that they didn't offer me what I wanted (and I actually was very clear that I only wanted the minimum maintenance) which was the mercedes maintenance plan. Since my residual was 75%, they recalculated as if I had purchased the mercedes package and they refunded me roughly 75% of what I had paid since they couldn't adjust the lease that they had already submitted.
  • Hi

    2011 e350 4 matic (new)

    MSRP is $58, 235

    Selling price is $48, 200

    A discount of $10,000. Should I get the 2012 instead?

    Thank you.....
  • abacomikeabacomike South FloridaPosts: 3,499
    edited November 2011
    I would as you if you qualify for the "conquest" incentive, the USAA incentive, and/or the Mercedes Benz Financial incentive. If you qualify for one or the other, you could save an additional 2,000 to 4,000 dollars, assuming the price they gave you does not include one or more of these incentives.

    The 2012's went up in price about $1000.00 in MSRP. Additionally, the incentives available are as follows on the 2012:

    USAA (if a member) incentive is 500 above factory invoice less 2000, or a net of 1500 below invoice. USAA will calculate the invoice price and the net cost of the car for you.

    Mercedes Benz financial is offering 1.9% interest for up to 66 months. YOu can even negotiate that rate down a little since they have 1% markup.

    Mercedes Benz Financial is also offering an additional 2000 incentive if you curently lease or have a loan with them.

    If you don't qualify for any of the above incentives, then you will be paying quite a bit more for the 2012 over the 2011.

    I bought my car (MSRP was 62,325) for $55,330 after the USAA incentive and the MB financial incentive (which was 1500 last month). I also got 1.65% interest rate on a 66 month loan (I borrowed 18,000). So, considering most dealers have very little inventory on 2012 sedans right now, I did pretty good. But, with no incentives, I would get the 2011 for 10K off.

    I think they still have a conquest incentive, but I am not sure of that.

    The only change in the 2012 over the 2011 is the engine and transmission. The new engine is rated 20 city, 30 highway mpg. I'm getting as much as 33 mpg highway right now, which is a big improvement.

    I think the 2011 with incentives is a much better deal than you can currenlty get on the 2012.

    2014 Mercedes Benz CLS 550 - best car ever! 2nd best car ever, my 1967 Corvette Stingray Coupe with 435 hp.

  • Thank you for taking the time to reply.

    The offer includes the 4,000 conquest cash. Can I stack it with the 2, 000 Mercedes financial since I have another Benz on a lease?

    Thank you...
  • Hi ghstudio

    Do you know if they are still giving 4k for conquest on the e63 AMG I have a Lexus and a 2010 E550 an can I use both together? Thanks for any help..
  • abacomikeabacomike South FloridaPosts: 3,499
    Yes! You can always bundle a Mercedes Benz Financial incentive with any other incentive. That is the only incentive you can actually bundle. I bundled USAA with the Mercedes Benz Financial incentive.

    The only thing you cannot bundle is conquest with cash incentive from Mercedes Benz, itself. For some reason, only incentives from the Financial arm of Mercedes (which is actually Chase, by the way) can be bundled together.

    As for the problem you have with the "second car" being a Mercedes, I don't know. In other words, since you are not coming off lease or the car you are trading in does not have a loan on it from MBfinancial.

    See if the dealer will add the MB financial incentive, since you actuallly do have an open lease with MB financial.

    I'd be interested in hearing what happens!

    2014 Mercedes Benz CLS 550 - best car ever! 2nd best car ever, my 1967 Corvette Stingray Coupe with 435 hp.

  • sanvsanv Posts: 1
    Hi,

    I got the following price, after the $2000 conquest yesterday:

    MSRP - $58850
    Price offered - $51000

    Is this a good price? What prices did any of you pay for a 2012, if you bought one recently, or what price were you offered? Any help in this regard will be highly appreciated. Thanks.
  • abacomikeabacomike South FloridaPosts: 3,499
    edited November 2011
    I would think so. Mine was $62325 MSRP and I paid $55300, or about the same as you did. I also got 3 years of Mercedes Benz Maintenance included, which prices out at about $750. I did not qualify for conquest as I drive Mercedes Benz products. I got the 2000 USAA incentive, along with 1500 for loyalty from Mercedes Benz Financial.

    Any price that is less than 2000 below invoice "without incentives" is excellent due to the shortage of 2012's out there right now. My dealer told me he ordered a ton of sedans, but they are sending him 1/2 of what he was able to order. I don't know why Mercedes Benz is cutting production, but it sure reduces inventories.

    Good luck with your new E350. I love mine - best E350 I've ever owned.

    I even checked out COSTCO but none of the dealers who are associated with them down here would provide a competitive price on an E350 sedan due to the shortage of vehicles.

    2014 Mercedes Benz CLS 550 - best car ever! 2nd best car ever, my 1967 Corvette Stingray Coupe with 435 hp.

  • The Financial incentive is for the 2012 only?
  • abacomikeabacomike South FloridaPosts: 3,499
    edited November 2011
    No. I believe there are still incentives for 2011's, if there are any left. But, Mercedes Benz has added additional incentives on 2012's.

    1. Mercedes Benz Financial incentive if you are currently in a lease or have an existing loan with them - 2000.00

    2. Loan incentive of 1.9% (which is negotiable by the way because they have a 1% mark-up on the rate) up to 66 months.

    3. An additional incentive to current owners of Mercedes Benz.

    4. USAA incentive is invoice + 500 LESS 2000.00

    You cannot bundle USAA incentive with conquest or loyalty incentive, but you can bundle Mercedes Benz Financial loyalty with USAA. You can bundle Mercedes Benz Financial Loyalty + special incentive + special finance rate.

    2014 Mercedes Benz CLS 550 - best car ever! 2nd best car ever, my 1967 Corvette Stingray Coupe with 435 hp.

  • Hi,

    I spoke to two different dealers and they said they can not stack the conquest cash with the Mercedes financial incentive (2,000). I am assuming they just don't want to do it?

    Thanks...
  • abacomikeabacomike South FloridaPosts: 3,499
    edited November 2011
    That is correct. I must not have explained the "bundling" issues properly. Conquest Cash is for buyers who do not have a Mercedes Benz currently. You can, however, bundle the Mercedes Benz Financial incentive with USAA, which is what I did. Last month, the incentive was only $1500 for MB financial which I bundled with the USAA incentive (a net of $1500 below invoice because the USAA pricing is invoice +500.00 less $2000.00). Thus, I purchased the car for a total of $3000.00 below invoice and also got 3 years Mercedes Benz Maintenance which is worth ab out $1000.00. But rememer, factory invoice is different than dealer invoice. There is a 2% holdback for the dealer on every car they sell. Thus, if they sell you a car for their so called "invoice", they still are making 2% profit. On my car, that works out to be aboutg $1800.
    Also, you can bundle the above incentives with 1.9% financing for up to 66 month. That 1.9% rate IS NEGOTIABLE because the buy rate for that money is only .9%. I was able to negotiate a rate of 1.6% for 66 months. I always take out a loan with Mercedes Benz Financial because of the incentive they offer to those buyers who currently have a lease or loan with them.

    By the way, I don't remember is I mentioned this before, but Chase Bank is Mercedes Benz's financial broker for all these loans. Even though my loan is with MB financial, when I call to ask questions, etc., you are actually speaking with a Chase employee.

    2014 Mercedes Benz CLS 550 - best car ever! 2nd best car ever, my 1967 Corvette Stingray Coupe with 435 hp.

  • storm10storm10 Posts: 175
    While it's a good idea to use Multiple Security Deposits, MBF will not let you combine MSD's with special (discounted) money factor.

    Since E350 BlueTec does not have the special money factor, it's definitely a good idea. Especially E350 BlueTec has one of the highest residual on the market! But regular E350 sedan already have special money factor, so you have to see if it makes sense to use MSD + standard money factor, or just special money factor without MSD's.
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