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2014 Mercedes-Benz CLS-Class Lease Questions

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  • pmw801pmw801 Posts: 16
    Hello, can I have MF and residual on 2014 CLS550. I want to lease 39 months with 12K/year. Car is 4matic. Also how do I figure what is a good lease payment after I know the MF and residual. Sorry for the dumb questions, I'm not the best at leasing lol. Thanks for any advice in advance. :-)
  • MichaellMichaell ColoradoPosts: 5,654

    @pmw801 said: Hello, can I have MF and residual on 2014 CLS550. I want to lease 39 months with 12K/year. Car is 4matic. Also how do I figure what is a good lease payment after I know the MF and residual. Sorry for the dumb questions, I'm not the best at leasing lol. Thanks for any advice in advance. :-)

    MF is .00131.

    MB does not offer 39 month residuals; 36/12 is 55%, while 42/12 residual is 50%.

    Negotiate your best selling price, then use that number, the MSRP and the numbers I've provided above in a lease calculator (many of them available on the web) to model your payment.

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  • pmw801pmw801 Posts: 16
    So I guess negotiate with 36 month not 39 month since I don't know what those numbers are?
  • MichaellMichaell ColoradoPosts: 5,654

    @pmw801 said: So I guess negotiate with 36 month not 39 month since I don't know what those numbers are?

    Correct ... 36 month is the sweet spot for MB leases.

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  • pmw801pmw801 Posts: 16
  • pmw801pmw801 Posts: 16
    So they told me MF .001211, residual 55% and sale price $75,000. Is this good?
  • MichaellMichaell ColoradoPosts: 5,654

    @pmw801 said: So they told me MF .001211, residual 55% and sale price $75,000. Is this good?

    Residual is fixed by MBFS and cannot be altered. MF seems good.

    Cannot comment on the strength of the offered price - I've never been in the market for a luxury sedan.

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  • pmw801pmw801 Posts: 16
    Got another quote from different dealer. $2000 down at $929/month. He said they're selling the car at $74,000. Msrp is $84,840. Good deal?
  • MichaellMichaell ColoradoPosts: 5,654

    @pmw801 said: Got another quote from different dealer. $2000 down at $929/month. He said they're selling the car at $74,000. Msrp is $84,840. Good deal?

    I get $917.46 pre-tax. How much of the $2000 is cap cost reduction?

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  • pmw801pmw801 Posts: 16
    What is cap cost reduction?
  • pmw801pmw801 Posts: 16
    They said all taxes are included in the $929/month
  • pmw801pmw801 Posts: 16
    Oh I see now, we'll that covers registration title and other fees. I guess I can ask how much registration, title etc fees are then subtract from 2000, them that would be the cap reduction from $74000 correct?
  • pmw801pmw801 Posts: 16
    Ok so here's what I'm calculating: MSRP $84,840 × .55= 46,662 which is residual value. Negotiated price of $75,000. $75,000-46,662= $27,338. $27,338 ÷ 39 months = $700.97. $74,000 + 46,662 = $121,662 x .00131 = $158.06. $700.97 + 158.06 = $859.03 × .07 NJ sales tax = $60.13. 859.03 + 60.13 = 919.16 monthly payment. Is this correct?
  • pmw801pmw801 Posts: 16
    Ok so here's what I'm calculating: MSRP $84,840 × .55= 46,662 which is residual value. Negotiated price of $75,000. $75,000-46,662= $27,338. $27,338 ÷ 39 months = $700.97. $74,000 + 46,662 = $121,662 x .00131 = $158.06. $700.97 + 158.06 = $859.03 × .07 NJ sales tax = $60.13. 859.03 + 60.13 = 919.16 monthly payment. Is this correct?
  • pmw801pmw801 Posts: 16
    Sorry I calculated at 74,000 Negotiated price. Was a typo there
  • MichaellMichaell ColoradoPosts: 5,654
    edited August 15

    @pmw801 said: Ok so here's what I'm calculating: MSRP $84,840 × .55= 46,662 which is residual value. Negotiated price of $75,000. $75,000-46,662= $27,338. $27,338 ÷ 39 months = $700.97. $74,000 + 46,662 = $121,662 x .00131 = $158.06. $700.97 + 158.06 = $859.03 × .07 NJ sales tax = $60.13. 859.03 + 60.13 = 919.16 monthly payment. Is this correct?

    I'm showing the depreciation amount as $28,338, not $27,338 (you're probably using the $74K cap cost). Also, isn't the lease for 36 months, not 39?

    With those differences, I'm getting $787.17 for the depreciation part of the payment,and $159.38 for the rent charge, for a total of $946.54/mo, pre-tax.

    NJ doesn't tax the payment each month; rather, they calculate the taxes for the entire lease up front. You can either pay it at lease inception or it can be added into the cap cost. I think that is what is causing the difference with the dealer quote.

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  • pmw801pmw801 Posts: 16
    How do u calculate the rent charge, my number doesn't match yours.
  • MichaellMichaell ColoradoPosts: 5,654

    @pmw801 said: How do u calculate the rent charge, my number doesn't match yours.

    Monthly rent charge is the cap cost plus the residual value, multiplied by the money factor decimal.

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  • pmw801pmw801 Posts: 16
    I did that but numbers didn't match. Can u post how u got the $159.38 please
  • MichaellMichaell ColoradoPosts: 5,654

    @pmw801 said: I did that but numbers didn't match. Can u post how u got the $159.38 please

    (75,000+46,662)*.00131 = 159.38

    Your post was using $74,000 as the cap cost, not $75,000.

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  • pmw801pmw801 Posts: 16
    Thanks for the help. As far as tax is concerned. When do I add it to the cap cost? Because cap cost is involved in figuring out the rent and depriciation payment?
  • MichaellMichaell ColoradoPosts: 5,654

    @pmw801 said: Thanks for the help. As far as tax is concerned. When do I add it to the cap cost? Because cap cost is involved in figuring out the rent and depriciation payment?

    Which state is this? Some states tax the payment monthly, others calculate the entire tax for the lease up front and either collect it at lease inception or add it to the cap cost, and still others (TX, IL, GA, MD) calculate sales tax on the entire cap cost (ouch).

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  • pmw801pmw801 Posts: 16
    New Jersey
  • pmw801pmw801 Posts: 16
    So I Google it. In new jersey take cap cost and subtract residual then multiply by 7% sales tax. Then this number I guess should be added to total amount paid during lease then divided by term of lease. Does this sound right?
  • kyfdxkyfdx Posts: 29,179

    @pmw801 said: So I Google it. In new jersey take cap cost and subtract residual then multiply by 7% sales tax. Then this number I guess should be added to total amount paid during lease then divided by term of lease. Does this sound right?

    Exactly... Depreciation X tax rate = tax. Add tax to CAP cost (or, pay it upfront)

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  • cad4mecad4me Posts: 8
    kyfdx said:

    @pmw801 said:
    So I Google it. In new jersey take cap cost and subtract residual then multiply by 7% sales tax. Then this number I guess should be added to total amount paid during lease then divided by term of lease. Does this sound right?

    Exactly... Depreciation X tax rate = tax. Add tax to CAP cost (or, pay it upfront)


    NJ sales tax is calculated as follows, which was implemented sometime in 2005 (if not mistaken).

    (Depreciation plus Rent (financing/interest) plus Acquisition Fee plus any dealer fees such as Doc Fee) times Tax Rate = Tax
  • cad4mecad4me Posts: 8
    @‌ moderator

    I know this appears to be a very good deal but wanted to get your opinion.

    2014 CLS 550 4MATIC
    Previous loaner car with 8500 miles
    MSRP $84,870 (which I have a copy of)
    Selling Price initially told $68,900 then $67,900
    $649 monthly pre-tax payment
    10,000 miles
    36 months or 39 months
    Told 7,500 miles would reduce by about $20 (which makes sense if residual change is 1%).

    Using the residual and MF (figured out using nationally advertised deal on MB website), I arrive to $699 for 10k/39 mo with $67,900 selling price.

    Therefore, selling price must be about $66k according to my calculation.

    What do you think?

    Can you please give me standard MF and residual on 7,500 and 10,000 miles?

    Thanks
  • cad4mecad4me Posts: 8
    @‌ moderator

    Forgot to mention; zero cap cost at inception. They want acq fees, doc fees, mvs, lux tax and first month due at signing. Sales tax could be paid upfront or would be addition to the monthly $
    Therefore, $649 a month is pre-tax.
    Thanks
  • MichaellMichaell ColoradoPosts: 5,654
    edited September 14
    cad4me said:

    @‌ moderator

    I know this appears to be a very good deal but wanted to get your opinion.

    2014 CLS 550 4MATIC
    Previous loaner car with 8500 miles
    MSRP $84,870 (which I have a copy of)
    Selling Price initially told $68,900 then $67,900
    $649 monthly pre-tax payment
    10,000 miles
    36 months or 39 months
    Told 7,500 miles would reduce by about $20 (which makes sense if residual change is 1%).

    Using the residual and MF (figured out using nationally advertised deal on MB website), I arrive to $699 for 10k/39 mo with $67,900 selling price.

    Therefore, selling price must be about $66k according to my calculation.

    What do you think?

    Can you please give me standard MF and residual on 7,500 and 10,000 miles?

    Thanks

    The MF for the CLS550 4Matic is .00131 this month. 36/10 residual is 56%; add 1% for 7500 miles.

    Using the MSRP and a $66K selling price with the above numbers, I get a pre-tax payment of $661.85/mo (36/10) or $639.39/mo (36/7.5).

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