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2013 and earlier-Mercedes-Benz C-Class Lease Questions

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Comments

  • jdls1jdls1 Posts: 1
    Soupaman,

    I am new to leasing and am trying to figure out a monthly payment,
    I ran the numbers you provided($39,133.5 Sale price, .00156, 73% 24 mos) Your saying the payment should be $427 (Before tax),

    but I am getting $440 before the money factor, and taxes.

    What formula are you using to calculate the monthly payment?

    Thanks
  • ......also, as an add-on to my lease question a couople posts ago, I am also considering the C250 if the price or lease variables are better on that and I'm eligible for the conquest discount if MB lets you combine USAA and Conquest cash.

    If you see these post, Soupaman, I would really appreciate your take on my situation.

    Thanks
  • Hi oddsr,

    Looks like a decent deal, but could be better. Here are my thoughts.

    1) The numbers you are being quoted are aligned. Meaning, the money factor plus residual plus cap cost plus term all result in the two monthly figures ($380 and $417 respectively) so their math is good.

    2) Lease acquisition fee of $995 probably includes $200 profit for the dealer, but then again your Doc fee is really low (I was charged $289 for doc fees). You may want to call other dealers to see where they are coming in at? When I called, I was quoted $795 from two dealers and the dealer I went to do the deal with, they charged me $995. I told them what other dealers quoted and they adjusted the charge to match others. I am not sure how the doc fees vary by state - maybe they do and maybe they don't. Regardless, your upfront fees seem okay - no red flags.

    3) Think about how you want to handle maintenance. The 2yr/20,000 mile package is priced at $619 on mbusa.com. The dealer may mark this up as well. Regardless, people have posted that when they signed up for auto-pay the dealer included maintenance for "free". Basically, auto-pay would reduce your payments by $7 to $10/month. If you were to capitalize the $619 into your sale price of the car and the MSRP of the car, your extra monthly cost for adding maintenance would be ~$9. Therefore, your increase in payments for adding maintenance would be offset by the savings from the auto-pay option.

    4) Lastly, I think you can push harder on the Sale price of $38,133. By knocking off another $500 off, you can save another $25/month. Feel free to look up my post on my deal (MSRP was $42,650 and sale price was $37,000) - and then i added maintenance for $795 to both of those numbers. My discount was $5,650 on a 2012 C300 4Matic Sport - deal done last week. Someone else posted that they have seen $6,000 discounts off of MSRP. That's very aggressive - I know that was done for 2011's without even having to negotiate.

    Overall, you are getting a decent deal, but if you push a bit harder, you may get an excellent deal. Also, you may want to consider stretching out the lease term - I ended up doing a 36month because it was like $4 more per month. This way, my upfront costs (lease initiaiton,etc) are postponed for one more year (spread out over 36 months instead of 30 or 24 months). Personal choice of course.

    GOOD LUCK!!! :)
  • Hi jdls1,

    I have built a simple model in Excel. A disclaimer is that my monthly figures are close, but it will never be exact to a dealer - probably because their rounding may be different than mine.

    A good way to check the math is to plug in the variables in the given example (see link) into your calculator and see if you are getting the same monthly payments as they show. http://www.leaseguide.com/calc.htm

    Regarding my calculations... The sale price seemed to changed to $38,133, but let's just use $39,133 to be consistent. MSRP is $43,195. To review, I am using 24 months as the lease term, sale price of or $39,133, $0 cap cost reduction, money factor of .00156 (this is about 3.74%), a residual of 73% (or $31,532.35).

    Given these variables, the depreciation fee is $7,600 and the finance fee is $2,645. Add these two together, $10,246, and divide by 24 = $426.93.

    Also, double check your lease term, money factor, residuals (are you calculating residual off of MSRP or on Sale Price), etc... For example, if I use 72% as the residual in my model, I get a pre-tax monthly payment of $444.

    Cheers,
    S
  • Hi shackalackal,

    I am not following your situation exactly. Do you plan to sell your truck to the dealer or will you sell it on your own? Or, are you leasing it and want the dealer to absorb the remaining payments?

    In any case, if your goal is to get into a Mercedes C-class under $620/month, you should be okay. Check out the deals others are getting. If you are concerned about paying money upfront to initiate the lease, it's about $1800 due up front typically. If you build this into the lease, just add about $80/month for a 24 month lease or about $60/month for a 36 month lease. These figures would be in addition to your lease payment and taxes.

    The other thing you want to pay attention to is the money factor - this will be based on your credit rating. The .00156 is for tier 1 credit. That could be a little catch in determining where your monthly payment ends up at.

    If you are leasing your truck and you want to get out of it, check out leasetrader.com as well. I do not work for them nor have I used them. Just heard about it recently and am trying to be helpful.

    Good luck!
    - S
  • Thanks for the info, Soupman. I'm actually heading to the dealer later today. Here is the deal they offer on buying my truck and financing the negative:

    2012 C250 Sport w/ Command single disc nav, sirius and spoiler
    MSRP: 37690
    Sale price: 35000
    After USAA Discount(2k): 33000
    48 month lease payment is $640/mo with 2k down/up front

    They didn't give me the lease yet but they have the residual at 63%.

    I told the dealer I would like to stay at 36 months or less but he said that would make my payment $755

    Is this a good deal or do I need to go back to work? Sorry for the lack of deal info but the email I got from the dealer left a lot to be desired. I'm heading there in an hour or so to lock horns.

    Thank you for your help so far!
  • kyfdxkyfdx Posts: 29,849
    Holy Cow! $640/mo. for 48 months!!

    You can buy the car for the same payment for 60 months..... :surprise:

    Something is seriously wrong with those numbers....

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Hi josera. Mercedes-Benz Financial's November buy rate lease money factor and residual value for a 36-month lease of a 2012 C350 Coupe with 15,000 miles per year are .00225 and 64%, respectively for consumers who qualify for its Tier 1 credit tier.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Congratulations on getting your new ride, sunnyfl1. Thanks for taking the time to share the details of your deal with everyone. Enjoy and have a Happy Thanksgiving!

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi Lance. Mercedes-Benz Financial's November buy rate lease money factor and residual value for a 36-month lease of a 2012 C250 Coupe with 12,000 miles per year are .00225 and 68%, respectively for consumers who qualify for its Tier 1 credit tier.

    The residual value for a lease with only 12,000 miles per year would be 1% higher.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi Ozzie. Please see my previous post for the Coupe info. MB Finance's November buy rate lease money factor and residual value for a 36-month lease of a 2012 C250 Sedan with 10,000 miles per year are .00154 and 64%, respectively for consumers who qualify for its top credit tier.

    Mercedes is currently providing a $2,000 cash incentive on this car to current owners and lessees of competitive luxury vehicles.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi jearx. Just a heads up, but I believe that the official Mercedes-Benz early lease termination program allows lessees out of their deals up to eight months early. If you want to get out of your deal twelve months early you might have to bury part of that cost in your next lease. Something to keep an eye on.

    As far as this car's lease program goes, if you were to lease a 2012 C250 Sport Sedan through Mercedes-Benz Financial right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value would be .00154 and 71%, respectively for consumers who qualify for its top credit tier.

    The numbers for an otherwise identical 30-month lease are .00154 / 67%. the 36-month numbers are .00154 / 63%.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • mlad11mlad11 Posts: 19
    Hey Car Man,

    Could you please post the current MF and Residual for C300 24 months/7500 mi.

    Thank you.
  • oddsroddsr Posts: 5
    Thanks for the info.
    I was told that the 36 month lease would be more expensive than the 24 month which is why I was leaning in that direction. Don't think I am doing maintenance with the 24 month. Chances are that I will only have one inspection before they'll be calling me to move into a new car and I only put about 8,000 miles a year on my car.
    When I tried to balance up my numbers I finally did get to where the dealer was, but for a lease of 12,000 miles a year. Should it be lower with 10,000 miles which is what I asked for?
    Also, does the $795 lease acquisition fee that you negotiated for include gap insurance as well?
    Thanks, any input would be appreciated.
  • dl_amgdl_amg Posts: 39
    edited November 2011
    Thanks all the input here. Here is my deal.
    MSRP $43,890 (Palladium Silver, Blk MB-tex, P1, Comand, Lighting, 18"AMG, Keyless-Go, Rearview Camera, spolier and 2yrs Srvc Plan (Dealer cost $252)
    I don't know the sales price since I need to go back to finish signing the doc. but I already have my $1k drive off (incl 1st month, registration and fees) taken thru my credit card.
    24Mo. / 12k mi per yr
    $1k drive off
    $400/mo. including CA tax (8.25%).

    Here is incentive I had applied:
    1. $2k Cash Bonus being MBFS on our other R-class lease.
    2. $1500 incentive being BofA employee.

    Seems to be good deal. :) Let me know if any one like to have the dealer info.
  • This is the deal I have been looking for. Could you share the dealer info?
  • dl_amgdl_amg Posts: 39
    MB of Encino in San Fernando Valley.
  • Thanks a lot. Will see If I can get a similar deal. Congrats for your new MB
  • dl_amgdl_amg Posts: 39
    edited November 2011
    All deal very. This car is replacing my Totaled C32 AMG...also purchased from the same dealer 9+ yrs ago and since our R-class is also from them as well, they really work the deal to sale me the car. I was asking $0 drive off and $350/mo incl tax when I start on $41k car. At least they didn't boo me out the floor. :)
  • shackalackalshackalackal Posts: 6
    edited November 2011
    Hey Soupaman,

    Sorry to bug you but I went to the dealer last night right before they closed and I didn't get much done but that might be good since I have more time to research this lease. I wanted to put the specifics I have all in one post to see what my best case scenario would be. I have tier 1 credit and about 1-2K cash out of pocket is about all the misses will allow.

    MSRP of 2012 C250 (w/ S32, 333, 536, 731 options): $37,390
    USAA price of $250 over invoice: $35,000
    Price after USAA discount: $33,000 (I also qualify for 2K Conquest but was told I can't stack deals)

    Payoff on my 2010 Dodge Ram: $32,700
    Trade allowance on RAM: $20,000 (consistent w/ the other dealers I've checked)

    They said that they ran the rough numbers and I will be at roughly $640/mo with the full 2K down on a 48 month lease and the only lease number they told me so far was a 63% residual. My goal was to do a 36 or less month lease at or below my current RAM payment of $620/mo so I can walk away from my negative in 3 years or less when my military enlistment is done. I realize I've dug a pretty deep hole on the RAM but I'm wondering if I can find a better way to do this than a 48 month lease and $20 payment bump with 2K out of pocket.

    Thanks!
  • Hi schackalackal,

    I am not 100% sure what you are trying to do but here is what I think I get so far. Can you please confirm?

    MSRP: 37,390
    Sale Price: $33,000 + $12,700 = $45,700???
    Money Factor: ?
    Lease Term: 48 offered, 36 months desired?
    Down Payment: $0 or $2,000?
    Upfront fees: ~$1700 what you will pay at inception?
    Residual: 63% for 48 months?

    Thanks,
    S
  • shackalackalshackalackal Posts: 6
    edited November 2011
    I appreciate the help, Soupaman! As for your recap, you are correct. As for your questions, I have $2k to use towards the deal total, wether that be towards fees or in the deal towards my negative equity. I'm used to buying cars where cash down is cash down no matter where they put it in the contract but I am in over my head on leasing so how best to apply the $2k is part of my question. I would like to be at 36 months or less but they tell me at MB that will put my payment well into the $700 range. I still haven't got a money factor answer from them yet but i will hopefully hear back soon. They submitted a deal to MB financing and I know the total they were looking for approval on was $43,700 but they haven't showed me the details. They said if it comes back approved we can dial in the details. This is all new for me as I have limited leasing experience and zero MB buying experience but the sales guy said this is how they do it. I am used to a lot more dealing on the front side before an app is submitted.

    Thanks, again....I really am appreciative of your time, Soupaman
  • Soupaman,

    Got an update from MB and they said that the app came back and MB financing won't let me roll more than $4k negative. I think they are capped around 110% LTV but I admittedly don't know if LTV even applies to a lease. Needless to say, $6k down isn't an option so I guess no new Benz for me. I actually have a pre-approval for $40k at 3.24% for 72 months with up to 125% LTV that I'm sure I could bump to $43K but i have to run the amortization numbers to see if it would gain me anything. I would assume the Benz would hold it's value pretty well so it might make sense. Anyway, thanks for the effort on my behalf!
  • Thank you! Have a wonderful thanksgiving.
  • Hi Soupman, Thanx for some info which has somewhat helped me with understanding a little better. I have to say, I am still confused with some things and I can really use some help here. I really do not like dealing with the dealership when I do not have the important info which after reading your posts has helped a little bit.
    I am looking at the exact same vehicle for a 36 Mo lease term and when I went into the dealership I only said that I wanted to keep my payment below $ 500 . I am not aware of residuals and money factors until reading through the forum today. I am still not sure what the money factor is and I would really appreciate any help you can give me. They have come back to me with of course $500 a month for 36 months including tax but also wanting $2500 down. I have learned through alot of reading today that I should be able to do much better than this but I am not sure where to go from here. They called me back today to say that they can do the deal and asked if I want to wrap it up Friday. After speaking with a few people today, I think that they are also going to try to say that I need to also make the first month payment and bank fees when we get to financing.
    It seems as though I should be able to get this car for even 30 months for less than $500 a month and also put less down. I am downgrading from an S550 so it is a big change for me but I am not sure if also this "Conquest" I am reading about applies to me as well. Is there any suggestions you have that may help me with getting this to a better deal?
  • Hi michael829,

    Firstly, thanks for reaching out. Hope you had a great holiday celebration.

    With respect to your car needs, I would say that you need to push the dealers as hard as you feel comfortable doing so. A lot of the folks who get the best deals on this forum really push hard, sometimes. It is not easy and can be uncomfortable, especially when sitting in front of them in their office.

    My philosophy for negotiating with a car dealer is based on being as objective as possible and arming myself with the facts. Yes, there is no way to validate all the information on these forums (which is what the dealer will tell you), but when people are posting deal after deal, you will start to see some patterns.

    The last week of November is a great time - where you, the customer, has the most leverage. Don't forget this - you have the support of the forum here as well!

    Okay, so address your immediate needs - here is what I would do if I was in your shoes:

    1) Check out the most recent deals posted to this forum and find the deal you would be happy with. Look at the MSRP of the car, how much money is required at signing and what the monthly payment is. Also, don't forget to take into account the term of the lease (24 months, 36 months, etc.) and how many miles you plan to drive every year). If you find one that is pretty close to your ideal, then you know what you should be paying.

    2) Go to MBUSA.com and find all the mercedes dealers in your state. Call each of them and tell them you what you are interested in (in terms of the car specs). Ask for confirmation that it is in stock (get the stock number and the VIN number). For example, I knew that I wanted black on black with P1 and S32 for sure. I didn't want to pay extra for burl walnut, but had to bite the bullet because the deals for cars in inventory are better than custom ordered cars. Ask them for a quote for $0 down ($0 cap cost reduction) and their monthly payments without tax. Tell them you will pay the inception fees and first month up front, but you want them to quote you the total and details of this as well. Do not tell them what you are willing to pay - as you have experienced, they will come in a few dollars below your budget-price.

    3) Let's say you find two dealers who have the same car in stock. Let's say that they quoted you something ridiculous, like your $2,500 down and $500/month. I would then disclose the deal I found on the forum (Step 1), but disclose it in a way that sounds like your offer. For example, "I am glad to see that you have the car I want. I am very interested in coming in to make a deal this afternoon, but I don't want to go back and forth. Here is my offer ($1,xxx due at signing, including first month payment, all fees, taxes, title, etc., $0 cap cost reduction, 36 months, 12K miles, maintenance, etc., and $400/month including tax). I will only come in if you can offer this deal on the phone. If we agree upon the numbers, I can provide a credit card for the deposit to secure the car. Otherwise, I will work with another dealer."

    4) Lastly, don't forget that you have more leverage than the dealer. Don't get too bogged down about not knowing about money factors and what not. I would recommend that you learn about it, just google "lease payment calculator" - you should find plenty of sites that will walk you through the math.

    5) Finally, if you want the same exact deal as mine, and it turns out that you don't qualify for the Conquest (although, I think someone mentioned a loyalty rebate), the additional $2,000 added to your lease would increase your payment by about $60/month. Still way under that $500 mark with $0 down. As you may have read, do not put any money as a down payment, it's not the best strategy for a lease.

    I know this is a very long post, please feel free to lean on the forum and to ask me for more help!

    Good luck and keep me posted!
    - S
  • Hi shackalackal,

    Sorry to hear about your deal falling through. Hang in there! I am sure you will be behind the wheel of a new car soon enough!

    Good luck in the meantime and thank you for your service!
    - S
  • dl_amgdl_amg Posts: 39
    I did exactly your #3, except I start with $0 Drive off (not paying a dime when sign) and $350/mo incl tax on a $40k C250 sedan w/24m/24k mi lease. Of course I quote this from talking to other dealer who doesn't want to sell that to me. So I bring the same offer this the dealer I purchased my car. My MUST have is Lighting Pkg+ P1 and the only car my dealer got is $44k but they are welling to deal. End up with $1k drive off and 400/mo. I think I still give in a little too much...I should stick with $400 drive off and $400/mo.... :)
  • This is an incredibly valuable forum. Thanks to everyone who shares their experience!

    Just landed a new C250 sedan loaded except the AMG package and the larger sun/moon roof.

    Sticker was just over $42k
    Gross Capitalized cost was $36k

    The final deal - $2k up front (various fees, first month payment, and $77 in cap cost reduction). $399.66 per month (including CA tax)for 30 months & 12k / year.

    Perhaps I could have squeezed a bit more here and there - But at the end of the day, I'm thrilled with the purchase - and the car!

    Thanks again for sharing, folks!
  • $46.K car
    Total due at signing $850.
    10K miles/yr 36 mo.lease $435/mo including 7% taxes
    Ct dealers can't do it, NY and NJ both can. Too bad not AWD though - Happy Hunting y'all.
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