Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





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

1555658606196

Comments

  • dl_amgdl_amg Posts: 39
    Congrat to your new purchase and enjoy it!! $400/mo incl.Tas for 30Mo. is great deal for $42k car!
  • Hi dl_amg,

    Congrats on your deal - I saw your original post and was blown away by how great your deal was! I wish I saw your post before I negotiated my deal! :)

    Hope you enjoy your ride, I am picking mine up tomorrow!
    - S
  • dl_amgdl_amg Posts: 39
    After few days of driving, I wish I went for C350 and willing to pay $10-20 more each month. :( Too bad there is no C350 sedan with lighting pkg in the dealer I'm dealing. Other then engine and brakes, I do enjoy everything else including handling. It's years ahead of my C32 AMG.

    Enjoy driving! :)
  • dl_amgdl_amg Posts: 39
    FYI. Sales price on doc shows $36,520 my MSRP$43,890. Arm yourself with this number for your nego.! :)
  • ack300ack300 Posts: 7
    edited November 2011
    I have been leasing the same C300 twice for the last few years. When I first started the lease, I traded in my Jeep and the monthly payment was $490 for 32 months 7500 miles a year. I am not familiar with leases and all the numbers are still confusing to me. Now yesterday I just leased my 3rd C300 after they sent me the MB Loyalty Program. The dealer gave me a $38000 car (better equipment than the last C300) and monthly payment at $499 per month 30 months, 7500 miles. I returned my car, signed the agreement and left.

    Today the finance guy called me and said the contract was wrong and want me to re-sign again. I took a look at the contract and here's the info:

    Gross $37961 cap cost
    net $37961 cap cost
    residual value: $29593
    Depreciation amortize amount: $8367
    Rent charge: $2675
    Base monthly payment: $11043
    monthly payment: $368

    Is this correct? Just a quick look in the forum and seeing what people are posting looks like $500 for a $38K car is incredibly expensive? Mind you I did not pay any downpayment or tax with the newer car. Is $368 correct? If so, according to the new number what should I do when the dealer calls tomorrow and tries to get me to sign for $500? Thanks for you help on a lease newbie ...
  • Hi ack300,

    First off - a signed contract is a signed contract. However, the honorable thing to do is to figure out which of the two options are fair.

    In order to figure this out, can you please provide the following? I will be more than happy to get back to you shortly with what you should be paying:

    MSRP of the car in question: ?
    Cap Cost (selling price of the car) of the car in question: ?
    Cap Cost reduction of the car: $0
    Lease Term: 30 months
    Money Factor: ?
    Residual Value: equals 29,593 divided by MSRP
    Upfront fees added to the selling price: ?
    Annual Mileage: ?

    Other questions:
    - Are you doing the auto-pay option (this will lower your money factor)?
    - Does your lease include their maintenance package?

    Thanks,
    S
  • Hi Soupaman,

    Thanks for reply and I really appreciate it. Here's the contract I am looking at:

    MSRP: $43500
    Gross Cap Cost: $37961
    Gross Cap Cost Reduction: N/A
    Lease Term: 30 m
    Money Factor: (not stated)
    Residual Value: 29593 / 43500 = 0.68
    Fees: Acquisition fee 795, Sales/Use Tax $976, Star Service Prepaid Maintenance $994
    $795 + $976 + $994 + Price of Vehicle $35195 = $37961 (Total Gross Capitalized Cost)
    Mileage: 7500 miles

    I am doing Auto-pay, and the lease does include maintenance package for 3 years so I don't need to pay for maintenance. This is my signed contract, and based on the signed contract, the amount I would pay is $368.10, whereas we had verbal agreement (which because I was paying a similar amount before, I didn't even know regarding any of the above) - would be $499, which was what I was expecting to pay. The finance manager wants me to re-sign a new contract, do they have the power to do that?
  • dl_amgdl_amg Posts: 39
    $499 is way too high. $368 is very reasonable (assume before ur state TAX). Tell them they have to throw in some freebies, like Free Star Prepaid Maintenance! My sale dealer offer me 2 yrs prepaid maintenance @employee price @$252 and for 30Mo lease, that's all you need, 2 Services, A & B! They should be able to take that $994 out. Also tell them to waive the Acq Fee...I didn't pay any of that.
  • Hi ack300,

    Can you please confirm that your signed contract is for $368.10 monthly payment (including tax) and now the dealer is asking you to re-sign the contract for a new monthly payment of $499 (including tax)?

    Given the figures you provided here are some pre-tax figures:

    1) Assume money factor is .00156: ~$385 pre-tax
    2) Assume money factor is .00146: ~$378 pre-tax (w/ autopay)
    3) Assume money factor is .00152: ~$382 pre-tax
    4) Assume money factor is .00142: ~$375 pre-tax (w/ autopay)
    5) Assume money factor is .00225: ~$431 pre-tax
    6) Assume money factor is .00215: ~$425 pre-tax (w/ autopay)

    I would recommend that you confirm the money factor the dealer is using to calculate your monthly payment. As you can see, it can make a big difference. Not sure if anyone posted the money factor for November for a 30-month lease with 7,500 miles for a C300. However, I haven't seen any above .00225 (and that was for a C350 coupe) so I would not pay a penny above $400/month (including tax).

    Given that you are a loyal, frequent customer, I would expect the dealership to take care of you and bite the bullet for their stupid mistake. They would never allow a customer to renegotiate a deal after the customer signs the contract!

    Like dl_amg stated, and I agree, $499/month is ridiculous for your car, especially given the serious promotions they are running. It is a bit obnoxious for the dealer to ask you to up the payment to $499 after the fact - that's not a good play in my book.

    If you want to be fair and pardon the mistake, I would recommend that you pick a monthly payment that you think is fair (based on the money factor). For this, I think $400/month including tax and $0 due upfront is more than fair.

    Given that you have a signed contract and it may be in your financial interest to fight for the lower payment deal (if they insist on changing it around on you). To figure out your rights, I would read the terms and conditions of your contract. There may be a clause where the dealer can cancel the deal without cause (not sure though). In this case, the dealer would burn a bridge with a loyal customer. I would hope they don't resort to this tactic given that they made a mistake!

    Good luck and let us know what ends up happening,
    S
  • ack300ack300 Posts: 7
    edited November 2011
    OK this is becoming quite crazy.

    The dealership is Mercedes Benz Manhattan. So the contract signed was $368 (with tax rolled in), and just got off the phone right now, they cannot honor this number, either we go back to the agreed upon number which is $499 or they can cancel the contract and I'd return the car. I didn't get to read Soupaman's message before talking to them, but I requested the information from the finance manager and here's the information:

    MSRP of the car: $42120
    Price of the car sold to me: $39383 (for $499 payment)
    money factor: 0.00132

    Price of the car in the signed contract ($35195)

    They said they've utilized all of the incentives possible (for $39383), and I am getting about $1200 off from the invoice. They want me to sign a contract at $490 which would include the tax or they cannot do anything further. I think that's very far from $400 that you suggested. Is $490 still an outrageous number, are there other incentives that I could potentially take but they are not offering to me. I feel they just want me to sign the contract at the agreed price or they don't want to deal with me, although I did agree with a purchase contract to buy a $499. This is getting so messy ... suggestions?? My question is, based on their money factor, what is a fair number to pay (including tax). Also, what should the cost of the vehicle be? Thanks guys.
  • Hi ack300;

    Based on MSRP, Sale Price, and Money Factor you provided above, the $490/month including tax is mathematically correct, but they are not capitalizing their maintenance package so you are overpaying still! Wow, they are giving you a run for your money!

    Here is what I think:

    Okay so your MSRP is $42,120. Your selling price is $39,393, which includes some upfronts with total of $2765 built in ($795 acquisition fee, maintenance, and tax). Therefore, your net selling price is actually $36,618. In effect, you are getting a discount of $5,502 off of MSRP. This discount is in-line with others are getting on this blog.

    The question for you now is do you want to capitalize (build into the lease) the other costs of acquisition fee, tax, and maintenance?

    1) If you were to remove the upfront costs of $2765 from your lease payments, your monthly payment is ~$352 (pre-tax).

    2) By adding the acquisition fee of $795 to the selling price of $36,618, you are increasing your monthly payment to $380 (pre-tax)

    3) By adding tax ($976) and the acquisition fee ($795) to selling price of $36,618, you are increasing your monthly payment to $413 (pre-tax)

    4) Now for maintenance, this is where they get you. Because of the trouble from their mistake, the lease they can do is give you the maintenance for free! I would insist on this. FYI, the dealer cost for the maintenance is $254 for the 30 months plan. If they push back, your second option is to build it into the lease, but remember that Mercedes allows customers to capitalize the maintenance costs (so you have to add the amount to both the sale price AND the MSRP!).
    - Option 1 have them give you maintenance for free - your monthly payment will stay at $413 (pre-tax)
    - Option 2 (add $254 to the lease on top of #3 above) - your monthly payment is $417 (pre-tax). Remember to add the $254 to the MSRP as well, otherwise, the maintenance cost is not capitalized.
    - Option 3 (add $769 to the lease, this is price quoted for maintenance on mbusa.com) - your monthly payment is ~$423 (pre-tax)

    At the end of the day, if the dealer is looking to take the car back and destroy a customer relationship, too bad for them, especially because they made a mistake!

    Good luck and stay firm!
    - S
  • ack300ack300 Posts: 7
    edited November 2011
    Thanks Soupaman,

    Your comments are more than helpful! The final question for me is, these figures are based on pre-tax, what would it be for after tax? I'm based in NYC, so the sales tax is 8.875%, If it's 8.875% on a $36618 car, it'd be $3249.85, if that rolls into the 30 month payment (assuming 3249.85 / 30 = 108.32) So wouldn't any monthly payment of $400 have to add additional $108 = making it over $500? Because if that's the case, then the number seems correct, or am I not capitalizing the tax number correctly? Thanks again!

    PS. The finance guy said he'll have his manager call me back so I am going to wait to see what they say. Will keep you guys updated.
  • dl_amgdl_amg Posts: 39
    You are not paying TAX on the whole car but only on the monthly payment ($368 per ur initial #).
    Here is my lease just sign last week:
    MSRP $43,890
    24 Mo/24k miles lease ( ur is 7500mi, so might be in the same residual)
    Drive off $1000 including 1st Mo. + Lic/Title + 2yr prepay Srvc Plan.
    Monthly Payment $400/mo. incl. CA tax 8.725.

    So you should be able to get the same deal as longer term and lower MSRP.
  • Hi ack300,

    Hope the dealership will do its best to reach a reasonable compromise. Would be a shame for them to not own their mistake.

    With respect to taxes, there are two that you will be paying:

    1) $976 is most likely the tax levied by the county for the term of the lease. Mercedes Finance would bill you the respective annual amounts, if you did not pay it up front. That is different than sales tax.

    2) Since you are in NY, you are paying a sales tax of 8.875% on your monthly lease payment. So, if you end up with a payment of $375 (pre-tax), then your monthly payment including tax is ~$408.28.

    3) Also, as far as I am aware, the sales tax is also assessed on your bank acquisition fee of $795.

    Best of luck! Don't hesitate to post with more questions, if something seems fishy!

    - S
  • Hi Soupaman,

    Posting this message and then heading to bed. Just want to say many thanks for the information - seriously this forum is invaluable for people like me who don't know better, and if anything have just had a good lesson. So thanks again. I finally, after hours of discussion with my wife, figured out how the dealer come up with the $500 mo (just 3 days ago I'd have no idea - thanks again!)

    MSRP: 42120
    Sell price: $39383 (as what the manager told me over the phone)
    Fees: Acquisition $795 (assuming maintenance is free)
    Residual: 70%
    Money Factor: 0.00132 (as told me over the phone)
    Sales tax: 8.875% NY
    30 Months
    Monthly payment: $490 (using an online lease calculator)

    I think the discrepancy between your number and theirs, lies in the sell price: $39383, which according to Edmunds, is below the TRUE Price (about $40000), and also just below invoice. Is it actually possible for me to get a sell price like you were calculating around $36000? Though the dealer made a mistake I don't want to lowball them if somehow $5000 off MSRP is not possible anywhere in the tri-state area anyway. But if that is possible, then I will stay firm knowing that I could definitely get a better deal getting $5000 off MSRP (or $3000 off invoice). What do you think? Looking forward to your reply hopefully before they call me tomorrow again. Much appreciated!!
  • Hi ack300,

    You are more than welcome.

    Getting 5,000 off MSRP is pretty much in line with the recent deals posted for 2012 C300 models. The dealers were very aggressive!

    I got 5500 off of msrp on my car (2012 c300 sport 4matic, msrp of 42,650). That included 2000 of conquest money. But seems like others have gotten the same money as part of their loyalty incentive. See the deal posted by dl_amg, who got and awesome loyalty deal!

    Dont worry too much about the invoice price or the True price... The dealers are going below that, way below.

    In the end, you need to do what you feel good about. Do what you feel is right so you have peace of mind and enjoy the car. Remember, it's about your emotions, not the dealer's emotions.

    Good luck today,
    S
  • dl_amgdl_amg Posts: 39
    edited December 2011
    Yes. It's all about how you feel. If you okay with the price and enjoy the car, you should not care much the few $K diff.
    If you like to use Invoice/True Market Value, you should apply the $2k Loyalty incentive (current MBFS active acct holder which you should entitle to), on top of whatever Invoice/True Market Value is. And if you work for big corp. company and they participate MB's employee discount program, you are also entitle for additional $1500 Corp. Fleet employee discount (which you need to apply thru MBUSA site and get them approved w/code).
    In additional, they should throw in that Pre-pay service agreement (at least 2 yrs, since you can always return the car back 4 months early so u don't need to do the 3rd service) for FREE as dealer's screw up and inconvenience for you!! That's only about $250 for dealer's cost.

    When you come to this forum, you should be ready for nickle and dime... ;)
    Good Luck with your nego...
  • OK after a heated discussion over the phone with the finance manager's boss, here's the final deal. It's not that great, but I am just iffy about going around getting those discounts.

    Ticket MSRP: $42120
    Purchase Price: $38389
    Residual: 69%
    Fees: Acquisition $795
    Monthly Payment: $470 (tax included)
    Dealer: Mercedes Benz Manhattan

    They WOULD NOT BUDGE on throwing in the free maintenance. Stating that the free maintenance must show up on the invoice since they need to get billed, which I think was ridiculous. That's what they offered to me in the first place - FREE MAINTENANCE. If I have to pay a dollar for it, then it is not free anymore. In the end, I took the maintenance off completely, and opt to get a free 1 time maintenance, which does not go on the record, so my residual value went down. Overall the car is about $1500 below invoice, I was weary about going around calling dealers up asking for deals (dealing with one was annoying enough). The deal is $30 better than my original $500, but still have a bad taste in my mouth mostly because their unwillingness to work and kept on insisting that if I do not want this deal, by all means return the car. Next time I'll do my homework and come back to the forum before arming myself with information and head to the dealership. Thanks guys you guys' been really helpful!
  • New to the forum and was looking for some help. I was looking into leasing a C300 4matic for 30 months with 12,000 miles. These are the numbers I was given over the phone and wanted to see if anyone can help me out with figuring out what the monthly payment should be.
    Thanks for all the help,
    Gerard

    MSRP- 44,385

    Dealer price- 41,200

    money factor-.142

    Residual-67%
  • rbergmandcrbergmandc Posts: 10
    edited December 2011
    Hey Soupaman… hope you can help shed some light.

    looking at a 2012 c300 4matic with P1 and multimedia package.
    36mos/12k
    Taxes (8.625%) and Bank fee (795?) rolled in

    I've been dealing with a "car broker" and she is telling me:
    Invoice: 42150
    Sale Price: didn't tell me yet.
    Monthly: $515 sign and drive (except for plates/reg)

    In going to a dealer to test drive with a patient of mine (salesman) i was told the following
    Invoice: 42150
    SP: 37888
    Monthly:478

    I'm so skeptical about all of it.. not sure how to proceed.. the broker happens to be an acquaintance and can be very "rough" when speaking with her.. she proclaims the dealer is forgetting something.
    and that each car config is different.. but if the invoice prices are the same, the only thing that can affect the lease is the sale price?

    But the difference in payments over the lease is 1300.. could that be her fee?

    If you think the dealer deal is that good.. should I burn the bridge with the broker? I feel bad, but I assume she has to get paid somehow?

    Any thoughts?

    Ronny
This discussion has been closed.