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Mercedes-Benz E-Class Lease Questions

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  • ghstudioghstudio Posts: 947
    edited August 2011
    I'm in Florida. My understanding is that multiple security deposits are available in most but not all states.

    The reduction in money factor by Mercedes Finance is .00007 for each security deposit. Each finance company calculates the "security deposit" amount differently. Mercedes figures out your lease, assuming the number of multiple security deposits you want to pay and then you will pay the full amount of the monthly charge calculated times the number of security deposits you said you would pay.

    That's probably confusing....so let me explain with numbers

    If you tell the finance person that you want to make 10 security deposits, they will reduce the August money factor (tier 1 credit) from .0024 to .0017 and calculate the monthly payment including your local tax. You then will leave 10 monthly payments as a loan to Mercedes finance for the life of the lease.

    If you do this, I recommend paying the lease origination fee up front as well for two reasons. You won't have to pay 4% on that fee...but perhaps more important, the calculated monthly payments will go down and you will have to loan mercedes less as multiple security deposits.

    Many ways to play this, depending on your personal financial situation. If you are paying 20+% on your credit card loans, none of this makes any sense....go pay off your credit card. If you have cash sitting in a bank or in a CD and won't need it for the life of the lease, why not put it into multiple security deposits where you will effectively earn more than 10% on that money.
  • At the end of a lease, does Mercedes allow you to keep the car for one or more months...in other words, extend the lease if you want. Some leasing companies allow you to do this if you have another car on order FROM THEM. Others will allow you to extend for one or two months at the same monthly charge for any reason.

    How does Mercedes handle their end of lease options?
  • I would appreciate the new # for E350 sedan (and bluetec) for 24 and 33 mths and money factor for this month along with the comparison from the same for last month.

    Thank you
  • Hi pitbull666. Mercedes-Benz Financial's new September buy rate lease money factor and residual value for a 24 month lease of a 2011 E350 Sedan with 15,000 miles per year are .00192 and 67%, respectively for consumers who qualify for its top credit tier.

    The numbers for an otherwise identical 30 month lease are .00192 and 62%.

    It's possible that Mercedes is allowing consumers to lease vehicles for 33 months using its 30 month program this month if it qualifies for its "Value Added" program.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • What are the September money factors and residuals for a 12000 mile/24mo. lease, specifically on an e class blue tec diesel? Also, is there a "one pay" option, like offered by BMW, where all the lease payments are payed in one lump sum payment up front, which offers a greatly reduced money factor?
  • Hello Car_man,

    Based on your post, it appears that the residual values for September are 2% lower than in August for that E350? Can you please confirm this? Is this decreased on the E350 BT as well?

    Thanks...Alex
  • Hi chalkie1. Mercedes-Benz Financial's September buy rate lease money factor and residual value for a 24 month lease of a 2011 E350 Bluetec with 12,000 miles per year are .00192 and 76%, respectively for consumers who qualify for its top credit tiers.

    The last time that I checked, MB Finance did indeed offer a one pay option that provided a .00110 money factor reduction to consumers who choose to go that route.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • Hi Alex. I just double checked the numbers that I posted in the message that you referenced and they are indeed correct.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi I ave a question regarding a 2011 bluetec lease, the offer is as follows:

    Downpayment/ inception $2800
    Miles /year 10k
    Payment $569.00 tax included
    Msrp $59,625 p02 premium package

    I am hesitant to pullnthe trigger based on the numbers I am seeing posted does anyone have any thoughts? Thanks for any input.
  • While I don't know your credit tier, that's may not be a great lease deal if you are eligible for the "conquest" money (your last car must have been one of the manufacturers they are trying to conquest....ask the dealer....it's $4000)...and you should be getting a big discount off MSRP as well.

    First, the payment should be the first month's monthly lease payment and registration fees. Something else is obviously in that $2800.

    Second: What is your dealer charging for an acquistion fee. Mercedes finance charges $795 but many dealers give themselves another $300 profit and try to charge $1095 (I'll let you decide and negotiate which you want to pay).

    The money factor for that car is .00194 and the residual value for September should be 77% of the sticker MSRP on the car. for a 10k/year lease....and that's what your dealer should be using (some try to play with these numbers).

    What is the negotiated price you're paying for the car (how much are they giving you off the sticker price)?
  • I currently have a BMW and the 4k "conquest money" is factored in already. How much is a reasonable reduction in the msrp? I believe they may have brought down the msrp by another 4k. they havent been willing to negotiate the price since they say the car is in high demand
  • 8K off MSRP is reasonable...it's about what I got last month on almost exactly the same car. But there is still something wrong with the numbers. Did you buy prepaid maintenance or is there some other fee or are you in one of the states where you have to pay all the tax up front???? How about the answers to the other questions (acquisition fee/mf/residual being used)....

    I just ran your rough numbers...assuming 8K off MSRP, $795 acquisition fee and a dealer prep of $695 (what I paid) and your payment without tax and paying only the first month lease and registration fees up front...rolling all other fees into the lease....I come up with approx $510/mo plus tax.

    BTW...if you have about $4500 that you're willing to loan Mercedes as "multiple security deposits", your monthly payment would go down to about $442/mo plus tax AND you will get that $4500 back at the end of the 24 month lease...it is a security deposit, not a down payment.
  • I am in Florida, the 2,800.00 includes 1st month, acquisition, dealer prep and bank fees. I do not know the residual value right now and the $569 payment includes 7.5% tax. I know they were running numbers based on tier 1 credit, any suggestion on what to counter offer tomorrow?
  • ghstudioghstudio Posts: 947
    edited September 2011
    It depends how much you want the car...I did less haggling then usual because it was the only Bluetec on my dealers lot and it had the right equipment and colors.

    I would think I would aim at about $550/mo including tax with your first payment being only the $550 (first months lease payment) plus the registration/transfer fees and any nuisance fees like tire/battery disposal fees, etc. if there are any. No other money paid up front. This would assume that any acquisition fee/bank fee/dealer fee are part of the lease...not paid up front.

    Actually, if it were really me, I'd loan them the $4500 (10 multiple security deposits) which earns almost nothing sitting in a bank but would save me about $1700 over the 24 months by letting it sit in mercedes bank account instead of mine.

    Give it a try....it's a great car and even if you wind up paying a bit more, it's a great deal due to that $4000 Conquest contribution and the incredibly high residual.
  • Thank you very much, you have been very helpful ...this dealer has 2 similar cars but other dealers do not have many.
  • Car Man I am trying to lease a 2011 E350 4matic w P1 package and my dealer is not getting Anywhere close to the numbers I see others getting. Can you give me an idea on what I should be shooting for price wise? Can you breakdown the incentives? If I need to go to another dealer I guess I could do that. Also thoughts on BlueTec?
    Thanks
  • ghstudioghstudio Posts: 947
    edited September 2011
    The BlueTec has a significantly higher residual on the 24 month lease right now then the gas models....so don't let that confuse you. A similarly equipped gas e 350 would cost about $125-150 per month more on a 24 month lease. For longer leases, the two get closer. Actually if you compare the 24 month Bluetec lease to a 36 month lease on the same car, you will pay more per month for the 36 month lease. Clearly, the best Mercedes e class deal right now is the BlueTec...which is pretty strange since the 2012 has no changes from the very recent build 2011's.

    The other difference is that most of the deals discussed here are from folks who qualify for the "Conquest" $4000 deal which is based on the car you are coming from....that makes a very big difference in a lease....bringing the monthly payment down roughly $170/mo on a 24 mo lease for those who qualify. For the deal just discussed above, it would be about $730 a month for any gas e350.

    Finally, some of us take multiple security deposits to further reduce the cost of the lease. It's a great deal, but the option is poorly understood by both the dealers and buyers, so few do it. I am saving $1700 on my lease by loaning Mercedes about $5000 for two years...I get that money back. That's a great return on my money which would otherwise sit in a bank earning about 1% today, if I'm lucky.
  • Thanks for clearing that up. Does the BluTec come in 4matic? The dealer says they are giving me 4k off due to incentives and that my wife bought a Volvo off them and they sell them as well and some sort of 1k incentive.
    I am looking at 33 mo lease, w 10k miles. Still payments are coming out to around 620 mo. W about 4500 at closing due. Still seems high to me.
    I have a GL450 loaded 2007 w 75k miles I bought from them. Haven't even discussed trade yet, owe 26k on it.
    Look forward to your response thanks for your help.
  • sorry, I think the 4matic is only available with the gas engine.

    Most of us are getting roughly $4K off MSRP plus the $4K conquest money for a total of $8K or more off any of the 2011 e class cars....some are getting a bit more. What is the MSRP for the car you are considering...and what will the dealer sell it to you for (your negotiated price). What is the dealer charging for the acquisition fee/bank fee....and what are they charging for "administrative fees"?
  • After Studying the Forums on Edmunds I beleive I just pulled off the Deal of the year !!!
    I had 11 months left on a 2009 Infiniti G37x Coupe payyoff was $32,435 11 payments on a 3 year lease of $563.00 per month. The MB dealership paid off my car IN FULL.
    Manheim's Best price for Solds was 26k.
    I took advantage of the MB 10 security deposit that I learned about on Edmunds.
    I leased a 2011 MB E350 4 Matic Sport Model P1 with Panoramic roof stick $59,640
    24 months / 30k miles
    $1686.00 out of pocket (First month, Acquisition, tax, plate transfer)
    23 more payments of $619.00 I have leased allot of cars and worked deals really hard.
    But Im Sure this is this one takes the cake ...
    I contacted 5 other MB dealerships and they all told me NO WAY !!!
    I am burning GAS and this vehicle is an amazing machine.
    Automotive Marc ...
  • First of all a big thank you to Car_Man and the board, you guys literally saved me thousands! I definitely pushed the dealer to the limit with this deal, but I'm thrilled with the car and the deal I got.

    2011 E350 4matic, P1, AMG wheel package, split folding rear seats, sport package
    Took advantage of 10 security deposits (dealer had never done that before, took some calling around)
    33 month lease, 12k/year

    MSRP $58,695
    Negotiated price with Conquest: $48,695
    Drive off: $859 (First monthly payment, Title/License/Registration)
    Monthly payment: 463.59 plus tax
    Residual (64%): $37,564
  • Congratulations, seattlecruiser! I have two questions for you.

    1. For each security deposit, I have heard that you receive 0.00007 reduction in MF. Is this what you received? So for 10 security deposits MF=0.00170 (~4% interest), correct?

    2. If you elect to pay multiple security deposits, is the money held with the leasing dealer or MB finance? The reason for my query is that we may move, so we would likely return the car to an MB dealer in a different state.

    Cheers!
  • Correct, you get a 0.00007 reduction per deposit. Combined with auto-pay it ended up being a money factor of 0.0015, or 3.6%. The security deposit is submitted to MB Financial with the other paperwork. I wrote two checks, one for the drive-off to the dealer, and a second one for the security deposit. Hope this helps.
  • I forgot about the lease origination fee that was rolled into the gross capitalized cost, so the money factor in the previous post is incorrect. It's actually 0.00112, or 2.7% with the 10 security deposits.
  • You're welcome seattlecruiser. I'm glad that we have been able to help you out. Congratulations on getting your sweet new ride :shades: !

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Thanks for the guidance, seattlecruiser. I have one remaining question. What is the amount of each security deposit?

    Cheers!
  • Hi CarMan,
    Can you please provide the MF's and RV's for the following leases on a 2011 E350 Bluetech?

    1. 24month/12k miles per year
    2. 33month/12k miles per year
    3. 33month/15k miles per year

    Cheers!
  • Hey guys just wanted to fill you in on this lease i just got on a E350 4matic:

    2011 E350 4matic

    Package 2
    Panoramic Roof
    Parktronic
    Rear Spoiler
    Split Folding seat
    Heated front seats
    3years of maintenance
    Sport Package

    33months
    12k miles
    4,200 down (including taxes)

    Monthly payments. 509 Per month.

    Let me know what you guys think..

    Thanks,
  • I currently have an E350 lease that ends next week. I also have an Acura TL. Would I still be
    eligible to receive the $4000 credit for the conquest program if I lease another E350 ?

    Thanks
  • I believe that the Acura makes you eligible for the conquest rebate of $4K on an e350. I don't think you have to actually sell the acura to qualify.

    You would not be able to combine that with the mercedes loyalty rebate though.
This discussion has been closed.