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Mercedes-Benz E-Class Lease Questions

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Comments

  • jobiejobie Posts: 47
    After about a year I've had my full of driving an SUV - while it's great when you actually need the space and ability - which is about 10% of time, I'm alone in it on dry pavement the other 90%. For this reason I'm considering terminating my lease early by buying it out and either trading it or selling it for an E350 or A6. I called the bank for the buyout value - but the woman wasn't able to explain how the value is determined. I'm sure it's a function of the residual and remaining payments, but I'm wondering exactly it's calculated. I'm not an attorney, so the lease language is anything but clear. Does anyone have experience in this? Thanks in advance.
  • pwasdpwasd Posts: 2
    Is this a good deal?

    (Los Angeles, California area dealer)
    2006 E350 Sedan
    Iridium Silver with Charcoal Leather Interior
    Premium Package with Panorama Sunroof
    Wood/Leather Steering Wheel

    MSRP: $57065
    SELLING PRICE: $49796.77
    39 Months
    10K miles per year
    $4294 Total Driveoff
    $549 + Tax = $572 Including Tax
    .00235 Money Factor
    $34,809 Residual for 10K miles
  • Hello everyone!

    I am new to the forum and am seeking advice on a lease. I am looking for a Mercedes E350 or E500. I am in the L.A. area and here is the best deal I have received for an E350 from a dealer so far:

    E350
    MSRP: $53,575
    Total money down $5,500 incl. tax
    Monthly payment: $650 plus tax
    12,000 miles per year, 39 month lease

    Is this a good deal? How do I best negotiate with the dealer (what arguments do I use)?
  • pwasdpwasd Posts: 2
    I'm not a lease expert at all, but I did just finished negotiating/researching 6-8 different dealerships in LA, OC, and San Diego. Your deal doesn't sound good at all. The $5,500 is way too high, and so is the lease payment, esp. considering the MSRP. I just leased an E350 with a higher MSRP than yours (negotiated the selling price down to $49K), the total money down (including tags, tax, etc.) was $4294, and my monthly was $545 plus tax. Terms were the same as yours (mileage, length).

    I'm pretty sure my total down was too high but other dealers were trying to charge me $5300-5500, so I was fine with the $4295. I read afterwards on Edmunds.com leasing tips that you don't really want to put any down at all (see leasing tips page for reasons), but at least I've learned my lesson. You also want to know the residual, etc., so read the leasing tips page for all the reasons.

    What I did to get my final offer was ask different dealerships for prices via email and phone. Once I started getting pretty good quotes, then I asked other dealerships to match it. For ex., I got a pretty good lease deal in Beverly Hills (via email and the phone), then I emailed a San Diego dealership and asked if they could match it (because I live in San Diego).

    Hope that helps!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Congrats on your new car, golfer71. It looks like you got a pretty good deal to me. Enjoy!

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi jobie. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

    Car_man
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    Smart Shopper / Prices Paid Forums
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi benzlover1. You don't need to argue with the dealer that you are working with, you just need to ask them what the selling price of the vehicle you are trying to lease is. If the price is reasonable, then have them calculate a lease payment on this car for you using Mercedes-Benz Finance's buy rate lease money factor of .00240. If the price is not attractive, negotiate a better one with them or comparison shop with another dealer or two. When negotiating the selling price of this car, make sure to take the fact that Mercedes is currently providing a $2,000 bonus on E350 Sedans that are leased through MBF. You may be able to get an idea of how much you should pay for this car by checking out the following discussion to see how much other community members have paid for similar cars lately: "Mercedes Benz E-Class: Prices Paid & Buying Experience".

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • Hi PWSAD,

    Looks like you got a pretty good deal on your E350 Lease. Could you tell me which dealership you leased the car from? BTW, the residual of $34,809 that you listed came out to be about 69% of the selling price of $49796.77. Is this right? I thought the 39 month residual for the 06 E350 is about 59 to 61% right now. Am I wrong?

    Does anyone know what the current money factor is if leased through MBZ? I think there is a $2000 dealer kickback right now. Is this correct?

    I'll be curious to see what others are getting for their leases in the Los Angeles area. Thanks ahead of time for sharing your info.
  • Hello Carman and as always, thank-you in advance for your assistance.

    Open observation for all: are you also assuming the fire-sale on the E-Class is due to the impending 07 upgrades now being showcased at the NY Auto Show??

    My questions:

    1)Can you advise for both the E350 and E500 sedans, the most favorable lease terms? (months/miles)

    2)Can you provide MB's residuals and money factors to go along with those terms?

    3)I have done BMW's Euro Delv and 2 of the most critical and beneficial components are the usage of the US based residual and MF as well as basing the residual on the US MSRP. Can you tell me if this is the same with MB?

    I would go to the Euro Delv section but it appears to have few experts monitoring it do to low activity.

    Thank-you Carman and anyone else who contributes.
  • ca_manca_man Posts: 23
    Car_Man

    I understand there is $2000 trunk money on the E350 this month. Is this also true for the E320 CDI Sedan ?

    Also, could you please provide the lease rates for Mercedes E350 and E320 CDI sedans for April 2006 ?

    Thanks !
  • joeyzazajoeyzaza Posts: 2
    Is leasing a used E Class a feasible option? I would like to get an E-Class on a company lease but would like to hold the price down as low as possible. One option would be to lease an 02 (last year of the old model) or 03 (the "new" model). What do you think? I would look at the local MB dealership and get a certified car.
  • msc5msc5 Posts: 17
    Could you please provide the money factors and residuals for May in regards to the lease of an E 350 and also an E500 for 36 months at 12,000 miles and 15,000 miles. Are they still offering good rates in May for a 27 month lease as they were in April??? If they are, what are the rates for a 24 or 27 month lease??? Are they still offering the $2000 cash in May that they were giving in April??? If not, are there any new incentives??? Thanks so much.
  • lanewbielanewbie Posts: 25
    Hi Carman,

    Can you tell me the following:

    1. The current money factor and residual value percentage for a 36 month E350 lease (or 39 month if Mercedes is still offering 39 months at the 36 month rates).

    2. On the edmunds.com basic lease calculator, if you include an acquisition fee, it adds that to the amount being financed, so if you pay the payment it shows, you should not pay the acquisition fee up front - correct?

    3. The edmunds.com basic lease calculator uses a default rate of 15,000 miles driven per year. If you alter this in the calculator, how does the calculator determine the change in the payment amount?

    4. Finally; I've seen an advertised lease deal from Mercedes, which gives all of the parameters used by the edmunds.com basic lease calculator except money factor. Since the ad gives the monthly payment amount, I can figure out what money factor they must be using to get to the advertised payment. My question is, if I want to buy a car with different options than advertised, should I expect to be able to lease it with the same money factor and the same residual value percentage as Mercedes used in its advertised lease, just applied against the selling price of the car I want; or, is there some reason they would not agree to this (like, for example, they have a lot of cars in the advertised configuration and would have to special order mine).

    Thanks for your great help in this forum, it has been extremely useful to me!
  • aeggroupaeggroup Posts: 131
    Hello.
    Could you please give me advise ?
    I'm a new person to the lease process and don't know all those tricks, but this is the deal I have for 2006 E350 4MATIC.

    Color : white
    Premium package with panoramic sunroof
    27 months lease, 10,000 miles a year
    payment - 657.00 a months including NY tax.
    Due at signing - first payment, bank fee and MV fee - total about $1,700.00

    Thank you for advise.
  • msc5msc5 Posts: 17
    Hi carman,
    I would really appreciate it if you could review post #115 above and reply as soon as possible. I need to go get a car by the end of May as my lease on my current car is up the first week of June. I do not want to go and negotiate without this data since the dealers in the area I live in are known to often increase the money factors to pad the deal. I have only avoided this in the past by knowing the money factor up front and refusing to accept the money factor they were offering. Thanks so much. You have always helped in all my past lease negotiations and saved me a bundle.
  • lanewbielanewbie Posts: 25
    And #116 too, thanks car_man!!
  • aeggroupaeggroup Posts: 131
    Hi.
    I'm in the process to lease E350 4MATIC and spoke with my dealer yesterday and he told me, that they have some kind of incentive on 27 months lease and no on 36 months. This is strange, but to lease a car for 27 months cost at least $30 less than for 36.
  • aeggroupaeggroup Posts: 131
    E350 4MATIC
    white, premium with Panorama sunroof
    MSRP - 56,825
    Selling price - $52,075
    total due at signing $1,845 ( first payment, bank fee, mv fee)
    $656.26 monthly payment including NY state tax.
    27 months, 10,000 miles a year.
    How is that ? Could I do any better ?
  • lanewbielanewbie Posts: 25
    Not bad, aeggroup. By my calculations, you got a lease interest rate of 2.9%, which is pretty good, and you had no down payment (other than fees). I think you might have been able to negotiate the selling price down maybe another $750 to $1000 or so, and gotten the payment down by about $30 a month, in the absolute best case scenario. But I think you did better than almost anyone I've seen posting here!
  • aeggroupaeggroup Posts: 131
    Thanks. BTW - you are totally correct, after I signed my deal I got a call from another dealer from NJ and he gave me the same deal, but payment $20 less, which is $636 a month. I refused it because this guy kept telling me there is no way I will get 656 a month deal for 2 weeks and gave me 20 less after saw my papers. I don't care about 20 less a month; I just want to be fair to the guy who did not give me any headache for $656. My whole conversation with him took about 20 minutes and I got fair service. I think some people deserve appreciation for good work.
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