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Mercedes-Benz E-Class Lease Questions

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  • Hi whichluxurycar. I haven't heard yet, but I suspect that the conquest cash is indeed still available.

    As far as this car's lease program goes, Mercedes-Benz Financial's October buy rate lease money factor and residual value for a 24-month lease of a 2011 E350 Bluetec with 10,000 miles per year are .00192 and 77%, respectively for consumers who qualify for its top credit tiers.

    The numbers for an otherwise identical 36-month lease are .00192 and 60%.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Leased in CA...SoCal
  • Carman:
    Thanks for all your help! Do you happen to have the October lease rate and residual for a 2011 E350 Bluetec for 7,500 miles/yr?
    Also, what is a realistic discount for a car with a MSRP of $59,000? I qualify for the $4,000 conquest cash. I'm hoping to get close to 10k off MSRP but I'd like to get your feedback.
    Thanks again!!!!!
  • gator5000egator5000e Posts: 87
    edited October 2011
    I am looking to lease a 2012 E350 Coupe. I see MB just posted a national lease program for the coupe with the following basic terms for a Premium 1 package: $619/month for 36 months with $4,213 due at signing. The cash due at signing includes $2,799 capitalized cost reduction, $795 acquisition fee and first month's lease payment of $619.

    I have gone through the forum but find myself confused with the different ways to try to get the best deal from MB. I know this national deal is likely not the best. I have seen threads about multiple down payments, Conquest cash and other items.

    I am coming out of a Cadillac CTS lease (2 months left).

    If someone could either point me to thread where all of this is summed up in a post or two, or else set forth in a sort of summary fashion the info I need to know to get the best deal on the 2012 350 Coupe , I would appreciate it.

    Thank you for any help or information.
  • ghstudioghstudio Posts: 968
    edited October 2011
    The best way to start negotiating a lease for that car would be to forget the advertised deal completely. Start from scratch....

    1) Establish the cash selling price of the car....what is your discount off MSRP.
    2) Establish how long you want to lease the car
    3) Explain that you want to pay no capital cost reduction....you will pay the first month's payment plus registration fees and required taxes...nothing else when you pick up the car.
    4) Establish the "acquisition fee" which should be $795, but some dealers decide that they deserve more so they try to charge more. $795 is the Mercedes cost.
    5) Establish the money factor that they are using for your lease...that's .00192 or something like that...not 4.8%.
    Before they calculate anything, get them to write all of the above down on a piece of paper.
    6) Since you are leasing, you have to have your service done by Mercedes, so buy your service as part of the lease...buy Mercedes service, not some special service offered by your dealer...and make sure they include it like any other option on the car. You will save significantly doing it this way.
    7) At this point they have enough to give you your monthly charge.
    8) Now, if you can afford to loan Mercedes 10 monthly payments for the life of the lease, you can reduce your money factor/interest and make about 10%/year on that money by making what's called multiple security deposits. The key here is that you get the money back at the end of the lease vs a capital cost reduction which you don't get back.....and it lowers the interest you pay. It's a great deal. As them to recalculate the lease using 10 Multiple security deposits (which should reduce your money factor by .0007 which doesn't sound like much, but it may be $50 or more a month.
    9) Post all of the above here (including the MSRP of the car) and wait for someone to comment...just in case you missed something.

    When you first walk in, you may hear: the published deal is a terrific deal...don't bother with all that other stuff. Don't do it....take the time to do it right. Finally, when it comes to MSD's, some/many dealers aren't aware of that option....(which in fairness is not allowed in every state (e.g. NY)), but if they don't know about MSD's, ask them to read their program information or call Mercedes.

    Note: they may have a promotional interest rate that they are using in the "special offer"...if so, you probably won't be able to use MSD's if you want that rate.. which may or may not be less than the standard rate less the MSD discount. Obviously, you want the lower rate, whichever it is.

    We'll try to help you save some money....
  • I am looking at MBFS Lease Polices and Guidelines for July and in the MSD section it states: "May not be used in conjunction with Special money factors, unless otherwise noted." I checked the special rates section and it does not otherwise note that they can be used. It also states: "Security deposits for the Multiple Security Deposit program are calculated by rounding the base payment (using original Standard money factor) up to the nearest $50 increment.
  • chuckjrchuckjr Posts: 61
    I had a great experience leasing my 2011 E350 from the internet sales dept of a local SoCal dealer.
    2011 E350 w Palladium, Premium P1, sport, parktronic and split folding seats - MSRP $56.4
    Paid $46.7

    30 mos - 10K/yr
    Drive off $1031 including license and first months payment of $535
  • ghstudioghstudio Posts: 968
    Clearly Mercedes finance writes and what dealers do has little relationship.

    Is .00192 a special rate or is that the rate for e's in Sept/Oct? I leased in August so we used .0024 as the rate and then took the MSD adjustment off that.

    I gave 10 MSD's to reduce the rate and the dealer insisted that each Security Deposit was the monthly payment calculated after taking the MSD discount including local sales tax...unrounded. I even asked if they had to round it to the nearest $50 and if they were using the right calculation for security deposits....they said they were doing it correctly.

    I think what you are saying is correct....I know that my dealer talked to someone at Mercedes Finance to make sure they were doing it right. before they did the paperwork. The blind leading the blind....
  • Thank you for the great post. BTW, where can I find out about the Conquest Program? I would like to know if I qualify for it and if so, for how much? Anywhere I can find that out?

    Thanks again.
  • The .00240 MF was the Standard rate for a Tier 1 credit level.
  • enano74enano74 Posts: 7
    edited October 2011
    I took delivery of my Steel Gray/Black 2011 E350 Bluetec with premium package 1 and sports package yesterday and this is what I got:

    MSRP: $57,235
    Selling price: $47,886 (including $4,000 conquest cash)
    24 months/ 7,500 miles/yr
    10 MSD's ($4,500) to reduce money factor by 0.0007
    Autopay to reduce money facto by 0.0001
    Qualified as A1 tier therefore base money factor was 0.00195 (you can not use the MSD's in conjunction with the special lease rate of 0.00192. Some folks here reported success stories but if your dealership talks to MB FS they'll tell them no)
    Final money factor: 0.00115
    Residual value: 78% (if you want 10,000 miles per year, residual goes down to 77%)
    Drive off was around $600 (first month + tags + processing fee) + $4,500 for the MSD's which is fully refundable at the end of your lease
    I rolled VA sales taxes (3%) and acquisition fee into the lease ($1,440 + $795)
    Final monthly payment: $337.50

    For a $57k car this is a steal! A couple of things to consider:

    A) You have to have $4,500 to get the money factor down.
    B) You gotta find an E350 Bluetec in stock
    C) Include the MB maintenance plan in the lease, that way you pay only a portion of it since you are leasing the car. This is a no brainer! ($1,129 for 2 years)
    D) Keep in mind that MB switched the COMAND from 4.0 to 4.5 and the dashboard to the new 2012 model around june/july 2011. The easiest way to tell is to check the memory card slot under the radio controls. If the car has the bigger one, then it is the old version.
    E) Remember that MB allows you to change your lease mileage allowance during the first 12 months. If you are at month 11 and you see that 7,500 miles are not going to be enough, you can call them and they'll restructure your lease. Of course you'll have to pay for the difference (1% less residual if you go from 7,500 to 10,000) but it is a great feature and not a lot of people know about it. Plus, it is better that paying $0.25 per mile if you go over. Also, if you plan on leasing another MB at the end of the current lease, call your dealer 4 months before your lease is up and they'll waive some/most/all of the fees providing you get a new lease (excess mileage, tires, disposition fee, etc).
    F) Don't overthink this. It is an awesome deal!

    I've got mine from Euro Motor Cars in Bethesda, MD. Call John Johnston and tell him Angel sent you. He is great and won't play any games with you. It took me a couple of hours and some emails to get the deal done. They still have 2 2011 E350 Bluetec's in stock. Their website shows 3, but I took one :)
    Good luck everyone!
  • kyfdxkyfdx Posts: 31,124
    I am definitely looking into this... only 2 diesels within 200 miles of where I live... hope they are desperate....

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  • If you qualify for the conquest cash and have the money for the MSD's it is insane! Plus, the car is freaking awesome!
  • kyfdxkyfdx Posts: 31,124
    I've got some feelers out..... lol

    MODERATOR
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  • Hi enano74. Mercedes-Benz Financial's October buy rate lease money factor and residual value for a 36-month lease of a 2011 E350 Sedan with 7,500 miles per year are .00192 and 56%, respectively for consumers who qualify for its top credit tiers.

    As far as the selling price goes, this car probably has a spread of between $3,500 and $4,000 between its full MSRP and its dealer invoice price. Add the $4,000 conquest to that and you have a total of $7,500 to $8,000 to play with. I personally don't think that you're going to be able to swing $10,000 off. Probably something like $7,000 is more likely.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Is the same info available for a 2012 coupe with 10,000 miles on a 24 or 36 month lease?

    Thanks.
  • kball2kball2 Posts: 41
    Will you please provide the details of the subject lease?

    Thanks
  • kball2kball2 Posts: 41
    Picked up my wife's 2011 E350 Bluetech on 10/1, and the details of my deal are below.

    Arctic white, P1, Split folding seats, Spoiler kit, parktronic, sport pkg, and tinted windows

    Lease: 24/12
    MSRP: $57785
    Final sales price: $50740 (includes $4000 Conquest)
    Cap Cost: $51585 (includes marked up acquisition fee $1095)
    RV = 76%
    MF = 0.00112 (includes MSD & autopay)
    Downpayment: $250 (split cost of tint with dealer)
    Upfront: Down + DMV + 1st month = $1200
    Monthly payment = $460 (includes 7.75% tax)
    MSD = $4800

    What was the original money factor prior to putting down the $4,800 dollars (MSDs)? Do you get all the MSDs back at the end of the lease?
  • I negotiated for 3 days. Only 2011 Bluetec left:

    MSRP: $58,950
    TERMS: 24 months/10k miles per year

    I live in Texas, so we must pay sales tax on ENTIRE car. Luckily, I "qualified" for the Conquest $4,000 credit, which more than offset taxes. I didn't use MSDs, but thinking now maybe I should have.

    I paid only $1,000 at closing for registration and acquisition fee.
    Thereafter, 24 payments of $553 per month.

    Is that a decent deal? I thought it was considering the dealership's first offer was $4,200 down (to cover taxes, registration, and acquisition fee) and $749 per month.

    Thoughts?
  • kball2kball2 Posts: 41
    All,

    Is the good 24 month lease deal that I am seeing on this board only on the 2011 E350 Bluetec? What are the money factor and residual % on a 2011 E350 4 Matic for 10k miles and 24 months?
  • kyfdxkyfdx Posts: 31,124
    Also looks like the two-year plan couldn't be residualized in either case....

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  • Hi Texasplaythin,
    Coupling your info with assumptions, based on prior posts, I made the following calcs below.

    RV @ 77% = $45392
    MF=0.00192
    Acq Fee=$795
    Sales price = $50450 ($8500 off list)
    Cap Cost = $51245
    Monthly depreciation = (Cap Cost - Residual)/24 = $244
    Monthly interest charges = (Cap Cost + Residual) x MF = $186
    Monthly taxes* = Sales price @ 8.25% / 24 = $173
    Monthly lease payment = $603

    If you had done MSD (MF=0.00112), I calculate a monthly lease payment of $526. All in all, it seems like you did well.

    Cheers!

    *I'm not sure if I calculated the taxes correctly, but you noted that you have to pay sales tax on the full purchase price.
  • kball2kball2 Posts: 41
    Anyone have an opinion if the 2012 E350 will
    get conquest cash yet this year?
  • kyfdxkyfdx Posts: 31,124
    That is a lot of tax! I think TX tax is 6.25%, though..

    I'm guessing that sort of tax treatment cuts down on short term leases in Texas...

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  • kyfdxkyfdx Posts: 31,124
    I think the 2012 model already has $2000?

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  • Yes, your sales tax calculation is correct. It's ridiculous in Texas that we must pay entire sales tax on car (not just for months we use it).

    Normally, I won't lease a car unless the dealership gives me sales tax credits (car co. finance arms over-pay in sales tax, so every once in a while they will give "credits" to dealers), but this was such a freakish deal, and the Conquest credit more than offset the sales tax. But I will definitely use MSD's next time.- probably could have lowered my payment by $50-60 per month.

    That's one thing not many people have posted on here - how to negotiate and know when dealers have the sales tax credits. Any thoughts? Experience? Advice? I just ask. Dealers are sometime open about it "We don't have any now, but maybe next month..."

    I LOVE the car by the way - the diesel is so cool, and love the torque.
  • It does, but usually (especially in November and December) and educated lessee can negotiate for sales tax credits to offset.
  • kyfdxkyfdx Posts: 31,124
    Interested in the Bluetec, but none locally, so thought we would go drive an E-Class before we started contacting dealers with diesels..

    E350 4Matic with P01 pkg, Parktronic, metallic paint and fold down rear seats.. MSRP $58,900.

    Quoted 33 month, 12K mi/yr lease, with scheduled maintenance plan included.. for $647/mo + tax, with around $1250 due at signing...

    Actually, not too bad... But, not in our budget, either...

    My wife did like the vehicle.. I hadn't been in a new Mercedes in a long, long time.. Bank vault solid and very quiet. You can see where the money goes...

    They only had two 2011 models left at this dealership...

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  • ghstudioghstudio Posts: 968
    If you are eligible for the conquest $'s (based on what other cars you own), you should be able to lease that car for 24 mos for less than $500/mo with tax. (33 monthss is not optimal for the bluetec lease...24 months is what you want). Also 1250 is too much due at signing...should be first months payment plus registration and other fees required by law...nothing else.

    The residual on the bluetec is much better than the car you drove/priced....
This discussion has been closed.