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Mercedes-Benz E-Class Lease Questions

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  • kyfdxkyfdx Posts: 29,368
    Dealer Service Fee: + $699.95

    Wow....

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • I take it that is a bad Wow, not one that says awesome deal!!! Any idea where I go from here other than just walk away?
  • kyfdxkyfdx Posts: 29,368
    That was just in response to the dealer fee....

    No idea on the pricing...

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • ghstudioghstudio Posts: 958
    edited October 2011
    Start by negotiating the "capitalized cost" of the car....first negotiate, the purchase price without the conquest cash ($2000). try for 5% off or maybe $1000 over invoice (pick your number) (and point out that the $695 adminsitrative fee is just pure dealer profit so they are still making quite a bit on the car). Then subtract the $2000 for the conquest cash from that number.

    Then establish the money factor. Ask them for the money factor for tier 1 credit buyers. The .0007 comes off that number. I don't know the official mercedes numbers this month...hopefully someone will post them here.

    If you want mercedes maintenance on the car, ask the dealer to include it in the capitalized cost...some dealers seem to allow it to be residualized and others don't...and mercedes doesn't seem to care. Try to get it residualized. Do not buy third party "preferred maintenance" packages....if you buy one buy mercedes and if there are multiple tiers, buy the lowest tier of required services...you are leasing. Some dealers go so far as to not even tell you that there is a Mercedes package available because they want to sell you their own maintenance package...if they don't mention it, ask them point blank for the mercedes service package.

    Tell the dealer you will only pay the first months payment, any license and registration fees and required taxes when you pick up the car....everything else should be part of the lease. (and that first payment will be less than $2000).

    Negotiate with the dealer to pay mercedes "acquistion fee" of $795...not the marked up $1095 that dealers like to charge to make another $300 on the deal.

    If the dealer balks at any of the above, don't be afraid to use the oldest negotiating technique in the book....head for the door and tell them to think about it and give you a call if they want to sell you a car.....and then actually leave.

    Now have the dealer run the numbers for 24, 33 and 36 months....

    For each case, add up the total out of pocket costs for the life of the lease (not the multiple security deposits) and include the $595 that mercedes charges at the end of the lease. Divide by the number of months of the lease and you'll get the true monthly cost of leasing the car under each length of time.

    Good luck
  • efan2efan2 Posts: 3
    I'm in SoCal and have been shopping for a 2012 E350. Took all the advice from this forum and literally went in with my spreadsheet of what I was willing to pay. Went to a new dealer with this offer - and they went for it. It ended up being more than $100 less per month on a 48 month lease.

    Here's what I am getting - list prices starting at an MSRP of $56,545

    E350C $49,800
    792 Palladium Silver $720
    201 Black Leather

    STANDARD ACCESSORIES *****

    OPTIONAL ACCESSORIES *****
    P01 P01 Premium 1 Package: COMAND System wit $4,000

    104 Rear Spoiler $300
    731 Burl Walnut Wood Trim
    993 993 Lane Tracking Package: Blind Spot A $850


    SUBTOTAL $55,670
    DESTINATION & DELIVERY $875
    TOTAL $56,545

    Here's what I am getting - lease price of $495/month + tax, 12K miles per year, 48 month lease, 53% residual. $4000 down (includes $2000 Conquest cash).

    Money factor of .00185 (Started at .00165 and wanted the MSD's but they said the max they could go was to .0015 with the MSD's, but they said they would discount the price further and keep the higher MF).

    Vehicle Price: $56,545.00
    Preferred Customer Discount: - $8,435.00
    Total Selling Price: $48,110.00
  • I am looking at getting an 2011 E550 4matic in NJ. Does anybody know the residual and money factor on the car for this month? Also what is the conquest cash amount on the e550? I also get a $2k discount from the company I work at, is that combinable with conquest cash? thanks
  • eFan2, I was wondering if there was any way you could post your actual purchase order or confirmation after blocking out your personal information. That way I could show it to the dealer in my area as an actual transaction and not a made up deal. If you wanted to PM me, I would be willing to give you my e-mail address for you to send it privately.

    Thanks.
  • efan2efan2 Posts: 3
    I think I got a great deal on a 2012 E350 Coupe. I signed the papers with House of Imports (Southern California).

    MSRP: $56,245 (base + paint cost + P1 package + Spoiler + lane assist)

    Total out of pocket cash - $4000 (which included about $1700 in Cap Reduction)
    Term: 48 months
    Residual: 53%
    I had Conquest Cash of $2000

    Payment: $496 + tax = $532 per month
  • Hi jwilliams2. Mercedes-Benz Financial's October buy rate lease money factor abd residual value for a 24-month lease of a 2012 E350 4Matic Sedan with 12,000 miles per year are .00186 and 68%, respectively for consumers who qualify for its top credit tiers.

    The numbers for an otherwise identical 36-month lease are .00186 and 56%.

    Yes the low mileage adders that you mentioned are still valid.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hello rayoo1. Mercedes-Benz Finance's October buy rate lease money factor and residual value for a 24-month lease of a 2012 E350 Sedan with 12,000 miles per year are .00184 and 70%, respectively for consumers who qualify for its top credit tiers.

    The numbers for an otherwise identical 36 month lease are .00184 and 58%.

    If you were to lease with only 10,000 miles per year, this car's residual values would be 1% higher.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi escalade24. I believe that Mercedes'Benz Financial's October buy rate lease money factor and residual value for a 33-month lease of a 2012 E350 Sedan with 15,000 miles per year are .00184 and 65%, respectively for consumers who qualify for its top credit tier.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi merc1234. Mercedes-Benz Financial's October buy rate lease money factor and residual value for a 36-month lease of a 2011 E550 4Matic with .00225 and 54%, respectively for consumers who qualify for its Tier 1 credit tier.

    I'm not sure what you mean that you get a $2,000 discount from the company that you work at. Is your company a supplier to Mercedes? The conquest cash might not be compatible with a supplier discount.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • shawn757shawn757 Posts: 125
    Car man,
    Can you please post the numbers for the Audi A6? I know this is the wrong forum, but the audi forum seems to be dead with no replies.
    thanks
  • Thanks a lot for the numbers Car man. Sorry for the misunderstanding about the money from my company. I was referring to the Mercedes Benz fleet program my company participates in. I found out I get 2k off with that, so I was wondering if I can combine that with the 4,000 conquest cash.
  • Does anyone know the current 24, 33, and 36 month residuals, incentives, and money factors for the 2012 E350 Coupe with 10K and 12K miles?

    Thanks.
  • eFan2, how the heck did you get an $8,400 Preferred Customer reduction? Please share your secret!!
  • bendsbends Posts: 2
    Back in September I placed an order for a 2012 E550 coupe. At that time, my dealer gave me a ballpark monthly payment amount since the the pricing sheets hadn't come out for 2012's. Now that the car's scheduled to arrive this weekend, numbers are flying around. I get the depreciation calculation but the MF (top tier) is a bit tricky. The MF I'm getting is 0.00235 which he said was equivalent to a 4% interest rate. I thought the industry convention was to x 2400 to get interest % which would put it at 5.64%.

    Questions as follows:
    1) Is he quoting me one thing and making me pay for something that's significantly higher?
    2) Is 2400 a commonly used conversion multiplier? If so, how does 0.00235 translate to 4%?
    3) Are MF's set by Mercedes or by the dealer? Any room for negotiation here?

    As an FYI, i got $3900 off MSRP for this car, not the best i'm sure but seems common in comparison to what others have posted.

    Thank you for your help.
  • Hi Bends,
    Your salesperson obviously did not do well in math or he graduated from an online correspondence school. The interest rate = MF x 2400. Ask him how 2400x0.00235 = 4%...maybe he has a special abacus.

    Additionally, my understanding is that MB Financial sets a buy rate MF for its various models. Each dealer has the ability to 'mark up' the MF as that's another source of profit. I would recommend finding out the buy rate or base rate MF from CarMan or other sources and presenting it to your dealer as you can definitely negotiate. And, if they aren't willing to accommodate, take your business to another dealer. I had a similar issue with local dealers in San Diego, but I found several OC dealers who were willing to accommodate the reduced MF.

    Cheers!
  • bendsbends Posts: 2
    Very helpful, thank you. As you mentioned, the key is to find out the base rate which I assume would be somewhat challenging. I would've been better off had he not mentioned the 4% interest. Now it just seems like he's cutting $3800 off MSRP but making back $3500 on the interest portion of the lease.

    Regardless what the interest rate is and whether or not he can do simple math, if 0.00235 is the best available on a 2012 E550c, then I know the discount is genuine, otherwise there's really no true discount.

    Thanks again
  • Hi Gator5000e,
    While I don't know the RV's for the various lease terms, I've been told that the base rate MF for a 2012 E350 coupe is 0.00162 while the MF for a 2012 E350 Conv is 0.00167. I hope this helps.

    Cheers!
  • Well, 4% interest translates to a MF = 0.00167 which is equivalent to the base rate for a 2012 convertible. Perhaps you should hold him to the 4% interest rate and re-calculate the monthly lease payments with MSD and $0 down and only 1st month's payment + fees and present it to the dealer in question, eliminating any confusion.

    Cheers!
  • Thanks a bunch Car Man. You, my friend, and this website may the best thing since sliced bread and the iPhone. My phone for best website EVER!
  • efan2efan2 Posts: 3
    The dealer said (and maybe just said it to make me feel good), that they took a loss on the car to be able to make up the number for sales. Said that they need to sell a certain number of cars so that they can get an allocation of cars for next year. I am sure they still end up making money on it. In any case, I am pretty happy with my deal.

    MSRP: 56,245 + 4 years maintenance (1889)
    Gross Capitalized cost: 47996 + 1889 = 49,885
    Cap reduction: 1699
    Residual value: 30318 (48 month lease)
    Monthly payment 511 + tax(44) = 556 (this includes residualization of the 4 years of maintenance)

    At the time of delivery, I gave them a check for $4000 that included 1699 cap reduction + 556 first month + 1095 acquisition fee + 152 (tax) + 100 Reg fees + 313 (license) + 45 (doc) + 29 (DMV) + 8 = 4000

    This includes $2000 Conquest cash

    I bought the car on 10/23 from House of Imports in Buena Park CA.
    It is a 2012 E350 Coupe - Palladium with P1 package + spoiler + lane assist + 4 years maintenance.

    That's pretty much all the numbers I have from my contract.

    The strategy, if you can call it that was when I went to this dealership, I took in my spreadsheet, didn't even insist on seeing the car - I knew what I wanted and had test driven it at another dealership. In essence, this dealer had to do no work at all, except accept or deny the deal.

    I had to say "no" first because they wouldn't give me the $1500 loyalty cash even though I had a Mercedes. They said they couldn't do it because I had paid off my lease and didn't have an open Merc financial account.

    I ended up getting an old Lexus from my friend and getting $2000 conquest cash in the deal.

    Hope this helps and you can swing this deal or better. Good luck.
  • Hi - I went to a dealership in Long Island, NY yesterday and was told with nothing out of pocket, the least I could expect to pay on a 2012 E-350 Sedan Luxury with Premium 1 would be over $800 with 12k miles over 36 months. This is my first MB (and luxury car for that matter). I've only driven Hondas (all leases in the past), and it seems that this price is a bit high to me. I've followed some of the threads on the Benz Lease Forum and it seems like people are getting much better prices than $800/month. I'd be willing to come out of pocket for the first month and the reg fees. I just want to make sure I'm not getting killed. I was hoping for a payment around $650 or so.

    If anybody knows when MB typically has promos/rebates/incentives, that info would be appreciated. I just signed up for USAA (although I'm not a vet - don't know if I'll get that incentive), but from what I've read you can't use them in conjunction with the MB incentives.

    Any help would be appreciated.
  • Was your salesperson kind enough to take off his/her ski mask when they gave you that quote?
  • ghstudioghstudio Posts: 958
    A lease on the diesel will be significantly cheaper due to the much higher residuals. For the 2011's, the lowest cost leases were 24 month on the Diesel and that might well still be the case. The diesel is a great car unless you do jackrabbit starts...so at least drive it.

    Just walking in the door, you should get about 4-5% off the MSRP. You are right...first months payment plus registration fees when you pick up the car, everything else gets rolled in. Use Multiple Security Deposits....I've written lots about them in this forum (and some others)...it's the best deal in town. If your salesman doesn't know about MSD's,find someone that does in the dealership because when they don't know about how they work, they will dis them...not worth it, etc. Of course you have to be able to loan Mercedes $6000 or so for the length of the lease, but you get that back.

    USAA...good luck...you can join and still not be eligible. I think you have to have insurance with them and that requires you to qualify.

    If you are driving (or own) a higher end car now....infiniti,bmw, audi,.... ask about "conquest" money...should be $2000 on a 2012....and that's in addition to that 4-5%.

    Consider adding mercedes maintenance plan to your lease. this one is tricky...first it must be mercedes plan,not some "better" plan offered by your dealer. Next, it has to be "residualizable" which means it's like any other feature on the car so you really only pay 25-30% of the cost. The confuser here is that some dealers will let you residual this and others won't. Further confusion is that Mercedes actually doesn't seem to care????? Very strange. Try to get it residualized. If they won't do it, then don't put it in the lease.

    Mercedes acquisition fee is $795...some dealers mark that up to $1095. If your dealer wants $1095, negotiate because the cost is $795 to them.

    This should get you started.....

    Good luck
  • bill124bill124 Posts: 242
    I too live on Long Island and I am on my 4th MB convertible and have never found pricing acceptable on Long Island. I went as far as Wappinger Falls, then to Bayside (Helms Bros) and White Plains. They have a large selection. Rallye is ridiculous. If they can sell at those prices, good for them.
  • Yeah I was quite taken aback but I thought the salesman was being somewhat honest at least compared to other dealers I dealt with in the past. Atlantic Honda was the worst I've ever dealt with. I think $650/mo is the most I'd be willing to pay for the e350 luxury sedan with premium 1. Has anybody dealt with the non-dealership leasing companies? I'm seeing some stuff on leasetrader from NYC offering $449 with $0 down for 33 months. Plus tax and tags. Only 7500 miles though. Given the extra 4500 miles and estimating 20 cents a mile, I value that at an extra $75 per month plus tax and mf interest, but what do I know. Any help is appreciated. Thanks again guys. This forum is great.
  • I tried to combine the $1,500 loyalty cash with $2,000 conquest cash on 2012 C-Class. Just recently leased an E-Class so I figured I would qualify as current MB Financial customer, and I also qualify for conquest. Dealer said loyalty cash is only available when the lease is up and the vehicle is being turned in, not if it's for a second vehicle. Seems counter-intuitive to me, but is this correct? Also, can loyalty cash and conquest be stacked? Thanks!
  • snooplivessnooplives Posts: 12
    edited October 2011
    GH - Thanks for the help. I tried another Benz dealer in Rockville Centre (Lakeview) and the salesman was pretty honest. He even showed me the screen he was working on with the MSRP, selling price, MF rate, RV, etc.

    Here's what he quoted me on a 2012 E350 Luxury with Premium 1 4matic in Black:

    Selling Price - $52,775 (assuming I can get a $2,000 credit from USAA)
    Acq Fee - $795
    RV - 65%
    Mileage - 12k/year
    MF - .00176
    Payment - $678.36/month with first payment and acq fee up front - tags extra.
    Term - 30 months

    Anybody who has an opinion on this, I would greatly appreciate it. I think this is a fair deal, but maybe I can get him down more. I saw in the book that the money factor rate was .00162 so I guess he's marking that up to make some money back on the interest.

    Thanks in advance.
This discussion has been closed.