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Mercedes-Benz E-Class Lease Questions



  • ob995ob995 Posts: 40
    The big problem with single pay leases is if your car is totaled or stolen you are out the money. You insurance will pay Mercedes Benz based on the pay off of the car and you will get nothing, no refund on your payments nor will the amount of your payment be applied towards a new lease.

    So say if that happened after 3 months you really end up taking a bath. That is also why many people say putting down a large cap reduction at the start of a leases is not advisable either. MB includes free gap insurance with all their leases.
  • icb2779icb2779 Posts: 25
    Sometimes it happens where there is a minor defect in the parts. Think of how many cars they must produce every day at the factory. The only thing I would be concerned about is whether or not its the tire pressure monitoring system that is the problem. Most dealers will substitute the real problem with something that can be told to the customer to make him believe its a minor issue. Or there could have been a minor fender bender. When you go to pick up the car, before you sign papers, ask to see the history of the service report stating the tire pressure monitoring system was repaired. All warranty work done at a Mercedes Benz Dealers has to be in the service history. If thats what the problem was and its on the service history report, I would take the car! Hope this helps........ ;)
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,898
    I'm not sure how MB Finance works, but I know with other companies, this isn't the case..

    Instead of treating the pre-paid lease as a large CAP reduction, if the lease terminates early (involuntarily), the lease payments are pro-rated to that point, and there is a pro-rated refund of the pre-paid lease payment..

    At that point, the lease works like a conventional lease, and GAP kicks in for any shortfall.


    Moderator - Prices Paid, Lease Questions, SUVs

  • ob995ob995 Posts: 40
    kyfdx you could be right honestly, I was given the above info by the dealer when I end up buying my new E-Class cab on Sat as I asked if I pre-paid the lease would it much cheaper than doing a normal lease as the normal lease payment in my opinion was a total joke. The residual is not so bad but the money factor is outranges and I thought by pre-paying the lease I would get a significant discount on the money factor. That is when he bought up the situation about if my car was totaled or stolen I would be out all of my pre-payment amount because he thought it would be treated as a cap reduction.

    This info came from the fiance manager and not mercedes benz financial so he could be totally wrong or maybe he know the pre-payment option was not going to be a good option or I was not going to like that payment either so said that just to save time as he never even bothered to quote a lease payment even on the pre-paid option.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi Vanessa. The dealer that you're working with is not being entirely truthful with you about your lease term. While it's true that right now Mercedes-Benz E-Class lessees are able to get out of their leases up to five months early at no cost to them if they lease a new Mercedes, there is absolutely no guarantee that it will be offering a similar program when you approach the scheduled end of your lease three years from now.

    Prices Paid: Buying & Leasing Experiences Forum
  • surge352surge352 Posts: 7
    I'm ready to pull the trigger on a coupe lease.... I went in last month and started talks with the dealer... Should I go back in this weekend and pull the trigger or should I wait to see what the rates next month look like?

  • ob995ob995 Posts: 40
    The Coupe lease rates are 0.00280, the rates can not get any worse, with the cab out I assume demand for the Coupe will continue to get softer going forward which will add extra pressure on MB to offer a more competitive rate.
  • surge352surge352 Posts: 7
    Ok... went in this afternoon... They offered me on a p1 black on black E350 coupe - MSRP 54,325 - 2520 ("discount") = sale price of 51,805


    They want 4k out of pocket - monthly payment would be $840 w/tax.. I'm in S. Fla my tax is 6.5%..

    I still think this is high for a car priced this much. I have a 335 coupe that the sale price was about the same and I pay $700/month.

    Is this the best deal on a coupe right now?
  • playamdxplayamdx Posts: 7
    Hey guys I was able to get the lease 2 years ago for an E350 P2, Sports Package, I put 1150 down and am paying $470 per month incl CA tax. 27 months with total mileage of 22,500

    I have 4 payments left and I am looking to either purchase this car or lease another 2010 E350 P2 package with the panoramic roof.

    Is it possible to do a similar lease for 36 or 39 months for the same monthly payment?

    what would it take to get a deal like this done down payment wise, Residual, etc..?

    I appreciate the help fellas!
  • surge352surge352 Posts: 7

    Your not even close to what your going to be paying for that car... your looking at double of what you are currently paying now and you will have to come out of pocket WAY more...
  • aceusmleaceusmle Posts: 12
    edited May 2010
    Car: 2010 E350 Sport Sedan RWD
    Lease term: 39-month
    Mileage: 15K/year

    I have been told at a dealership that the MBF special (subventionary) rate for May is 0.00220 which cannot be bought down by multiple security deposits (MSDs) ... but the standard rate of 0.00280 can be bought down to 0.00210 by 10 security deposits. I was actually presented with a MBF document showing that MSDs cannot be used to buy down the special rate. How are folks getting the 0.00180 rate this month? Please share your thoughts...
  • arcnyc3amarcnyc3am Posts: 7
    If you are interested in leasing 2010 E350 Sedan, I got the following deal in NY

    E350 4 matic sedan
    Steel Grey on Ash black interior
    Wheel Pkge
    Sport Pckge

    MSRP: $61,815
    Selling Price: 57,450
    Out of pocket: $3,870 (includes TTL + DMV + Fees + 1st Pmt + Cap Cost)
    Monthly after tax: $788
    12K miles per year
    39 month
    standard MF: 0.00220
  • ob995ob995 Posts: 40
    aceusmle, Do not want to upset you but if you owned a Mercedes before you bought this one, you got taken because if you read this board, why would anyone care the price you paid when Costco negotiated price, which any smuck can get because joining Costco is as easy as walking in and paying $50, is $56869 plus if you are a returning MBF customer you can get an extra $2k off the Costco price which mean the net price would be $54869 or almost $3k less than you paid which equals about $100 per month on your less payment. To get that price, you are not even required to negotiate at all. People on here have reported being able to get dealers to even beat the Costco price, so you left plenty of money on the table.

    Again not trying to upset you at all, but considering you read this board not sure why you would think you got a good deal as you over paid at least $1k or more depending if you had a previous mercedes or not.
  • needhelp27needhelp27 Posts: 9

    I am new to this leasing game. I just accepted an offer from an MB dealership in Bayside, Queens, NYC on an E350 2010 new MB luxuary sedan. The agent told me that the price with a P1 package (navigation, etc) is $53,000. Since, I wanted my monthly payment to be below 500, he told me to put down $13,000 (thirteen thousand) due on signing. Then the monthly is 481. The tax in NYC is 8.875%. Have I been badly siwndeled? Please let me know, b/c he's holding my info. I am yet to sign on the deal b/c of the Memorial day weekend. PLEASE HELP if you can. I went through the other posts here, but the calculations with MFs eludes me a bit.
    If not, then can somone recommend a MB dealership in NYC?
  • crestonavecrestonave Posts: 219
    You don't say what the MSRP is. Is $53K the selling price? How many months? How many miles are included?

    I personally would NEVER put money down on a lease, especially $13000. As I understand it, should the car be stolen or totaled, you're out that money - it's not covered by insurance.

    Sounds like you have some more work to do here, including getting a better understanding of the lease process. Good luck.
  • ob995ob995 Posts: 40
    edited May 2010
    Needhelp27 do you live in zipcode 11360? Queens NYC? What is exactly on your car? A E350 Luxury Sedan with just P1 package has an MSRP of $53,425. Are you a Costco Member? Silver Star, Rallye and Mercedes Benz of Manhattan are all listed as participating dealers in Costco program. The costco negotiated price at those 3 dealers for an E350 Luxury Sedan with P1 is $48,615. If you are a returning MBF customers ie, currently have a lease or loan via Mercedes Benz Financial then you get an extra $2k off that price.

    Assuming you are not a returning MBF customer and you did the 39 month lease which is currently the special and you have good credit you payment including tax for 15k miles per year should be around $692.84 per month and your drive off would only be registration, first month lease and bank fee. If you were to do 12K miles per year your lease payment would be $644.17 including the same drive off, if you did a 10k miles per year lease the payment would be $617.28 with the same drive off and if you did a 7500 miles per year lease it would be $598.97 per month with the same drive off.

    Just so you know my drive off numbers should run about $2k or so maybe less depending on what your DMV fee's are in NYS. So the lease you were quoted is basically paying sticker for the car which is a joke, goto Costco if you do not have a costco membership and pay $50 which will end up saving you $5K on your car purchase.

    Also all my above numbers are based on the assumption the car we are talking about is an E350 with p1 package only, if your car is more equipped then all the numbers I quoted above are wrong, but getting E-Class Sedan at dealer invoice is reasonable or even below dealer invoice.

    P.S. Just so you know putting down a $10k cap reduction reduces the payments by about $300 per month from the above prices.
  • needhelp27needhelp27 Posts: 9
    Thank you both so much. I am very grateful to you both. I am very confused. And really need advice. Below I furnish more info. I am sorry, I didn't realize that I needed to provide all this.

    I live in zip code 11423 in Queens. I was looking at E350 2010 with a 39 month lease and 7,500 miles per year.

    The car only had a P1 package, not a P2, no panoramic roof or parktronic assist, etc. The dealer made it sound like why to go for the P2 package? Everything was in the P1.

    The dealer said that the MSRP of the car was 56,000 and that he was giving it to me for 53,600. That was the best he could do. He even did the drama of calling his boss on the cell phone, etc and reduced 300 dollars.

    What is cap reduction? Does it mean, roughly, that I am putting money toward my lease and not as down-payment? I really need my monthly payment to be low, like around 300 would be SUPER! But 400-500 would be fine. I don't want it to above $500. My credit score is 680, but I am getting another family member with a higher credit score to be a co-signee.

    And how does the cap reduction work? What do I tell the sales agent? I will put down the roughly two to three thousand dollars of down payment, but then i want to put down a net ten thousand doallrs extra for cap reduction so that my monthly is low? Is that correct? Should I say that up-front to the sales rep? Or should I say that to the business manger?

    How do i ask for a costco negotiated price at Raylle MB? Do I simply walk in and show them my costco membership card? Can I become a gold member? or something else? Is this really true? OR some kinda gimmick? I mean, just b/c you spent 50 bucks, will it really result in a 5,000 dollar reduction? Also, does this Costco negotiated price change every month?

    Please take a moment and help me by answering whatever questions you can. i am aware that today is Memorial Day and you may not want to sit in front of the computer, but be with your family, but please look at it from my perspective: b/c of your kindness, I wil save a ton of money.

    Thank you kindly
  • ob995ob995 Posts: 40
    edited May 2010
    The Costco negotiated price is no gimmick, AAA also has a negotiated price as well but unfortunately I am in So Ca and I am unable to look up what the negotiated price for NY AAA. For AAA of So Cal, Costco has a better price by about $800. Basically what Costco does is tell dealer, here is the deal we want on X car, you are free to accept it the deal and participate in the program and many dealers choose to participate in the program for a few reasons, if they do not and other dealers do, they are going to loose tons of sales based on the fact Costco web page will display other dealers offering the deal, 2nd all cars have trunk money ie, the dealer pays X amount for the car and once they sell the car they are given a spiff or rebate after the fact. Also dealers make money off the financing, service contracts and dealer options and many times that money is more than they would make off the car itself. Also the more cars they sell per month, the more phantom cars they get, phantom cars are hot cars they can sell at close to MSRP so they have lots of money in them like currently E-Class Convertibles or SLR. So they are basically willing to sell cars which have weak demand for a low margin in hopes of getting more phantom cars which have huge profit. On an SLR their is about $50k profit in MSRP alone per car sold. Also Costco only has negotiated prices on cars which are not hot, their is no Costco discount on E-Class Convertibles or SLR either.

    Costco basically gives you fleet pricing in effect, it is no scam, I have bought a couple of cars via Costco program. It is very simple if you have a Costco card, goto and click car buying service, then it will ask you for Costco card, then you log in and pick the car you want with the options you want and enter your zip code it will display the price and the list of participating dealers near your zip code. It tells you to print the web page and bring your costco card and goto one of the participating dealers.

    I have no idea how to get to $56000 for a P1 car. If you add 4Matic and P1 only with metallic pant the car MSRP is $56,425 without metallic pant is $55,705. This is an exact science, If you are unable to provide complete and accurate info no one is going to be able to figure what the deal should be as depending on what car and options you get and amount of miles per year that can affect the residual or money factor.

    Costco negotiated price is invoice which on P1 car is just under $5k savings. So you should try to pay around $4.5k less than MSRP if you are not a costco member anyways as E-Class Sedan is not a hot car at all.

    With 7500 miles per year 39 month lease has a 59% residual. If you qualify for the best possible interest then the money factor should be 0.00220.

    The way a lease works is their is a depreciation part and interest rate. When you put down a large payment upfront it basically reduces the amount of money you are borrowing which saves you both principle and interest over the lease term hence the term cap reduction which is short for capital reduction. The depreciation is based on paying MSRP, so the bigger discount or more money you put down the less depreciation your lease payment will have over the lease term, also because you are paying less for the car, you are borrowing less money hence you are paying less interest each month in your payment as well. But if your car is stolen or totaled before the end of your lease, the money you put down is not returned to you or prorated for the remaining months left on your lease term which is why most people say it is a very bad idea to put down a large cap reduction. If you have $13k why not put $10k in the bank and withdraw $257 per month and apply it to your $500 monthly payment? You would end up paying about $45 per month more after tax but if your car is totaled or stolen before the end of your lease term you would have some money still left in the bank.
  • needhelp27needhelp27 Posts: 9
    edited May 2010

    Thank you ever so much! God bless you for your help. And my apologies for no giving the EXACT prices.

    So here's the deal:

    model number : E350 W4

    MSRP: $56,500 for 4matic, P1- premium package, black exterior with black interior
    He reduced this to $53,600 with $4,321 out of pocket with $737 per month
    7,500 miles per year.

    The P1 premium package that was offered is: Luxury sedan, wood leather wheel

    COMAND with 40 Gbytes HA,
    i-pod/MP3 media interface cable,
    rear view camera,
    Comand with navigation and voice control,
    i-pod/MP3 media interface,
    Sirius satellite radio,
    Power rear window sunshade,
    Herman/Kardon sound system with Dolby 5.1,
    heated front seats

    And with $13,000 I would pay $481.30 per month.

    After 39 months, the car would be offered to to us for purchase for $32,000.

    Now I have given you everything. PLEase, PLEASE write back.

    Thank you.
  • ob995ob995 Posts: 40
    Sorry I Do not have all day to go back and forth with you but your numbers do not add up at all so either the dealer is screwing you or you are missing options.

    E-350 prices is following:

    Base $48600
    P1 package $3950
    Wood Steering Wheel $750
    Destination Charge $875

    Total $54175

    So no idea how the car has an MSRP of $56,500 but if you look at the MSRP window you should be able to get $4.5-5k off sticker.

    If the car is equipped like you claim it is and the MSRP is $54,175, with the costco discount the sales price should be $49,300. Doing a 39 month lease with 7500 miles per year assuming you can qualify for best money factor with a $10k cap reduction and $3k in drive off your lease payment after tax should be $376.11 per month. Every $1k dollars extra in the sales price should add approximately $20 to the lease payment per month.

    Putting such a large cap reduction is not advisable at all, if the car is totaled in an accident or stolen you will be out that money but you are free to do whatever you want.
This discussion has been closed.