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Mercedes-Benz E-Class Lease Questions

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Comments

  • lanewbielanewbie Posts: 25
    I agree with you 100%
  • Does anyone know the current MF and residual for 12K/36 mon. in sounthern ca.? Thx.
  • beaver90beaver90 Posts: 3
    I have been following the deals on E350 and I finally closed the deal last week.

    This is what I got.

    Premimum w/ Siruis, Flynt Gray
    MSRP: $54,965
    Purchase price : $46,999
    Back Fee $795
    Drive off $6000 (including about $4000 cap reduction)
    436/month including Tax for 27 month, 15K/Y
    And $250 gas card, a key chain and a teddy bear for my daughter.

    I think I did OK. I was deciding between 525 and E350. Both are fine cars. But, with the current steep discounts available on E350, it was an easy decision.

    This is my third Mercedes. Hopefully I will not have any major quality issues in the next 27 months.
  • lanewbielanewbie Posts: 25
    I hate to tell you beaver90, and I hope I'm wrong, but I think you ended up being charged a very high rate of interest on the lease - putting all your data into the edmunds.com lease calculator shows that your money factor must have been roughly 0.002975, which equates to 7.14% interest. I've seen other people post on here 2.9% interest. Hopefully I'm wrong about this but that's what it looks like to me. Also, what were you charged for in the $6000 down payment? If $4000 is cap reduction, and assume $795 is the acquisition fee and about $700 is title, registration, etc., there's about $500 unaccounted for. I'm not trying to be obnoxious, just looking at your post and trying to sort through all this.
  • beaver90beaver90 Posts: 3
    lanebie:

    The money factor was 0.0024, which, I think, is the posted Mercedes money facor for E-Class for the month of May.

    The total drive off was $6000 which included the following

    1. $795- acquisitiong fee
    2. $436 - first payment including the sales tax
    3. $395 - sales tax (on the downpayment and the acquisition fee)
    4. $368 - registration
    5. $8.75 - California Tire Fee
    6. $3997 - cap cost reduction
    Total $6,000

    Thanks to all you guys who posted, I was able to get may car at $8000 off MSRP. This may not be the best price out there, but those of you who are shopping in So Cal, you are now armed with more information when shopping for E350.
  • lanewbielanewbie Posts: 25
    Thanks for the info on the drive off, that's helpful to see. I had not included the first month's payment; based on that, it makes sense. For me, I don't plan to make a down payment (cap cost reduction) but that's a matter of personal approach.

    Based on what you said, it looks like your purchase option was at 70% (38,476). Is that right? If it is, then I think I can finally confirm that I know how to do these calculations.

    At 0.0024 money factor, that's an interest rate of 5.76%, which is a bit high for 27 months, but probably is "on market" for what Mercedes quotes. I have seen several dealers offering 2.9% though, and some posters indicating the same. Based on that your payment would drop to $328 rather than $436, but it's probably illusory, because if you pushed that hard on the money factor you probably wouldn't have been able to do so well on the purchase price. All in all, I'd say not bad!
  • aeggroupaeggroup Posts: 131
    Congrats on your new car.
    This deal looks good, the only thing I, personally, don't like is $4000 cap cost. I preffer as less as possible to put upfront ( in case the car is stolen you lose these money ). Other then this - just enjoy the car.
  • seeking3seeking3 Posts: 1
    Does anyone know if MB is offering the special leasing incentives (money factor) for used E320 or E500s? I figure if I purchase the extended warranty, it would actually work out and I wouldn't have to worry about every little scratch or door ding :)

    Any info would help.
  • lanewbielanewbie Posts: 25
    If you are still reading this message board, it would be great if you could answer two questions:

    1. What are the current residual and money factor for a Mercedes E350 for a 36 (or 39) month lease, 12K miles?

    2. Are you aware of people doing better than the published Mercedes money factors? It seems like that happened to several posters above but I'm not sure that those are right.

    Thanks car_man!
  • aeggroupaeggroup Posts: 131
    You always can get better deal from the dealer. Don't pay attention what MB webside says. The only usefull information is payback from MB to the dealer. THis payback reduses your purchase price and lease payment.
    Good luck.
    I leased mine for 27 months E350 4MATIC premiuim with panoroof $656 a month no down, but bank fee ($795).
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi seeking3. Mercedes-Benz is currently providing special lease money factors plus $2,000 Mercedes-Benz Credit bonus cash on the 2006 E350 Sedan and no lease support but $5,000 dealer cash on the E500 Sedan. You definitely should not purchase an extended warranty for either of these cars if you choose to lease them. Mercedes' original factory warranty will most likely cover any repairs that you need to make during your lease. Besides, an extended warranty wouldn't cover scratches and door dings anyhow.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Here you go, lanewbie. If you were to lease a 2006 Mercedes-Benz E350 Sedan through Mercedes-Benz Credit right now for 39 months (it is more attractive than the 36 month term) with 12,000 miles per year, its buy rate lease money factor and residual value should be .00230 and 59%, respectively. This factor assumes that you pay a security deposit and acquisition fee and that you qualify for Mercedes-Benz Credit's top credit tier. It is impossible to get a lower money factor than Mercedes-Benz Credit's published buy rates unless they are leasing through an independent bank. I doubt that any independent banks have a lease program than the one that Mercedes has on this car right now. When negotiating your capitalized cost for this car, keep in mind that Mercedes is providing a $2,000 bonus for leases of it through Mercedes-Benz Credit.

    Car_man
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  • aeggroupaeggroup Posts: 131
    Hi Car_man.

    So, please explaine to me, because I still don;t understand the way you telling about lease process. Before I got my car I saw program on MB website
    about $2900 gap cost
    Aq. fee $800
    Total $4,200 due at singing and payment about $580 a month plus tax.

    I gor mine without any GAp Cost for 650 including tax.
    total due at signing was $1,800 including 1st payment and MV fees. How do they do this and could I get even better deal ?
    Thanks.
  • lanewbielanewbie Posts: 25
    Thanks car_man. That's very helpful. I was offered a 2006 at $2000 under invoice, so that must be due to the $2000 bonus. Can you tell me whether the $2000 bonus will apply to the 2007s? If not, should I expect to use the invoice amount as the capitalized cost, or would I have to go more than that?

    Thanks!
  • I'm considering the lease of a 2006 E320 CDI in Texas. Can anyone tell me what to expect in terms of residual (12k for 39 mos), lease factor, cash or other incentives on sales price? Thanks.
  • qkslvrqkslvr Posts: 34
    expect 60-62% residual, .00230 money factor for 39 months for tier 1 credit. You should be able to get at least $5k off of msrp, maybe better. The e350s have been discounting $7500-9000 off msrp, just not sure on the diesels.

    Also see if the local dealer will work out any tax credit for you. The Texas dealers sometimes have trade in credits from MB that allows them to offset the sales tax for a 1% fee. Since TX charges tax on the full purchase price, the tax credit can save you $3K or more.
  • I have negotiated a great deal on a new E350 wagon ($10,200 off of MSRP) at my local Souther California dealership. The dealer quoted me a payment of $620 per month on a 36-month lease. He gave me a residual of 52% and a money factor of .00219, and 12000 miles. This would include a $932 cap cost reduction. How can I find a leasing company that will give me a better residual of say 60-62%? I would actually prefer a 24 to 27-month lease at only 7500 miles. What residual could I expect with that term?

    Thanks
  • lanewbielanewbie Posts: 25
    The money factor is not bad, the best I saw was a May rate of .0023. Maybe 0.00219 is the June rate. car_man, can you confirm?

    As far as residual, it should be up around 59% for a 39 month lease at 12000 miles, or 57% for 7500 miles. If you dropped to a 27 month lease, the 7500 mile residual should be 72%.
  • I agree that the money factor is great, but the question is, where do I get a lessor that has the higher residual? Is it MB Credit?
  • lanewbielanewbie Posts: 25
    Yes. Those numbers are straight from the Mercedes credit book.
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