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Mercedes-Benz E-Class Lease Questions

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Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Yes it should info123. The incentive is paid for by Mercedes, not the dealer.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
  • 140am140am Posts: 1
    Hello,

    Does this cover the E550 Coupe as well? Looking for a good lease offer on a E550 coupe this month (30-36m, 10-12k miles).

    Thank you!
  • Just leased a 2012 e350 bluetec sedan with premium 1 launch package, rear spoiler, and 321 sport package. 570 a month 24 months with 10k miles a year. Just paid first month and this includes everything except evil vehicle turn in fee and next years dmv. Was this a decent deal?
  • ghstudioghstudio Posts: 968
    I know you want everyone to pat you on the back....but you should have come here first.....not after you signed the lease.

    In most states, you could have lowered your monthly payment by $50 or more by using multiple security deposits. Many in NY where this isn't allowed, lease in NJ where it is allowed....most other states allow it. It's a standard part of merecedes finance leases which dealers don't understand and don't discuss. It is a mercedes offering, not a dealer offering although some dealers claim "we don't offer that" which is pure BS unless in one of the very few states where it is, for some reason, not allowed.

    You should have included mercedes basic maintenance because a) you have to do it (or equivalent) as part of your lease contract...and b) because many dealers treat it like an option....so you only pay part of the cost.....on your car, you would have only paid 23% of the cost of that maintenance. Without it in the lease this way, you will pay 100%.

    Too late....enjoy the car for 24 months and then come back for pointers before you lease the next one.
  • tlecotleco Posts: 34
    edited March 2012
    How could it be possible paying $570 with NO $$ down and first month only payment
    You must have leased a stripped down car at $50,000 to get that price
    The lease advertised with $3800 Down EXCLUDING TAX
  • dewarsandsodadewarsandsoda Posts: 120
    edited March 2012
    Hi tleco,
    Don't be deceived by the advertised lease specials as these mean nothing. Only three variables matter when it comes to determining a lease: RV, MF, and negotiated sales price.

    By way of example, I leased an E350 Bluetech sport (24mo/12k miles a year) for $460 a month (includes tax) with $0 down. The car was nicely equipped with P1, parktronic, spoiler package, tinted windows, and split folding seats. I did apply the conquest rebate, and I did capitalize on MSD's to reduce the MF, which as ghstudio notes, affords a substantial monthly savings. And the best part is that said deposits are returned at the end of the lease.

    Cheers!
  • sorry wasn't looking for a pat on the back just wanted to know if i messed up or if i did ok.
  • To the previous poster, don't be discouraged. Take it as an opportunity to get educated before your next lease. Likely everyone on this board has leased a vehicle they could have done a little differently. As they say...it's only money, and you did get a great car!!

    We are getting a loaded E350 BTEC, MSRP $64,8xx(?). It has almost every option and it's the colors we wanted. We qualify for USAA, MB loyalty, and MB Car Club cash. These are the only programs that can be combined, and we will get $7k in incentive cash this month on top of invoice pricing (almost). The lease ended up just under $500 for 24/10k with only $8xx out of pocket. I don't have the exact numbers and it's not that relevant. What is relevant is that you find out the residual value and make sure you're not getting charged too much interest.

    And GHSTUDIO, we chose to not do the MSD at this time for various reasons. I know the rationale, so there is your opportunity to zing me if you like. This is our 5th Mercedes in the last 5 years, so I tend to be very comfortable that we get great cars for very good values. The BTEC has become very difficult to find, and I HAD to have P2 for the lighting package. I will never have an MB vehicle without the upgraded lighting again.

    Good luck to all!
  • ghstudioghstudio Posts: 968
    Agree on the P2 headlights...they are terrific. Clearly there are personal reasons not to do MSD's.....I just try to educate folks so they realize that there is a potentially money saving option available. It's not always so easy to scrape together $5-6000 and tie it up for the length of the lease.
  • kkdonnkkdonn Posts: 7
    Hello Lease Guru's
    First time lease buyer , I have couple of questions . I own a 4Runner and pay around 650 in monthly payments and plan to trade in to lease a E350 for my wife.(Basically i want to lease with the same monthly payment of around 650 to 700$)
    My question are
    1. Do I sell my 4Runner or trade in , I know the conventional wisdom says sell it to private party but want to know if its same with lease trade in.
    2. Do I get best deals from a couple of dealers with out giving my social(have a fairly good credit) , come back to this forum and post the numbers

    I am off to the dealers to hunt for a good lease deal on E350 Cabriolet for my wife , live in east bay in NorCal .

    Any pointers ,suggestions please let me know
  • ghstudioghstudio Posts: 968
    edited March 2012
    While car dealers make you think that the price they pay for your car is part of the deal for the new car..it is really a separate transaction. Just treat it that way....ask them what they will pay you for your car....NOT how much will my new car cost if I give you my old car as a trade in. Do not let them cloud what you are paying by using that money as "money down"...you don't want to put any money down...bad idea, bad financing even though every dealer will try to figure out a way to give you the lowest monthly payment, even if you pay more overall. Be a smart leaser...no money down.

    OK...now that we have that out of the way...we can talk about leasing. the numbers you care about in leasing are: Money Factor, residual value, the list price of the car and the price they want you to pay. Please do not let them wing a number by you of $X per month with $y down. You don't want to put any money down...that means you will pay the first month's lease payment plus any legally required fees (registration/taxes)...that's it to walk out the door. Next, you want to price the car including mercedes (not third party) maintenance included in the lease. Next, I don't know if the rate on the car you want has a promotional money factor or not....but you should ask the dealer for a price with no security deposits and then a price with 10 security deposits (this is called multiple security deposits)..one short word on MSD's..you loan Mercedes 10x your monthly payment for the length of the lease and then you get that money back..very different then a down payment. The reason you do this is because it lowers your money factor and you save roughly $50 or more a month). Finally, you may be eligible for "conquest" money (rebate) of $2K because you drive a ford. You should strive for a capitalized cost of maybe $500 over invoice (see edmunds) less another $2000, if you are eligible.

    Good luck...report what you find here and we will try to help you get the best deal....but please give us all the numbers I mentioned...not just the monthly charge and list price. Also give length of lease.
  • kkdonnkkdonn Posts: 7
    Here you go , went to 2 dealers and the numbers which look same like the MB Lease specials advertised
    Dealer 1 Fletcher Jones , Fremont CA
    E-350 Black Cabrillio (base option not S02)
    The MSRP is 57720 for a buy option they can go Invoice +1000.
    For a 3 year lease here are the numbers
    Res Value - 60%
    Money factor =0.00177(value is for 750 credit score not excellent like in 800's)
    Cap Cost - 56720
    Cap Cost Reduction 3999 ( which i guess is a rebate because i told him i want a no money down or a trade in option)
    Acquisition fees is 795
    The final lease amount is 699 + 61.25 (sales tax)= 760.25
    We talked about conquest rebate but he was not sure if we can get one for 4Runner and said he will try to get .
    This price is not including the 3 year maintenance as they have a one year free included in the package
    He was not very encouraging on the MSD and said finance will go over that when we pull the trigger
    Dealer 2 Smythe European San Jose
    He did not have any E-350 Black Cabrillio (base option) and was trying to sell me one with S01 which was about 66000 or with S02 which was 63000 and did not have our color in their inventory . He kept telling me there is not a single car in bay area with a base option available where as i test drove the base option same day.

    We plan to visit 2 last dealers in case they have our color and model if not then dealer 1 is our last choice.

    Like you mentioned I did not talk about a trade-in which is a 4Runner SR5 2009 with 52K and leather seats &3rd row .Found out KBB value for private party for very good condition is 26,318 and and Trade in 24,218. I plan to put it on sale on Craigslist and try and sell it in next couple of days .

    Thanks a lot , you cannot imagine the confidence this site gives when we go for negotiations . Great work , keep it up
    KK
  • Hi kkdonn,
    Having lived in SF for some time before relocating to SD, I recommend calling MB of SF, MB of Walnut Creek, and then RAB in Marin. At MB of SF, ask for a sales manager with initials AC and simply tell him the particulars of what you are seeking. They are very transparent on RV and MF and will do MSD. Best of luck with your newfound confidence!

    Cheers!
  • kkdonnkkdonn Posts: 7
    Thanks , have contacted all the MB dealership you mentioned.
    By the way what are your thoughts on a 5 Yr lease vs 3 year . Here are my numbers for 0 down and no due at lease ( dont know if its possible) , 4k in cap cost reduction and finally 4K 5 yr lease and increase MF to double of .0017
    Car Lease E350 base Prm Pckg 1 No Down 4K(Cap Red) 5 Yr Lease
    Capitalized Cost  56720 56720 56720
    Down Payment
    Capitalized Cost Reduction 0 4000 4000
    Net Capitalized Cost  56720 52720 52720
    Residual Value 34032 31632 31632
    Total Depreciation  22688 21088 21088
    Lease Length 36 36 60
    Monthly Depreciation 630 585 351
    Money factor 0.0017 0.0017 0.0025
    Interest Rate 4.08 4.08 6
    Interest Charges 154.2784 143.398 210.88
    Pre-Tax Monthly Payment 784. 729. 562.
    Sales Tax 68. 63. 49.
    Final Monthly Payment 853.67 792.33 611.552

    Due at Signing
    Montly Payment 853.17 792.93 611.552
    Acqusation Fees 795 795 795
    Lease Fees 1 1 1
    Cap Cost Reductuion 0 4000 4000
    Drive off Amount 1649.1 5588.9 5407.5
  • kkdonnkkdonn Posts: 7
    ghstudio
    Any thoughts on my numbers ?
  • ghstudioghstudio Posts: 968
    I assume that the car has an MSRP of $63315 (cabriolet, metallic paint, P1)...right?

    A 33 month mercedes lease will cost less than a 36 month lease because they are usually allowed to use the 30 month residual for up to 33 months.

    Personally, I would never lease for more than that....I'd buy the car.

    You should include the maintenance FEATURE...it will raise the MSRP, but you will only pay part of that because it is residualized like any other feature.

    Why is the first payment so high??
  • kkdonnkkdonn Posts: 7
    ghstudio
    Here is the final offer dealership made for the car which is not on their lot , I guess they are getting it from another one in bay area
    The MSRP for E350 + P1 package is 64545
    MF = .00177
    RV=60 %
    Down payment+Acq fees of 1095 = 6000 (Total drive-off)
    To make my Monthly payment 729.12 including tax
    Here are some discussion items we did
    My Monthly payment was not supposed to exceed 730
    No discussion of maintenance as that was supposed to be done with finance guys
    They give one year free maintenance .
    The deal did not go through because i wanted 6k for my car which they could not match and i decided to sell it outside to raise 6K and i said i will come back

    From my calculations to get 730 monthly + 6K for this deal
    Cap cost would be 54475
    Adjusted Cap Cost (with 6K down) would be 48475

    I saw Truemarket value for this from edmunds is
    Base Price $53,941
    Premium 1 Package $3,729
    Destination Fee $875
    Regional Adjustment ($124)
    ________________________
    Total Price $58,421

    What do you think ?
  • ghstudioghstudio Posts: 968
    edited April 2012
    1) have them run a 33 month lease on the same car. Add up the total costs (everything you pay) for both the 33 and 36 month leases and divide by the number of months...that will give you the actual monthly cost of leasing the car. My guess is that the actual cost per month will be less on the 33 month lease. The only thing to compare is the total cost of the lease....

    2) If ypu buy mercedes maintenance from your salesman, it should be included in the MSRP of the car (note: must buy mercedes, not third party). That means that you will really only pay 40% of the MSRP cost...just like you are only paying 40% for every other feature on the car. Negotiate this with your salesman, not the finance guy who will try to sell you third party maintenance and then you have to pay the full cost. This is one of those "I don't care how you do it, mr dealer, but here's what I the buyer want to do." And subtract out the cost of an "A" service from the MSRP since they are apparently giving that to you free.

    Negotiate the $1095 down to what mercedes actually charges the dealer which is $795.

    Do not put money down up front (capital cost reduction) unless you have to do it for credit reasons. Under normal conditions, it really doesn't matter...but the condition you care about is if the car is stolen or totalled. Here's what happens:

    Mercedes determines the value on their books of your car. They then subtract out all the money you have paid and any difference is paid by their gap insurance which is included in your lease. But if you have put money down up front, that's part of the money you paid so they don't have to use their gap insurance and you are out that money.

    It is safer to just keep that money and pay it a little each month...in fact, if you make a 3600 capital cost reduction on a 36 month lease, your monthly payment will be $100 less. If you put that same 3600 in a bank and use it $100 at a time, you pay the same to mercedes, but you protect yourself from just losing that $3600. Yes, there's a little interest, but not enough to worry about given the possible risk.

    That's why most familiar with leasing recommend that the first payment is only your first months lease payment plus any legally required costs. The aquistion fee is not a legall required cost and should be rolled into the lease like every other cost.
  • kkdonnkkdonn Posts: 7
    I could not get my deal yesterday and I guess the new numbers for MF and Residual will come in play for the month of April

    One more question i had for the forum ,
    Is this a good offer for Black E320 Cab with P1 and Appearance package for 3 year term
    MSRP - 64545
    Cap Cost 48000 (I calculated this on my own using formula )
    MF 0.00177
    RV 60%
    0 down (I plan to put money down only for credit reasons)
    729 Per/mn incl taxes
    2538 drive off cost
    3 year MB maintenance rolled in Cap cost

    Let me know and i will close the deal
  • ghstudioghstudio Posts: 968
    Did you check the 33 month lease to see if it's cheaper per month when you add up all the costs and divide by 33......vs the 36 month lease adding up all costs and dividing by 36. It usually is better/cheaper because mercedes lets the dealers use the 30 mo residual for 33 month leases.
  • kkdonnkkdonn Posts: 7
    edited April 2012
    No i did not and lets assume they don't in that case is this deal a good one or not ? The reason i am asking is that i just need a base deal and numbers to negotiate . Will keep this 30 month residual in my arsenal in case i need it .
    Thanks a lot for all the help
  • amukhiamukhi Posts: 2
    looking to lease 2012 benz e350 blue tech 10k miles, 24-27month lease
    need it with navigation I am looking to put 3-4k down payment
  • autoboy19autoboy19 Posts: 90
    amukhi,

    Residual for 10k miles per year is 78% for 24 months and money factor is .00195.

    I would not put that much money down on the lease.
  • any thoughts on this offer ?
    I haven't gone face to face for final close
    2012 E350W4 $52,990
    040 Black
    101 Black MB-Tex
    S01 S01 Premium 1 Launch Package: COMAND Sys $3,600
    810 : harman/kardon Sound System w/Dolby 5.1
    540 : Power Rear-Window Sunshade
    536 : SiriusXM Radio w. 6 mos. service
    527 : COMAND w/Navigation and Voice Control
    518 : iPod/MP3 Media Interface
    218 : Rear View Camera
    049 : iPod/MP3 Media Interface Cable
    01R 18" Twin 5-Spoke Alloy Wheel
    088 Identification code
    104 Rear Spoiler $300
    137 Comfort Box $290
    287 Split Folding Rear Seats $440
    321 321 Sport Package: 18" 5-Spoke Alloy Whe
    954 : Avant Garde Package (Sport)
    951 : Appearance Code
    772 : Sport Bodystyling
    677 : Sport Suspension
    V04 : Tire Rating
    731 Burl Walnut Wood Trim
    873 Heated Front Seats

    SUBTOTAL $57,620
    DESTINATION & DELIVERY $875
    TOTAL MSRP $58,495

    --------------------------------------------------------------------

    We will sell it to you for $52,965 and will do the following lease...

    Term: 30 Months
    Mileage: 10k per-year
    Monthly: $558.00/month
    Down: $2,500 (incl. all fees, taxes, 1st month etc.)
    MF: 0.00169
  • ghstudioghstudio Posts: 968
    You shouldn't put any money down on a lease...it creates an artificial belief that you are getting a good deal, but in fact you are taking a risk if your car is totalled or stolen. Put the money you would have paid up front in a bank and use it to pay the slightly higher monthly payments....or...

    the better use for the funds is to use multiple security deposits...instead of putting $4000 down on the car, use it for multiple security deposits. That should lower your money factor and save you probably $50 a month of actual savings...and unlike money you pay up front, you get the money you put down for multiple security deposits back at the end of the lease. It's the best use of your money...actually it pays about 11% per year when you work through the lease.

    Finally, try to buy maintenance as a feature on the bluetec....remembering that features are "residualized" That is, you pay 22% of the cost of the car and features during your 2 year lease....and you pay 22% of the maintenance cost if they let you do this. There are mixed opinions on whether this is doable or not...my lease includes 24 mo of maintenance on my bluetec...others have been told that you can't residualize it, you can't do this on a diesel, etc. My advice....just try to do it and see what the dealer says. Mercedes seems to accept the lease either way....so you have nothing to lose.
  • ghstudioghstudio Posts: 968
    fees.start up cost is too high....only pay first month's lease payment plus anything else required by law (registration, taxes,...). Ask if you can apply multiple security deposits to help lower the money factor on your lease....some dealers will let you based on the .00169, others will let you based on some other rate; some have no clue what a multiple security deposit is (make them look it up...it's part of the standard mercedes finance lease program) and there are a small handful of states (NY,...) that don't allow msd's....but give it a try because it can save you $50 or so a month and you get your security deposit money back at the end of the lease.
  • boybeeboybee Posts: 1
    My credit is not exactly Top Tier. I just did a short sale on my investment property and received some cash incentive that I could use for downpayment or security deposit.
    Any suggestions on getting a lease with my non-Tier 1 credit? Should I do a downpayment in addition to the multiple security deposit?

    The promo at the local Southern CA MB dealer has the following lease option for a 2012 E350 BlueTec.

    Term: 24 months lease payment based on total gross capitalized cost of $55,952
    - Includes Destination Charge and Premium 1 Package. Excludes title, taxes, registration, license fees, insurance, etc.
    - $579/month
    - Total monthly payments equal $13,896.
    - Cash due at signing: $2,499 capitalized cost reduction, $795 acquisition fee and first month's lease payment of $579
    - Total payments equal $17,190
    - Mileage: 10K per year

    Thanks in advance for your help.
  • Hi Boybee,
    Do you have an idea as to your credit score or even a range? Most of the MF's cited on this forum are for top tier credit, so my suggestion would be that if you know your score, perhaps you can ask the MB finance manager for the associated MF/interest rate for your credit tier. Then, based on the RV and target sales price, you can calculate your anticipated monthly lease payment in advance of 'formal' negotiation.

    I would recommend putting $0 down (or close to it) and only paying first month's lease and required fees (e.g., DMV and registration). You should use the dollars that you would have put down towards MSD thereby reducing your MF which I suspect will be higher than what is quoted on this forum.

    Finally, I encourage you to contact MB of Long Beach and ask for a salesperson with initials G.O. We leased our e350 Bluetech from him as he was completely transparent.

    Cheers!
  • ghstudioghstudio Posts: 968
    edited April 2012
    I guess if you want to pay almost msrp for the car, it's an ok deal...but a e350bt with p1 should be closer to 52k. Don't make any capital cost reduction...see if multiple security deposits will reduce the money factor and see if the dealer will allow you to add maintenance as a feature ...see the configurator on the mb site. Good,luck on getting mb to lease you the car with a short sale just on your credit.
  • In final negotiations on a 2012 E350. Thoughts?

    base- $50,490
    palldium silver- $ 720
    prem 1 launch package- 3600
    comfort box-290
    sport package
    black ash
    55,100
    destination-875
    total MSRP: $55975

    discount from MSRP- $7975 with all incentives

    Includes- 3 yr prepaid maintenance

    1st month & fee down- $940.52
    money factor .00189
    residual- 61% $24144.75

    $694. tax in, 33 months, 15k miles/yr
This discussion has been closed.