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Mercedes-Benz E-Class Lease Questions

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Comments

  • hx_guyhx_guy Posts: 39
    Do you have another car registered to you (or your wife if married) where you can use the Conquest Incentive? You would get $3,000 off the price from that. If not, then you should be able to get the Owner Loyalty which I think is $2,000 but I'm not certain.

    The invoice on the car you mentioned is around $58,500 with the dealer cost being $56,578. If you press them enough, you should be able to get the car for dealer cost minus any incentives, such as the $3,000 Conquest, so around $53,500, if not better. Keep in mind I was able to get $8,925 off my car (which was only $57,575 MSRP), plus I had another dealer who offered $9,500 off a $60,080 car and also $10,500 off a $62,000 car...the more the car costs, the more they should be able to discount so on your car, I think it's completely possible to get at least $9,000 off if not $10,000.

    I would approach it this way...do everything over the phone (I assume you've already seen the car and test drove it?). First work on the price, tell them what price you want, go lower than you want as they will meet you in the middle. After you get the price locked in, ask what the residual value and money factors are for different least terms, I believe on the gasoline E350, 33 months is the sweet spot but you can ask for 33 and 36 months.

    Once you have all the figures, you can punch them into an online lease calculator and it will give you the monthly payment.

    When you go to the dealership, most likely their number won't match yours because they either inflated the money factor from what it should be (the money factor is set by Mercedes Financial, not by the dealer, but the dealer tries to add on to it to make money) or because they put in some other fees. The destination charge should be $875.

    It's all "simple" math once you have the price of the car, the money factor, the residual and the term you want to lease for so don't buy their story that your numbers don't add up (what they tried to tell me, saying my calculator was wrong). If they won't give you what you want, and what they should per your earlier conversation over the phone, then walk out. Most likely they will call you back a bit later to say they can do it, it's what happened to me. Or if you're happy with the numbers they give you and don't want to potentially lose the car, then go forward but for me, I just didn't feel right paying more than what my calculations came out to be, even if it was only $25 more per month. It wasn't about the $25 but I wanted to know WHY it didn't add up and they couldn't explain it. They finally gave in and gave me the price that my calculations came out to be.

    Good luck and keep us updated.
  • The RV is a fixed percentage set by MBFS. It is solely based on the car model, lease term, and miles per year.

    Cheers!
  • chalkie1chalkie1 Posts: 17
    Hey Car Man: you have helped me in the past so quick question. I'm about lease a bluetec diesel, msrp $60391.00. What's a reasonable selling price including a $3000 conquest credit. I'm reading approximately $8000 off list. Is that reasonable without insulting the dealership. They deserve to make a few bucks too.
  • hx_guyhx_guy Posts: 39
    You should be able to do a little better than that. When I was shopping recently, I got an offer for $9500 off a $60,080 MSRP Bluetec. I would push for that, don't worry about insulting them, they still make money or else they won't sell you the car...even if maybe they don't make that much up front, they will make it elsewhere on volume etc.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi hx_guy. I personally don't like to play games. If I was in the market for this car, I'd go in and just say that I want to pay $X for the car and have the conquest cash deducted from that."

    There's nothing wrong with rolling tax, title, etc... into your lease payment. In fact, I personally prefer to pay as little as possible at lease signing.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Seth. I can certainly see the logic of wanting to be in a new car right now and save $60 per month in the process, but if I was in your situation I personally wouldn't roll any negative equity into my new deal. I personally would rather wait a couple of months until I was closer to the scheduled end of my deal and Mercedes was willing to waive all of my remaining payments to get something new.

    Having said that, the selling price that you were quoted looks excellent. Just make sure that the dealer is using MB Finance's current buy rate lease money factor of .00126 (top credit tier) to calculate your payment and you're in business.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You are correct, hx_guy. Mercedes-Benz Financial's residual values for a lease with 12,000 miles per year are 2% lower than its 15,000 mile per year residual values. The 10,000 mile per year residual values are 3% lower than the 15k residuals.

    The exact impact upon this car's payment will depend upon its MSRP and selling price.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Thanks socal59. Mercedes-Benz Financial's current residual value for a 24-month lease of a 2012 E350 Wagon with 15,000 miles per year is 62%. Mercedes is not currently providing any lease support on this model. If you want to lease one through MB Finance, you would have to use its standard lease money factors.

    Car_man
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  • socal59socal59 Posts: 54
    So what would the standard money factor be for the wagon? Would 36 month be bettering, there are no subsidies from MB financial? Thanks Carman.
  • kvincekkvincek Posts: 11
    This is probably a very stupid question but is it possible to lease a E350 for 48 or 60 months?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey socal59. The last time I checked, MB Finance's buy rate standard lease money factor for Tier 1 customers was .00210, but this number may vary some by region.

    Mercedes is not providing any lease support on any length lease of this car, so 36-months wouldn't be any better other than the fact that the payment would likely be lower as a result of spreading out the large initial depreciation hit out over a larger number of months.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    That's not a stupid question at all, kvincek. Yes, one could indeed lease a Mercedes-Benz vehicle like the E350 for 48 or 60 months if they really wanted to. Having said that, it really doesn't make sense to lease this car for any longer than 48 months.

    First of all, Mercedes' lease support on it is only available for up to 48-months. So if you lease for any longer than that, your car's money factor would jump from .00150 to whatever the standard rate is.

    Also, Mercedes' bumper-to-bumper warranty coverage is only available for up to 4 years. So if you were to lease this car for five years you would have to pay to have anything that went wrong with it over the last year fixed out of your own pocket.

    Car_man
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  • ghstudioghstudio Posts: 943
    You could, however, reduce that standard rate which is roughly .00225 to .00155 by using multiple security deposits on the longer lease. It's an interesting option to financing. In both cases, the warranty runs out at the same time. To me, it depends on the financing rate and the residual. Leasing might actually be cheaper than buying....hmmm!
  • kvincekkvincek Posts: 11
    Thank you so much for your kind reply sir! Based on your response, it doesn't make sense to lease it for any longer than 48 months. So from your knowledge what would be the money factor and residual value for 48 months E350?

    Thank you ghstudio for your kind response as well.

    Vince
  • orthoresorthores Posts: 2
    edited June 2012
    I have read and read and read this forum, and found the car I am interested in.

    2012 e350, P2, Drivers Assist, Leather, Obsidian black, Spolier package, active driver seat, ventilated seats, etc.

    MRSP 66,125
    Money factor 0.0015 (They say that 0.0126 is only on 4 matic)
    Selling Price 62,900
    Acquisition Fee 1095
    Cap Tax 156
    Gross cap cost 64,494

    USAA Rebate 4,000 Cap cost reduction
    Net Cap Cost 60,494

    Residual 0.62 12,000 miles 33 months
    Residual 41,016

    Monthly payment pretax $750
    0 downpayment

    Anything I am missing?? Any advice.
  • ghstudioghstudio Posts: 943
    The capitalized cost should be about $2500 lower....the dealer isn't discounting enough, counting on the USAA price to make it seem like a good deal.

    If you are leasing, add the mercedes basic maintenance to the lease and make sure it's capitalized, not just charged in full over 33 months.

    That origination fee should be $795 which is what mercedes charges. The dealer is marking it up for extra profit.
  • hx_guyhx_guy Posts: 39
    Also, do you own any other cars to where you could also get the $3,000 Conquest cash?
  • socal59socal59 Posts: 54
    I'm interested in possibly leasing the wagon, but apparently there is no lease subsidies for this model. Multiple security deposits sound interesting, how much do each one consist of dollar wise? 10 is the limit? What's the catch? I mean you put money down in this form and you get it back at the end of the lease? What if the car is totalled in an accident? Do you lose your deposit(s)? Thanks for your help :)
  • hx_guyhx_guy Posts: 39
    Each MSD is calculated off the monthly payment (per-MSD) rounded to the next $50. So if the lease payment comes out to $642, then each MSD is equal to $650. If the payment is $657 lets say, then each MSD would be $700. The max you can do is 10 MSDs. Each MSD lowers the money factor by 0.0007.

    If the car is totaled, then it is paid off to the dealer by insurance so you do get your MSDs back. Security deposits are usually only kept if the car has some sort of damage or excessive wear and tear at the end of the lease, but it would be no different than if you didn't do the MSDs and then they would just send you a bill for those items.
  • ghstudioghstudio Posts: 943
    each msd reduces the mf by .00007 not .0007. My lease deal included 10 MSD's and they used the actual monthly payment including tax as the value for the MSD. I asked if that was correct and the delivery agent insisted that they understood the mercedes lease perfectly :) In any case, Mercedes Finance accepted the deal (I assume).

    The proper way is to take the calculated monthly payment without tax and then round it up to the nearest $50.
  • ghstudioghstudio Posts: 943
    I believe that you can't stack USAA and conquest money....it's one or the other.
  • orthoresorthores Posts: 2
    I cannot stack conquest on USAA.

    Renegotiated, got what I am happy with.

    thanks for the input!
  • hx_guyhx_guy Posts: 39
    So...what was the deal? You have to share! :D
  • datunludatunlu Posts: 10
    edited June 2012
    Hope this would help. I just leased a new E350 with P2 and bunch of other smaller options that totals to a MSRP of a little bit above 60k. the 33 month residual value is 63% with the money factor of 0.0015, note, if you go with a 36 month, the residual drops to 54%, really a rip-off. We want only 10k miles per year and after the pre-paid maintenance, the final monthly is just a couple of bucks above 600. This monthly number includes all fees and taxes with a 2k drive off. Best luck, guys, it is a great car, I am glad I did not go with the BMW.
  • aijaij Posts: 3
    Hi guys, just got a quote from dealer on E-350 below.

    "We can put you in a E350 4matic with an MSRP of $60035 for $698.59 for 33 months with 12000 miles per year. The money factor is .00116, the residual is $37221.70 and due at delivery is $1078.98 including 1st pymt with acq fee of $795 rolled in. "

    Is it a good deal? Never had a lease before so need some help please. I need to close out a deal by Saturday.

    Thanks much!
  • Hi aij,
    Its hard to assess the deal as the dealer is not providing you with the final sales price. I also don't know if the MF quoted is indeed the base rate MF for a 33/12 lease on 2012 E350 4matic.

    Nonetheless, assuming a sales tax of 7.75% and that monthly payment (698.59) includes tax, I roughly calculated a final sales price of $54289 (includes the 795 acquisition fee). Given the incentives that may be available such as Conquest, USAA, etc., I think you can push for a better sales price.

    Cheers!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're very welcome Vince. Mercedes-Benz Finance's June buy rate lease money factor and residual value for a 48-month lease of a 2012 E350 Sedan with 15,000 miles per year would be .00150 and 46%, respectively for consumers who qualify for its top credit tier.

    Car_man
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  • rravinrravin Posts: 27
    Hi Car man,
    Want to know the MF(tier 1), residual%, and sweet spot for lease (Iv'e read 33mo for the gas vehicle).Not sure but from what I'm reading it sounds like 33mo is better than 36mo and that 15k miles is better than 12k. Is this right?. I live in Los Angeles, CA. Does the competive conquest program apply here? Is origination charge $795 correct? Can the conquest program be combined with the MSD's. and does each MSD lower the MF by .0007 or .00007. Seems to be some discrepency between posts from others on this thread.
    Thanks in advance for your help both now and in the past.
    rravinmd :)
  • rravinrravin Posts: 27
    Does California allow MSD"s :)
  • rravinrravin Posts: 27
    This may be a silly question but when you say the maintence should be capitalized not just charged in full over the 33mo. Do you mean that it should be part of the residual value of the car so that instead of paying 100% for the maintance you pay 100%-61% (estimated residual value of car)?
This discussion has been closed.