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2013 and earlier-Mercedes-Benz S-Class Lease Questions



  • Thanks! I was thinking the same thing. I'm here looking to buy a new 08 S550 and am trying to figure out what a good deal means.....

    Still looking.

    The car I'm looking for:

    -08 S550 Iridium Silver
    - P2
    - rear view camera
    - AMG Package
    - Rear power sun shade and side shades
    - leather/wood steering
    Quote: $98k MSRP.

    What should I really pay for this car? Someone here earlier said that they got $7500 off MSRP. I was under the impression that you always negotiate from the inv. price up, not from the MSRP down.
  • Hey guys, im new to this board, but i'd just like to say that I appreciate everyone for their help...this seems like a great forum.

    My question is on what I should be paying for a lease on a 2008 S550 4Matic.
    I want it with Premium Package 2, and with the bluetooth option. Based on MB's website the price comes out to $95,175. I was thinking about getting a 48month, 10,000 mile/month lease...Any help would be greatly appreciated. Thanks
  • eights38eights38 Posts: 137
    blackmamba24 - Beautiful car! Where are you located?
  • Hi Eights38,

    I'm in Michigan...thanks. I'm thinking about contacting local dealers, but I wanted to have some background information before I do that. I currently drive a 2004 S500 4matic and my lease is ending soon. I'm looking to lease within the next 2 months. Any help would be greatly appreciated. Thanks.
  • danf1danf1 Posts: 935
    you should qualify for a $3,000 lease loyalty cash incentive if your current lease is through MBF. 39 months is the best term on that car now. If you want longer term do 51 months. The residual is the same as it s for 48 (39%).
  • Sounds good...thanks Danf1

    So what do you think is a good lease rate given the 3000 dollar cash incentive for a 39 month lease with taxes included, of course...(and i do have the current lease through MBF so it will apply, which is nice). Any help would really be appreciated, thanks Danf1 and Eight38

    O, and you know whats really ridiculous...I requested a quote on some various MB dealer websites and some responded via i called them back and 2 out of the 3 did not want to discuss prices or really anything over the phone. They just wanted me to come in. What is the point of an online quote request if they are going to be so pushy to come in. I know exactly what I want, all the options, everything, but they won't discuss anything over the phone...The only dealer that was very upfront with everything was a dealer that was out of state. What do you guys think about buying/leasing through an out of state dealer (what is the best way of getting the vehicle...besides flying there to pick it up)...thanks again guys. sorry for all the questions, i just don't want to be ripped off and you guys are very knowledgeable. thanks
  • danf1danf1 Posts: 935
    I would guess you will probably be around $1500/month plus tax. It depends upon how good of a sale price you can work out. Can't really tell you what taxes are where you live, so you'll have to do the math on that one.
  • Here are MBC's current lease numbers...

    2008 Mercedes S550 4matic Sedan
    24 Month – Residual 62% of MSRP – .00365
    36 Month – Residual 53% of MSRP – .00330
    48 Month – Residual 42% of MSRP – .00330
    60 Month – Residual 37% of MSRP – .00330

    Numbers assume 10k annual miles.

    As you can see, MBC has crummy rates on this model right now. You might try or your local bank or credit union as an alternative.
  • Thank you- this is helpful!
  • Hey, thanks for that info...i had a question...what do you think i should be able to get on the price of a 2008 S550 4matic with the P2 package and the Wooden Steering Wheel option for if i wanted to buy it outright (sticker is $95,245)...i was hoping i could get a price including taxes (michigan tax is 6%), destination and all the other stuff...

    -Just the price out the door that you think i should be aiming for paying straight up cash...i've decided that financing through my own bank is better than MBF, but ive decided that buying versus leasing makes the most sense for me currently...

    Any help on a target price would be greatly appreciated...i know the whole between dealer invoice and msrp target...but i also know there are hidden extras and all that stuff...regardless, im not looking to get the car free or anything but im not into getting ripped off, which i know i did in 2000 when i leased my other S Class...then was able to get a pretty good deal on my lease in 2004 for an S Class...but now im looking to buy so i haven't really been too concerned with price in the me out, please...thanks
  • Can someone explain something to me...

    For example, if the msrp of a particular S Class was $95,500 and the residual after 39 months was around 50% (according to the info above) and the dealer invoice is somewhere around 89,500, then why is the lease around 1500 a month plus around 5000 down...i just don't understand this...

    That means that after i have taken this car for 39 months, i have paid around 63,500 (including the 5000 down) and when i return the car back to the dealership, the car is still worth around 47750...that means that the car should have been worth around 111,250. (63,500+47,750).

    Why isn't the lease per month more along the line of 1250-1300...thats a total i missing something?

    Even if the lease per month was 1300 with nothing down for 39 months...i still play around 50,700 (the residual is still 47750) and the apparent total worth of the car would have been 98,450...thats still about 10,000 over dealer cost...what gives?
  • On a lease, you pay the difference between the cap cost (negotiated price) and the residual value. This figure is known as the depreciation, and thus what you are paying. But, you then have to add in the rent charge, otherwise called interest.

    So, assume an MSRP of $96,000 and you want to lease for 36 months. You take the residual (50%) and multiply it by the MSRP. In this case, the residual value (estimated price of the vehicle at lease-end) is $48,0000.

    Now, say you negotiate a cap cost (hypothetically, a selling price) of say, $91,000. There is a spread of $43,000 (the depreciation), so you simply divide $43,000 by 36 (the number of months in the lease term). You get a base payment of ~$1195/mo. But, now you have to add in the rent charge (finance charge). With MBC's current buy rate @ .00330 (7.92%), you will multiply that number by the sum of the residual and cap cost. $48,000 + $91,000 = $139,000 x .00330 = $458.70. This is your monthly finance charge.

    So now, take your base monthly payment of $1195 and add the finance charge of $458.70 and you get a pretax monthly payment of $1653.70. Then, depending on your state, you can have the sales tax broken down into your monthly payments. So, assuming a 6% sales tax, that adds another $99.22/mo to your payments giving you ultimately a payment of ~$1753/mo

    The bottom line: you simply paid the $43,000 in depreciation + interest. Obviously, this vehicle has a crummy money factor through MBC currently and thus why you paid $20k total in finance charges.

    Any cap cost reduction (down payment) simply lessens the spread, ultimately giving you lower monthly payments. Large cap reductions are not a good idea when leasing.

    Hope this makes sense?
  • moetmoet Posts: 8
    S550 4matic 2008
    PII package
    Ipod Integration
    Wood/Leather Steering

    Total Cost = 97,665
    Markup = -10,268.34
    Total Selling Price= 87,396.66
    Cap Red = 5825.92
    Total Cap Red = 81,570.74
    Capped Taxes = 3,761.30
    Total Capital Cost = 85,332.04

    Monthly payment = 1,310/mo (with tax)
    Total out of pocket = 8,800.01 (includes 1st monthly payment, taxes, fees, etc.)
    Residual = 47,160
    Money factor = 0.0025

    Not much haggle with the sales person. Just told him what i was expecting to pay and he worked the numbers (this is in NJ btw). Good deal or Bad deal?
  • That looks like a good deal (based on the current pogram). The residual and money factor gel with current MBC numbers. My only advice would be to NOT make that additional cap cost reduction. I'd advise only paying your 1st mo and dmv's at inception.

    Looks to me like a 36mo/15k lease, correct?
  • moetmoet Posts: 8
    ocautseeker: It's a 39mo/15k lease.

    Made the deal! :)
    Just out of curiosity, what difference would it have made if i paid cap reduction now or have it rolled to my monthly payment? Either way i end up paying the same $$ (Unless he'd bring down price of the vehicle by an additional 5k)?
  • Congrats on the car!

    Only reason I do not recommend cap cost reductions on leases is because if your vehicle gets wrecked (totaled) or stolen, you may not be able to recover the upfront down payment you made.

    You may already know this, but I'll reitterate... The GAP insurance included in your lease through, in this case MBC, would cover the payoff of the vehicle, but most likely you'd be out the $5k. By making a cap cost reduction, you're essentially prepaying a portion of the deprecaition and not paying down any principle like on a purchase. In other words, there is no equity being built in a lease, therefore it's advisable not to throw any money at it.

    However, many people are very pyschological when it comes to payments, so if the payment suits you and you had no problem laying out the $5k, and you're happy, then that's all that really matters.

    Again, congrats - beautiful vehicle!
  • moetmoet Posts: 8
    thnx for the advice ocauto. i didn't think of it that way (not building equity). I'll keep that in mind the next time i'm out to lease (another 3yrs to go).

    Thanks again! :)
  • shawn757shawn757 Posts: 115
    Is there any good lease deals on the S class anymore? I have not seen any for sometime. If so how does peaple buy this car? I don't want to finance.
  • In terms of good deals out there. The deals right now on high line vehicles are very good. The germans have announced that they will be changing the way they do buisness in the near future. Our economy and dollar is so very bad right now. They are going to raise the prices of the vehicles, and cut production. So now is the time to buy before dealers are not going to want to discount vehicles at all. The car industry is going to go through some major changes in the next year or so. So grab the deals while you can, because who know what the future brings.
  • I am in the process of negotiating a lease assumption on a 2008 Mercedes S550 4Matic in Long Island, NY. The car has the Premium II Package, iPod Integration, and Wood/Leather Steering Wheel. There are only 400 miles on the car and 38,600 miles to be driven over 34 months. The payments are $1585 per month (includes 8.625% sales tax) and there is $0 due at signing (current owner is willing to pay $595 transfer fee).

    What do you think? Can I do better?
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