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Mercedes-Benz R-Class Lease Questions

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  • Does MB have a balloon program (loan + guaranteed repurchase price after 3 years or 4 years)? Leasing isn't a great option in Illinois, which charges sales tax on the full capitalized cost at lease signing. (It's actually charged to the finance company that is purchasing the vehicle, but is always reimbursed by the lessor.)
  • well i finally got a deal done on an 06 R500. i didnt get the car i wanted, but we should always settle when buying a $60k car.....(at least that is what i keep telling myself). i cant believe i just spent that much money and i dont even have leather interior....how do they even sell a $60k car without fancy vinyl...uhh....naugahyde....errr i mean mb tex????

    anyway here it is -
    Options
    317 Comfort Package
    326 Premium Package
    MSRP = $62,740
    Cap Cost = $46,240

    Drive-off amt = $1,372.56

    - Ca State Title Transfer fee = $15.00

    - 1st month payment = $508.81

    - MBF Bank Fee = $795.00

    - Ca dealer documentation fee = $45.00

    12k miles per year
    27 months = $508.81 + tax
    MF.00400
    Residual = 67%

    sigh....options aside, i got a great deal. it sure as heck was not painless though. while the sales manager and dealer i ended up buying from was good, the overall experience sucked.

    the guys at walnut creek are a bunch of hacks. the salesman is twit. the manager started out great and then pulled the classic bait and switch as we got close to signing paperwork. and then just blamed not doing a deal on someone higher up....nice waste of my time.

    the new guy at beshoff is a straight shooter. if only he could have found some more money over $15k for me, i would have preferred to buy from him. he never changed his tune and was honest that he couldnt go lower. fair enough.

    ill post the name of my dealer/sales manager after i sign the fedexed lease docs....

    thanks for everyone's help AND MORE IMPORTANTLY THE CONSTANTLY UPDATED INFO. this site was invaluable in allowing me to know which dealers were dealing, had large inventories. without it, i would neve have gotten $16500 off msrp. this board is fantastic!

    thx again
    Sean
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,979
    "ill post the name of my dealer/sales manager after i sign the fedexed lease docs.... "

    Please don't... as that violates forum rules.. Please see the message printed in red on every page...

    Thanks!
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • martinfmartinf Posts: 121
    I believe it is OK for irishrogue1 to list the name of his dealership, just not mention the name of the sales person/manager. In any event, I believe he got the vehicle from W.I. Simonson in Santa Monica. I had posted their $16,500 off MSRP a few days ago. Good luck with the R500 irishrogue1! You got one of the best deals out there!!
  • martinfmartinf Posts: 121
    You can save about $2700 over the 27 months of this lease by going with the single payment option. I just thought I would mention it to you. It's a personal call, but $13,000 in a 6% CD would only yield me about $1400 to $1500 over the 27 month period (by the way, World Savings Bank has about the most aggressive CD returns in the market. Unfortunately, bankrate.com hardly ever lists them because they mostly offer odd terms like 7 months, 13 months, or 15 months). Even if you have signed the paperwork and are driving the vehicle, I don't think it is difficult to switch over. Again, congrats - GREAT DEAL!!
  • yes, simonson in santa barbara. internet manager (linked on their website) is a stand up guy. not even 2 secs of BS during the process.

    all of my cash is tied up in my second business otherwise i agree that the one pay makes this even more attractive. although what happens if you total the car during the lease term? i always heard that you lose....doesnt sound right..but....
  • I see so many great info on '06, but I am looking at an '07.

    Need some comments/help on this quote:

    '07 R500 MSRP $66340, out-the-door cost around $3900 (1st month, all taxes, bank fee, registration, etc..), $0 cap-cost reduction, Term 27 months, 15K miles. Monthly around $730.

    Any thoughts on these numbers, and any suggestions on what I should be targeting?

    Any feedback would be much appreciated!
  • I have been an active mbworld.org member for a few years. Their R forum is dead. I pulled the trigger on an 06' R500 $62k MSRP. Without going through the numbers I'll just say that I was looking at an XC90/RX350 both at $620 tax in with aboout $1500 drive off. I never even thought of an R until I hit this forum. Our neighbor owns the local dealer and we gave him a shot. R500, black/black, 2006,sunroof,heat seats,HK surround, Sirius,18" wheels, DVD navigation. Bottom line: $1700 drive off includes 1st payment and $795 bank fees... 27 month/12000 mile..$599.97 per month tax in!!! I mean come on guys, this is cheaper than the XC90 we have now. I could not say no. By the way, we really wanted the new MDX but they want $788 a month#@@%#$. I had an E500 before and I loved it(minus the multi bugs and bad electronic breaks) so I'm happy for my wife. It's hers but I look forward to our ski trips.
  • amcdadamcdad Posts: 61
    These deals on the R-class are pretty darn good...It would fit our needs, but we won't be in the market for a replacement for our Cadillac SRX until next spring. Does anyone know how the R-Class is selling? I know its hard to predict, but I am hoping the lease incentives continue for a while...
  • i agree that the R board on mbworld never even got off the ground. this one was hot for a while, then it slowed down and i m glad to see it picked up again just in time for some of us to benefit for $10k factory cash.

    not sure what your tax is per month, but it looks like your neighbor didnt give you best deal that he could have....maybe took $50-75 per month more than he "should" have.

    people are going to line up for the new MDX....
  • R-class is actually moving here in Cleveland. I tried to improve the deal a bit but wanted to balance it with saving face with my son's best friend's dad ( he through in navagation). I still feel like I was saved from another XC90(not a great car) at a better price. $620/month for a $45k car v.s $600/month for a $62k car.
  • i agree that the R class beats the volvo in every way. the R drives like an S class. the xc drives like a refined SUV. roughly same weight for the xc V8. R is 14" longer, 5-6" lower with the same headroom and 1" wider.
  • Any comments on this?

    I see so many great info on '06, but I am looking at an '07.

    Need some comments/help on this quote:

    '07 R500 MSRP $66340, out-the-door cost around $3900 (1st month, all taxes, bank fee, registration, etc..), $0 cap-cost reduction, Term 27 months, 15K miles. Monthly around $730.

    Any thoughts on these numbers, and any suggestions on what I should be targeting?

    Any feedback would be much appreciated!
  • martinfmartinf Posts: 121
    First, the real deal on these Mercedes R Class vehicles is the 2006 vintage. With up to $16,500 off MSRP on these cars, you are getting pre-refunded about 25% out of the 35% depreciation part of your lease (based on 15,000 miles/yr.), leaving you to only pay for about 10% of the MSRP in depreciation. Even with the money factor at .00400, that break on the depreciation component of your lease is very hard to beat. Net cost with minimal drive-offs on a comparably equipped 2006 is about $540/month, about 25% less than your 2007.

    That being said, I do not understand your $3900 out the door costs. 1st month should be $730, bank fee should be $795, even California registration is about $380. I don't know where the extra $2000 is coming in, unless you live in a state that charges up-front sales tax on the full amount of the vehicle. What is your capitalized cost (i.e., what is your discount from MSRP?)?
  • martinf - thanks for the reply.

    I tried looking for 2006 with rear airbags, but was not successful, hence we are looking at 2007s.

    The 3900 out the door cost includes all the state sales tax to be paid up-front.

    MSRP is 66840 (but calculating from MB website, it seems like the MSRP is actually 68K, cap cost is 61061. I think invoice is 60975 (according to Edmunds).

    What do you think of this for an 2007?
  • martinfmartinf Posts: 121
    It looks like you are getting about $5800 off MSRP. At this point in the model run, I think that is about as good as you are going to find. Apparently, MB has a 5.5% "Dealer Holdback" on these vehicles, giving the dealers only about another $3600 to play with beyond invoice. If you are not in a big hurry, you might want to wait for Mercedes Winter Sales Event which I think will kick in sometime in November. It may also give MB a chance to see if they need to start giving factory to dealer incentive cash. One very positive note about the 2007 R is that money factor is a ridiculously low .00165 (3.96% in English). Versus the .00400 money factor on the 2006's, that low money factor will save you about $6000.

    I would still try to check other dealerships for 2006's with rear airbags. If you have small children, however, most manufacturers recommend disabling the rear airbags. I have them on a 2000 BMW 528it and they have always been disabled due to my two little boys' ages. Where are you located?
  • 2006 R 350, list 58K, discount $10,100 (includes dealer/factory rebate of $7K). Money factor 0.0021 for single payment for 27 month lease of $16.5K including 6% sales tax? Deal also comes with free servicing for 2 years
  • martinfmartinf Posts: 121
    You can get a similar vehicle in Southern California for about $13,000 for the 27 month, single payment lease (including 7.75% sales tax). Look at other postings on this board for dealers (e.g., Simonson (Santa Monica), Fletcher Jones (Newport Beach), Caliber Motors (Anaheim), Beshoff Motors (Northern Cal.) irishrogue1 just got his from Simonson and found the deal and the experience exemplary.

    At only 10,100 off, with factory to dealer cash of $7000, they are slightly above invoice. Most So. Cal dealers are dipping $1500 to $2000 into dealer holdback - at least. Big picture, your deal is probably $3000 to $4000 higher than the best deals in So. Cal.
  • martinfmartinf Posts: 121
    With the extra $3000 factory to dealer cash on the R500 (bringing the total factory to dealer cash to a whopping $10,000), you may want to reconsider the vehicle. Many posts on this and other R class forums by R350 owners have expressed lament over not at least "test-driving and test-pricing" the R500. Be aware that the money factor will be higher on the R500 (currently .00290 on the single pay).
  • One problem with the West coast dealers, I live in New England. Has anyone found that type of discounting in the Northeast? I looked at the R 500 it had a better deal as far as the discount but the difference in the money factor was an offset. Also the dealer selection for the R500 was limited to black which my kids said would only be good it I were a funeral director (I agree).
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