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Mercedes-Benz R-Class Lease Questions

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  • Thanks to everyone in the forum for their feedback. It has been very helpful to me!!

    In the Boston area and signed lease for '06 Iridium Silver w ash R500. Has premium package, design II wheels and center row console. MSRP was around $62,000. Cap cost for the lease was around $48,000. 15K miles. 39 months at $730 incl. tax. Up front totals $1,095.

    Feels like I got a good deal given what's been on this board. Selection in Northeast isn't great. Wanted Sirius but couldn't fine one that I liked.

    Thanks again!
  • I have a question. If you do a one pay lease, are you paying the difference between the selling price and the residual price at the end of the lease?
    For example, if the MSRP was $52,000 and the sales price ended up being $40,000 and you were doing a 36 month lease, the residual being 56% of $52,000 which is $29,120, on a one pay lease would you then be paying $10,880 plus tax, tag, and bank doc fees? Or is there still a finance charge associated with the lease even tho you are paying all of the payments upfront? Thanks your information would really help and ia much appreciated.
    I am debating between the R class and a loaded FX 35, both have similair sales price numbers. :shades:
  • martinfmartinf Posts: 121
    There is still a "finance charge." Since you are not paying the full $40,000 sales price, but only the difference between that price and the residual, you pay interest or a finance charge on the $40,000. With MB Financial, they do give you a break of .00110 on the money factor(approximately a 2.64% discount), but it has a floor of .00150. For example, if the MF is .00295 (7.08%)on a monthly pay lease, your single pay MF will be .00185 (4.44%), representing a discounting of the rate by 2.64%. However, if you are considering the 2007 R350, the monthly lease MF is .00165. It would not make sense to do the single pay on that car since they would only lower your MF to the floor MF of .00150. At that point, keep the money in the bank (World Savings has great CD rates that you won't find on bankrate.com since they are usually odd terms like 5, 7, or 13 months)!

    That is also why your credit score is important. I originally thought that by doing the single pay, the finance company would not even need to check your credit score. The only problem with that reasoning is that your single pay only covers a portion of the $40,000+ car you are driving away with. I hope this helps!

    Between the FX35 and a 2006 R350, you will probably find the R350 to be far cheaper to lease. You are getting the benefit of a high MSRP (higher residual value) and a large discount from that MSRP that essentially will wipe out 23% of the 44% depreciation. I do not think you will find similar numbers on the FX35.

    As an additional note, the sweet spot on the R350 lease is the 27 month lease. The residual value is 67%, so with the $12,000 discount, you are actually only going to pay an effective 10% in depreciation, or about $5200. Increasing the lease term to 36 months has you paying an additional 11% for just 9 more months of lease term. This is a highly unusual set of circumstances wherein it is actually cheaper to take the shorter lease than the longer one. Good luck and try to find the R350 that is equipped to your liking. You won't pay that much more for a heavier equipped car because of this unusual high MSRP/high discount scenario. Do be sure to check out the 27 month numbers.
  • guestguest Posts: 774
    I have been getting emails from a dealership in Los Angeles
    area offering very attractive price on their R500 since they don't have the color I am looking for so I called other dealers to see if they would beat/match the special offered by the first dealer so far they either reject the offer or would ask me to go down to their dealership saying they can't quote prices on the phone or by email. Here is part of the ad relating to R500.

    Please let me know if this is possible.

    --------------------------------------
    2007 R350
    (Only 2 available / No substitutions)
    (Premium Package 1 and Cargo Cover)
    MSRP = $48,150
    Drive-off Total = $4,999

    7,500 miles per year

    27 months = $393 + tax

    or

    10k miles per year

    27 months = $410 + tax

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

    2006 R500

    $16,500 off MSRP

    Sample

    (18in Wheels,Comfort Pkg,Entertainment Pkg,Sunroof Pkg)
    MSRP = $59,430

    Your low Price = $42,930
    or

    Lease (sample)

    Drive-off = $2,999
    10k miles Per year

    27 months = $389 + tax
    -----------------------------------------------------
  • Thanks for your advise, appreciate it very much.
    :shades:
  • martinfmartinf Posts: 121
    That is Simonson's ad from Santa Monica. Very attractive pricing on both, but the real deal is the 2006 R500. Check with Fletcher Jones in Newport Beach, internet department. They will likely meet the Santa Monica deal on their R500's and I believe they still have a large stock. Don't be afraid of a more equipped vehicle than you want. The leasing numbers are usually not that different.
  • gtligtli Posts: 27
    what happens if you do a one pay lease and the car is totlaed or stolen?
  • sussansussan Posts: 17
    The second part of the ad is about 2006 R500.
    I called the Fletcher Jones in Newport Beach
    and even email the ad to them but they don't
    want to quote prices on the phone or email, I
    think that can cost them at least my business
    since I don't want to drive 3 hours round trip
    to go to Newport Beach and not get the deal.
  • martinfmartinf Posts: 121
    I think the "gap" insurance that is included in the MB Financial Lease will cover that eventuality, but I would check with MB Financial directly to make sure. I have seen that objection to the one-pay lease option before, but I do not know the veracity of those comments. In fact, I may just call MB Financial myself tomorrow to try to ascertain the real story. Somehow, I can't imagine that MB Financial would make the single pay lease available and not provide a significant caveat if there was a significant risk of a serious problem were a theft or total loss were to occur.
  • Wanted to thank everyone on the thread for some very useful information. I just leased a 2006 R500 demo up in Boston. The rates and terms I used on this site were invaluable, here goes....
    2006 r500 pewter/black 8k miles, mbusa demo
    premium pack, keyless go, full leather, heated seats, rear side airbags, parktronic sticker $65,540.
    27 mos/12k year
    $1700 due at inception...first payment, bank fee, title/tags
    $560/month + tax
    I opted for the one payment which came to $14,100...saved $3300 or $116/month.

    I had gone there to get a new r500 also pewter/black w/ $61,345 sticker, but wasn't crazy about no parktronic or heated seats, so the i went for the added options and probably paid $25/month more than the ideal math, but I got exactly what I wanted. The terms came out to $17,200 off sticker due to demo, 66% resid b/c mileage at end would be 35k, not the 27k i have in the lease. The mf for monthly pay was .004, and the one pay worked out to .0027, calculating backwards. I almost bought one from CA earlier in the month and have it shipped earlier in the month but, wasn't crazy about the color and $1200 to ship($50/mo on 27 mo lease). So looks like the Northeast pxing is getting aggressive. I was quoted $730/month and ~17,500 for a one pay, with less options, from another local dealer 3 weeks ago.

    Thanks again, info was invaluable.
  • also, i was quoted $530/mo + tax for the r500 $61,345 sticker, same terms and ~ the same due at inception FYI
  • sussansussan Posts: 17
    I was able to go to downtown MB dealership yesterday since
    they told me they will beat the competitor's offer.

    This is what I got on the 2006 R500 with MSRP of over $62K I think they discounted it to $46500 with $2350 drive off and monthly payments of $680/mo. 12k/yr. 27 mo. The one time pay was $17500 for 24 mo., since they said they can't do one time pay for more than 24 months.

    They said my credit scores were low. The highest score was a little over 680. They were calculating my lease at tier 3. There was a big gap between what I want to pay and what they are offering me. So they said on Monday they will call MB financing and see what they can do.

    They asked me what is the maximum I can pay and I told them
    $450/m. $2000 drive-off, 12k/yr. for 27 mo. or $13000 one time pay. I think I may have over estimated the one time pay. What do you think? Thank you for all the help you have given me by having a very lively forum I have learned a lot.
  • gtligtli Posts: 27
    5 weeks ago I paid $13,700 one pay for an R500 with a $63,500
    sticker price, Tier one credit.

    Likely they look at middle score, still does not seem that you should be tier 3
  • martinfmartinf Posts: 121
    $13,000 single pay for a $62K MSRP R500 is just about right on for an excellent, but entirely attainable deal. I don't think you could get much lower.However, Simonson in Santa Monica has been openly advertising $16,500 off MSRP on their remaining R500's, so I would check with them before signing up with Downtown LA Motors. As you apparently discovered, they can do single pay leases for 27 months and that is the way to go since your residual does not change when going from 24 to 27 months, and you only pay the finance charge for the additional three months instead of both finance charge and depreciation. The Simonson internet salesperson believes you are better off with the 24 month lease, but the math suggests the 27.
  • sussansussan Posts: 17
    What do you think of thier offer and my counter offer?
  • Fletcher is known for their non-disclosing over the phone approach. They want you there because they know it will help them to get your business.

    10/31/2006 is the last day of the month, and they will give you a price or discount factor over the phone. Be aware that they will change their price if your credit is in a different tier than tier 1. Let them know ahead of time over the phone.

    Since we can't mention names of salesperson in the forum, at Fletcher, ask for their internet sales manager, and he will deal especially it's the end of 10/2006.
  • martinfmartinf Posts: 121
    Pureautomobile is right. Try calling Fletcher Jones again and speak with the internet manager. I think the month end timing is key. I really don't know the impact your non-Tier 1 status has on the deal. I would also try Simonson again. I know I spoke with the internet manager there and he was easy to deal with and very willing to quote prices on the phone or via email. The internet manager at Keyes in Van Nuys was also easy to deal with. The internet manager at Mercedes South Bay is also worth checking.
  • sussansussan Posts: 17
    I finally got my R500. Many thanks to those who posted
    and who replied to my postings and guided me thru the process.
    I called The Internet manager of Simonson in Santa Monica. He told me they don't have any R500 but I should try Long Beach, South Bay, Fletcher, ...

    I just love the Simonson guy. He has always been incredibly straight, honest and quick in quoting prices. I buy/lease cars every two years. He will have my business next time I am in the market for a car.

    I called the South bay Internet director at 6pm and he emailed me the description for two R500s one was $63k the second was $62k. I picked the Alpine Rain with MSRP of $62k. He agreed to match the quote that I had from Simonson.

    By the time we got to South Bay they had added $800 to the
    drive off. They said the quote of $2999 from Simonson is just the drive-off price. The drive-off price ant total drive-off are not the same. The $2999 was the drive off and $3800 was the total drive off! Also they added $25 to the monthly payments saying they will try to amend the contract the next day to show $389 which they have not.

    The next day we noticed the car was missing the cargo net, cargo cover, grocery bag holder, and cargo tie downs. The car was not cleaned and had barely enough gas to get us home. I have called them and emailed them and now I am waiting to hear from them. I will keep the forum posted.

    Overall I love the car and it drives great. I am still figuring out the gadgets.
  • so, what was your monthly payment? lease term? cap cost (discount from msrp)?
  • I am living in near by Buena park,CA. I had been read those deals in this forum, I feel like I am totally trapped by those silly lease deal by finance manager, which is I never had it before. I will never never make a deal without reading carspace.com's advice.

    Here is what I have so far in my R500,(MSRP $65000)and had deal with $15000 discounts,

    panorama sunroof,
    navigation,
    Auto tailgate.

    You guys can laughing at me :sick:
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