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Mercedes-Benz R-Class Lease Questions

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  • aau007aau007 Posts: 5
    My MF is 285 which comes right off the ad special. Another dealer wanted to mark it up to 310 and I did not go for it. The dealer gave me an awesome price on the vehicle to bring the monthly payment down to 659. msrp is 58415, MF is 285, term is 36 months 12k mi. per year, sale price of vehicle is roughly 48115. Yes, residual is 62%.
  • aau007aau007 Posts: 5
    BTW, when I did a reverse calculation from the AD, the MF is 285, which correspond to what the dealer gave me.
  • zaheerzaheer Posts: 23
    I stand corrected. The Money Factor in the ad is 285. I assumed incorrectly that the Gross Cap Cost provided by Mercedes included the $2,700 Cap Reduction. Apparently, they are offering the car at a much lower price than I thought! You can reduce the MF, increase the Residual, or reduce the Gross Cap Cost to get a lower monthly payment.

    I finally found a dealer who was willing to apply the same terms as the ad. I am picking up my R350 tomorrow. Will let you know what kind of deal I get.
  • aau007aau007 Posts: 5
    I have realized that some dealers in S. Cal. are willing to even absorb the 2700 cap reduction, wholely or a big part of it. I moved a step further though. My numbers show that the dealer sold the r350 at under $10k below msrp with "other credits". No trade in either.
  • zaheerzaheer Posts: 23
    Here is my final deal through Mercedes of Oakland, CA:

    Color: Alpine Rain / Black
    Options: Premium Package, Comfort Package, Trim Package (includes Leather Seats), Sirius, 3-Zone Climate Control, Heated Front Seats
    MSRP: $60,455
    Sales Price: $49,852
    Net Cap Cost: $50,816.31 (includes Acquisition Fee + Doc Fees)
    Residual: 62% ($37,482.10 for 12k miles / year)
    Term: 39 months
    Money Factor: 285
    Depreciation: $341.90 / month
    Rental Charge: $251.65 / month
    Total With Tax @ 8.75%: $645.49 / month
    Drive-off: $1,040 (1st month's payment + DMV)

    I have a relative working for Daimler-Chrysler so the price includes an employee discount. Was this a good deal ?
  • mishmash1mishmash1 Posts: 16
    Zaheer,

    This seems like a terrific offer! I wouldn't mind one myself. However, I unfortunately don't work for Chrysler. Can you tell me the employee discount so I can add it back in? thanks.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi chucky380. If you were to lease a 2006 Mercedes-Benz R500 through Mercedes-Benz Finance right now for 39 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00285 and 59%, respectively.

    Mercedes' 1.9% financing offer for this model is a good deal. The only problem with it is that it is only available for terms up to 3 years. If you want to finance for 4 years, the rate increases to 3.9%. For 5 years it jumps to 4.9%. Financing such an expensive vehicle for 3 years is going to give you one heck of a large monthly payment.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • euyesakaeuyesaka Posts: 2
    I missed the 3/31 special so would like feedback from anyone who is looking at lease deals now. I got indications from a MB dealer in SD County as follows -

    R350 White/Macadamia with Premium pkg
    39 mo. lease
    15k and 18k mileage options
    $0 down and $3k down

    here is what I got -
    MSRP = $56,760
    Invoice = $53,441
    Sales Price = $49,000 (rough)
    15K miles @ $0 down = $725.23 + tax
    15k miles @ $3k down = $639.74 + tax
    18k miles @ $0 down = $770.44 + tax
    18k miles @ $3k down = $684.90 + tax
    Money factor on 18k miles was .00315; don't yet have MF on 15k miles

    Any getting better deals post-3/31?
    Thanks, EU
  • zaheerzaheer Posts: 23
    The employee discount was approximately $1,800 from invoice. Here is the breakdown:

    MSRP - $60,455
    Invoice - $56,604
    After employee discount - $54,804
    Final price after all discounts - $49,852

    Some dealers were willing to discount the R350 by $6,500 - $8,500 off MSRP until March 31st. I don't know where things stand now.

    A few tips from my experience:
    1. Talk with the Fleet Manager only, even when you go to test drive the car. Avoiding the Sales staff will save you their commission and the hassle of going back and forth. The Fleet Manager can make quick decisions.
    2. Negotiate price and terms on the phone at home with the Lease Formula in front of you. This removes you from the pressure at the dealership and having to decide solely based on monthly payment (which can be manipulated in several ways).
    3. Make sure you understand how Money Factor, Residual, and Cap Reduction can affect payments. Your goal is to only have the 1st month's payment as drive-off.

    Hope this helps.
  • mishmash1mishmash1 Posts: 16
    Thanks Zaheer,

    Your info was very helpful. I just negotiated a lease based on your deal and found it to be very helpful. I wasn't able to get $9000 off msrp as you did but I did come close. I will get you and others the details after I take delivery. Thanks again.
  • euyesakaeuyesaka Posts: 2
    Hi - am wondering if anyone on this board has done a lease deal since the March special expired. I'm trying to get San Diego County dealers to come as close as possible to the terms of the March deal. Would appreciate any feedback that you can offer. I've only seen two R-class cars in the road since I've been shopping. Are dealers having a hard time moving this model?
  • a6_to_m35a6_to_m35 Posts: 43
    Just drove the R350. My lease offer was as follows:

    MSRP: 60830
    Selling: 52027
    27 months
    15k miles
    70% residual
    MF: .00285
    MV Fees: $400
    Incept+1st month: $1370
    Cash down: $1100
    Taxes up front: $1053
    Total up front: $3915
    Lease: $575.61

    I know that I can roll my taxes and up front fees into the lease--and it would be aprox. $705 with only MV fees and 1st month up front.

    I am getting the car at invoice minus the $5k cash, and the standard MB money factor. This is the MB deal for the month of April. Can I do better?
  • mishmash1mishmash1 Posts: 16
    Ok this was my Northeast April deal. Picked up the car last week. The lease promotion went from 39 mos. to 27 mos. with the same MF and dealer cash. Below is A6 to M35 next to mine. Neither is as good as Zaheer because of the family discount but our lease is 12 mos. shorter. I chose as little cash up front as possible as per Zaheer above. BOTH are great values!!!

    MSRP: 60830/$64420 (Both are almost $9000 off sticker)
    Selling: 52027/$55800 ($58200 w/$2400 taxes/fees)
    27 months/27 mos.
    15k miles/12k mi (about $.14 mi for xtra miles using res.)
    70% residual/72% res
    MF: .00285/.00285
    MV Fees: $400/$200
    Incept+1st month: $1370/$925 inception in payments
    Cash down: $1100/$0
    Taxes up front: $1053/$0
    Total up front: $3915/$925
    Lease: $575.61/$736 :confuse:

    There are other fees:disposition(lease end $600) :cry: and possible missing maintenance book fee of $500 if lost :mad: . I love the car and the deal even more!!! Go buy one today!! :)
  • mishmash1mishmash1 Posts: 16
    Check my post. You appear to have a great deal. Less $$ up front the better....see Zaheer's earlier post. Overall your deal was just like mine after much searching and negotiating
  • a6_to_m35a6_to_m35 Posts: 43
    These are great deals--but I have some new information.

    Dealers have a 5.5% holdback equalling roughly $3500 on these cars. I expect that one can make a deal that could go significantly under invoice BEFORE the $5k in the trunk!

    Just a thought...
  • mishmash1mishmash1 Posts: 16
    a6,

    Too late but thanks for the info. I didn't come across any hold back info prior to my purchase. That puts it at $8500 off invoice... WOW. I paid about $8500 off sticker!!! :cry: I know some dealers are very hesitant to give up the holdback but you never know. Good luck to the others.
    mash
  • paunchpaunch Posts: 7
    Hi. I'm in the market for a lease on an R350. I noticed the lease deal listed on the incentives page and it looks like the following:

    MSRP: $54175 (premium package)
    Selling: ????
    Term: 27 mon
    Mileage: 10K
    Cap Reduction: $1100
    Lease: $499/mon

    Now, assuming a MF of 0.00285 I'm trying to back-out the selling price. I didn't see on this board the residual for 10K miles and 27 months. I did see that the residual for 12K and 27 months was 72%. Assuming that the residual for 10K is 74% (just a guess) then, according to my lease formula, the selling price is about $7K under MSRP. Assuming that this is correct, it seems like you can do even better than $499 a month, assuming that you can get more like $9-10K off MSRP considering the $5K rebate in April and some part of the dealer holdback that would allow you to get well under invoice.

    I'm sure I'm missing something here since this doesn't seem quite right. Can someone help me with the numbers?

    Thanks.
  • zaheerzaheer Posts: 23
    Hi Mishmash1,

    I checked your numbers against the terms of my lease and they are quite good. The only thing I would caution you about is the length of your lease. It is hard to walk away from a 27-month lease. You will have to pay the DMV fees for 3 years and they will charge you a Disposition fee if you return the car. When you amortize the total cost over 27 months, it will be a bit expensive. What I have done in the past with MB Financial is to negotiate an extension of the lease at a lower payment before the original lease expires. They have even given me extensions for 2 years (one year at a time) at the Depreciation price only on an S-Class. Your monthly depreciation is $309.11 so you can start from there when you negotiate. If the car holds its value well, another option you have is to sell it at a profit to make up for some of your investment. You can also negotiate the lease buyout price with MB Financial.

    I love the R-350 so far (had it for about 4 weeks). Have not had any technical problems so far. The roominess and interior comfort is unmatched.

    Zaheer
  • zaheerzaheer Posts: 23
    Hi Paunch,
    Here is the breakdown on your numbers:

    MSRP - $54,175
    Selling Price - $47,975 ($6,200 below MSRP)
    Cap Reduction - $1,100
    Residual - 74% (assumed based on 10k miles / yr)
    Money Factor - .00285
    Monthly Depreciation - $251.31
    Monthly Rental Charge - $ 247.85
    Total Monthly Payment - $499.16 + tax

    I think that you can do better than this deal. With a $9,000 discount, 0 Cap Reduction, your payment will be $431.36 + tax. Drive-off should be 1st month payment + DMV + Lease inception only.

    From my experience, it is almost impossible to find an R-350 that matches the advertised price of $54,175. Most of them are fully loaded with options that have MSRPs around $60K.

    Zaheer
  • paunchpaunch Posts: 7
    Zaheer,

    Thanks for the information. BTW, these forums rock!! With all of this information, it really puts power in the hands of the consumer. Anyway, it seems like there are some pretty awesome deals for the R350 and I really like this vehicle. Unfortunately, it is for my wife and she's now, not so hot on the R350. Well, I'll keep working on her.

    Thanks again.
  • paunchpaunch Posts: 7
    Another thing . . . I might as well share with everyone some of the data that I gathered researching the R350. You mentioned that it is hard to find R350's that are not loaded. In SoCal, I found several that had pretty much what I was looking for (premium, 18-inch wheels, trim, MSRP of $56,825). You have to be flexible with colors but there are deals to be had if you can find what you want on the lot. I called around and without even working very hard, I was able to get $9-10K off MSRP. Certainly, shopping at the end of the month and before the April incentive expires helps a great deal. With that kind of discount, you can get a 27 month lease with $1100 cap reduction and 12K miles for about $430/month. That is a pretty swingin deal if you ask me.

    Anyway, I hope this helps others that are in the market for a simliar vehicle.

    Regards
  • zaheerzaheer Posts: 23
    It's great if you can find the car with the options you want at a low MSRP. I was unable to find Alpine Rain with just the Premium Package in the Bay Area during March.

    I would still suggest going with a 0 Cap Reduction so you have more flexibility during the lease. Any Cap Reduction is non-recoverable.

    When you are actually ready to negotiate, I suggest doing it over the phone at home armed with the Lease Formula on your computer. Since the dealer should tell you what the terms are (MF, Length, Residual), the only thing to negotiate is the selling price. Once you agree on a price, have him fax a printout from his computer for confirmation (I had 2 dealers do this).

    My wife was not too impressed with this crossover vehicle initially also. She thought it looked more like a station-wagon. However, once she drove it and looked at all the comfort features, she really preferred it to an SUV. BTW the R-350 gets 22 mpg on the highway (your mileage may vary). In the city, I'm averaging between 18 - 20 mpg.
  • neazie4neazie4 Posts: 4
    I live in Northern New Jersey. Can you tell me where your dealer is located.
  • neazie4neazie4 Posts: 4
    Zaheer, I am going for my 3rd MB lease. Leased the ML twice. I know they are offering to give repeat customers 2 months free lease. How do I negotiate this along with the $9,000 discount. Would really like to keep my lease under 550, with 15k miles, 27 months, etc. Thanks for the info.
  • zaheerzaheer Posts: 23
    Hi Neazie4,
    My dealer is located in Northern California (MB of Oakland). I plugged in the numbers in the "Ad Car" from mbusa.com and modified the miles (15k vs 10K) and the discount ($9k vs $6,668.32) the cap reduction (0 vs $1,100) and came up with the following:

    MSRP - $54,175
    Sales Price - $45,175
    Cap Reduction - 0
    Miles per year - 15k
    Residual - 70% - $37,922.50
    Money Factor - .00285
    Term - 27 months
    Monthly Depreciation - 268.61
    Monthly Rental Charge - $236.83
    Total Monthly Payment with 8.75% Tax - $549.66
    Total Drive-off - DMV + $795 (Lease Inception) (assuming 2 months free)

    I don't know what the sales tax rate is in the county you are in in NJ (I used 8.75%), so your final payment may vary slightly.

    Call MB Financial and confirm that the 2 months free offer does not affect any of the discounts offered by dealers (it shouldn't). Ask them if it will be handled through the Lease Agreement or as a separate transaction. I would negotiate the above terms first with the dealer without mentioning the 2 months free offer thru MB Financial. When you are ready to sign the Lease Agreement, get MB Financial involved. Good luck!

    Zaheer
  • mishmash1mishmash1 Posts: 16
    Neazie4,

    I believe this site asked us not to post dealer names. It won't be a problem to find them. They are the largest and only MB dealer on an island close to NJ.

    mash
  • kyfdxkyfdx Posts: 29,380
    You may include the dealership name, city and state in your post. Please do not post names of salespeople, telephone numbers, email addresses, or other contact information.

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • I'm dealing with Prestige in Paramus...the salesperson was rushed ??? and at the end of his day so I only walked away with preliminary info as follows: On the 2006 R. With the exact specs on edmunds I got a TMV of 52,071. How or can I use this info to work a better deal with this dealership?

    Sale price $55362
    leased for 695/mo
    27 mo lease
    12k

    Any thoughts

    I have a leased 2004 ml with nav and 3rd row that i have to make 7 more payments of 625 to MB Financial(4375 total)

    Do I wait to finish out this lease ( I can't determine the Money Factor even with all my documentation- with which I could use help)? Or take advantage of the R's current situation??

    I'm lost, but determined to figure this out if you can help.
  • neazie4neazie4 Posts: 4
    That is too high. You can def. negotiate a better price. I am assuming that was with the premium package.
  • It didn't even have the premium package! This is what is included: rear console, 18" wheels, panoramic sun roof rear air bags, parktronic,comfort package, heating Package
    power tailgate open/close.

    How should I procede? Thank you so very much for any help you can offer.
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