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Mercedes-Benz E-Class Lease Questions
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Comments
12,000 miles per year.
MSRP $59,215
The "smart money" way to use the same $5000 is to tell them you want to put that money towards multiple security deposits....and remember, unlike a down payment, you get all your security deposits back at the end of the lease. That's a very big difference. But the biggest advantage is that by making multiple security deposits (which is effectively just loaning mercedes that money), you will cut your monthly payments from $700 to roughly $650 a month....a saving of about $50 every month. The problem you have looking at this is that in one case you are paying $525 a month and that seems like less than $650 a month...but at the end of the $525 a month lease, you don't get that $5000 back...and at the end of paying $650 a month for the same lease, you get the $5000 back. Add up the total you spent for the car in both cases and you've saved money by writing a larger check each month. (Obviously you have to work with your real numbers...but I'm not far off).
Please be a smart leasor...don't fall for the money down trick.
Warning...your dealer may tell you it's a terrible deal...each security deposit only lowers the money factor by .00007, etc. Ignore that...most dealers have no idea how multiple security deposits work and they focus on lowering the check people have to write each month. By the way, multiple security deposits are a standard part of the mercedes finance lease...it's not something offered by some dealers and not others...it's just that most who lease don't know about multiple security deposits and the dealers don't offer it openly because customers don't understand that paying $650 a month is a better deal than paying $525 a month because customers don't realize that the down payment is just prepayment of part of the real monthly payment....just paid in advance.
Next, Mercedes leasing provides gap insurance as part of their lease...that is, if your car is stolen or destroyed during the lease and it is worth more than your insurance will pay for the car, the leasing company will cover any difference. However, if you paid $5000 down, that money will be considered part of the insurance settlement so the leasing company doesn't refund it to you, even though you haven't made all the payments...it's gone. They can't do that with a security deposit...you get that back even if your car is stolen or destroyed.
Finally, if you do lease, buy the mercedes (not some other policy that the dealer says is "better") basic maintenance package and have it calculated as part of the lease...not after the deal is done. Maintenance is residualizable...so if they are charging you $1200 for the maintenance, you really only pay about $500 because just like the car itself, the maintenance "feature" has a residual value. If the residual value of the car is 60% after 30 months, then you will pay 40% of whatever the list price is on the maintenance, just like you are paying 40% of the price of the car over the life of the lease. (caution on this...some dealers claim that you can't residualize maintenance....if they won't residualize it, don't buy it this way).
I know this probably confuses more than it helps....but leasing a car "smartly" as a surprise is not as easy as it sounds, if you are trying to get the best and safest deal.
Also I put $500 down to hold the car today but they have to have the car delivered. Can I cancel my contract tomorrow? I believe I can because its within the three days to cancel a contract. Thank you so much for your help. I want to surprise my husnband but I dont want to disappoint him with a bad financial decision.
The monthly savings from MSD's has to be calculated because each MSD (10 max) reduces the money factor by .00007....the dealer really has to run it thru their computer to know the monthly payments. Here's another confuser (sorry)...in some cases mercedes offers what they call a promotional money factor...and you can't reduce a promotional money factor with MSD's. Ask the dealer what the money factor will be with no MSD's and then ask what the money factor will be with 2 MSD's (that's about what $1200 will buy). pick the option with the lowest money factor. Even if it's $1200, don't make a down payment up front....keep the money and pay it as you go....just in case the car is stolen/destroyed.
Did you look at a 33 month lease...usually that is a better deal than 30 months, but not always. If you are considering a bluetec (diesel), then a 24 months is a great great deal. Not sure of this months numbers, but you can lease a bluetec for about $125-$150 less per month than a gas e350. I don't think I'd surprise my spouse with a diesel, although it's really a terrific car (I own a 2011)....
List $68,605- P2, Apperance, Metallic paint, Lane Departure....36 month lease, 10k miles, 3 yr maint. plan. $695 p/month (including NJ sales tax) $1900 out of pocket (1st month, title, reg, tags, bank fee) also includes fleet of $2k and loyalty of $2k-
Thoughts???
MSRP - $57,145.00
Selling Price - $52,467.00
RV - 65%
30 month lease
Taxes / $795 Fee/ $55.75 Cap Fee = $1,269.75 rolled in lease
12K miles per year
Final monthly lease = $755.16
What should I do?
If you are just paying monthly, you declare the car stolen/destroyed and they should accept whatever your insurance company pays and their gap insurance will cover the difference between the amount your insurance company pays and the 'buy out' price.
Of course it's never as easy as it should be...but essentially that's the difference.
what's the $55.75 cap fee?
So, the upfront payment is put in escrow, and used to pay the (lower) lease payment each month..
If the car is totaled, those remaining escrow payments revert to the lessee.... insurance pays off, GAP coverage covers the deficit, just as in a regular lease..
So, basically, you are covered the same as in a normal lease... with one caveat... If you are in a state that collects the sales tax upfront, then that portion of your one-pay lease amount is gone, and won't be prorated..
regards,
kyfdx
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1. Ask carman for the base rate MF for 2012 E350 sedan, and I highly doubt the rate for 2012 exceeds 2011 models significantly
2. Show the dealer the actual calculation of MSD as MSD coupled with autopay is equivalent to 1.92% (2400 x 0.0008) reduction in interest charges. Further to #1, even if the dealer suggests a marked up MF = 0.00240, you would still be saving on interest vs. their promo rate = 0.00186.
3. Send them a link to Sally Struthers' correspondence schools for an online course on remedial math, then check out other dealers in VA.
As an aside, my father lives in NoVA (DC area), and after he heard about my deal, he contacted a few dealers in the area on an S class lease. He had a similar issue, so he tried a few in MD where he had success. Two of the VA dealers' GMs reconnected, claiming that they would do MSD, but by then they had lost his business.
Cheers!
I would highly recommend contacting MB of Long Beach and ask for salesperson with initials G.O. He's transparent and will provide you with base rate MF + MSD. Tell him that the folks from San Diego who leased a 2011 bluetech on Oct 1st recommended you.
Cheers!
it is 75k off MSRP (57,415) for 2012 Diesel e350. The 4 year 12K 's residual
is 57% and the MF is 0.00225. So for 4 years is 1500 drive off and monthly
payment is 560 + tax.
I don't know if they mark up the MF. But I plan to bargain another 1k from
the sale price and ask for MSD
- .00186
- .00146
- .00225
I thought these were standard national MF's?
I am looking at a 350 sport p2
MSRP @ 59725
I assume the best term is 30 months?
I am looking for 12K miles per year
I also have a BMW so there is 2K conquest, right?
Dealer offered @ 51400 after my 2k so only getting 6325 discount. Not sure what invoice would be.
AZ registration but most likely getting car in CA.
Also, on Benz site when I configure it shows 9,999 gas guzzler charge???
Thanks. What would be my best residual and m.f.? Looking for payment with fees down.
Also looking at the maintenance. I would do three services so it might be worth it. My two current cars are BMW's so I am spoiled on what the maintenance covers...
Maintenance is just part of ownership...BMW lumps it into their price and Mercedes doesn't...that's a marketing decision...and you just have to compare apples to apples.
Why do you assume that 30 months is optimal? what is 12.5%? etc.
msrp 59725
invoice 56307
selling price 51400 -includes $2K in conquest cash.
30 month 12k miles per year
65% residual
.00165 money factor
1725 total down 649 inc tax per month
I will have the car for 36k miles so i think I will have them rework adding the 3yr maintenance.
Otherwise it looks like an excellent deal on a 2012. They seem to be giving Mercedes e's away in California....
MB will not let him use MSD's w/ the promo MF .00165. Only the standard rate which, even with 10 MSD's, is not as good as .00165. BTW the base rate is .00164 NOT .00165. Your dealership is marking up the MF.
Only issue i am having is not finding the exact car I want. I don't think I want to order and wait till what? End of January? I was told Benz shuts down the plant for a month here soon. For some reason once you go P2 you are more limited in options. I would have figured that the P2 would be more popular.
The numbers for for an otherwise identical 30-month lease are .00162 and 63%.
This car's 36-month numbers are .00162 and 59%.
The residual values for a lease with only 10,000 miles per year would be 1% higher.
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For now I can tell you that Mercedes is only providing lease support on the following trim levels this month...
.00167 on the 2012 E350 Convertible
.00162 on the 2012 E350 Coupe
.00145 on the 2012 E350 Sedan
and
.00146 on the 2012 E350 Sedan 4Matic
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MSRP = $59,725
Discounted price = $53,125 (includes $2k conquest)
Term = 30 months / 12K miles
RV = 65%
MF = .00145
Monthly = $684 including 3% sales tax
Should I pull the trigger?
For a 2012 E350 sedan for you that is Steel Grey with a Black interior. The car has the Premium 1 Package, Sport Package, Rear Lip Spoiler and heated front seats.
Vehicle Price: $56,385.00
Preferred Customer Discount: - $4,000.00
Total Selling Price: $52,385.00
Sales Tax (estimate): $3,216.41
Tag/Registration Fees (estimate): $348.75
Tire/Battery/MVWEA: + $8.50
Dealer Service Fee: $699.95
Balance Due (estimate): $56,658.61
The 30 month residual is 65% or $36,650.25 based on this $56,385 E350 sedan. The money factor is .00187. With $4k due at signing the payment is $691 including taxes.
Salesman also said this:
In theory, I am $2500 off considering that we have conquest cash, but I have to transport the car in. The 2012's are still new to us so I will not be able to get much more of a discount. How about 48 months at $650 including taxes allowing 12,000 miles per year with $3000 total due at signing?
The dealer is not really negotiating much. Any suggestions?
Have you considered including maintenance in the lease? what is the dealer charging for the 'loan origination fee'?
Lots of questions....if you tell us the answers, we may just be able to help you out.
No, I am in Florida so the upfront tax payment is not required.
The $4,000 and later, $3,000 is just cap reductions payments. The salesman is telling me he is at his limit on discounts so if I want to lower my payments, I need to help out with the cap reduction payment.
MSDs are allowed. But he tells me that he has to use an inflated MF if I go that route.
The conquest cash is part of the $4K discount. He says he can't discount much more as the 2012s are new and that he has to transport the car trim I want in from elsewhere.
The loan origination fee was initially $1,095 but to get my business he would be willing to go down to $895. This is in addition to the dealer service fee of $699.
I think that answers all your questions. Please let me know if you have more. And I look forward to your reply and thanks again!
1) Dealer is giving you $2000 off, with negotiating, he should be willing to give you $3000 off...plus, of course the $2000 conquest money.
2) Do not put any money down...bad idea on a lease...it's a false saving..just divide the $3000 by 30 months and you are paying an additional $100 a month, you're just paying it up front. There is also risk if you total the car or it is stolen. Don't do it.
3) See what the rate is that they use for multiple security deposits. "higher" doesn't mean anything. The rate should be for your credit tier...not some generic number.
4) Ask the dealer to add the mercedes (basic) warranty to the lease. It is treated like a feature on the car and you should only actually pay 35% of the price...it's a quirk in the mercedes leasing policy. Note: some dealers won't let you do this...but many will. Don't discuss the why's with them...just ask if it's residualizable. Price the lease out both ways...using the computer. Don't let the salesman do it with a pencil and paper...make them run the numbers thru their computer.
5) Do consider the P2 option...keyless entry and the lighting are worth it, especially when you are leasing. You probably don't need heated seats (since you are finding a car anyway) and the wood/leather steering wheel is beautiful.
6) Don't buy any of the additional insurance packages (except maybe the wheels package depending on how/where you drive).
7) if the dealer transports in from the Port of Entry, then they don't pay the interdealer transfer fee. See if he can find a car at the port that he could trade with another dealer.
8) I've saved the best advice for last: Drive and consider leasing the bluetec instead of the gas e. The residual is higher so your monthly payments will be less...and you will be getting an incredible car that gets 26+ mpg in city driving. Matter of fact, consider getting the bluetec and leasing for just 24 months (not 30/33/36 months). Price it out...you and the dealer will both be shocked at the monthly cost. My dealer couldn't believe the monthly cost....and I'm now driving a 2011 bluetec...and love it.
As far as rounding payments up to the nearest $50, I've seen it done various ways...and all seem to be ok with Mercedes which is weird. In my case, they calculated my payments based on 10 MSD's to get my actual monthly payment, including tax. Then I paid 10x my monthly payment including tax towards multiple security deposits. Others have had their monthly payment without tax rounded up to the nearest $50 and that's their security payment. I have also seen other variations.
I have no clue how as to how Mercedes really wants it calculated.