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

dslee1 · April 2010

"Publicized invoice" posted all over the internet, YAHOO, etc. The calculator you referred me to is way off. I received invoice #'s directly from the Dealerships that I physically visited and the calculator is spitting #'s that are too high. Definitely does not give consumers the leg up or true insight that they need.

Also, the SPECIALS on the site are the same special offers that anyone can get from the Mercedes Benz main websites.

I'm opting for the 2WD instead of 4Matic, b/c I don't ever go off-road and 4Matic is a waste for me - although dealers have been trying to push me into it too...perhaps they have more of those than obviously the 2WD with no options base model.

I'm finding that the more dealers you talk to - the more "inside secrets" you learn on how to get lower prices. Ask for things like "Ambassador Discount", "Auto-Pay Discount", etc. You have to keep investing time and chipping away, b/c dealers are suffering these days and you need to get the most bang for your hard earned buck!

storm10 · April 2010

"Publicized invoice" posted all over the internet, YAHOO, etc. The calculator you referred me to is way off. I received invoice #'s directly from the Dealerships that I physically visited and the calculator is spitting #'s that are too high"

If I doubted that invoice, that I gave you is true - I would not referred it. I always refer something that I'm sure of. The link I gave you is the only source on the internet, that calculates EXACT invoice. All other web sites don't give you EXACT invoice, because you have to read the disclosure in small letters. You can ask any Dealer to print Invoice from their system called NETSTAR (with the VIN#), and then compare to this calculator. Don't mistake Invoice price with the Selling price or Cap Reduction.

SPECIALS are not the same, because you can keep clicking to request lower payments locally. But I mentioned it, so you can see that 4Matic is only $20 more per month on $2,500 more expensive vehicle. Safety test by NHTSA were performed on 4WD, which has better stabilty on Rollover - have nothing to do with off-road.

"Auto-Pay discount" can not give you lower rate than "buy rate", but it can help to get faster approval if you have issues with your credit.

Hope it helps.

landrover1 · April 2010

Received the following quote on a 2010 ML350 2WD
Equipped with:
Metallic Paint
P1 Package
Appearance Package (20" wheels)
Heated Front Seats
Roof Rack
MSRP: $53,200
39 month lease 12,000 miles
$625.40 which includes sales tax and drive-offs.
Is this competitive?
Thanks

CarMan@Edmunds · April 2010

Hi mightyjohn. Mercedes-Benz Financial's April buy rate lease money factor and residual value for a 36 month lease of a 2010 ML350 4WD with 15,000 miles per year are .00133 and 53%, respectively.

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dslee1 · April 2010

What would it be for ML350 2WD?

cquenz · April 2010

I started negotiating the price of the ML 350 in March. I have the price down around 45K but now the lease factor has changed.

Questions - what is the current money factor? Is it based on credit rating? Does it change based on credit rating? Initially they told me .002 in March, then it changed to .0025 in April. after checking out this forum, I told them I saw .0015 - they told me that was available if my credit was over 750.

Does money factor change based on the number of miles?

What about the residual value? What %?
Thanks so much!

cquenz · April 2010

yes, it is 2WD.

storm10 · April 2010

It looks like March specials on ML have not changed in April. So it should be the same...
If your FICO score is over 765 on "Trans-Union Auto" bureau you get a super rate A1, which is lower than Tier1. However, when MB Financial offers the special rates - this rate is usually the same for Tier 1 and A1 score...
My guess is this guy is pulling your leg..., so check with other MB dealers for clarification.

Money factor does not change on the amount of miles you get, but residual changes. The more miles you get - the lower residual value at the end. So, more miles = higher monthly payment. Don't get more miles just in case - because you'll waste your money. You can get as low as 7,500 miles per year - to get the lowest payment. Also, you can get 10,000; 12,000; 15,000 and even more miles per year. Just figure what's your average driving. For example: 12k miles per year = 1,000 miles per month.

agg1997 · April 2010

Hi, guys, I'm trying to get into a 36 months lease on ML350 Bluetec with Premium 1 and leather seats. Any info on what could be a good deal with $2000 down, 10000, or, less, miles per year?

s9r9d4 · April 2010

Hey guys,

Does anyone have an idea as to what the May lease offers are going to be like? I plan on leasing an ML within the next month or so. I'm not sure if it is best to do it this month or wait for next month. Any help would be appreciated greatly.

Thanks

storm10 · April 2010

It's impossible to know what will happen in May in financial World. If I knew what will happen on the stock market tomorrow - I would be a millionaire the day after tomorrow...

However, logically, Mercedes-Benz will lower their residuals the next month, because 2010 models are getting older - which is bad news for leasing, because your monthly payment will be higher. But if MB decides that they need to push the sale of ML class for some reason (like they are overstocked or want to get rid of 2010 models, so they can replace them with 2011 etc...), then they would need to come up with some kind of incentives or dealer cash - to suppress the difference in monthly payment. Personally, I would rather lease a car with the lower than higher residual for many reasons. One of them is the lower purchase price if you decide to keep this car at the end of the lease, so I would gamble and wait till May.

On another hand, there is a possibility, that MB wouldn't want to come up with any incentives if business is good anyway. Then it will be impossible to make as good deal as in April.

My advice: if you can make a good deal in April - then take it now. If you can't - then you have nothing to loose by waiting till May.

Hope it helps.

s9r9d4 · April 2010

Hi Storm10,

Thanks for getting back to me. My salesman told me that if the lease payments were to increase in the month of May, he would work out a deal. He believed that the prices were going to go down. So i'm trusting him.

newbie38 · April 2010

Hi All. I have a quick question on leases and would like some feed back.
currently the ML is advertising at 569/month for 39month lease. The car comes with P1 and heated seats and pre wiring in back. The car my dealer has in stock has a few other add ons. As oppose to him reworking the deal to include the add on prices, can I just buy the add on outright at invoice or negotiated price and still get the car advertises at 569/month? has anyone have any experience with this?

Does anyone know their current money factor and residual %? Can money factor be negotiated if you fall within the higher tier credit ratings?

Thanks in advance for your comments?

storm10 · April 2010

can I just buy the add on outright at invoice or negotiated price and still get the car advertises at 569/month?
Don't make this mistake. Do not pay separately for add-ons, because you are not buying this car - you are leasing. Which means you are not paying the full amount for the car (or add-ons), you pay only partially for what you use. Basically: the full price of the car minus residual value at the end, plus sales tax and plus interest.

Here is what I suggest to do:
The special is advertised based on MSRP of $53,765. Take the car you want MSRP and deduct $53,765. For example the difference will be $3,000. Then deduct Residual value percentage. For example if Residual is 66% it will be aprox. $1,000. Then take $1,000 and divide by term of the lease - 39 month. It will be aprox. $26/mo plus add a few bucks for bank interest - your total monthly difference will be aprox. $28. Add it to advertised mo payment $569- and your payment should be around $597. Or you can keep your payment at $569 and give them $1,000 more down.
I don't remember exact residual for ML350 4WD, but you can ask HOST of this thread or check previous posts in this thread during April, I think somebody already posted it.

newbie38 · April 2010

Storm, thansk for the quick reponse. your point makes a lot of sense, but before i go back to the dealer, can you please let me know how you arrived at the 1000?

. For example the difference will be $3,000. Then deduct Residual value percentage. For example if Residual is 66% it will be aprox. $1,000.

The difference of my MSRPs is 1790.
Please show me how to calculate if its not too troublesome.

Thanks!

storm10 · April 2010

Sure,

If you refer to post #733, HOST gave Residual value 53% for 15,000 miles per year. If you take 12,000 miles you need to add 2%, 10,000 miles-3%, 7,500 miles -add 5%. If you want to take advertised special - $569/mo - this is for 12k/year, so lets add 2%.

Your Residual value is 55%. It means that you'll pay only 45% of vehicle cost.
We take your difference $1,790 and deduct 55% = $805.50
Now we take $805.50 divide by 39 month payments = $20.65
Plus lets add a little bank interest - since it's special rate it should not be more than $2-3 per month. =$23 - $24 per month is the difference.
Now lets add it to special payment $569 + $24 = $593.

I recommend to pay $593 instead of putting more money down. It's better to put less money down. Try to research this thread.

newbie38 · April 2010

Storm, thanks A LOT. I will talk to the dealer today and keep you posted.
i dont see any reason why they wouldnt honor it...

dslee1 · April 2010

I finally closed the deal on Sunday for a new lease on 2010 ML350 4Matic (no options):

$49,075 (includes $875 Destination/Delivery Charge) MSRP
$43,526.96 Gross Cap Cost
$1006.00 Drive Off
$589 (including 8.75% sales tax)
39 months
10K per year

In the past 3 days I had multiple dealers contacting me as they seemed a little more willing to come down to try to make their end of month #'s better. Definitely wait till end of month to sign.

If you're in SoCal. Here's a list of the places I visited and dealt with in person by favorite rank order:

BEST OF THE BEST
1) South Bay (best for my money & they were honest/upfront w/ no frills)
2) FootHill (ask for "Eddie H." the finance guy, extremely honest and grt business manners) This dealer was my runner-up. I would go back here in a heartbeat, but they were just a few bucks higher than what I wanted to pay.
3) West Covina (grt sales person named "George M" - unfortunately not cheap enough, his finance guys are tight with their money, but George is very good)
4) L.A (grt sales person named "Chris J." - unfortunately too high)
5) Long Beach (very honest and didn't waste my time letting me know their #'s)

WORST OF THE WORST
1) Fletcher Jones - this is where I originally had my 1st lease...their sudden desperation to sell has led them to become serious arm twisters and rude/obnoxious harassers to say the least. Glad I'll never need to go in there ever again.
2) Laguna Niguel - "Victor" quoted me #'s that he never intended to do, just to keep me coming back. "Alex" supposedly tried to rectify the mess and never called back, "Duke" was a nice sales guy unfortunately stuck w/out much integrity from his finance guys who were no help. NEVER go to this dealer. I read a # of reviews that they will lie, cheat, do whatever to get your money. In my case, it was very true.
3) Annaheim - Told me I had their lowest #s and next move was up to me, so I moved on to another dealer...then they called back to tell me they would match anything lower...I really didn't have time to play games. They like to play games...

newbie38 · April 2010

Hi All.
I was at the dealer inquiring about the ML.
MSRP is 55,935 and factory invoice is 52,681. I got a qoute of 930 below invoice.
is this a solid deal?

as for leasing terms, he is using 56% residual and 3.19% APR.

Can the leasing APR be negotiated if I fall withing the top tier credit score?

Please let me know. Do you think it will be risky if i wait until May to get better leasing options?

Thanks in advance!!

storm10 · April 2010

It depends where you live. If you read one post above yours #748 - you'll see that dslee1 just made an incredible deal $2,774 below invoice, pointing out that it's better to make a deal at the end of the month rather than in beginning. But this kind of deal you can get only in So Cal. On the downside - you pay highest sales tax and DMV fees in the country if you live in So Cal.
The good thing, that they gave correct Invoice amount - means they are not liars. You can always double check Invoice amount here: Mercedes-Benz Invoice Calculator.
There is no APR on leases - there is a money factor and it can not be negotiated below "buy rate".
I recommend to grind them a little more and make a deal before April ends. Don't negotiate any rates, residuals, cap reduction or bank fees etc. - try to focus on the monthly payment itself, because that's the bottom line...although there is no 100% guarantee that you can make a little better or worse deal in May.

newbie38 · April 2010

As usual thanks Storm.

I live in NYC. The APR is the money factor x 2400 which in our case is .00133.

I read somewhere on here that the money factor should be as close to the financing option which is 1.90 for 36 months. The dealer indicated he cant budge on this and I wanted to know if he was telling the truth.

Im under the impression that he may only come down a few hundred bucks and will not budge on the money factor....

Should i pull trigger?

storm10 · April 2010

Offer $1,500 under invoice and see if he agrees. If not, make the same offer to near-by dealer. If he agrees - then the deal is good enough to take advantage of. Dealer can not give you anything below "buy rate" - the rate he is buying from MBF. So there is no way he can lower it, unless he wants to loose the company money. 0.00133 money factor is one of the lowest I've ever seen anyway...

newbie38 · April 2010

Thanks Storm. I was advised to wait til May if I am in no rush.
Dealer thinks the deals will be better...
not sure how so but guessing they may have dealer contributions or something like it.
i guess ill wait a few days.

CarMan@Edmunds · May 2010

Hi cquenz. The rates that are mentioned in this discussion are usually for consumers who qualify for Mercedes' top credit tier.

In case you're interested, Mercedes just introduced its new May lease program today. Its new buy rate lease money factor for a 36 month lease of a 2010 ML350 4Matic is .00112.

Your vehicle's mileage allowance will not have any impact upon its money factor, but it will alter its residual values. MB Finance's 12,000 mile per year residuals are 2% higher than its 15,000 mile per year residuals. Its 10,000 mile per year resids are 3% higher than its 15k resids.

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CarMan@Edmunds · May 2010

Hi agg1997. I'd be happy to use Mercedes' new May lease program to work up a sample lease payment on the exact truck that you are interested in for you. Just let us know what the its MSRP and approximate selling price (or at least its MSRP and invoice price) are and I'll crunch some numbers for you. Those numbers are available over in the New Vehicle Pricing section of Edmunds.com.

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CarMan@Edmunds · May 2010

Hi s9r9d4. Mercedes just introduced its new May lease program today. Its new buy rate lease money factor and residual value for a 36 month lease of a 2010 ML350 4Matic with 15,000 miles per year are .00112 and 51%, respectively.

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CarMan@Edmunds · May 2010

Greetings newbie38. Manufacturers' official advertised payments usually leave a little meat on the bone so to speak. I would not be surprised if you were able to negotiate a similar deal to the one that Mercedes is advertising right now on an ML with a few more options on it. Shoot for a selling price that's as close to dealer invoice as possible.

Mercedes just introduced its May lease program today. Its new buy rate lease money factor and residual value for a 36 month lease of a 2010 ML350 4Matic with 15,000 miles per year are .00112 and 51%, respectively. This is the lowest possible factor on this truck right now.

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newbie38 · May 2010

I pulled a trigger on the last day of the April deal. For a 10K/year lease, the May deal has a lower residual 54% vs 56%. It equates to $10 more a month for May, so my dealer advise me to sign up yesterday.

I signed up for a 4matc with a MSRP of 56,135 and selling price of 51,751. this is a little over a $1K below dealer invoice. they would not budge any lower and since we the car had all the options we wanted, we just signed it up.

Is this a decent deal? please tell me yes.. LOL.

As for the taxes paid up front, how do they calculate that? in haste of signing to get April deal, i neglected to see how they calc the tax.
I thought you only pay tax on the lease portion of your car (monthly payments * 39 * tax rate). Mine came out to a little more.
They also charged me additional 75 dollar in dealer fees. wonder if i couldve negotiated that.

Either way, great forum and I was armed with all the info I needed to go negotiate.
Thanks All.

storm10 · May 2010

As I predicted in my post #741 - most Mercedes-Benz residuals dropped today - which is not very good news for leasing.

Even though MBF lowered some rates as well, still - ML350 lease will be about $10 more per month in May than in April - which is not a huge difference anyway. On the bright side, ML450 Hybrid leasing program has improved dramatically.

But the BIGGEST savings in May comparing to April are on CLS550 and R-class. You can see all of the Mercedes-Benz financial specials here: May, 2010 Mercedes-Benz Finance and Lease Specials and see the breakdown of what changed in May from April.

jayrider · May 2010

Low residuals coupled with decent money factors can make an attractive lease to buy scenario. If you still like the truck after the lease ends, you have the opportunity to purchase it at a great price. Just a thought.

storm10 · May 2010

That's true. You pay 10 bucks more, but you can own this car at the end of the lease a lot cheaper.

absolutraj · May 2010

I am looking at an ML350 with Premium 1 package, appearance, lighting packages + running boards. The deal I am getting is:
MSRP - 57785
Capital Cost - 52,308
Money Factor .00112
39 month lease.
53% residual with 12 k miles

$5000 total due at signing.
Monthly: 574.33 + tax ($630 or so)

Is this a pretty good deal. Any ways to get this lower?

Thanks in advance.

jwilliams2 · May 2010

Just guessing here, but does "icb" in your user name stand for inside car buying?

absolutraj · May 2010

Nice Catch J Williams. :-)

nola2 · May 2010

I am basically between two cars, and one of them is Mercedes ML that I would like to lease for 36 months/15,000 miles per year. I informed the dealer that I would need navigation, parking censors and camera, and here is the lease price quote I received.

"For a Premium 1 Package with heated seats and Parktronic.
39 month 624.74 + tax 15K per year
39 month 686.19 + tax 18K per year
$5000 Drive off"

Please comment if it is high, etc. What would be a fair payment for at least 15,000 miles per year. Also, I do not like the amount of the drive off - 5K.

jb2u · May 2010

Deal on the table is for a 2010 ML350 W4/AWD with
- P2
- Heated Seats
- Appearance
- Lighting
- Running boards
- prewire (for rear seat entertainment)

MSRP - $58525
Capital Cost - $52000
Money Factor = .00112
Term = 39 month lease
51% residual with 15k miles

About $2200 total due at signing and they are closing out my existing ML350 lease a month early.

Monthly: $709 n change (waiting on exact number)

also includes maintenance plan and all weather mats

.... is this good or is there more to be negotiated?

landrover1 · May 2010

Great car and dealer:
Equipped with:
Metallic Paint
P1 Package
Appearance Package (20" wheels)
Heated Front Seats
Roof Rack
MSRP: $53,200
Service Package
39 month lease 15,000 miles
$604.00 which includes sales tax and drive-offs of $2000.
Had the USAA $3000 discount
Love the car!
Thanks for the boards help!!

newbie38 · May 2010

HI all. I paid the dealer for tints on the front windows on my lease.
Anything i need to worry about when returning the car? will i be charged to remove them? or any other things i should look out for when doing after deal add ons?

thanks!

icb2779 · May 2010

Thats a great deal. Are you getting any fleet discounts? Which dealer are you getting the car from?

nola2 · May 2010

I negotiated a great deal on another SUV, but recently discovered Mercedes ML, which would suit our needs better. I have to tell the other dealer my final answer today, and need to know realistic discounted lease quotes I may expect on ML in May in Northern California for Tier 1 credit for 15 or better yet 18,000 miles per year.

Carman or other experts or those who recently got a great lease -- what is the best I can expect with nothing down for:

MSRP of $56,800 for regular ML350 or

MSRP of $56,830 for 4Matic: (not sure of ot matters as MSRP is almost the same)

A dealer told me that if I were to lease ML450Hybrid well-equipped for 60 months, it would drop my lease payments to $600 plus tax per month with minimum drive off for 15,000 miles per year plus tax or for $650 +plus tax for 18,000 miles per year. But it seems way too long to lease a car, not to mention warranty concerns. No one gave me any detailed numbers to calculate money factor. Hoping to learn the info from this board.

Thank you.

storm10 · May 2010

Anything that you ADD to the car - you will not be charged when you return your car from the lease. Anything that you MODIFY the car (for example: lower suspension or replace original Sound system...etc) has to be returned to the original condition.
So, you don't need to remove window tint at the end of the lease.

kyfdx · May 2010

Realistically, you'll be near $800/mo., including tax (9.5%?) on the Mercedes ML 4WD, assuming 39mo. at 15K/yr mileage.. with a minimal amount upfront ($1500 or less). If you get a killer deal, it might be $50/mo. less than that..

And, you are correct... a 60-month lease is just nuts...

I want a Mercedes, too, but that's a lot of money!!

regards,
kyfdx

storm10 · May 2010

"I have to tell the other dealer my final answer today, and need to know realistic discounted lease quotes I may expect on ML in May in Northern California for Tier 1 credit for 15 or better yet 18,000 miles per year."

The best way to get the best deal: is to shop around. Request quotes from multiple dealers over internet. You don't really need detailed numbers to do that. All you need to ask is: How much is TOTAL DRIVE-OFF (out of pocket - all inclusive) and HOW MUCH IS MONTHLY PAYMENT (including tax). This will make your life easier and you don't end up negotiating rates, fees and other conditions and terms - which can be tricky. Care only for the BOTTOM LINE and make Dealers compete to earn your business - by requesting quotes from multiple Dealers. You can do it here: Request Mercedes-Benz Price Quote anywhere in USA, this link will give you access to ALL Mercedes-Benz Dealerships in the USA. Obviously, request more than 1 quote.

By the way, the best term for ML Hybrid is 39 months. 60 month lease is waste of money.

nola2 · May 2010

Thank you for the information! I emailed just about every dealer hours ago, and...did not receive a single email or a phone call back with any lease quotes. So I will give it a few more hours to wait for the responses, but then will most likely let the other dealer know we would be buying a car from him.

jayrider · May 2010

check overstock and autoblog to get prices and offers. May give you some info to compare offers.

storm10 · May 2010

When requesting quotes, did you provide your phone #?
If not, Dealers usually respond within 24 hours to any e-mail communications. They respond faster if you provide your phone#, because they think that you are so-called: "more serious prospect". Also, make sure to spell your e-mail address correctly, otherwise they will not be able to respond.
If you need car immediately - right now, then I think it's too late to shop over the internet. It's a good way to shop if you have at least a few or more days before making a decision.
Hope it helps.

alice321 · May 2010

ML350 4MaticOriginal
MSRP: $56,345
Discounted Price: $51,837
39 month lease with $2000 Drive Off
15K miles per year: $739 + tax
REsidual: $26,785.95
Money Factor: .00147

alice321 · May 2010

if not, which numbers would make it a great deal?

icb2779 · May 2010

Check your money factor........ doesn't seem to be correct. Still have more to go with the selling price...... you should be somewhere are $649 per month + tax. Drive off should be in the low $1,500 range + cost of plates. Let me know how you make out.........

icb2779 · May 2010

What state are you buying in? Some dealers in certain states are more flexible than others.

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

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