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Mercedes-Benz R-Class Lease Questions

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Comments

  • leasemamaleasemama Member Posts: 7
    Very close to acquiring one of leases on the R-class. Before I agree to anything, can someone tell me what if anything I should expect to pay out in the begining? "Out the door cost" Is no money down realistic? If so, are there loan fees attached to these leases that I should be aware of?
    Also, did the money factor go down? Noticed a figure of 0.00185 on another message.
    Thanks for all the help so far.
  • srexysrexy Member Posts: 8
    Thanks to Not 2 Shabby for the heads up on this great deal and this thread for invaluable info.

    Just picked up a lightly optioned R350 - HK, sunroof, power rear quarterlights - Capri Blue w/Macadamia tan leather interior (this was the exact colour combo the better 'alf wanted and the only available vehicle locally - hence the lack of options)
    The Nitty-Gritty:

    Tampa Bay MB

    12k/27 month
    MSRP: $52144
    Sale Price: $40000
    MF: 0.00295
    Residual: 68%
    Tags/title/misc: $216 (rolled into lease)
    Money out the door: $681
    Monthly lease payment $458 + tax
    Dealer Fee: $599 (rolled into lease)
    Acquisition fee: $1095 (rolled into lease

    The only thing I was a bit skeptical about was that they charged me $1095 acquisition fee - I read $795 on the MBUSA site and even argued the point for a few minutes before I just threw in the towel. Their computers had been down sporadically for the whole morning so we were getting very tired of the 68° showroom. I'm pretty sure that I got an OK deal - better alf is very happy and if I can unload her Saab wagon we should have the lease payments covered until month 20.

    I had been working the salesman since Sunday when he'd quoted me for 27/10k - $43k and change sale price w/$599 down/$599+tax per month. After reading this thread last night I surmised that $40k was doable and simply sweated the salesman and his manager until about 11:50am (10 mins before the noon expiration of the September incentives). Not sure how much smoke the salesman was blowing up my *rse but I simply stuck to my guns and said $40k sale price, 1st month down only and throw in the Ipod hookup. I capitulated on the Ipod but still feel good about the deal.

    Thanks to all for your invaluable contribution - a perfect storm beats a hurricane any day :P
  • not_2_shabbynot_2_shabby Member Posts: 29
    You did better than me, I should have kept pushing. I got them down to $500+tax a month w/ $1900 drive-off on a vehicle priced at $54475 + got them to throw in the ipod adapter although they don't have it working right yet. 27/month 12K lease. They state the buying price was $43975, so just got $10,500 off sticker plus the ipod integration kit installed. One thing about doing a deal sight unseen is the inability to know when they are getting uncomfortable. That is when you know you are cutting into their margins more than they like. When I showed up at the dealer they must have had 10 r-class sitting there, at which point I knew I should have pushed them more. But in the end of the day I got the car I wanted for less than there original offer of $535+tax with $2600 down. For us comfort package w/ parktronic was a requirement, and it seemed like that combo was hard to find w/o a bunch of other options. The other dealer here had some R350's left but their cheapest one was over $57K and it was black. Yuck.
  • irishrogue1irishrogue1 Member Posts: 127
    R500 MSRP $66k inc. delivery.
    $15k off sticker
    27mo/12k
    $580mo.
    cash at signing $1090
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi leasemama. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Car_man
    Host
    Prices Paid Forum
  • martinfmartinf Member Posts: 121
    The .00185 money factor was based on the single payment option (regular money factor was .00295 minus .00110 for the single pay). The real news is that Mercedes is now offering $10,000 factory to dealer cash on the R500's, up from the $7000 just last week. It makes the R500 a lot more attractive if you can live with the slightly lower MPG (13/18 vs 16/21). I don't know what the new money factors or the residuals are as of now.
  • irishrogue1irishrogue1 Member Posts: 127
    are you sure???

    what about changes in MF??
  • martinfmartinf Member Posts: 121
    The $10,000 factory to dealer cash is posted on the Edmunds.com New cars/incentives and rebates section. I could not believe it myself! I guess I should have had the patience to wait out their 2006 inventory. They are still offering reduced interest rates on purchases, but there are no posted incentive leasing programs. When Mercedes increased the factory to dealer cash from $5000 to $7000, they dropped the residual from 4%, from 71% to 67% on the 27 month/12,000mile/yr lease. For a lessee, that 4% residual drop basically wiped out any advantage of the extra $2000 factory to dealer cash. If they again dropped the residual on the 2006's another 4%, that would similarly wipe out about $2400 to $2600 of that additional $3000 incentive. I don't know what they are doing with the MF yet. With you already getting $15,000 off, you still grabbed pretty close to the bottom, so, congratulations and enjoy your nice R500.
  • leasemamaleasemama Member Posts: 7
    Thanks for all the help out there. I have managed to strike a pretty good "intial" offer with the dealership. Just wondering now if I should go for the 500 instead.
    I am having real trouble finding a "loaded" vehicle. Average MSRP has been about $64-68K. Any ideas friends?
    I want the payments to stay at or around $500.
    Help!
  • irishrogue1irishrogue1 Member Posts: 127
    actually i didnt sign at $15k off. we didnt get the paperwork done in time. the dealer confirmed that MB is $10k not $7k. I still cant confirm MFs for Oct for '06 Rs... Dont think residuals changed
  • philly04philly04 Member Posts: 3
    I just recently started looking at the R 350. The deals identified on this board look great, but i am having a difficult time finding an 06 (live near Philadelphia). Are there any dealers in the Northeast that are known to have 06 inventory? Are there incentives on the 07s? What is a reasonable negotiated sale price for a reasonably equipped 07? One dealer offered:
    $52,700
    $4500 down
    59% residual
    .00158 MF
    39mo, 12K
    $638 payment with taxes.
    Not a great deal by this board's standards.
    Any advice is appreciated.
  • irishrogue1irishrogue1 Member Posts: 127
    for an '06 you need to find a big dealer with inventory. look in FLA, TX, CA. check ebay. a few dealers are offering up decent deals with $13500 off MSRP. there may be better deals to be had, but the landscape is changing every day and you need to find a dealer who NEEDS to move inventory and is willing to make under $2k on a car.

    as for your deal, they quoted a MF below what MB is offering. i assume they can do it by making it up in cash at signing - which clearly they are doing with $4500 down. the residual looks correct. the 4500 clearly isnt buying down the monthly payment. is 52,700 the msrp?? post the msrp and the amount they are taking off msrp and somebody will run #s for you i m sure. or just find a lease calculator on line. edmunds.com has a good easy one. the long and short of it is you are looking at a bad deal....

    here are resids/MFs for '07s -

    2007 R350 4dr Wagon

    24 mo/15k mi – Residual Value 66% of MSRP – .00165 Base Money Factor Rate
    36 mo/15k mi – Residual Value 57% of MSRP – .00165 Base Money Factor Rate
    48 mo/15k mi – Residual Value 50% of MSRP – .00165 Base Money Factor Rate
    60 mo/15k mi – Residual Value 44% of MSRP – .00370 Base Money Factor Rate
  • philly04philly04 Member Posts: 3
    Thanks much for the info...
    The deal offered was MSRP, I assume. This was their initial quote(in a conversation with my wife), so haven't begun negotiating. Using a lease calculator, the $638 is accurate lease payment with the specifics i included.

    I'm wondering what a resaonable starting point is for negotiating the price of an '07 -- especially if there are no factory incentives. What do you think?

    Another question, if i find a dealer in TX or CA will most dealers ship cars long distances? What is the approximate cost?

    Thanks again for your help.
  • leasemamaleasemama Member Posts: 7
    Can't seem to find a car with a MSRP under 59K. Does anybody have any news on inventories? Fletcher Jones has 35 350's but they are all fully loaded. Starting at 59K to 68K. Also the packages in the 2006 models appear to be more expensive. Wanting the panoramic roof seems like a dream now. It is almost standard on the 2007. Maybe that is a better deal for that option?
    Help!
  • irishrogue1irishrogue1 Member Posts: 127
    check edmunds for the invoice price on the '07. given that these are still not moving quickly, you should be able to get at least 25-75% of the "mark up" from invoice given how slowly i think this model is still moving. if '07 continues slowly for the R, expect factory deals to support leasing and buying again - doubtfully as good as '06 incentives, but who knows....
  • srexysrexy Member Posts: 8
    autotrader.com might be able to assist you with your research. Just do a search for new cars R350 06/06 and set the distance filter to unlimited. You should be able to get a rough idea of each dealer's inventory from the results that post.
  • hi808hi808 Member Posts: 3
    I am new to leasing. Local dealer has offered the following:
    2006 R500 executive car with 3000 miles (never titled). options include Parktronic, wood steering wheel, comfort package, Entertainment package, heating package, Auto air suspansion, Multi-contour seats, Panoramic roof, DVD nav, Sirius & keyless go (whew!).
    MSRP is 66,000 and sale price is 52,000.
    MF is .00435. Residual values are $44,789 for 12K miles per year and $43,452 for 15K miles. Monthly costs are are 750 per month for 12K miles and 800 per month for 15K. One pay leases are $17,300 for 12K and $18,500 for 15K. out the door for first month's payment, title & DMV fee.
    Is this a good deal? Do I have a basis for further negotiation? Thank you for all comments.
  • gtligtli Member Posts: 27
    R500 delivered to home in Vegas from dealer in Newport Beach

    Noticed swirl marks, sales asst who delivered said no problem.

    Took to dealer, FJ LV, they made me pay and wait for FJ CA to reimburse detailed, swirls still there.

    Sales agent in CA said to bring to my own detailer (one of best in town ) to see if he could do anything.

    If not, told me to let him know and....?

    Not sure.

    Very unhappy.

    Advice? What recourse do I have?

    CA dealer acknowledges was delivered that way.
  • leasemamaleasemama Member Posts: 7
    I have encountered a standard .00400-.00380 MF with all dealers in the past 3-4 days. The R-500 is being discounted 14K-15,500 all over but the new MF outweighs the discount. Best offer so far has been:
    MSRP 63,865
    Selling price 49,865
    1095 Acquisition fee down
    27 mo
    12k
    MF .00410
    67% Res
    626 monthly

    Our only requirement is the panoramic roof. Can't find any "Base" models left..anywhere. Tried Fletcher Jones, Walnut Creek and Beshoff
    Advice or direction would be appreicated.
    Thanks everybody.
  • irishrogue1irishrogue1 Member Posts: 127
    i am pretty sure that the MF on the '06 500 went back to .0380 - costs us like $70-80 per month. the 350 has a lower mf. residuals are same. i think you can push for $15-16k off msrp for those dealers that have more cars than they want on the lot. they dont want these cars on the lot when unsuspecting buyers come in looking to buy an 07. sell those 06s to the sight unseen internet buyers like us who sit on these boards waiting to shave a few thousand and only give the dealers a grand or two on these cars. of course the risk is that they sell them and you either get no car over $1000 or so or you end up buying a $60k car and settling on colors and options...i m in the same boat.

    also forget base models as best i can tell. most have msrps of $63-66k.
  • leasemamaleasemama Member Posts: 7
    After more telephone "back and forth" than I could stand. Not to mention the BS I have encountered in the past few days. I called the last dealership within 50 miles and got a really decent starting quote over the phone. We drove down, test drove the car and not so long afterwards DROVE OFF THE LOT WITH A R500! For about $140 per month less than FJ, Walnut Creek or Simonson came up with.
    Not the best deal I have seen on this thread but we are really happy!!
    Got the panoramic roof and plenty of options to make the deal sweet.
    Here it goes:
    2006
    R500
    MSRP 62,600
    12K
    27months
    682 plus first month drive off (inc. DMV)
    $525.06 per mo

    Would highly recommend CALIBER MOTORS in Anaheim Hills! They do have some 2006 left and they are dealing.
    Good luck.
  • wk1145wk1145 Member Posts: 1
    Just leased a R500 in the Los Angeles area (House of Imports) on October 5th.
    MSRP 65,685
    Sale Price 49,950
    MF .0360
    Residual 67% (44,008)
    1095, DMV, 1st month - out the door costs
    Monthly 560 + tax

    Dealer still had 10 -15 06 R500s, lots of 2007s
    Also their current inventory of new cars is accessible on autonation.com and was helpful in finding available cars.
  • martinfmartinf Member Posts: 121
    You got a great deal! I am glad that your first time lease experience worked out so well! Keep in mind this particular set of circumstances may not be there in 27 months, so be sure to check back with the semi-professionals here at edmunds.com when it is lease-end time. I have leased 7 new vehicles since 1994 (I forgot a third BMW in a previous post when I said 6), but this was the first time that I had the awareness and the time to check with edmunds.com first. I had always assumed that the deal was set in stone at lease inception (Re: lease end purchase, lease extension, etc.). Apparently that is not the case. Come 27 months from now, Mercedes will be stuck with a lot of these R500's coming off lease. The Dealers would much rather have you lease another new one than to let you know you can negotiate with Mercedes Finance on either extending your lease for much less than your current payment, or, if you are so inclined, buying it for much less than your residual value would imply. For my future reference, I know your MSRP was $62,600, but how much was your "selling price" or discount from MSRP, what was your Money Factor, and what was your residual value. It would help me to know how competitive FJ, DTLA, South Bay, and Keyes were with your deal. Thanks and good luck!
  • martinfmartinf Member Posts: 121
    P.S. Good call on that R500 vs the R350. For a small increment in monthly payment, you got a much more powerful vehicle with just a slight diminution in MPG. With 0-60 in 6.7 sec vs. 8.1 sec, you will definitely notice the difference and it might save you in an emergency situation as well.
  • irishrogue1irishrogue1 Member Posts: 127
    this deal does not make sense with the new MF at .0360. payment before tax should be around $575-600 mo. and your drive off is too low. the lease acq fee alone is a min of $795. something is not right here. was this a demo car with miles on it??
  • irishrogue1irishrogue1 Member Posts: 127
    again, this deal does not seem right. i punched your numbers and come up with $558 mo. this one is close though....
  • irishrogue1irishrogue1 Member Posts: 127
    ok, i jumped too fast....assuming you got slightly over $15k off MSRP, this deal sort of works. i didnt realize how low your msrp was... at 15k off, i come up with $530mo before tax.

    but i stil dont understand how your drive off was under $795 at a minimum unless they "recovered" it as part of the lease (no a lot of room when they go $15k+ off msrp).
  • irishrogue1irishrogue1 Member Posts: 127
    does anyone know whether 3% holdback is calculated based on msrp or invoice? does factory cash back reduce the base against which the 3% is calculated?? with $10k off msrp, the answer would significantly affect the holdabck
  • pureautomobilepureautomobile Member Posts: 47
    Holdback for R-class has been 5.5%, and Edmunds gives what I believe a conservative average of each Manufacturer's holdback. If there is a waiting list for a particular MB, I am sure that MB has a clause in their contract with all their dealers that the holdback is subject to market conditions, demands, and "manufacturer capacity". If I were MB, that's what I would stipulate. For the R-class, part of the "perfect storm" is the willingness of the abovementioned dealers to cut their holdback and thus profit for fortunate folks like us :)
  • martinfmartinf Member Posts: 121
    W. I. Simonson (Internet Department) in Santa Monica is now advertising all remaining R500's at $16,250 off MSRP! I still don't know for sure what the new MF's are, but $16,250 is still the best MSRP discount that I have seen.
  • pureautomobilepureautomobile Member Posts: 47
    OK, here we go, this should make someone's day. Sometimes procrastination may save a few more dollars :) Residuals stayed the same, and MF actually went down for R350 @ 24 mth, R350 & R500 @ 60 mth, and rest of MF stayed the same. Someone here is going to get a great deal soon!!! Let us know about it :)

    Terms:

    Add 2% to Residual Value for 12k mi/yr and 3% for 10k mi/yr on all terms

    Same terms for 27 mth

    2006 R Class 4dr Wagon R350

    24 mo/15k mi – Residual Value 66% of MSRP – .0025 Base Money Factor Rate
    36 mo/15k mi – Residual Value 56% of MSRP – .00295 Base Money Factor Rate
    48 mo/15k mi – Residual Value 46% of MSRP – .00295 Base Money Factor Rate
    60 mo/15k mi – Residual Value 38% of MSRP – .00370 Base Money Factor Rate

    2006 R Class 4dr Wagon R500

    24 mo/15k mi – Residual Value 65% of MSRP – .00295 Base Money Factor Rate
    36 mo/15k mi – Residual Value 55% of MSRP – .00295 Base Money Factor Rate
    48 mo/15k mi – Residual Value 45% of MSRP – .00295 Base Money Factor Rate
    60 mo/15k mi – Residual Value 37% of MSRP – .00370 Base Money Factor Rate
  • irishrogue1irishrogue1 Member Posts: 127
    every dealer swears that the MF went up on the '06 R500 to .0040 unless you buy it down.
  • pureautomobilepureautomobile Member Posts: 47
    Here's the link to the source of my info.

    link title

    He has been right on the $ when it comes to lease terms, and everything about leasing for that matter, for ALL makes and models. Check out his credentials in the introduction page. He is also very active on other forums, e.g.

    link title

    He has also confirmed MB's "bank fee" of $795, and that saved me at least $300 from all the dealers that wanted to charge me $1095 or above. My dealer faxed me the MF in 8/2006, and was a carbon copy of the terms that Tarry posted in the MBworld forum.

    So, tell the dealers that they are blowing some smoke and Fletcher Jones still has plenty of 2006 R's in stock. If not, Laguna Nigal will take away FJ's busniess anyday, and vise versa.
  • pureautomobilepureautomobile Member Posts: 47
    Boy, after a quick input to my spreadsheet, I almost want to lease another R350 to average down my costs!!! :):)
  • pureautomobilepureautomobile Member Posts: 47
    I am so excited that I am replying to my own posts!! Too bad that Downtown LA Motors has only R500's available, not sure about colors/options, but they are willing to deal at buy rate and 4% into holdback. Someone here will get a great deal on R500's.

    Talk to their internet new car sales department and ask them to fax the MB lease terms for 2006 R-class. If you sound serious and ask them a ton of questions about their inventory, they will fax it to you, even though I beieve it's probably against MB's practices.

    Assuming a R500 with ~MSRP of $67k and invoice at $63.5k, with $10K, 67% residual, 12k/yr, 0.00185 for one pay, the total payment with all inception fees (taxes, bank fees, dmv, etc) is about $12.5k. Man, that's the perfect storm. How much longer can MB do this?? :confuse:
  • irishrogue1irishrogue1 Member Posts: 127
    i asked tarry to confirm the '06 rates and even told him that several dealers gave different info. i saw that he posted the sept rates again as oct rates...he may be right. but the dealers seem adamant that the MF on the 500 went up.

    ill try downtown LA, flethcher or laguna

    thx
  • pureautomobilepureautomobile Member Posts: 47
    If I didn't read it correctly, 10/06 rates are actually better for R350 @ 24 mth (from .00295 to .0025), and R350 & R500 @ 60 mth (from .00380 to .00370).

    Just a tibit, when you talk to DTLA Motors internet department, you must have patience, and ask a lot of questions regarding their remaining R500's, e.g. colors, options, and then ask them to FAX you the MF and Residuals with MB letterheads. That's how I got it, and that's how I end up buying it there.
  • irishrogue1irishrogue1 Member Posts: 127
    tarry just IM'd me on mbworld and confirmed that the MF on a 24/27 mo is back up to .0040. for 36 mos it is .0037. given the residual on the 36 month, it makes no sense! the payments are lower on the 24/27 term given the higher residual.

    at least the dealers were being straight with me.
  • irishrogue1irishrogue1 Member Posts: 127
    i m actually getting nowhere fast with dealers...the problem is that i am dealing with salespeople who realize they arent going to make a commission on my sale and thus have zero incentive to lift a finger. i need to cut out the crap and get to a non-commissioned manager who wants to move a 500 and only make $1000 on it out of holdback.

    the one decent sales guy i was dealing with and ready to buy from hasnt gotten back to me all day.
  • martinfmartinf Member Posts: 121
    Check with the internet department at W.I. Simonson in Santa Monica. They are offering $16,250 off all remaining R500's, they charge $795 for Mercedes Lease Inception fee, the MF is .0040, and the representative is extremely pleasant to deal with!!
  • leasemamaleasemama Member Posts: 7
    Have you tried Caliber in Anaheim? They have less stock but they dealing! Very freindly and everything goes exactly like YOU want.

    The guy at W.I.Simonson was very nice and upfront but he still wanted more than Anaheim. Try Wanut Creek...over the phone. they will ship for a nominal fee and they are very agressive as well. Beshoff motors in San Jose is really dealing as well.
    Go get em!
  • irishrogue1irishrogue1 Member Posts: 127
    i got a great email from simonson yesterday - right to the point with no BS. i m hoping to wrap it up with them today.
  • martinfmartinf Member Posts: 121
    You said that your MSRP was $62,600. How much off MSRP was your lease calculated at? Also, what residual value and money factor was used? Your monthly payment was an excellent price, but I was curious how the numbers worked out. Thanks - Even as new lessee your information is still very valuable!!
  • martinfmartinf Member Posts: 121
    Don't feel bad about acting prior to now on your R class.
    I have run the numbers, and the changes in factory to dealer cash have been just about entirely offset by changes in the Money Factor and the residuals.

    As a brief recap, through 7/31/06, factory to dealer cash was $5000, residual was 71% (27month/12,000miles - the sweet spot), and money factor was .00285 (.00175 single pay).

    After 8/03/06, factory to dealer cash went to $7000, but residual dropped to 67% (an additional real cost to the lessee of about $2400 to $2700), and money factor went to .00295 (small change).

    After 10/03/06, factory to dealer cash went to $10,000, residual stayed the same 67%, but money factor soared to .0040 (an additional cost of about $2800 to $3000).

    There you have it. Don't regret not procrastinating. You did fine. Procrastinators will still do fine, but really only reap significant benefit if they don't lease and simply purchase the vehicle. I think Mercedes is seeing the writing on the wall with these vehicles (even the '07's are not flying off the dealers' lots), and they are trying to get people to buy rather than lease so Mercedes can avoid the nightmare of having to unload thousands of 27 month leased R class vehicles.

    On a personal note, I wanted to thank you for being such a helpful source of information for me and other Southern California lessees/buyers. People like you have saved me thousands on the last 3 vehicles I have purchased personally this past year, as well as 4 other vehicles I have helped friends purchase. I hope to hear from you again in about 24 to 27 months when our leases are up and we are again in the market for those "perfect storm" deals. Best regards, and, above all, don't aggravate yourself about the changes in the factory to dealer cash. I will repeat: YOU DID FINE!!
  • martinfmartinf Member Posts: 121
    Dear Zaheer,

    You indicated that you have been able to negotiate extensions on your Mercedes lease for as little as the depreciation component of the monthly payment. With whom at MB Financial Services do you actually negotiate? Do you call the toll-free number and just speak with the customer service rep or do you need to speak with a supervisor or even another department.

    I have leased 7 cars (3 MB's, 3 BMW's, and 1 Land Rover) in the last 13 years, and the dealers have never even hinted at the possibility of re-negotiating the lease terms or the potential buy-out price at lease end. Of course, looking back, it makes sense that the dealer would be more interested in leasing me another new vehicle than have me simply keep my old one for a reduced price - nothing in it for them!

    I have read all of your posts and your information has been most valuable. I hope you have the opportunity to respond to this inquiry. Best regards!
  • philly04philly04 Member Posts: 3
    ...on an 06 R350. I think I've found a couple of good deals and I wanted to get some reaction from this board. They're from two different dealers in different cities, but the residuals and MFs are the same.

    MSRP: $58,705
    Selling price: $46,189
    cap reduction: $0
    Residual: 68%
    MF: .00295
    Term: 27
    Miles: 12K
    Monthly payment with taxes: $530.00

    MSRP: $64,445
    Selling price: $52,555
    cap reduction: $1500
    Residual: 68%
    MF: .00295
    Term: 27
    Miles: 12K
    Monthly payment with taxes: $595
    This car would need to be shipped which would cost an extra $1200.

    The second car is more tricked out with options, but the first has all the options I really want.

    Both dealers have said this is as low as they can go.

    Thoughts?
  • martinfmartinf Member Posts: 121
    Your deals sound pretty good. W.I. Simonson in Santa Monica is now offering $16,500 off R500's in stock (e.g., MSRP $59,430 - Sunroof, entertainment, comfort, upgraded 18" wheels, for $42,930). Drive an R500 after the R350 to make sure you can't appreciate the difference. Beshoff Motors in Northern California (San Jose?) is offering $15,500 off MSRP on their R500's and is shipping cars across the country. Residual is 67%, MF is .00400, but with the additional discount on these cars, you should stay close to your figures. Good luck! These are both nice vehicles.
  • 23109vc23109vc Member Posts: 218
    I can lease a $58,000 R350 for $0 down and $530/month with taxes?

    how can MB do this? I have been shopping the XC90 V8 and was quoted $2000 down and $489/month + tax..which would put the monthly about $525-530...so basically...the same deal. only on the MB I put down NOTHING. $2000 saved, for a car that costs more...

    are these on 06 models they are blowing out or on new 07s?
  • martinfmartinf Member Posts: 121
    Welcome to the peculiar world of leasing! Because MB is offering such significant discounts from MSRP on the 2006 R class vehicles, a large proportion of your depreciation cost is taken away. You are most likely getting about $12,000 from MSRP on the R350 (about 20%), so MB is already absorbing about 20% of your "residual" cost. At a residual of 68%, you are only paying about 12% of the MSRP of the car in depreciation and, combined with a subsidized Money Factor of .00295 (about 7.08% in real terms), you have the makings of a great deal for a potential lessee. Go with the 2006 R class Mercedes! Drive the R500 just to make sure it is not the right vehicle for you. Again, because of the peculiar circumstances, you can get an R500 for not that much more than the R350. Ask about the savings on a single payment lease, if you can afford the approximate $10,000 to $12,000 upfront payment.
  • 23109vc23109vc Member Posts: 218
    sounds like a good deal. about two months ago, my wife and I were shopping for an XC90 V8 - we had read reviews / lease offers discussed online where people were getting cars with MSRP of $50k-53k for little to nothing down ($1500 max) and about $389/month. these would normally have been over 500/month.... Volvo had big discouns on the money factor to blow out th eleft over 2006 V8s.... by the time we looked into it seriously, volvo stopped the program.

    i haven't seriously looked at MB, but both the XC90 V8 and an R500 would be large, heavy, safe, V8 family hauler.s the MB i'm sure is nicer an dmore luxurious, but the volvo is a pretty nice vehicle and known for safety.

    if i were considering a long term purchase i'd skip the volvo as i don't think they have the same track record for reliability, and resale is much worse..but if i'm only going to keep the car for a couple of years....it basically comes down to which car i like, and who is willing to give me the best deal. both cars will probably be relatively trouble/maintenance free for the first two years. :)
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