2017 CLA 250 leasing question

wonnie124

Hi

This is my first time leasing and I'd appreciate so much for your advise and inputs. 
I am interested in 2017 CLA 2WD with premium package, LED headlamps and smartphone integration. 
I am thinking leasing it with 36mos/10K. I live in southern CA.
1. What would be the MF and residual? 
2. Dealers say MSRP with these options is about $38.000+. 
     How much discounts should I call before talking about the lease, 10%, or 13%? Any dealer cash for NOV? 
3. Is there any discounts for MSD? auto pay?
4. How do I negotiate doc fees? 

Thank you!!!

kyfdx

wonnie124 said:

Hi

This is my first time leasing and I'd appreciate so much for your advise and inputs. 
I am interested in 2017 CLA 2WD with premium package, LED headlamps and smartphone integration. 
I am thinking leasing it with 36mos/10K. I live in southern CA.
1. What would be the MF and residual? 
2. Dealers say MSRP with these options is about $38.000+. 
     How much discounts should I call before talking about the lease, 10%, or 13%? Any dealer cash for NOV? 
3. Is there any discounts for MSD? auto pay?
4. How do I negotiate doc fees? 

Thank you!!!

.00056 MF and 60% residual.

No clue on pricing, but I'll guess less than 10% on a 2017 model.
Autopay should drop the MF to .00046, but MSDs may not be applicable to a subvented rate.
Don't worry about the doc fee. CA restricts maximum fee to $80.

wonnie124

Thank you
Do you know MF and residual?

kyfdx

wonnie124 said:

Thank you
Do you know MF and residual?

I sure do.. it's the first line in my reply, above.

wonnie124

Thank you
That is very helpful! 

ray1236

Hi,

I had a great 12% discount on MSRP after days of negotiation. I live in South Florida. I moved forward when they said they'd honor the MBUSA promotion of .000312 on 60% residual valid for 10K miles, even for a 12K miles. I am a tier 1 and recurring customer. However, when final offer came, they used MF .00091 and 59% residual, and not the MF and residual from the promotion. Their offer adds up an extra $1,339 ($37/mo) to the total payment. Questions:

1) What does this promo's statement really mean to the final MF and residual: "Advertised 36 months lease payment based on MSRP of $35,675 less the suggested dealer contribution resulting in a total gross capitalized cost of $34,676." If the MSRP is higher and gross cap cost is lower than promo, shouldn't the dealer still honor the promo's MF/Res.? If not, how to calculate a fair MF and Residual for a higher MSRP and bigger-than-promotion discount car? Should I just ignore the promotion and go with regular MF/res.?

2) 2nd question for FL folks: My dealer is using $1095 acquisition fee and 7% tax. Is that all right? I thought $795 and 6% is the right numbers.

Thanks,

RR

kyfdx

ray1236 said:

Hi,

I had a great 12% discount on MSRP after days of negotiation. I live in South Florida. I moved forward when they said they'd honor the MBUSA promotion of .000312 on 60% residual valid for 10K miles, even for a 12K miles. I am a tier 1 and recurring customer. However, when final offer came, they used MF .00091 and 59% residual, and not the MF and residual from the promotion. Their offer adds up an extra $1,339 ($37/mo) to the total payment. Questions:

1) What does this promo's statement really mean to the final MF and residual: "Advertised 36 months lease payment based on MSRP of $35,675 less the suggested dealer contribution resulting in a total gross capitalized cost of $34,676." If the MSRP is higher and gross cap cost is lower than promo, shouldn't the dealer still honor the promo's MF/Res.? If not, how to calculate a fair MF and Residual for a higher MSRP and bigger-than-promotion discount car? Should I just ignore the promotion and go with regular MF/res.?

2) 2nd question for FL folks: My dealer is using $1095 acquisition fee and 7% tax. Is that all right? I thought $795 and 6% is the right numbers.

Thanks,

RR

Where did you get the ".000312" number? Money factors never extend beyond 5 digits after the decimal point, and that's not the correct money factor.

.00056 MF is the base number for this month.
60% residual for 36/10, and 59% for 36/12. (The dealer cannot alter the residual)
Base acquisition fee is $795, and dealers can mark that up to $1095 for extra profit.

Tax rate is the tax rate. Check with your local DMV.

The "promo" is just an advertisement from Mercedes. It's not an offer from the dealer.

ray1236

Thank you for the quick response and the Jan/17 MF/Residual. This was helpful. It seems I made a mistake using the promo to negotiate. What I did, I clicked on the offer detail and use the information provided there. For CLA 250 2017 promo until Jan/17, offer details say MSRP = 35,675, gross cap cost = $34,676, Purchase option at lease end = $21,405, total payments = $15,138. That calculates MF = .000312, and residual = 60%. I double checked and it calculates correctly. Since the car I was negotiating had MSRP of $37,895 and dealer gave me a big discount to $33,310, then I understand by your note that promo doesn't apply at all. Thanks. I am still confused why MBUSA provide all this offer details if dealers or customers can't use it. I assume the promo numbers apply if you lease a car with exactly the same MSRP. Am I right?

kyfdx

ray1236 said:

Thank you for the quick response and the Jan/17 MF/Residual. This was helpful. It seems I made a mistake using the promo to negotiate. What I did, I clicked on the offer detail and use the information provided there. For CLA 250 2017 promo until Jan/17, offer details say MSRP = 35,675, gross cap cost = $34,676, Purchase option at lease end = $21,405, total payments = $15,138. That calculates MF = .000312, and residual = 60%. I double checked and it calculates correctly. Since the car I was negotiating had MSRP of $37,895 and dealer gave me a big discount to $33,310, then I understand by your note that promo doesn't apply at all. Thanks. I am still confused why MBUSA provide all this offer details if dealers or customers can't use it. I assume the promo numbers apply if you lease a car with exactly the same MSRP. Am I right?

You don't use the Gross CAP cost to calculate the lease payment. You use the adjusted CAP cost, subtracting the $2499 CAP cost reduction. ($32,177)

The MF used in the promo deal is indeed .00056