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Mercedes-Benz E-Class Lease Questions



  • ml2005ml2005 Posts: 10
    Does anyone know if the USAA discount applies to POC cars or new only?
  • ob995ob995 Posts: 40
    If you mean CPO? Certified Pre-Owned? Then No as the fleet discount is for new car purchases only and USAA only has negotiated prices on new cars.
  • ob995ob995 Posts: 40
    Well considering MSRP on a E-Coupe with P2 is 55275 MSRP and USAA purchase price is $49360, Yeah I would think $49k for a used Car with 8K miles is a rip off. Even if you add the Appearance Package to that car MSRP goes up to $57125 and USAA Purchase Price is $50970.

    So unless that car has every option like Distronic Plus, Wood Steering wheel, Metallic Paint, Mbrace, Rear Side Airbags, and some expensive wheels. The dealership is trying to find a sucker as even the Costco buying club price is about $900 more than USAA price. Joining costco is not hard either, just walk in and pay $65 and then you are able to buy an E-Coupe for with P2 package for just over $50k.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Frank. Mercedes' Marcy buy rate lease money factor and residual value for a 36 month lease of a 2010 E350 Sedan with 12,000 miles per year are .00270 and 58%, respectively.

    Mercedes is currently providing $2,000 loyalty cash on this car to current Mercedes lessees.

    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi outie. Here's the information that you're looking for. Mercedes-Benz Financial's March buy rate lease money factor and residual value for a 36 month lease of a 2010 E350 Sedan with 10,000 miles per year are .00270 and 59%, respectively.

    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey buddyluv1. Mercedes-Benz Financial's March buy rate lease money factor and residual value for a 36 month lease of a 2010 E350 Coupe with 15,000 miles per year are .00340 and 56%, respectively.

    Mercedes is not currently providing any cash incentives on this model.

    Prices Paid: Buying & Leasing Experiences Forum
  • ob995ob995 Posts: 40
    edited March 2010
    Car_man you forgot about the lease specials on E-Class Sedans, the money factor and residual do not change if you do a 39 months lease over a 36 month lease. So it is much cheaper to do 39 month lease even factoring in the fact you are paying your registration fee for the last 3 months of your lease.

    I know in the few examples I have seen, the difference in the payments is about $65 per month and in most states your car registration for 3 year old car is less than $500. So you are till about $1800 a head doing a 39 month lease over the 36 month.

    So personally I see no reason not to do 39 month lease special over the 36 on Sedans.

    Note 39 month lease special is not available on the coupe at all currently.
  • Kirstie_HKirstie_H Posts: 11,025
    Recently lease a car? A reporter wants to hear about the deal you struck. Please email by Wed, Mar 24, 2010 with a few words about your negotiation and/or incentive deal.
    Jeannine Fallon
    Corporate Communications


    Need help navigating? - or send a private message by clicking on my name.

    Share your vehicle reviews

  • Anyone knows upcoming April/2010 incentives for E350 Sedan?
  • dannye350dannye350 Posts: 29
    edited March 2010
    No one knows those at this moment. Its to early. Id try asking or looking around April 5th 2010
  • Thanks for your prompt response.
  • dannye350dannye350 Posts: 29
    I think i am getting a good deal. But i thought id throw it out here to see what other say.


    Sale Price: $50,639, with 1000 fleet discount, and $4000 total out of pocket

    Payment is $665.00 per month with Michigan Tax 6%
    Term: 39 months
    Miles: 10,000 per month

    Money Factor: 0.00259
    Residual: 59
  • I wanted to see if you folks thing this is agood deal before I take it.

    2010 E550 4Matic list price of $ 68,400 fully loaded. I'm trading a 2006 525 with 49,000 miles.

    Trade in value of $ 16,500 and then I one time payment of pay $ 26,185 fro 36 month lease plan with 7,500 miles per year allowed.

    Is this a good deal??
  • marasco0815marasco0815 Posts: 10
    edited March 2010
    What! NO. :sick: If I am reading you right you are going to pay up front 42k to lease for 36 months and 7500 miles?
    1. There is some debate on the risk of upfront money on leases but from what I understand your 42k would be at risk (to lose it all) in the event of theft or total accident. FYI- the 39 month is the better lease right now.
    2. If you are looking to put that much down I would just buy it.
    3. In order to evaluate a deal we'll need to know your cap cost and residual (money factor too if you do the sensible thing lease wise and have payments).
    4. You'd have to factor in interest lost on the 42k over the 3 years...debiting down for monthly payments.
    There's lots of good material to get more up to speed on leasing.
    Good luck.
    Frank :sick:
  • The total cost with Taxes, Doc fees, Registration was $ 72,800. I thought Iwas able to negotiate the price down from $ 72,800 to $ 68,000 with payin the total 36 months up front.

    Furthermore; I was able to negotiate to get the maintenance plan for 3 years worth $ 1,325 at no cost.

    This is why I'm considering doing this. I understand the risk of the $ 42k but my Insurance assured me that I would get the same return value if I lease or purchased outright.

    Let me know what you think.
  • marasco0815marasco0815 Posts: 10
    edited March 2010
    This looks awful- looks like the residual is around should be 58%- and that's for 15k miles!. 7500 miles would have an even higher residual. Car man might be able to provide details and give you better info.
    Since you would be putting all the money down up front there would be no money factor (interest on payments)...that should result in huge savings. But you ain't getting it...looks like you are overpaying by about 12k. Like they slammed you with the interest anyway and took your cash and something on top.
  • ob995ob995 Posts: 40
    edited March 2010
    LOL, First off you know Mercedes-Benz Star Service Pre-Paid Maintenance is $805 and not $1325 right and that covers all factory scheduled services for 48 months or 48000 miles.

    So right off the bat when a dealer tries to charge me $520 more for something MB officially sets a price on their web page, I run the other way. Any dealer who is bold enough to try to rip you off on a MB option is not a dealer I would want to work with at all.

    2nd if you pre-paid the lease from day 1, on a E-Class Sedan and the dealer is telling you they are offering you a smoking deal on a 36 months lease then run away, considering MB special is currently 39 months and by them giving you a 36 month lease are in fact ripping you off.

    Like marasco0815 said the residual are wrong, as it is 61% for 10K miles. And unless you live in a state like TX which charges the full sales tax on leases just like on car sales, you only pay sales tax on the depreciation in most states but even assuming you live in TX the lease should be the following for 36 and 39 months.

    $26519.99 depreciation +4800 in taxes. Considering the fact you are willing to put down $42685 the dealer should be assuming $4800 in drive off and be charging you only the depreciation for a total out of pocket $31320 so he is over charging you by $11365. Also the dealer should be offering you a 39 month lease and not 36 months lease thus making your effective cost per month $803 and not $1095 which is more than people are reporting paying in this thread.

    Also you are aware if you pre-pay the lease upfront and your car is stolen or totaled your insurance company will pay blue book for the car at the time of the loss for example lets say bluebook is $47k after 13 months your lease buyout is $35380. You will be still be required to pay MBF your lease buyout amount and Gap insurance will not reimburse any part of your down payment either. So you basically lost your down payment. Which is why most people say it is much better to put down as little as possible on a lease and pay for gap insurance which by the way is included for free with MBF lease but only costs like $50-100 a year anyways via your insurance company.
  • This does not seem like a good deal for all the reasons ob955 listed.
  • poorprofpoorprof Posts: 112
    Most sites I go on show the invoice for the E350 at $45,198 plus $875 destination charge for a total of $46,073. USAA has the car's invoice at $600 more. I did some more comparisons and USAA has a higher invoice cost on all makes and brands by several hundred dollars (depending on car and model). Any idea how they arrive at a higher invoice than KBB or Edmunds?

    BYW, is the destination charge just a bunch of crap? Since when a merchant charges the customer for receiving a shipment of merchandise that s/he is selling?
  • ob995ob995 Posts: 40
    edited March 2010
    USAA invoice price is the same price as both KBB and Edmunds. The only difference between their so called invoice and USAA invoice price is USAA includes the destination charge. Ie do some simple math $46073- $875 = $45198.

    USAA chooses to include whatever the manufacture charges as a delivery charge to invoice of the car price as every car manufacture charges a destination charge and that fee is different between cars even from the same manufacture and every dealer in america pretty much passes that cost along to the customer.

    I 100% agree with you that is a bogus charge but depending on where you live you might also see on the MSRP window sticker a "Advertising fees" and that is just as bogus as the destination charge IMO. All those bogus fee's added to MSRP sticker vary by state and even cities as dealers gets those stickers from the manufacture who adds those charges based on local and state laws.

    When you buy a car, make sure you look at the purchase contract for bogus fee's, remember anything your local state or city allows your dealer to charge you, you will have little to no power negotiating with the dealer because everyone is paying those fee's in your area but if the dealer tries to add something like a "Dealer fees" or "Car Preparation fee" or anything else not listed on the MSRP sticker from the manufacture into the purchase contract, then you can certainly negotiate to get that removed as the dealer might try to throw some of those fee's into the purchase contract hoping most customer will not notice them and they certainly know if you goto another dealer chances are either wont charge those same fee's or not have them at all so more than likely won't risk the loss of a sale over those extra bogus fee's.

    In other states like CA for example, dealers are allowed to charge some bogus fee except CA limits the amount on some of the those fee's like Doc Fee and Bank Fee. Those fee are somewhat negotiable but not 100% either I have never been able to get any dealer to completely remove those fee's but have been able to get them to some times lower them from the max allowed by law as all dealers will try to charge you the max always hoping you either wont notice or complain. Doc fee is limited to $45 max in Ca so not worth arguing over but Bank Fee has a $1095 max cap in CA and for example MBF charges $795 only so a dealer will never go below $795 as they have to pay that to MBF but will almost always try to list that fee as $1095 on the finance contract which allows them to make an extra $300 on the deal. That fee will vary based on which finance company you use, for example official BOA fee is $195 for car loans, Chase fee is $295 for car loans and $495 for leases and US Bank is $95 for car loans and $295 for leases and in all cases dealers will almost always try to mark that up to $1095 which is max allowed in CA.

    So even if you negotiate a deal at invoice for example, the dealer can make money by marking up the rates on your financing and even the fees the bank charge. In Ca they can not mark up a rate more than 3% but 3% on a $50k car is $4.5k profit on the loan itself.

    For example lets say you are happy you made a deal at straight invoice and you think the dealer is basically giving you the car at cost just to get rid of it. Think again, he will end up charging you Doc Pre Fee of $45 for example 1-2x depending if you pay cash for the car or fiance it. Then most of the time he will make a profit off the bank fee that the bank charges you to get the loan anywhere from $300-1k and he might even mark up the rate by as much as 1% too which in effect on a $50k means the bank will pay them a premium of $1.5k for getting them a loan above market rate. So a dealer using say US bank loan could in theory market up the rate by 1%, mark up the bank fee to $1095 and you would pay the doc fee 2x meaning he will make $2595 profit even selling you the car at dealer invoice. And most people will never know how much the dealer is marking up the loan or bank fee as neither need to be disclosed in CA either.
  • outieoutie Posts: 42
    This looks like a great deal. Did you get the loyalty discount or just the fleet discount? I am still trying to figure out how much to offer my dealer for the price of the vehicle. Thanks.
  • jwilliams2jwilliams2 Posts: 910
    BYW, is the destination charge just a bunch of crap?

    Don't really think it's a load or bogus. It covers the cost of shipping the car from the assembly plant to the dealer, and is set by the manufacturer.

    Cars have had destination charges for at least the 50 years or so that I've been buying them. All cars have it, and everyone pays it.
  • poorprofpoorprof Posts: 112
    About USAA's invoices: I appreciate your feedback, but USAA adds several hundred dollars on top of the Invoice plus shipping. For example, on the E class, USAA's invoice is $46,673, six hundred more than the $46,073 invoice everwhere else. I am just wondering why? And this is the case with most cars USAA has invoice on although the amounts vary.
  • sis7sis7 Posts: 3
    Hi: I'm new to leasing and would like your opinion on if the following is a good lease ( I live in Southern California). Also, if it isn't, what should I counter to the dealer? Thank you!

    MSRP - $57,225
    Miles - 10,000
    Months - 36
    Down Payment - $10,000
    Monthly payment $650
  • ob995ob995 Posts: 40
    First off you leave some very important information out, like the car selling price which will drastically effect your lease payment.

    Using the info you provided I was able to play around with selling price to try to create a lease payment as close to $650 per month after tax as possible assuming $7.5k cap reduction and MSRP of $57225. Assuming current residual of 61% and current MF of 0.00305 that means if the selling price is $55225, drive off of $2.5k and cap reduction of $7.5k that would make your payment $661.50 per month after tax. So the dealer is effectively discounting the car $2k from MSRP, Do you have a AAA or Costco card? If so should be able to get somewhere between $3-4k off MSRP and with a $4k discount with $7.5k in cap reduction your payment would be $613.83 after tax if you have a USAA membership the negotiated price is $6k off of MSRP and your payment should be $547.16. While the USAA price includes a $2k fleet discount so that price is not obtainable for non members, getting the car at invoice or close to invoice considering you are putting down $7.5k in cap reduction should not be unreasonable either.
  • sis7sis7 Posts: 3
    Sorry, car price is $54,500.
  • ob995ob995 Posts: 40
    Based on your selling price the lease is about right, but more than likely it should be not too hard to get that for between $500-1k cheaper especially in So Cal considering their are over 20 dealers in this area.

    If you have a Costco or AAA membership you can save $575 off the selling price pretty easy. If you were able to get the car at invoice that would be $1165. So basically you are talking about $20-35 difference per month on your lease, not sure how willing you are to spend the time required to save. If you had an USAA membership then you could save a big amount as that would make the difference almost $3k off the selling price.
  • sis7sis7 Posts: 3
    Change of plans, decided to put $6,000 down with the following:

    MSRP - $57,5225
    Discount - $5276.71
    selling price- $51,948.29
    36 month/10,000 miles - $690

    How's this deal?
  • ob995ob995 Posts: 40
    That is a much better deal honestly. Think of it this way you are paying $40 more per month over 36 months so that equals $1440 and you are savings $4k upfront so your net savings are really $2560 over the lease term.
  • ekh443ekh443 Posts: 20
    edited April 2010
    Just wondering if this is a good deal. Any comments are appreciated. Thanks.

    2010 E350 Sedan

    Wheel pkg
    Sport pkg (No charge)

    MSRP $56,575
    Invoice $52,677

    ZERO drive off, sign and drive

    39 months, 10k miles, $807 per month including Los Angeles 9.75% tax.
This discussion has been closed.