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Mercedes-Benz E-Class Lease Questions



  • aceusmleaceusmle Posts: 13
    edited May 2010
    Car: 2010 E350 Sport Sedan RWD
    Lease term: 39-month
    Mileage: 15K/year

    I have been told at a dealership that the MBF special (subventionary) rate for May is 0.00220 which cannot be bought down by multiple security deposits (MSDs) ... but the standard rate of 0.00280 can be bought down to 0.00210 by 10 security deposits. I was actually presented with a MBF document showing that MSDs cannot be used to buy down the special rate. How are folks getting the 0.00180 rate this month? Please share your thoughts...
  • arcnyc3amarcnyc3am Posts: 7
    If you are interested in leasing 2010 E350 Sedan, I got the following deal in NY

    E350 4 matic sedan
    Steel Grey on Ash black interior
    Wheel Pkge
    Sport Pckge

    MSRP: $61,815
    Selling Price: 57,450
    Out of pocket: $3,870 (includes TTL + DMV + Fees + 1st Pmt + Cap Cost)
    Monthly after tax: $788
    12K miles per year
    39 month
    standard MF: 0.00220
  • ob995ob995 Posts: 40
    aceusmle, Do not want to upset you but if you owned a Mercedes before you bought this one, you got taken because if you read this board, why would anyone care the price you paid when Costco negotiated price, which any smuck can get because joining Costco is as easy as walking in and paying $50, is $56869 plus if you are a returning MBF customer you can get an extra $2k off the Costco price which mean the net price would be $54869 or almost $3k less than you paid which equals about $100 per month on your less payment. To get that price, you are not even required to negotiate at all. People on here have reported being able to get dealers to even beat the Costco price, so you left plenty of money on the table.

    Again not trying to upset you at all, but considering you read this board not sure why you would think you got a good deal as you over paid at least $1k or more depending if you had a previous mercedes or not.
  • needhelp27needhelp27 Posts: 9

    I am new to this leasing game. I just accepted an offer from an MB dealership in Bayside, Queens, NYC on an E350 2010 new MB luxuary sedan. The agent told me that the price with a P1 package (navigation, etc) is $53,000. Since, I wanted my monthly payment to be below 500, he told me to put down $13,000 (thirteen thousand) due on signing. Then the monthly is 481. The tax in NYC is 8.875%. Have I been badly siwndeled? Please let me know, b/c he's holding my info. I am yet to sign on the deal b/c of the Memorial day weekend. PLEASE HELP if you can. I went through the other posts here, but the calculations with MFs eludes me a bit.
    If not, then can somone recommend a MB dealership in NYC?
  • crestonavecrestonave Posts: 219
    You don't say what the MSRP is. Is $53K the selling price? How many months? How many miles are included?

    I personally would NEVER put money down on a lease, especially $13000. As I understand it, should the car be stolen or totaled, you're out that money - it's not covered by insurance.

    Sounds like you have some more work to do here, including getting a better understanding of the lease process. Good luck.
  • ob995ob995 Posts: 40
    edited May 2010
    Needhelp27 do you live in zipcode 11360? Queens NYC? What is exactly on your car? A E350 Luxury Sedan with just P1 package has an MSRP of $53,425. Are you a Costco Member? Silver Star, Rallye and Mercedes Benz of Manhattan are all listed as participating dealers in Costco program. The costco negotiated price at those 3 dealers for an E350 Luxury Sedan with P1 is $48,615. If you are a returning MBF customers ie, currently have a lease or loan via Mercedes Benz Financial then you get an extra $2k off that price.

    Assuming you are not a returning MBF customer and you did the 39 month lease which is currently the special and you have good credit you payment including tax for 15k miles per year should be around $692.84 per month and your drive off would only be registration, first month lease and bank fee. If you were to do 12K miles per year your lease payment would be $644.17 including the same drive off, if you did a 10k miles per year lease the payment would be $617.28 with the same drive off and if you did a 7500 miles per year lease it would be $598.97 per month with the same drive off.

    Just so you know my drive off numbers should run about $2k or so maybe less depending on what your DMV fee's are in NYS. So the lease you were quoted is basically paying sticker for the car which is a joke, goto Costco if you do not have a costco membership and pay $50 which will end up saving you $5K on your car purchase.

    Also all my above numbers are based on the assumption the car we are talking about is an E350 with p1 package only, if your car is more equipped then all the numbers I quoted above are wrong, but getting E-Class Sedan at dealer invoice is reasonable or even below dealer invoice.

    P.S. Just so you know putting down a $10k cap reduction reduces the payments by about $300 per month from the above prices.
  • needhelp27needhelp27 Posts: 9
    Thank you both so much. I am very grateful to you both. I am very confused. And really need advice. Below I furnish more info. I am sorry, I didn't realize that I needed to provide all this.

    I live in zip code 11423 in Queens. I was looking at E350 2010 with a 39 month lease and 7,500 miles per year.

    The car only had a P1 package, not a P2, no panoramic roof or parktronic assist, etc. The dealer made it sound like why to go for the P2 package? Everything was in the P1.

    The dealer said that the MSRP of the car was 56,000 and that he was giving it to me for 53,600. That was the best he could do. He even did the drama of calling his boss on the cell phone, etc and reduced 300 dollars.

    What is cap reduction? Does it mean, roughly, that I am putting money toward my lease and not as down-payment? I really need my monthly payment to be low, like around 300 would be SUPER! But 400-500 would be fine. I don't want it to above $500. My credit score is 680, but I am getting another family member with a higher credit score to be a co-signee.

    And how does the cap reduction work? What do I tell the sales agent? I will put down the roughly two to three thousand dollars of down payment, but then i want to put down a net ten thousand doallrs extra for cap reduction so that my monthly is low? Is that correct? Should I say that up-front to the sales rep? Or should I say that to the business manger?

    How do i ask for a costco negotiated price at Raylle MB? Do I simply walk in and show them my costco membership card? Can I become a gold member? or something else? Is this really true? OR some kinda gimmick? I mean, just b/c you spent 50 bucks, will it really result in a 5,000 dollar reduction? Also, does this Costco negotiated price change every month?

    Please take a moment and help me by answering whatever questions you can. i am aware that today is Memorial Day and you may not want to sit in front of the computer, but be with your family, but please look at it from my perspective: b/c of your kindness, I wil save a ton of money.

    Thank you kindly
  • ob995ob995 Posts: 40
    edited May 2010
    The Costco negotiated price is no gimmick, AAA also has a negotiated price as well but unfortunately I am in So Ca and I am unable to look up what the negotiated price for NY AAA. For AAA of So Cal, Costco has a better price by about $800. Basically what Costco does is tell dealer, here is the deal we want on X car, you are free to accept it the deal and participate in the program and many dealers choose to participate in the program for a few reasons, if they do not and other dealers do, they are going to loose tons of sales based on the fact Costco web page will display other dealers offering the deal, 2nd all cars have trunk money ie, the dealer pays X amount for the car and once they sell the car they are given a spiff or rebate after the fact. Also dealers make money off the financing, service contracts and dealer options and many times that money is more than they would make off the car itself. Also the more cars they sell per month, the more phantom cars they get, phantom cars are hot cars they can sell at close to MSRP so they have lots of money in them like currently E-Class Convertibles or SLR. So they are basically willing to sell cars which have weak demand for a low margin in hopes of getting more phantom cars which have huge profit. On an SLR their is about $50k profit in MSRP alone per car sold. Also Costco only has negotiated prices on cars which are not hot, their is no Costco discount on E-Class Convertibles or SLR either.

    Costco basically gives you fleet pricing in effect, it is no scam, I have bought a couple of cars via Costco program. It is very simple if you have a Costco card, goto and click car buying service, then it will ask you for Costco card, then you log in and pick the car you want with the options you want and enter your zip code it will display the price and the list of participating dealers near your zip code. It tells you to print the web page and bring your costco card and goto one of the participating dealers.

    I have no idea how to get to $56000 for a P1 car. If you add 4Matic and P1 only with metallic pant the car MSRP is $56,425 without metallic pant is $55,705. This is an exact science, If you are unable to provide complete and accurate info no one is going to be able to figure what the deal should be as depending on what car and options you get and amount of miles per year that can affect the residual or money factor.

    Costco negotiated price is invoice which on P1 car is just under $5k savings. So you should try to pay around $4.5k less than MSRP if you are not a costco member anyways as E-Class Sedan is not a hot car at all.

    With 7500 miles per year 39 month lease has a 59% residual. If you qualify for the best possible interest then the money factor should be 0.00220.

    The way a lease works is their is a depreciation part and interest rate. When you put down a large payment upfront it basically reduces the amount of money you are borrowing which saves you both principle and interest over the lease term hence the term cap reduction which is short for capital reduction. The depreciation is based on paying MSRP, so the bigger discount or more money you put down the less depreciation your lease payment will have over the lease term, also because you are paying less for the car, you are borrowing less money hence you are paying less interest each month in your payment as well. But if your car is stolen or totaled before the end of your lease, the money you put down is not returned to you or prorated for the remaining months left on your lease term which is why most people say it is a very bad idea to put down a large cap reduction. If you have $13k why not put $10k in the bank and withdraw $257 per month and apply it to your $500 monthly payment? You would end up paying about $45 per month more after tax but if your car is totaled or stolen before the end of your lease term you would have some money still left in the bank.
  • needhelp27needhelp27 Posts: 9
    edited May 2010

    Thank you ever so much! God bless you for your help. And my apologies for no giving the EXACT prices.

    So here's the deal:

    model number : E350 W4

    MSRP: $56,500 for 4matic, P1- premium package, black exterior with black interior
    He reduced this to $53,600 with $4,321 out of pocket with $737 per month
    7,500 miles per year.

    The P1 premium package that was offered is: Luxury sedan, wood leather wheel

    COMAND with 40 Gbytes HA,
    i-pod/MP3 media interface cable,
    rear view camera,
    Comand with navigation and voice control,
    i-pod/MP3 media interface,
    Sirius satellite radio,
    Power rear window sunshade,
    Herman/Kardon sound system with Dolby 5.1,
    heated front seats

    And with $13,000 I would pay $481.30 per month.

    After 39 months, the car would be offered to to us for purchase for $32,000.

    Now I have given you everything. PLEase, PLEASE write back.

    Thank you.
  • ob995ob995 Posts: 40
    Sorry I Do not have all day to go back and forth with you but your numbers do not add up at all so either the dealer is screwing you or you are missing options.

    E-350 prices is following:

    Base $48600
    P1 package $3950
    Wood Steering Wheel $750
    Destination Charge $875

    Total $54175

    So no idea how the car has an MSRP of $56,500 but if you look at the MSRP window you should be able to get $4.5-5k off sticker.

    If the car is equipped like you claim it is and the MSRP is $54,175, with the costco discount the sales price should be $49,300. Doing a 39 month lease with 7500 miles per year assuming you can qualify for best money factor with a $10k cap reduction and $3k in drive off your lease payment after tax should be $376.11 per month. Every $1k dollars extra in the sales price should add approximately $20 to the lease payment per month.

    Putting such a large cap reduction is not advisable at all, if the car is totaled in an accident or stolen you will be out that money but you are free to do whatever you want.
  • needhelp27needhelp27 Posts: 9
    THANK YOU EVER SO MUCH. AND MY APOLOGIES IF MADE YOU GO BACK ADN FORTH. Like I said, I don't knowmuch about leasing. So your help was INVALUABLE.
    Please don't be cross. I appreciate your help.
  • miamibuyermiamibuyer Posts: 3
    Hi, I just walked away from a negotiation on a lease on a C300 Sports, basic, maintenance package, no other extras. Total selling price is $36,000., due at signing (includes 1st month) is $5,400, $445. / 15K miles / 36 months. Having read other posts, I think I can do better given the high down payment, right?

    They are offering at this dealership to pay up to 5 months of any lease payments due on your current vehicle -- I owe about $2,500. total. So I think they may be adding it into the deal to recover the money. Also, they claim to need a higher down pmt. because my credit is not stellar (600 beacon score).

    Any help would be greatly appreciated. This is my first time negotiating a Benz and now I'm second guessing myself on my decision to say no. They say the "special expires today." Please help! Thanks
  • jaymkjaymk Posts: 86
    I just stopped by at this forum, and all I can say is, Your help is very highly appreciated, want to say thankyou for helping everybody out there.
  • surge352surge352 Posts: 7
    Anyone know if the lease rates have changed for the E-Coupe this month? Are they still the same?

  • ob995ob995 Posts: 40
    The official lease special actually got worse for June over May for the E-Coupe which now requires an extra $150 cap reduction over May Special as Mercedes Benz Financial lower their advertised dealer contribution discount which honestly is irrelevant in my opinion as it is not hard to buy a E-Class coupe at invoice so the recommend dealer discount was not really an issue. The Residual and money factor remain unchanged.
  • gvitalik1gvitalik1 Posts: 50
    Hi All,

    I'm looking for June lease rates for a E350 Sport Sedan.

  • ob995ob995 Posts: 40
    2010 Mercedes E350 Sport Sedan
    24 Month – Residual 59% of MSRP – .00280 Base Rate
    36 Month – Residual 54% of MSRP – .00220 Base Rate
    48 Month – Residual 43% of MSRP – .00220 Base Rate
    60 Month – Residual 35% of MSRP – .00280 Base Rate

    2010 Mercedes E350 Sport 4MATIC Sedan
    24 Month – Residual 59% of MSRP – .00280 Base Rate
    36 Month – Residual 54% of MSRP – .00220 Base Rate
    48 Month – Residual 43% of MSRP – .00220 Base Rate
    60 Month – Residual 35% of MSRP – .00280 Base Rate

    Of coarse the 39 month special using 36 month residual and money factor was extended till August so no reason not to do 39 months lease over 36 month lease. As by spreading out the depreciation by those extra 3 months lowers your lease payment by almost $100 a month which is more than what the cost of your registration for the 4th year would be.
  • poorprofpoorprof Posts: 112
    edited June 2010
    We picked up a E350 Lux with P2 with Panoramic roof in silver metalic retailing at $57,615. We paid $2,700 down (minimum payment, no cap recudction) and paid 723.86 a month including CA tax (almost 10%). There is no royalty or military discount. Bought the car for $2,500 below invoice. The lease is for 39 months, no MSD, but got a 0.0001 off the MF for direct monthly payment.

    We paid the broker who set this up $500 which is included in the $2,700. We just drove over to the dealer, my bro signed the papers and in 30 min we were out of there. They threw in a 1 year Embrace membership.

    I think getting a deal like this is possible through direct negotiations (no broker), if you are excellent at it.
  • dannye350dannye350 Posts: 29
    I got my e-class. Here are the particulars of my deal.


    Sale Price: $50,639, with fleet discount, and $3500 total out of pocket. This includes $266 for a new plate, since my plate was up for renewal.

    Payment is $674.00 per month with Michigan Tax 6%
    Term: 39 months
    Miles: 10,000 per month

    Money Factor: 0.00259
    Residual: 59
  • shimels81shimels81 Posts: 1
    MSRP: $55,575 ($875 destination included)
    Invoice with options $51, 747 ($875 destination included)
    Price Negotiated : $52,389

    36 months
    0 down
    Residual 58% (from what I was told by dealer)
    MF .00280


    How does the deal sound?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi surge352. Mercedes-Benz is not providing any lease support on the E-Coupe this month. MB Financial's June residual value for a 36 month lease of a 2010 E350 Coupe with 15,000 miles per year is 55%. This car's money factor will be whatever MB Finance's standard factor is in your area, which is probably around .00280 to .00290 or so.

    Prices Paid: Buying & Leasing Experiences Forum
  • eclipse2eclipse2 Posts: 64
    I Neg. on a 2010 E550w4 $58,800 With P2 $6,800 Paint $720 Praktronic $950, sunroof $1,070 drive dynamic seat $650 and dest $875 MSRP $69,865 selling price $59,800 that is with job discount of $2k my credit A1 top the question is we didn't get down to rates yet what kind of rates can I get from MBZ and if I was to Lease for 36 or 39 months what should I get for that with 12k miles a year... thanks for the help..
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi eclipse2. The dealer invoice price of the car that you described is $65,036. Even if you were to subtract the $2,000 owner loyalty cash that is currently available on this car from that it still would only drop to $63,000. The selling price that you were quoted is way below that. If you are able to get this car for $59,800 snatch it up.

    Mercedes-Benz Financial's current buy rate lease money factor and residual value for a 36 month lease of a 2010 E550 4Matic Sedan with 12,000 miles per year are .00220 and 53%, respectively for consumers who qualify for its top credit tier. I believe that Mercedes allows these terms to be used for 39 month leases as well through its Value Added program.

    Prices Paid: Buying & Leasing Experiences Forum
  • eclipse2eclipse2 Posts: 64
    Thank you car_man for the help!! I'm getting both the loyalty 2k and my job has a 2k discount now I only have one problem my trade I know when I take it in they are gonna play games..
  • asolare1asolare1 Posts: 31
    What is the current MF and residual for a E550 Cabriolet 36 mos/10000 miles per month? What should the bank and document fees be (not including cost of registration and taxes)? Thanks.
  • asolare1asolare1 Posts: 31
    Does anyone know if Costco has a negotiated price yet for the e cabriolet and if not when they'd be likely to have one? Thanks.
  • ob995ob995 Posts: 40
    edited June 2010
    No buying program currently has a negotiated price on either E350 or E550 Cabs. More than likely no buying program will have a negotiated price any time soon as long as dealers are able to move their stock fairly easy, as the costco buying program is dealer invoice, I doubt you will see any dealers adding the Cab to the program before winter when demands for Convertibles normally drops off naturally. Depending on where you are located you can expect to get between $0 to about $2-3k discount off MSRP with bigger discounts on E350 over E550 because their are currently many more E350 on the ground. MBUSA is shipping 5-6x as many E350 as E550 which is why E550 tends to be harder to find.

    The bank and document fee vary by state, in some states dealers are not allowed to mark up either fee where as in other states dealers are free to mark up both by any amount they want. The true acquisition fee charged by MBF is $795 but you will be hard pressed to find any dealer charging $795 in most states. I know in Los Angeles all dealer quote a $1095 acquisition fee. Document fee for example in Ca is capped at $50 and most dealer charge $50 and again it will be super hard to find any dealer charging less than $50 for that fee as well.

    Currently unless you can afford to buy the cabs cash in my opinion, it is not worth owning them as leasing makes no sense. You can lease an SL550 for the about the same monthly lease payment as E550 currently. The current interest rate offered via MBF is 6.9% for 36 months which is not hard to beat at all. MBUSA is basically saying they want to get paid cash for these cars and have no interest to lease or finance them which is why the rates are a joke.

    The current lease programs on the Cabs are as follows:

    2011 Mercedes E350 Cab
    24 Month – Residual 60% of MSRP – .00395 Base Rate
    36 Month – Residual 55% of MSRP – .00395 Base Rate
    48 Month – Residual 46% of MSRP – .00395 Base Rate
    60 Month – Residual 38% of MSRP – .00395 Base Rate

    2011 Mercedes E550 Cab
    24 Month – Residual 58% of MSRP – .00395 Base Rate
    36 Month – Residual 53% of MSRP – .00395 Base Rate
    48 Month – Residual 44% of MSRP – .00395 Base Rate
    60 Month – Residual 36% of MSRP – .00395 Base Rate

    Residuals posted are for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr and 4% for 7.5k mi/yr on all terms.
  • asolare1asolare1 Posts: 31
    Thanks very much.
  • evjonevjon Posts: 5
    It appears that the 7/2010 lease rates for an E350 Sport Sedan on a 39 month lease are:

    Residual = 56.99953%
    MF = .00174

    Can any one confirm?
  • benz2779benz2779 Posts: 31
    Does anyone know if their are any incentives in the E350 4-matic for July - I heard their might be some conquest money...
This discussion has been closed.