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Mercedes-Benz E-Class Lease Questions



  • ghstudioghstudio Posts: 970
    edited September 2011

    sit down with them and ask them to call Mercedes Finance who will explain MSD's to them. My MB dealer (salesman, marketing manager, gm) had no idea what I was talking about...but the marketing manager called MB Finance and they gave him the information on how MSD's worked and how to calculate the lease. I was the first customer to ask about or use MSD's in the five years since these folks (a very large national dealer chain) bought the dealership. I have used MSD's on my last four leases on BMW's and infiniti's and in each case, I went thru the same had no idea what I was talking about, called and found out. It's a great financial deal for you, the buyer, if you can afford to be without the MSD cash for the term of the lease, and of course you get it back unlike a downpayment.
  • Thanks for the response Car_Man.

    Today I got following deal on E350 4Matic

    Sticker Price: $51,900.00
    Options: $4,440.00 (P1, Sports, Split folding seats)
    Dest Charges: $875.00
    Total MSRP: $57,215.00
    Residual percentage: 66%
    Negotiated Cost: $48,500.00
    33 Months w/ 7.5K miles
    Money factor: 0.00182 w/ auto pay --- (0.00192 w/o auto pay)
    Lease payment $482.39
    NY Tax - 8.625% $41.61
    Total Lease payment $524.00

    I am planning to give them a deposit tomorrow and pickup the car on Fri. Please let me know, what you think about the deal. Should I ask for 67% RV as it will drop my monthly cost to $466.10 ($506.30 with taxes).

    Thanks again everyone for all your help...
  • Hey all, You helped me buy a 2011 E350 recently and I'm eternally grateful. Can you help me figure out this lease? Looking at the following car

    E350C $49,800
    890 Lunar Blue $720
    205 Almond/Mocha Leather
    Sport package, P1, Spoiler

    SUBTOTAL $56,410
    TOTAL $57,285

    His offer:

    2012 E350 coupe
    15k miles
    $2500 drive off
    725/mo. (this already includes discounts and autopay)

    I qualify for these discounts (if they apply): competitor conquest, loyalty discount, current MBFS loan holder.

    Is this too much? I was hoping to be under 700 but he isn't budging. Need some suggestions from you all.

    Details of the car below

    Thanks for your input!
  • jwilliams2jwilliams2 Posts: 910
    edited September 2011
    Should I ask for 67% RV as it will drop my monthly cost to $466.10

    Residuals are set by Mercedes-Benz Credit, not the dealer, and can't be changed.
  • ghstudioghstudio Posts: 970
    edited September 2011 might try to get them to throw in some maintenance as a "sweetner".

    dadcar....I did a quick calculation, not knowing the residual for 36 mos/15K miles per year, but I assumed 61% and a MF of .00194. I also assumed that you could buy that car for $50K including the dealer administration fee. I assumed a $795 lease acquisition fee. I did not assume autopay. If my assumptions are close, your monthly payment should be around $605 plus tax. That assumes you pay only the first months lease payment plus any registration fees up front ...far less than $2500.

    Using the same assumptions, with 10 MSD's, your monthly payment would drop to $546/ would "loan" mercedes $6050 for the length of the lease and then you would get that money back. You would save roughly $2124 over the three years by doing this. Can you earn $2124 on $6050 over three years some other way???? If that money sat in a CD, it would earn less than $400 over the same time period. If you can afford it, think about using MSDs.
  • jk16jk16 Posts: 3
    I'm about to buy e350 class blue tec and I simply want to know if on the east coast are they for sale yet? They are pushing me on 2011 model, no blue tec left plus they did not make them in a 4 matic until 2012 and their saying in NY you wouldn't want to buy without the 4 matic.
  • might try to get them to throw in some maintenance as a "sweetner".

    ghstudio thanks for the advise... I spoke with the dealer and told him that I wanted All Season Mats and 3 years service included in the price...

    First he was like, I don;t know, I am not making any money on the deal, I am losing money on the deal.... then he told me he will get back to me after speaking with his manager. 30 min later, he called and told me we had a deal. I gave him a deposit and will sign all the paper work and pickup the car tomorrow.

    Thanks to this forum and everyone, I was able to save lots of money because I was well informed. Thanks again for all your help everyone.
  • The dealer was trying to push the BlueTec. He said, we would have to order (even without seeing it) and had to give him multiple color choices, so which ever he would be able to locate, we will have to buy that one. He also did not have one to test drive, so I did not want to buy something without test driving it. It was a 2011 E350 BlueTec fully loaded. He came down to $460 a month on 24 month lease. I am not sure about the 2012.
  • jk16jk16 Posts: 3
    Are 2012 e350 sedan blue tec available now?
  • Thanks for the guidance, ghstudio, as I totally agree that by utilizing MSD, one drops the interest rate by almost 2pts. Related to MSD, several dealers are telling me that MB Financial will not do MSD on the buy rate MF (0.00192). One can only do it on their marked up rate (ranges from 0.00210-0.00235). Is this accurate?
  • That is not accurate and I have the paperwork to prove it. I would go with another dealer. BTW, I asked them also what the MF would be for a prepaid lease (one balloon payment up front), and I was also quoted a 2% reduction in interest. So I agree, MSD are the way to go!
  • The easy solution to this (and the one dealers just hate) is to suggest that you and their marketing or finance manager call mercedes finance on a speakerphone and ask if the MSD's apply to the .00192 finance rate. To be fair, they may actually believe that they are right and they need to make that call to understand that the .0192 is not a promotional rate. But be sure that you hear mercedes answer yourself.

    BTW...if you find, using this method, that we are wrong here...please post back.
  • I'm rather "uninformed" when it comes to some of this, but I read through a bunch of pages and would appreciate any help.

    Looking at leasing a E350 Coupe (this would be a corporate lease) very soon. Options will vary based on what the monthly price would be, since this is being paid for by my company. I'd like to come to them with an offer under $700 a month but be decently equipped.

    Can do 2 years, 3 years, doesn't matter but I will definitely need 20,000 miles a year. I'm based in NJ - can anyone help me get started on figuring out where I need to be to meet my needs, if it's even possible?

  • whichluxurycarwhichluxurycar Posts: 50
    edited September 2011
    Guys - sorry to ask, because I bet this info is already posted somewhere. But how does the automatic payment option affect MF.

    I think this is the answer: buy rate is .00192. Auto pay drops it by .0001 to .00182. Is this accurate?
  • ghstudioghstudio Posts: 970
    edited September 2011
    elonepb....I know you said coupe, but your best bet on meeting your price objective and getting a fully equipped car would be to get a bluetec (diesel) sedan...which would also save quite a bit on fuel, although you probably charge that to the company so maybe that doesn't matter. The key is the much higher residual on the bluetec. In fact the bluetec on a 24 month lease may give you the best (lowest) monthly price. Most gas models optimize at 33 months, but that changes. My guess is that a bluetec car on a 24 mo lease will cost you about $125-150 less than an equally equipped gas car.

    Your company could do a one time everything up front which would drop the monthly cost quite a bit,albeit with a risk should the car be stolen or totalled during the lease (you lose the benefit of gap insurance). They could also provide the cash for multiple security deposits which they would get back at the end of the lease.

    I am not sure if Mercedes will actually write a 20k/year might have to get a 15k or 18k lease and pay for any miles over that. Also watch that the lease doesn't have a maximum total number of miles allowed....where if you exceed that, you have to buy the car. (I've seen that in some leases).
  • yes, it drops the mf by .0001. In my case that was about $10 a month. I opted not to take it (actually they never offered it to me, but I knew about it and did the calculations myself).

    I don't allow anyone to take money directly out of my bank account without my specific permission and the only way I do that is thru PayPal.

    There is a common sense rule of thumb....if "they" have the money already, you will have a much harder time getting it refunded then if "you" have the money and "they" are asking for some payment you don't believe is owed.
  • Thanks gh, I doubt the options you listed (one time lease and MSD's) will be an option. And I guess I'll have to ask the MB dealership if they do 20K. I was also looking at the Audi A5 and Audi offered a 20K lease.

    I'll look into the BlueTec, but the coupe suits my needs better (although I pay for gas myself, so Diesel is attractive).

    Under $700 though?
  • weakestlinkweakestlink Posts: 16
    edited October 2011
    Although I was initially quoted a rate of .00192 less the MSD rate discount, I was later told that you if you use MSDs, you have to use the buy rate (.00225) as the starting point and not the promotional rate (.00192). I joined the finance person and the finance manager on a call with MBFS and the MBFS rep confirmed that you start with the .00225 base rate.

    Since I was originally told .00192, the dealer basically adjusted the selling price to compensate for the rate. I do believe that there is confusion amongst dealers about the MSD, probably because they do not use it very often. There may even be confusion and inconsistency at MBFS.

    Hope that helps.
  • First quote I got do you think I can do better, especially if I'm paying msd's.
    This is e350 4matic lux pkg quartz blue w/ p1 & wood steering wheel. Msrp is $58085. Thanks for any advice.
    Lease numbers are:
    24 Mo
    7500 miles per year
    $548.10/mo(inc NJ tax)
    $8804.52 total due at delivery-inc $6500 refundable deposit.
  • Today I picked up my new car and to my surprise my car had a rear deck spoiler. When I said the dealer, he said he wanted to surprise me and he threw it in for free.

    I got a great deal thanks for everyone here.

  • There is definitely inconsistency at MBFS as I called them independently (not in the presence of a dealer), and they told me that they simply purchase the lease contracts from the dealer. Hence, the dealer has the discretion as to the application of MSD and the subsequent reduction in MF. MBFS is not imposing any restrictions (i.e., stating that 0.0007 cannot be subtracted from the buy rate of 0.00192).

    Thanks to all for making this an active forum, providing insights and guidance as its great to be an educated consumer. btw, I'm picking up my wife's bluetech tomorrow.

  • It is the first day of oct. Are there new numbers? Is 4k conquest the same?

    I'm interested in bluetec 24 and 36 mos. 10 k miles.

    Thanks everyone!
  • Guys. Just giving back a little info from my deal yesterday.

    Apparently, the maintenance cannot be residualized on BLUTEC or on AMG.

    Also, in keeping with posts of several others, my dealer would not combine msd with buy rate.

    Happy car hunting all!

  • insidecarbuyinsidecarbuy NYCPosts: 95
    Again its the dealer looking to score. You definitely can residual the maintenance on both the bluetech and AMG models. You also can use MSD while using the dealer buy rate. Don't forget autopay reduces the money factor by .00010 as well!
  • ghstudioghstudio Posts: 970
    I agree....maintenance can be residualized on blueTec' has to be the maintenance offered by Mercedes though. Some dealers (e.g. mine) try to sell you their own "prefered maintainence" so they can keep the total amount...and they will tell you most anything to avoid you getting a deal on your maintenance.

    I believe .00192 is the rate and MSD's apply to that rate. If the autopay discount applies, then MSD's apply.
  • Well, they certainly may have snookered me. But she sounded convincing when she pulled out some book and read from it. Of course, the page in front of her could have said anything (I couldn't see). And she could have typed the page herself for that matter.

    My solution, for what it's worth, was simply to pass on the maintenance package. It is the 24 month lease, and I drive very very few miles. Certainly didn't feel like the full retail add would be worth it for me. So...if they were trying to pocket the whole maintenance fee, they didn't.
  • jk16jk16 Posts: 3
    Better yet as I just experienced, wait til the last day of mth and have them throw in the 2 yr maintaince as a sweetener to the close deal! Also, I had my sales person go to forum and match prices and I never step into a dealership to buy and to boot they always deliver!
  • Picked up my wife's 2011 E350 Bluetech on 10/1, and the details of my deal are below.

    Arctic white, P1, Split folding seats, Spoiler kit, parktronic, sport pkg, and tinted windows

    Lease: 24/12
    MSRP: $57785
    Final sales price: $50740 (includes $4000 Conquest)
    Cap Cost: $51585 (includes marked up acquisition fee $1095)
    RV = 76%
    MF = 0.00112 (includes MSD & autopay)
    Downpayment: $250 (split cost of tint with dealer)
    Upfront: Down + DMV + 1st month = $1200
    Monthly payment = $460 (includes 7.75% tax)
    MSD = $4800
  • kyfdxkyfdx Posts: 64,624
    Wow.. another great job!

    What state is that?


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  • Hi jk16. I don't believe that the 2012 E350 Sedan Blue Tec has been introduced yet.

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