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2013 and earlier-Mercedes-Benz M-Class Lease Questions

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Comments

  • ocautoseekerocautoseeker Member Posts: 425
    Just glancing, deal looks great! Won't know for sure until I know the following:

    What's the total MSRP?
    What's your local tax rate?

    I'll run the numbers and let you know how they figured your deal.
  • ai35ai35 Member Posts: 2
    I was initially quoted the following for a ML350 (p2 package, ipod integration, rear seat entertainment included) from R&H motors in Owings Mills, MD:

    Here are the lease numbers we have on an ML350 with MSRP of $54,740.00
    Invoice is Approximately $51,455.60. Mercedes lease cash is $2,000.00. Selling the Car for $49,455.60, Gross cap cost $50,919.60, Payment is 814 per month for 33 month lease 12000 miles per year, money factor ..00185. residual $32,296.60.

    When I inquired why the monthly payment was so high, the response was as follows:

    The lease figures are with 1st payment down only. This is what it required by Mercedes. Most people would put taxes tags and 1st down. If you were to do this it would be $3952.88 down and $709.60 per month.

    My questions are: 1) does their initial offer seem fair or should I try to do some bargaining? 2) does the amount she quoted me for tax/tags/first down payment seem right? 3) should I put the money down up front or just pay a higher monthly fee?

    Thanks in advance for any input. I feel as I am in way over my head in dealing with the salesperson.
  • ocautoseekerocautoseeker Member Posts: 425
    ai35,

    Received your request. Will run numbers and get you an answer shortly. What is your local tax rate?

    I can confirm though, that the mf and residual she quoted you are indeed accurate.
  • ocautoseekerocautoseeker Member Posts: 425
    Based on the numbers you gave me:

    MSRP: $54,740
    Cap Cost: (agreed upon price): $51,455 (Dealer Invoice)
    Cap cost reduction ($2000 MB lease cash): Adjusted Cap Cost: $49,455

    Residual: $32,297 (59%)
    Base MF: .00185
    Terms: 33 mo/12k-m/yr
    Lease Acquisition Fee: $795

    Monthly payments figures based on different amounts due at signing:

    $671.18 + tax (first month + tax, acqusition fee, dmv fees)
    $696.74 + tax (first month + tax, dmv fees)
    $718.25 + tax (first month only)

    Let me know if you have questions...
  • ai35ai35 Member Posts: 2
    Thanks so much for getting back to me! I have a dumb question - how do I find out the local tax rate - is it the sales tax for our state?

    Also, is it plausible that adding the monthly tax would bump up the monthly fee from $718 to $814 (which is what she quoted me)?

    Finally, I did a little more bargaining and they are now willing to give a cap cost of $47900. I'm not sure if this is what they referred to as "gross cap." There was a discrepancy between what they said the sale price of the car was and the gross cap cost. Have you come across this before?

    I really appreciate your input.
  • ocautoseekerocautoseeker Member Posts: 425
    Correct, by local tax rate, I mean your state's sales tax ( 6%, 7.25%, 8.25%, etc).

    Let's just assume your sales tax was 7%. If your pre-tax monthly payments were $718, with tax you'd be at $768.26. The answer is "no", their numbers were wrong.

    Does that Cap Cost of $47,900 include the $2000 lease cash? Also, ask them if they are capping the acquisition fee ($795) into your lease.

    There is no security deposit required on this lease, so your drive off fees should really only be your first month's payment + DMV fees, and possibly a documentation & processing fee (ask them how much it is as it can be quite exorbitant in some states?)

    Yes, dealer's make mistakes all the time.
  • bocastephenbocastephen Member Posts: 35
    There seem to be a lot of good deals on the ML gas SUVs, but I don't see much mention of the diesels. Given the incredible gas mileage and the better resale, is anyone seeing lease deals for the CDI which compare favorable with the gas engine model?
  • ocautoseekerocautoseeker Member Posts: 425
    Lease rates for the 320 CDI are exactly the same as the 350 for the month of March. The residuals differ, however.

    2008 ML320 CDI
    24 / Residual 67% – .00185
    36 / Residual 55% – .00215
    48 / Residual 45% – .00215
    60 / Residual 42% – .00320

    2008 ML350
    24 / Residual 62% – .00185
    36 / Residual 53% – .00215
    48 / Residual 40% – .00215
    60 / Residual 37% – .00320

    Rates based on 15k annual miles. Add 2% for 12k & 3% for 10k.

    Since regions vary, ask your local MB dealer if they have a special 33 mo term on the CDI. If so, they'll utilize the 24 mo. money factor.
  • topgun26topgun26 Member Posts: 16
    Hi these are two offers I have received on the ML350 and 550:
    ML 350- msrp 52,570
    33month/12k, $0 down, taxes in payments(Nassau county, NY) = $664
    ML 550- msrp 60,660
    33month/12k, $0 down, taxes in payments(Nassau county, NY) = $778.79
    Any thoughts?? thanx!
  • tkwhalentkwhalen Member Posts: 1
    Looking for similar deal in Suffolk County...looks like you never heard back. Curious to know if you have leased and what kind of deal you got?
  • chaddy75chaddy75 Member Posts: 48
    These forums have been invaluable in regards to getting better deals so I am posting what I just bought. Hope this helps! I think it was a great deal especially considering no other dealers were able to get this package II with color combo and options I was looking for. Or their prices were much higher. This salesperson was great, very professional and efficient.

    ML 350 Iridium Silver with black MB Tex
    Premium II pkg with: Ipod, Parktronic, 6 Disc, Running boards

    MSRP $53,290
    Selling price $45,182, Total drive offs of $2,000
    Monthly base $566 and $610.00 including tax.
    Money factor based on .00185, 60% residual
    Mileage allowance at 10k although this dealer was so easy going probably could have bumped it up if I wanted to at no extra charge.

    Email if you want his name and info. located in San Diego County. Chadbarrick@aol.com
  • suvindcsuvindc Member Posts: 28
    I visited the dealership (Tysons Corner, Va) yesterday and walked away with the following on a black on black or (alpine rain/ash) 2008 ML350 lease. Any thoughts? Keep in mind the 09 is slightly different and comes out in just a few months but my current lease ends in a couple of weeks and I need a car and like my chances of a minimal payment on a 2008.

    MSRP: $$56,071 but marked down to $46,061 as part of Memorial weekend special
    Down payment: $7000 (including tags, title, etc.)
    Monthly payment: $536.00
    Features: ipod integration, P1 package, heated front seats, side running boards
    Residual: .56
    Term: 33-months
    Mileage: 10k
  • ocautoseekerocautoseeker Member Posts: 425
    I would suggest not making that large of down payment/cap cost reduction. You run the risk of losing some or all of that money if the vehicle were to be totaled or stolen.

    I'd recommend paying minimum drive off fees only.
  • suvindcsuvindc Member Posts: 28
    Thanks, OC.
    Both dealers quoted me $7-8k in order to get us down to payments in the 5's. We're expecting so it's important we keep our payments low. The $7k figure quoted was after everything was factored in.

    I'm also concerned because I see MB.com has new June/July lease figures up of $549 a month and $4694 down (excluding taxes, title, etc.).

    Thanks again.
  • ocautoseekerocautoseeker Member Posts: 425
    After taking a second glance, the numbers don't add up based on the options you specified. An ML350 with P1, Ipod, Heated Front Seats, and Running Boards should list at just over $50k, and slighly less than $51k with metallic paint added. There is a spread of about $3500 between the vehicle invoice and it's full MSRP.

    Also, the 33mo/10k residual is 59%, not 56% as you specified.

    The dealer contribution (expected discount assumed by the factory)/cap cost reduction on the vehicle listed in the lease example on MBUSA is very similar to your build. Per the ad they have basically capped the cost at invoice. Now, the past several months, the ML350 has also included a $2000 lease cash incentive, and although I don't have any information on whether or not it's been continued into June yet, I can't see it going away.

    My point to all this is... if you were to have them sell you the car at or near invoice (~$3500 off MSRP), then use the lease cash incentive ($2000) as a cap cost reduction/down payment, you'd be at ~$597/mo + tax, and all you'd need to give them at signing is your 1st mo payment + tax ($597 + tax), lease acquisition fee ($795) and Gov't fees (~$500). Your total drive offs would be ~$2000, you'd have payments in the price range you want and you put the remaining $5k in your pocket for a rainy day.

    I'm not sure what your local tax rate is, but assuming 7.75%, your payments would be ~$643/mo out-the-door. If getting in the 5's is important, take an extra $1300 out of your pocket to reduce the cap cost and you'd be around $597/mo otd.
  • innajlinnajl Member Posts: 4
    I am also looking for ML 350 with P1 or maybe P2 package.
    Curently with MB lease special for 33 months and 15k per month for P! package I get
    MSRP $48,950
    Cap price 43,749
    Money factor 0.00205
    residual 56%
    Driveaway fee = 4k (including 1st month payment)

    Monthly payment 588 + 8.25 tax = $636.

    For the P2 with the heated seats I get $688.per month.

    Is that a reasonable deal ? or do people get better bargains. I am in Northern California and am thinking of checking out Los Angeles as well.
  • ocautoseekerocautoseeker Member Posts: 425
    $4k is too much upfront. You should have ~$1800-$2000 due at signing (if bank fee ($795) is paid upfront, less if capped into the lease payments, but payments will go up).

    56% is correct residual for 15k -- 33 mo money factor is .00185.

    There is also a $2000 lease cash incentive. You should utilize this towards your cap cost redcution. There's a spread of ~$3500 from MSRP - Invoice on this vehicle. You should easily be able to negotiate a price at, or very near invoice, then apply the $2000 lease cash as a cap cost reduction/down payment.
  • spottyspotty Member Posts: 3
    Oc,
    Im looking for a ml350 or 320 cdi and this will be my first lease,
    I have just recently began establishing my credit, and my state sales tax is 7%
    What should I expect to pay, both down and monthly? And do you think a higher down payment will get me approved easier?

    Also general question: Has anyone else noticed how crazy low the insurance is on the ml? According to Esurance, its like a hundred a month cheaper then another car of the same cost and class
  • ocautoseekerocautoseeker Member Posts: 425
    I don't recommend making any down payments whatsoever on a lease - drive off fees only (1st mo, dmv's and bank fee). You run the risk of not being able to recover that money if the vehicle is totaled or stolen.

    You'll probably need a co-signer if you have little or no credit history.

    Have you been on the credit bureaus long enough to have a FICO (credit score)? If so, do you know what it is?
  • spottyspotty Member Posts: 3
    Yes, i should have a fico score by now i imagine, and i just gotmy first credit card offer, a capitol one card. And no i dont know what it is yet. What do you think the lowest acceptable credit score is? thanks again.
  • jyoz1jyoz1 Member Posts: 6
    We have a '06 BMW 4.4 X5 whose lease expires in 6 weeks. We have never owned a MB so I test drove the ML350 today and really liked it. When I inquired about the lease program that MB is offering I was told the standard $549/33 mo $4694 cash due but was told that you could not do multiple security deposits to get the IR down. I have done this w/ the last 3 BMW's I have leased and it has turned out real well. I NEVER put money down on a lease, from what I have been told multiple security deposits are not the same and are returned in full in the event of an accident, theft etc. (minus whatever fees they would keep anyway) My question is has anyone heard this before, or tried to put multiples? As we all know the economy is not so good and I am being extra cautious about this lease so I want to make sure I am completely in the loop as to what I am entitled to. Are these just teaser numbers because when i plug them into my calculator I am coming up w/ much higher monthly cost. Thanks
  • cneffcneff Member Posts: 65
    shop around at different MB dealers. I've leased 5 MBs, now I have never placed multiple security deposits or any actually, but that money down number is easily reduced with some negotiating. The most I've ever paid out of pocket was $3k down and that included all fees. I even added a few option packages without bumping the monthly payment much. Dealers usually have a lot of wiggle room especially near the end of the model year.

    As an FYI my last lease was an ML, I leased a 07 ML320 CDI (diesel) with nav, heated seats, 6 disc, harmon kardon, convenience package (dimming and folding mirrors, power memory seats and power wheel), first 10k service free (ask for that just before signing), 12k miles per year, 39 months for $625 (includes tax.) and $3k out of pocket (includes all fees and no security). Yes I did this last year and packages are now different for 08s but the special last year was much like this year. $4,500 down, $549ish per month, (39 month) 10K miles per year and no nav, no CD changer, no heated seats or convenience package and did not include the diesel which is $1k more to start. I did this in Feb 07.

    I also shopped BMW and I still found MB leases the most attractive when all was said and done - just push the dealer and shop around.

    Good luck
  • ocautoseekerocautoseeker Member Posts: 425
    I wouldn't say it's a "teaser ad" per se, as the advertised lease is on nicely equipped model (P1, met paint, heated front seats). MB does offer MSD's, but it does vary by region and MBC could very well not allow them on an already incented lease. I would certainly ask more than one dealer to confirm. Ask to speak with the finance manager or even better, the finance director.

    As for the special lease, here's how it's structured and maybe this will shed some light on why your numbers didn't add up:

    Terms: 33mo/10k-mi/yr

    MSRP: $50,045.00
    Cap Cost/Selling price: $46,553.43
    Residual: $29,526.69 (59%)
    Rate: .00185
    Term: 33 months
    Down Payment/Cap cost Reduction: $3350 (due at signing)
    Adjusted Cap: $43203.43
    Acqusition fee: $795 (due at signing)

    $549/mo + tax. (due at signing)

    The cap reduction, acq fee and first mo account for the $4694. Remember, there will also be Gov't fees due at signing.

    There's a spread of ~$3500 between full msrp and invoice. You should be able to have them sell you the vehicle at or very near invoice. Then, there is also a $2000 lease cash incentive, so definitely use that to reduce the cap cost even further. Net effect, you should be able to get this vehicle ~$2k below invoice.

    So... for example, if you were to lease the exact car listed in the ad and they capped the cost at ~$2000 below invoice ($44,545), with $0 down, only acqusition fee, 1st month, and gov't fees due at signing, you'd be at ~$593/mo + tax.
  • chuckberry1chuckberry1 Member Posts: 2
    Sorry if this has already been answered, just wanted an opinion on whether this is a good time to lease. My current lease is over in October, but ML 350's are disappearing off the local dealer lots. The current special seems hard to beat. I don't want to wait until October and then there be no selection. Any advice is appreciated.
  • ocautoseekerocautoseeker Member Posts: 425
    Are you currently leasing a Mercedes? If so, what kind? MBC will waive the last 5 payments on certain models to get you into a new vehicle.
  • chuckberry1chuckberry1 Member Posts: 2
    No such luck, I'm in an Acura. I'm not crazy about double payments for a few months, but I don't want to miss a deal either.
  • sawjai3sawjai3 Member Posts: 3
    So I was going to take advantage of the lease offers that's out there from Mercedes but need a little guidance to see if this is the best deal.

    ML350 Alpine Rain with PII, iPod, Appearance, trailer, 6 disk, and heated seats
    MSRP: $53280 + fees
    My Price: $47,000
    Drive-Off: $1260.61
    Term: 33 mths
    12K per year
    Monthly: $769.65 + $63.50 (tax) = $833.15

    Seems a little high. When I can get a loaded RX400h for $817 with $1000 down.

    Any advice would help.
  • ocautoseekerocautoseeker Member Posts: 425
    Okay, after running the numbers, my only conclusion can be that they did not utilize the correct money factor of .00185. Based on your drive offs of only $1260.61, I can only assume that they capped the $795 lease acquisition fee into your monthly payments. Even still, with a gross cap cost of $47,795, your payments should be $658/mo + tax. If you were to pay the acquisition fee upfront (gross cap of $47,000), you're looking at paymenst of $632/mo + tax.

    Your tax rate appears to be 8.25%, am I correct? You need to clarify with your dealer that he is indeed utilizing MBC's base rate of .00185. The 33/mo 12k residual is 58%.

    Good Luck!
  • sdevsdev Member Posts: 7
    Hi,

    I was offered this deal and think it is good, especially considering the 15k miles/yr. I welcome comments...

    $584/month without tax...$629.32 with tax
    ML-350 with Premium 1 package (Nav, rear camera, power liftgate, etc,)
    Money factor is .00185
    Residual is 56% at 15k miles/year.
    33 months
    Selling price $42,245
    $2000 down
    This is a breakdown of the $2000.
    Lic/Reg fees $344.75
    First payment with tax $629.32
    Lease Acquisition fee $1095
    Dealer Doc fee $45
    Tax on Lease acquisiton and Dealer doc fee - $88

    This is a total of $2202.42 so the extra $202.42 (funded from dealer) was rolled into the selling price to offset the minimum drive offs.

    Thanks.
  • ocautoseekerocautoseeker Member Posts: 425
    That's a great deal, just have them knock the $1095 acquisition fee they marked up down to $795 (what it should be). If they try to snake you, just take them to mbusa.com and click on the lease specials, where it's clearly advertised that the acquisition fee on this vehicle is $795.
  • sdevsdev Member Posts: 7
    OC,

    Thanks for the tip. They agreed to the $795, and dropped the monthy to $562 as well.

    As the saying goes, "Knowledge is Power" and thanks for sharing yours!
  • touring2005touring2005 Member Posts: 4
    My local MB dealer has an '08 M320 available for 44.9k with a retail price of almost 52k. It has almost 9k miles on it. I think it has too many miles in today's buying environment to justify the 44.9k price. The dealer says also that it does not qualify for the 3.9 financing. What are your thoughts, is their price too high for basically a used ML?

    Also, what is it with MB saying they have 3.9% financing and Edmunds showing a 2.9% rate??
  • sawjai3sawjai3 Member Posts: 3
    When I was doing my research on the MLs I found that there is a different deal between the ML350s and ML320s. The interest rates are higher on the ML320s. Currently it is 3.9% on ML320s and 2.9% on ML350s.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I completely agree with you, chuckberry1. I personally hate wasting lease payments to get into something new. You would have to cut your payment on your new car fairly significantly in order to make up for wasting a thousand and change by turning your current car in early or just letting it sit. Mercedes' deals have become increasingly aggressive over the past several months. It is difficult to say what its October incentives will look like at this point, but if gas stays as expensive as it is right now and the economy is at least as bad (both of which I strongly believe will happen) chances are that Mercedes' October lease program will be pretty good. I personally would wait if I was in your situation, but again it is difficult to say exactly what MB's Oct. program will be like.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • bsedrishbsedrish Member Posts: 26
    Just started looking into the ML/GL 320 CDI as I want to go the diesel route. I am in CT and I understand that the 09's will be emissions compliant here with delivery scheduled for Sept or Oct 08. Has anyone cut a recent ML or GL 320 CDI deal that they can share? Money factor and residual on a 27 and 33 would be great as well.

    Thanks
  • cjd9997cjd9997 Member Posts: 8
    Hello,

    can anyone tell me what i should expect to pay for a 52k CDI in the chicago area, the dealer offered it to me at invoice, i think there is more room, but just how much?
    also what should the money factor be on a lease and what and are there any other dealer incentives out there? what should i be looking for in the deal, this is my first MB lease. Thanks in advance for any help or guidance.
  • kuruma8kuruma8 Member Posts: 1
    just got delivered a ML350 with P2, heated seat, running board with MSRP $52120

    33mo lease with 10k miles/year
    $1115 drive off
    $618+tax
  • cjd9997cjd9997 Member Posts: 8
    Is this a good deal?

    ML 320 CDI

    MSRP 51680

    Dealer offer: 45420 + Tax + 3.9% financing for 24-66 months.

    opininos, this is invoice - 3000 Mb cash.

    does the deal get better?
  • jamesgjamesg Member Posts: 19
    this sounds like an excellent deal. would you be able to provide me with info on the dealer? i am looking for the same config in upstate new york.
    James
  • pmelanc1pmelanc1 Member Posts: 7
    Can someone provide me the current MF and residuals for the ML350. 12k miles and 33 months(that seems to be MB standard term).

    Thanks
  • bsedrishbsedrish Member Posts: 26
    58% and .00185 (4.4%)
  • raymondw7raymondw7 Member Posts: 25
    are you by any chance near NJ, if so what dealer?
  • sdevsdev Member Posts: 7
    Sorry not near NJ, I am in SoCal. I actually kept shopping and ending up getting the "employee discount" which brought it down to $505/month under the same terms.
  • mcymcy Member Posts: 1
    Is the $505 per month for 10 or 15K miles per year? Any cap cost reduction? What is the MSRP, purchase price, residual $ and money factor???

    Need all the facts for an informed purchase :)

    Will post all of mine if / when I work out the final details.
  • bsedrishbsedrish Member Posts: 26
    I am in deep negotiations over the following car:

    ML 350
    Iridium Silver
    Black Tex Interior
    P2
    Heated Front Seats
    Blue Tooth adapter
    Sunroof Package
    Ipod Integration Kit
    6 Disc Changer

    33 months, 12k miles no money down other than drive off costs (about $1800)
    The best offer I had was from a friend's dealership with no profit and he wants to charge $660 which includes tax. The other quote I have is not from a friend (friend's dealership is 1.5 hrs away so will most likely not go there) and it is for $670/month. I actually have two dealerships that will do this deal. MSRP $52770
    without Bluetooth adapter (price of about $500).
  • sdevsdev Member Posts: 7
    It is 15,000 miles per year with a P1 package and metallic paint. I don't recall the exact terms, but it is the MB financial standard terms. The employess discount got the cost to around $42,500.
  • bajaspeedbajaspeed Member Posts: 5
    2009 33 month lease residual for 12k and 15k miles and money factors on ML350 and does the $4000 marketing money apply to the 2009 models? The lease deal on the MB website for the 2009 seems like a good start.

    Thanks in advance for the info.
  • madd66madd66 Member Posts: 28
    Does anyone know the MF for August? I was in a dealership today and test drove a C300 sports. When they showed me the numbers the MF was .00450 which is ridiculous since this amounts to aprox. 10.8%! Furthermore they told me this was the rate for tier 1 credit and they don't mark up their buy rate. This was in the Dallas/Fort Worth area.
  • shayna007shayna007 Member Posts: 9
    I have the following offer, how good do you folks think this is?

    2009 ML350 white /cashmere
    P1 package
    $1,902.07 drive off
    15k miles
    $552. plus tax.
  • kjk3kjk3 Member Posts: 1
    I am considering leasing ML 350 or Ml 550. I have been quoted 2009 ML 350 P1 package
    cap 44999,
    33 month
    1500 miles /month,
    1300 total drive off,
    total 622 + tx.

    quote #2 total drive off 2200,
    584 +tax = 629/month. Are these good deals? May consider P2

    However I really like the ML 550 but dealers tell me payments would be close to +$1000. as no dealer or MBZ manufacture incentives.Is that why payments would be almost 2x as ML350?.Do you think is possible to get a payment for the same terms in 700-800 range? Longer lease term? 36?
    Also iam going to ask for buy off of my 2002 S500. Do I use this as a down payment and buy? Concerned about market and huge loss i've incurred already in purchasing. Any comments would be appreciated.
This discussion has been closed.