Mercedes-Benz R-Class Lease Questions

sjsilverman

Does MB have a balloon program (loan + guaranteed repurchase price after 3 years or 4 years)? Leasing isn't a great option in Illinois, which charges sales tax on the full capitalized cost at lease signing. (It's actually charged to the finance company that is purchasing the vehicle, but is always reimbursed by the lessor.)

irishrogue1

well i finally got a deal done on an 06 R500. i didnt get the car i wanted, but we should always settle when buying a $60k car.....(at least that is what i keep telling myself). i cant believe i just spent that much money and i dont even have leather interior....how do they even sell a $60k car without fancy vinyl...uhh....naugahyde....errr i mean mb tex????

anyway here it is -
Options
317 Comfort Package
326 Premium Package
MSRP = $62,740
Cap Cost = $46,240

Drive-off amt = $1,372.56

- Ca State Title Transfer fee = $15.00

- 1st month payment = $508.81

- MBF Bank Fee = $795.00

- Ca dealer documentation fee = $45.00

12k miles per year
27 months = $508.81 + tax
MF.00400
Residual = 67%

sigh....options aside, i got a great deal. it sure as heck was not painless though. while the sales manager and dealer i ended up buying from was good, the overall experience sucked.

the guys at walnut creek are a bunch of hacks. the salesman is twit. the manager started out great and then pulled the classic bait and switch as we got close to signing paperwork. and then just blamed not doing a deal on someone higher up....nice waste of my time.

the new guy at beshoff is a straight shooter. if only he could have found some more money over $15k for me, i would have preferred to buy from him. he never changed his tune and was honest that he couldnt go lower. fair enough.

ill post the name of my dealer/sales manager after i sign the fedexed lease docs....

thanks for everyone's help AND MORE IMPORTANTLY THE CONSTANTLY UPDATED INFO. this site was invaluable in allowing me to know which dealers were dealing, had large inventories. without it, i would neve have gotten $16500 off msrp. this board is fantastic!

thx again
Sean

kyfdx

"ill post the name of my dealer/sales manager after i sign the fedexed lease docs.... "

Please don't... as that violates forum rules.. Please see the message printed in red on every page...

Thanks!
kyfdx

martinf

I believe it is OK for irishrogue1 to list the name of his dealership, just not mention the name of the sales person/manager. In any event, I believe he got the vehicle from W.I. Simonson in Santa Monica. I had posted their $16,500 off MSRP a few days ago. Good luck with the R500 irishrogue1! You got one of the best deals out there!!

martinf

You can save about $2700 over the 27 months of this lease by going with the single payment option. I just thought I would mention it to you. It's a personal call, but $13,000 in a 6% CD would only yield me about $1400 to $1500 over the 27 month period (by the way, World Savings Bank has about the most aggressive CD returns in the market. Unfortunately, bankrate.com hardly ever lists them because they mostly offer odd terms like 7 months, 13 months, or 15 months). Even if you have signed the paperwork and are driving the vehicle, I don't think it is difficult to switch over. Again, congrats - GREAT DEAL!!

irishrogue1

yes, simonson in santa barbara. internet manager (linked on their website) is a stand up guy. not even 2 secs of BS during the process.

all of my cash is tied up in my second business otherwise i agree that the one pay makes this even more attractive. although what happens if you total the car during the lease term? i always heard that you lose....doesnt sound right..but....

rider88

I see so many great info on '06, but I am looking at an '07.

Need some comments/help on this quote:

'07 R500 MSRP $66340, out-the-door cost around $3900 (1st month, all taxes, bank fee, registration, etc..), $0 cap-cost reduction, Term 27 months, 15K miles. Monthly around $730.

Any thoughts on these numbers, and any suggestions on what I should be targeting?

Any feedback would be much appreciated!

jprescott1

@%#$. I had an E500 before and I loved it(minus the multi bugs and bad electronic breaks) so I'm happy for my wife. It's hers but I look forward to our ski trips.

amcdad

These deals on the R-class are pretty darn good...It would fit our needs, but we won't be in the market for a replacement for our Cadillac SRX until next spring. Does anyone know how the R-Class is selling? I know its hard to predict, but I am hoping the lease incentives continue for a while...

irishrogue1

i agree that the R board on mbworld never even got off the ground. this one was hot for a while, then it slowed down and i m glad to see it picked up again just in time for some of us to benefit for $10k factory cash.

not sure what your tax is per month, but it looks like your neighbor didnt give you best deal that he could have....maybe took $50-75 per month more than he "should" have.

people are going to line up for the new MDX....

jprescott1

R-class is actually moving here in Cleveland. I tried to improve the deal a bit but wanted to balance it with saving face with my son's best friend's dad ( he through in navagation). I still feel like I was saved from another XC90(not a great car) at a better price. $620/month for a $45k car v.s $600/month for a $62k car.

irishrogue1

i agree that the R class beats the volvo in every way. the R drives like an S class. the xc drives like a refined SUV. roughly same weight for the xc V8. R is 14" longer, 5-6" lower with the same headroom and 1" wider.

rider88

Any comments on this?

I see so many great info on '06, but I am looking at an '07.

Need some comments/help on this quote:

'07 R500 MSRP $66340, out-the-door cost around $3900 (1st month, all taxes, bank fee, registration, etc..), $0 cap-cost reduction, Term 27 months, 15K miles. Monthly around $730.

Any thoughts on these numbers, and any suggestions on what I should be targeting?

Any feedback would be much appreciated!

martinf

First, the real deal on these Mercedes R Class vehicles is the 2006 vintage. With up to $16,500 off MSRP on these cars, you are getting pre-refunded about 25% out of the 35% depreciation part of your lease (based on 15,000 miles/yr.), leaving you to only pay for about 10% of the MSRP in depreciation. Even with the money factor at .00400, that break on the depreciation component of your lease is very hard to beat. Net cost with minimal drive-offs on a comparably equipped 2006 is about $540/month, about 25% less than your 2007.

That being said, I do not understand your $3900 out the door costs. 1st month should be $730, bank fee should be $795, even California registration is about $380. I don't know where the extra $2000 is coming in, unless you live in a state that charges up-front sales tax on the full amount of the vehicle. What is your capitalized cost (i.e., what is your discount from MSRP?)?

rider88

martinf - thanks for the reply.

I tried looking for 2006 with rear airbags, but was not successful, hence we are looking at 2007s.

The 3900 out the door cost includes all the state sales tax to be paid up-front.

MSRP is 66840 (but calculating from MB website, it seems like the MSRP is actually 68K, cap cost is 61061. I think invoice is 60975 (according to Edmunds).

What do you think of this for an 2007?

martinf

It looks like you are getting about $5800 off MSRP. At this point in the model run, I think that is about as good as you are going to find. Apparently, MB has a 5.5% "Dealer Holdback" on these vehicles, giving the dealers only about another $3600 to play with beyond invoice. If you are not in a big hurry, you might want to wait for Mercedes Winter Sales Event which I think will kick in sometime in November. It may also give MB a chance to see if they need to start giving factory to dealer incentive cash. One very positive note about the 2007 R is that money factor is a ridiculously low .00165 (3.96% in English). Versus the .00400 money factor on the 2006's, that low money factor will save you about $6000.

I would still try to check other dealerships for 2006's with rear airbags. If you have small children, however, most manufacturers recommend disabling the rear airbags. I have them on a 2000 BMW 528it and they have always been disabled due to my two little boys' ages. Where are you located?

hockey81

2006 R 350, list 58K, discount $10,100 (includes dealer/factory rebate of $7K). Money factor 0.0021 for single payment for 27 month lease of $16.5K including 6% sales tax? Deal also comes with free servicing for 2 years

martinf

You can get a similar vehicle in Southern California for about $13,000 for the 27 month, single payment lease (including 7.75% sales tax). Look at other postings on this board for dealers (e.g., Simonson (Santa Monica), Fletcher Jones (Newport Beach), Caliber Motors (Anaheim), Beshoff Motors (Northern Cal.) irishrogue1 just got his from Simonson and found the deal and the experience exemplary.

At only 10,100 off, with factory to dealer cash of $7000, they are slightly above invoice. Most So. Cal dealers are dipping $1500 to $2000 into dealer holdback - at least. Big picture, your deal is probably $3000 to $4000 higher than the best deals in So. Cal.

martinf

With the extra $3000 factory to dealer cash on the R500 (bringing the total factory to dealer cash to a whopping $10,000), you may want to reconsider the vehicle. Many posts on this and other R class forums by R350 owners have expressed lament over not at least "test-driving and test-pricing" the R500. Be aware that the money factor will be higher on the R500 (currently .00290 on the single pay).

hockey81

One problem with the West coast dealers, I live in New England. Has anyone found that type of discounting in the Northeast? I looked at the R 500 it had a better deal as far as the discount but the difference in the money factor was an offset. Also the dealer selection for the R500 was limited to black which my kids said would only be good it I were a funeral director (I agree).

fabeneag

Thanks to everyone in the forum for their feedback. It has been very helpful to me!!

In the Boston area and signed lease for '06 Iridium Silver w ash R500. Has premium package, design II wheels and center row console. MSRP was around $62,000. Cap cost for the lease was around $48,000. 15K miles. 39 months at $730 incl. tax. Up front totals $1,095.

Feels like I got a good deal given what's been on this board. Selection in Northeast isn't great. Wanted Sirius but couldn't fine one that I liked.

Thanks again!

jimscays

I have a question. If you do a one pay lease, are you paying the difference between the selling price and the residual price at the end of the lease?
For example, if the MSRP was $52,000 and the sales price ended up being $40,000 and you were doing a 36 month lease, the residual being 56% of $52,000 which is $29,120, on a one pay lease would you then be paying $10,880 plus tax, tag, and bank doc fees? Or is there still a finance charge associated with the lease even tho you are paying all of the payments upfront? Thanks your information would really help and ia much appreciated.
I am debating between the R class and a loaded FX 35, both have similair sales price numbers. :shades:

martinf

There is still a "finance charge." Since you are not paying the full $40,000 sales price, but only the difference between that price and the residual, you pay interest or a finance charge on the $40,000. With MB Financial, they do give you a break of .00110 on the money factor(approximately a 2.64% discount), but it has a floor of .00150. For example, if the MF is .00295 (7.08%)on a monthly pay lease, your single pay MF will be .00185 (4.44%), representing a discounting of the rate by 2.64%. However, if you are considering the 2007 R350, the monthly lease MF is .00165. It would not make sense to do the single pay on that car since they would only lower your MF to the floor MF of .00150. At that point, keep the money in the bank (World Savings has great CD rates that you won't find on bankrate.com since they are usually odd terms like 5, 7, or 13 months)!

That is also why your credit score is important. I originally thought that by doing the single pay, the finance company would not even need to check your credit score. The only problem with that reasoning is that your single pay only covers a portion of the $40,000+ car you are driving away with. I hope this helps!

Between the FX35 and a 2006 R350, you will probably find the R350 to be far cheaper to lease. You are getting the benefit of a high MSRP (higher residual value) and a large discount from that MSRP that essentially will wipe out 23% of the 44% depreciation. I do not think you will find similar numbers on the FX35.

As an additional note, the sweet spot on the R350 lease is the 27 month lease. The residual value is 67%, so with the $12,000 discount, you are actually only going to pay an effective 10% in depreciation, or about $5200. Increasing the lease term to 36 months has you paying an additional 11% for just 9 more months of lease term. This is a highly unusual set of circumstances wherein it is actually cheaper to take the shorter lease than the longer one. Good luck and try to find the R350 that is equipped to your liking. You won't pay that much more for a heavier equipped car because of this unusual high MSRP/high discount scenario. Do be sure to check out the 27 month numbers.

guest

I have been getting emails from a dealership in Los Angeles
area offering very attractive price on their R500 since they don't have the color I am looking for so I called other dealers to see if they would beat/match the special offered by the first dealer so far they either reject the offer or would ask me to go down to their dealership saying they can't quote prices on the phone or by email. Here is part of the ad relating to R500.

Please let me know if this is possible.

--------------------------------------
2007 R350
(Only 2 available / No substitutions)
(Premium Package 1 and Cargo Cover)
MSRP = $48,150
Drive-off Total = $4,999

7,500 miles per year

27 months = $393 + tax

or

10k miles per year

27 months = $410 + tax

------------------------------------------

2006 R500

$16,500 off MSRP

Sample

(18in Wheels,Comfort Pkg,Entertainment Pkg,Sunroof Pkg)
MSRP = $59,430

Your low Price = $42,930
or

Lease (sample)

Drive-off = $2,999
10k miles Per year

27 months = $389 + tax
-----------------------------------------------------

jimscays

Thanks for your advise, appreciate it very much.
:shades:

martinf

That is Simonson's ad from Santa Monica. Very attractive pricing on both, but the real deal is the 2006 R500. Check with Fletcher Jones in Newport Beach, internet department. They will likely meet the Santa Monica deal on their R500's and I believe they still have a large stock. Don't be afraid of a more equipped vehicle than you want. The leasing numbers are usually not that different.

gtli

what happens if you do a one pay lease and the car is totlaed or stolen?

sussan

The second part of the ad is about 2006 R500.
I called the Fletcher Jones in Newport Beach
and even email the ad to them but they don't
want to quote prices on the phone or email, I
think that can cost them at least my business
since I don't want to drive 3 hours round trip
to go to Newport Beach and not get the deal.

martinf

I think the "gap" insurance that is included in the MB Financial Lease will cover that eventuality, but I would check with MB Financial directly to make sure. I have seen that objection to the one-pay lease option before, but I do not know the veracity of those comments. In fact, I may just call MB Financial myself tomorrow to try to ascertain the real story. Somehow, I can't imagine that MB Financial would make the single pay lease available and not provide a significant caveat if there was a significant risk of a serious problem were a theft or total loss were to occur.

marley2326

Wanted to thank everyone on the thread for some very useful information. I just leased a 2006 R500 demo up in Boston. The rates and terms I used on this site were invaluable, here goes....
2006 r500 pewter/black 8k miles, mbusa demo
premium pack, keyless go, full leather, heated seats, rear side airbags, parktronic sticker $65,540.
27 mos/12k year
$1700 due at inception...first payment, bank fee, title/tags
$560/month + tax
I opted for the one payment which came to $14,100...saved $3300 or $116/month.

I had gone there to get a new r500 also pewter/black w/ $61,345 sticker, but wasn't crazy about no parktronic or heated seats, so the i went for the added options and probably paid $25/month more than the ideal math, but I got exactly what I wanted. The terms came out to $17,200 off sticker due to demo, 66% resid b/c mileage at end would be 35k, not the 27k i have in the lease. The mf for monthly pay was .004, and the one pay worked out to .0027, calculating backwards. I almost bought one from CA earlier in the month and have it shipped earlier in the month but, wasn't crazy about the color and $1200 to ship($50/mo on 27 mo lease). So looks like the Northeast pxing is getting aggressive. I was quoted $730/month and ~17,500 for a one pay, with less options, from another local dealer 3 weeks ago.

Thanks again, info was invaluable.