MF & Residuals for 2021 E350 RWD

temrikitemriki Member Posts: 12
edited January 9 in Mercedes-Benz
I am about to lease a 2021 E350 RWD sedan with a MSRP of $75,280 inclusive of delivery charge. The dealer will not quote me a MF but has told me the residual after 36 months is $36,080. This is a 48% residual based on the MSRP. Comparable 2021 E350's listed on the MBUSA web site for current deals - 9Jan2021 - show residuals of 58%. Something is not right about the residual I'm quoted. There is nothing unique about my car unless the air suspension and the designo Macchiato Beige/Saddle Brown Nappa Leather interior & Lunar Blue Metallic paint make this car worth so much less in 3 years. Plus the other E350 with the 58% residual is based on 10k miles/year & my lease would be for 7500mile/year.
Would very much appreciate any advice.
Thanks
James

Comments

  • kyfdxkyfdx Moderator Posts: 197,778
    temriki said:

    I am about to lease a 2021 E350 RWD sedan with a MSRP of $75,280 inclusive of delivery charge. The dealer will not quote me a MF but has told me the residual after 36 months is $36,080. This is a 48% residual based on the MSRP. Comparable 2021 E350's listed on the MBUSA web site for current deals - 9Jan2021 - show residuals of 58%. Something is not right about the residual I'm quoted. There is nothing unique about my car unless the air suspension and the designo Macchiato Beige/Saddle Brown Nappa Leather interior & Lunar Blue Metallic paint make this car worth so much less in 3 years. Plus the other E350 with the 58% residual is based on 10k miles/year & my lease would be for 7500mile/year.
    Would very much appreciate any advice.
    Thanks
    James

    36/7.5

    .00098 MF
    $500 incentive

    58% residual

    But, Mercedes recently started using MRMs for many models. Any unit that has an MSRP that exceeds the MRM will have the residual reduced by 3%. Current MRM for this model is $65,600

    The dealer seems to be subtracting 3% from the MRM residual (55% of $65600), which doesn't seem to make much sense. This just started a couple months ago, so they may be doing it wrong. Either you use the MRM residual, or you subtract 3% from the MSRP residual. They shouldn't be doing both.


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  • temrikitemriki Member Posts: 12
    edited January 9
    Thanks for you response. What is the $500 incentive? My dealer has offered a bit over 4% off of MSRP plus as of today the Mercedes Benz Club of America is offering an additional $1000 coupon that can be applied to lower the cap cost. This $1000 is from arrangements the club has with the Fleet sales organization.
    If my dealer is taking subtracting 3% from the MRM residual he should be offering 53% not 48%. I don't understand your last sentence about subtracting 3% from the MSRP residual. please explain.
    My understanding is that the MRM for sedans with an MSRP less than $65,600 the Residual is 58% on a 3 yr 7500m/yr lease. So for my $75280 MSRP the residual should be 53%. your thoughts.
    James
  • kyfdxkyfdx Moderator Posts: 197,778
    temriki said:

    Thanks for you response. What is the $500 incentive? My dealer has offered a bit over 4% off of MSRP plus as of today the Mercedes Benz Club of America is offering an additional $1000 coupon that can be applied to lower the cap cost. This $1000 is from arrangements the club has with the Fleet sales organization.
    If my dealer is taking subtracting 3% from the MRM residual he should be offering 53% not 48%. I don't understand your last sentence about subtracting 3% from the MSRP residual. please explain.
    My understanding is that the MRM for sedans with an MSRP less than $65,600 the Residual is 58% on a 3 yr 7500m/yr lease. So for my $75280 MSRP the residual should be 53%. your thoughts.
    James

    The $500 is a Mercedes to dealer incentive

    The residual you gave is exactly 55% of the MRM.

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  • temrikitemriki Member Posts: 12
    You are correct. My residual % should be 55% NOT 53%. Is that correct? BTW what do the initials MRM stand for?
    Thanks
    James
  • kyfdxkyfdx Moderator Posts: 197,778
    temriki said:

    You are correct. My residual % should be 55% NOT 53%. Is that correct? BTW what do the initials MRM stand for?
    Thanks
    James

    Maximum Residualized Msrp

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  • temrikitemriki Member Posts: 12
    Looks like MB has just changed their deals as of 12Jan21. Would you have the MF & Residual for leasing a 21 E350, MSRP $75,000, 3 year 7500mile/year with a security deposit equal to 10x the monthly lease payment. Would really appreciate any info you have.
    Thanks
    James
  • kyfdxkyfdx Moderator Posts: 197,778
    temriki said:

    Looks like MB has just changed their deals as of 12Jan21. Would you have the MF & Residual for leasing a 21 E350, MSRP $75,000, 3 year 7500mile/year with a security deposit equal to 10x the monthly lease payment. Would really appreciate any info you have.
    Thanks
    James

    .00104 MF and 58% residual
    $500 dealer incentive

    With 10 MSDs, .00034 MF

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  • temrikitemriki Member Posts: 12
    edited January 12
    Just want to be certain. Did the Residual % Increase with the Jan12th changes. Before Jan 12th changes the residual you quoted for a MSRP less than $65600 was 58% for a 3 year 7500mile/year lease. For the MSRP of my MY21 E300 of $75,000 it was 55%. Did MBUSA Increase the residual to 58% for this $75k MSRP? Am I misunderstanding?
    Thanks
    James
  • kyfdxkyfdx Moderator Posts: 197,778
    temriki said:

    Just want to be certain. Did the Residual % Increase with the Jan12th changes. Before Jan 12th changes the residual you quoted for a MSRP less than $65600 was 58% for a 3 year 7500mile/year lease. For the MSRP of my MY21 E300 of $75,000 it was 55%. Did MBUSA Increase the residual to 58% for this $75k MSRP? Am I misunderstanding?
    Thanks
    James

    The residual has not changed

    58% - 3% for exceeding MRM

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  • temrikitemriki Member Posts: 12
    The dealer quoted the correct MF with assuming 10x monthly pmt security deposit. BUT the security deposit that is shown in the lease quote is 11.2X the total monthly pmt. Do you have any idea who's getting rich? Or is MBFS lying about the 10x security deposit
    Thanks
  • kyfdxkyfdx Moderator Posts: 197,778
    temriki said:

    The dealer quoted the correct MF with assuming 10x monthly pmt security deposit. BUT the security deposit that is shown in the lease quote is 11.2X the total monthly pmt. Do you have any idea who's getting rich? Or is MBFS lying about the 10x security deposit
    Thanks

    It's possible that Mercedes uses the pre-discounted payment to calculate the security deposit (rounded up to the next $50 increment). I don't know for sure, but that is the way that Infiniti does it.

    It's always rounded up.

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