2025 GLE 450e

rehr22

I took my 2017 GLE 350 in for service earlier this week (91K miles) and fell in love with the loaner vehicle - 2025 GLE 450e (5K miles). I asked my sales rep (Ray Catena dealership) what it would cost to slide into the new vehicle, they proposed I lease it for either 36 or 48 months at the sticker price of $84K.

My question is - should I be leasing a loaner vehicle that has already accumulated 5K miles, or should I be buying this vehicle via CPO at a reduced rate since its used (or what they call a dealer vehicle). I feel like them leasing this to me as a new vehicle seems a bit overpriced since it is technically used.

As an example - when I look at similar CPOs in the area, I see comps (same features) in the 75K range, which is what I would expect them to price the lease at since the 10% rule (cars lose 10% of their value once taken off the lot).

kyfdx

rehr22 said:

@kyfdx said:

What is your location?

How many miles per year?

If it's a service loaner, even though they've designated it as CPO, it is still likely to use the same programs as a new vehicle, with a residual adjustment for the mileage.

I live in 07066, the dealership is Ray Catena in Edison.

10K miles per year

correct, it’s been a service loaner since the dealership took ownership of the car from the VPC in Baltimore

.00290 MF
53%, 50%, 48% residual for 36, 42, 48 months
$7500 EV bonus

While the residual may be reduced to account for the existing mileage, the money factor should still be valid. Also, the vehicle should sell at a discount, even if brand-new, with a further reduction to make up for the lower residual.

If by chance, they say the EV bonus is gone, because it's a loaner (doubtful), you should be certain that the dealership has been given compensation for that, so that should also be factored into the price.

There is also possible a $3000 loyalty incentive, but that may only be for current lessees who have a lease maturing (which wouldn't be you).

Keep in mind: Leasing is no different than purchase. You still negotiate the price of the vehicle. The only time MSRP is relevant is in determining the residual value of the car.

kyfdx

rehr22 said:

I took my 2017 GLE 350 in for service earlier this week (91K miles) and fell in love with the loaner vehicle - 2025 GLE 450e (5K miles). I asked my sales rep (Ray Catena dealership) what it would cost to slide into the new vehicle, they proposed I lease it for either 36 or 48 months at the sticker price of $84K.

My question is - should I be leasing a loaner vehicle that has already accumulated 5K miles, or should I be buying this vehicle via CPO at a reduced rate since its used (or what they call a dealer vehicle). I feel like them leasing this to me as a new vehicle seems a bit overpriced since it is technically used.

As an example - when I look at similar CPOs in the area, I see comps (same features) in the 75K range, which is what I would expect them to price the lease at since the 10% rule (cars lose 10% of their value once taken off the lot).

No, the vehicle should be discounted, in any event. This model also comes with a $7500 EV incentive.
Leasing isn't any different than buying. You still negotiate the sale price of the vehicle.

rehr22

thanks for the speedy response !

I wasn't aware someone could lease a used car (dealer car) so unaware I am able to negotiate the sale price.

It's probably smart to ask for two quotes - Lease terms at 36 & 48 + CPO terms at 36 & 48 (and even 60)

if they do not want to negotiate the sale price I will send them a few of the CPO comps I've seen in the same area and let them know I may give those dealers a call

kyfdx

rehr22 said:

thanks for the speedy response !

I wasn't aware someone could lease a used car (dealer car) so unaware I am able to negotiate the sale price.

It's probably smart to ask for two quotes - Lease terms at 36 & 48 + CPO terms at 36 & 48 (and even 60)

if they do not want to negotiate the sale price I will send them a few of the CPO comps I've seen in the same area and let them know I may give those dealers a call

What is your location?
How many miles per year?

If it's a service loaner, even though they've designated it as CPO, it is still likely to use the same programs as a new vehicle, with a residual adjustment for the mileage.

rehr22

@kyfdx said:
What is your location?
How many miles per year?

If it's a service loaner, even though they've designated it as CPO, it is still likely to use the same programs as a new vehicle, with a residual adjustment for the mileage.

I live in 07066, the dealership is Ray Catena in Edison.

10K miles per year

correct, it’s been a service loaner since the dealership took ownership of the car from the VPC in Baltimore

rehr22

kyfdx said:

rehr22 said:

@kyfdx said:

What is your location?

How many miles per year?

If it's a service loaner, even though they've designated it as CPO, it is still likely to use the same programs as a new vehicle, with a residual adjustment for the mileage.

I live in 07066, the dealership is Ray Catena in Edison.

10K miles per year

correct, it’s been a service loaner since the dealership took ownership of the car from the VPC in Baltimore

.00290 MF
53%, 50%, 48% residual for 36, 42, 48 months
$7500 EV bonus

While the residual may be reduced to account for the existing mileage, the money factor should still be valid. Also, the vehicle should sell at a discount, even if brand-new, with a further reduction to make up for the lower residual.

If by chance, they say the EV bonus is gone, because it's a loaner (doubtful), you should be certain that the dealership has been given compensation for that, so that should also be factored into the price.

There is also possible a $3000 loyalty incentive, but that may only be for current lessees who have a lease maturing (which wouldn't be you).

Keep in mind: Leasing is no different than purchase. You still negotiate the price of the vehicle. The only time MSRP is relevant is in determining the residual value of the car.

===

thanks so much for the providing me the details to give me the complete picture.

A few more things...

1. EV bonus - if I read what you're saying, either I get the credit of $7,500 or the dealership took it already. In any event, this should help take the price down since it was (or will be) applied the vehicle, regardless of the owner.
   
2. Residual - how can I estimate what the residual should be for a 2025 with already 5K miles ?
   

kyfdx

rehr22 said:

kyfdx said:

rehr22 said:

@kyfdx said:

What is your location?

How many miles per year?

If it's a service loaner, even though they've designated it as CPO, it is still likely to use the same programs as a new vehicle, with a residual adjustment for the mileage.

I live in 07066, the dealership is Ray Catena in Edison.

10K miles per year

correct, it’s been a service loaner since the dealership took ownership of the car from the VPC in Baltimore

.00290 MF
53%, 50%, 48% residual for 36, 42, 48 months
$7500 EV bonus

While the residual may be reduced to account for the existing mileage, the money factor should still be valid. Also, the vehicle should sell at a discount, even if brand-new, with a further reduction to make up for the lower residual.

If by chance, they say the EV bonus is gone, because it's a loaner (doubtful), you should be certain that the dealership has been given compensation for that, so that should also be factored into the price.

There is also possible a $3000 loyalty incentive, but that may only be for current lessees who have a lease maturing (which wouldn't be you).

Keep in mind: Leasing is no different than purchase. You still negotiate the price of the vehicle. The only time MSRP is relevant is in determining the residual value of the car.

===

thanks so much for the providing me the details to give me the complete picture.

A few more things...

1. EV bonus - if I read what you're saying, either I get the credit of $7,500 or the dealership took it already. In any event, this should help take the price down since it was (or will be) applied the vehicle, regardless of the owner.
   
2. Residual - how can I estimate what the residual should be for a 2025 with already 5K miles ?
   

1) Yes.. if the unit isn't eligible for the bonus, the dealer has been compensated in some way to make up for it.
2)
The dealer will have a formula. So, whatever it is, they can't alter it. A good guess: $0.30/mile reduction for all miles over 3000 current miles. That used to be the formula, but that's been forever ago.

rehr22

This has been great information and has greatly improved my chances of driving home the right vehicle at the right price.

I'll keep everyone informed as this progresses as I'm currently in talks now with multiple dealerships seeing who wants to make the right deal :