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Mercedes-Benz E-Class Lease Questions

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Comments

  • drfullmoondrfullmoon Member Posts: 3
    Thanks for your prompt response.
  • dannye350dannye350 Member Posts: 30
    I think i am getting a good deal. But i thought id throw it out here to see what other say.

    MSRP:$59,075

    Sale Price: $50,639, with 1000 fleet discount, and $4000 total out of pocket

    Payment is $665.00 per month with Michigan Tax 6%
    Term: 39 months
    Miles: 10,000 per month

    Money Factor: 0.00259
    Residual: 59
  • steelgraysteelgray Member Posts: 2
    I wanted to see if you folks thing this is agood deal before I take it.

    2010 E550 4Matic list price of $ 68,400 fully loaded. I'm trading a 2006 525 with 49,000 miles.

    Trade in value of $ 16,500 and then I one time payment of pay $ 26,185 fro 36 month lease plan with 7,500 miles per year allowed.

    Is this a good deal??
  • marasco0815marasco0815 Member Posts: 10
    edited March 2010
    What! NO. :sick: If I am reading you right you are going to pay up front 42k to lease for 36 months and 7500 miles?
    1. There is some debate on the risk of upfront money on leases but from what I understand your 42k would be at risk (to lose it all) in the event of theft or total accident. FYI- the 39 month is the better lease right now.
    2. If you are looking to put that much down I would just buy it.
    3. In order to evaluate a deal we'll need to know your cap cost and residual (money factor too if you do the sensible thing lease wise and have payments).
    4. You'd have to factor in interest lost on the 42k over the 3 years...debiting down for monthly payments.
    There's lots of good material to get more up to speed on leasing.
    Good luck.
    Frank :sick:
  • steelgraysteelgray Member Posts: 2
    The total cost with Taxes, Doc fees, Registration was $ 72,800. I thought Iwas able to negotiate the price down from $ 72,800 to $ 68,000 with payin the total 36 months up front.

    Furthermore; I was able to negotiate to get the maintenance plan for 3 years worth $ 1,325 at no cost.

    This is why I'm considering doing this. I understand the risk of the $ 42k but my Insurance assured me that I would get the same return value if I lease or purchased outright.

    Let me know what you think.
  • marasco0815marasco0815 Member Posts: 10
    edited March 2010
    This looks awful- looks like the residual is around 43%...it should be 58%- and that's for 15k miles!. 7500 miles would have an even higher residual. Car man might be able to provide details and give you better info.
    Since you would be putting all the money down up front there would be no money factor (interest on payments)...that should result in huge savings. But you ain't getting it...looks like you are overpaying by about 12k. Like they slammed you with the interest anyway and took your cash and something on top.
  • ob995ob995 Member Posts: 40
    edited March 2010
    LOL, First off you know Mercedes-Benz Star Service Pre-Paid Maintenance is $805 and not $1325 right and that covers all factory scheduled services for 48 months or 48000 miles.

    So right off the bat when a dealer tries to charge me $520 more for something MB officially sets a price on their web page, I run the other way. Any dealer who is bold enough to try to rip you off on a MB option is not a dealer I would want to work with at all.

    2nd if you pre-paid the lease from day 1, on a E-Class Sedan and the dealer is telling you they are offering you a smoking deal on a 36 months lease then run away, considering MB special is currently 39 months and by them giving you a 36 month lease are in fact ripping you off.

    Like marasco0815 said the residual are wrong, as it is 61% for 10K miles. And unless you live in a state like TX which charges the full sales tax on leases just like on car sales, you only pay sales tax on the depreciation in most states but even assuming you live in TX the lease should be the following for 36 and 39 months.

    $26519.99 depreciation +4800 in taxes. Considering the fact you are willing to put down $42685 the dealer should be assuming $4800 in drive off and be charging you only the depreciation for a total out of pocket $31320 so he is over charging you by $11365. Also the dealer should be offering you a 39 month lease and not 36 months lease thus making your effective cost per month $803 and not $1095 which is more than people are reporting paying in this thread.

    Also you are aware if you pre-pay the lease upfront and your car is stolen or totaled your insurance company will pay blue book for the car at the time of the loss for example lets say bluebook is $47k after 13 months your lease buyout is $35380. You will be still be required to pay MBF your lease buyout amount and Gap insurance will not reimburse any part of your down payment either. So you basically lost your down payment. Which is why most people say it is much better to put down as little as possible on a lease and pay for gap insurance which by the way is included for free with MBF lease but only costs like $50-100 a year anyways via your insurance company.
  • benzroverbenzrover Member Posts: 6
    This does not seem like a good deal for all the reasons ob955 listed.
  • poorprofpoorprof Member Posts: 124
    Most sites I go on show the invoice for the E350 at $45,198 plus $875 destination charge for a total of $46,073. USAA has the car's invoice at $600 more. I did some more comparisons and USAA has a higher invoice cost on all makes and brands by several hundred dollars (depending on car and model). Any idea how they arrive at a higher invoice than KBB or Edmunds?

    BYW, is the destination charge just a bunch of crap? Since when a merchant charges the customer for receiving a shipment of merchandise that s/he is selling?
  • ob995ob995 Member Posts: 40
    edited March 2010
    USAA invoice price is the same price as both KBB and Edmunds. The only difference between their so called invoice and USAA invoice price is USAA includes the destination charge. Ie do some simple math $46073- $875 = $45198.

    USAA chooses to include whatever the manufacture charges as a delivery charge to invoice of the car price as every car manufacture charges a destination charge and that fee is different between cars even from the same manufacture and every dealer in america pretty much passes that cost along to the customer.

    I 100% agree with you that is a bogus charge but depending on where you live you might also see on the MSRP window sticker a "Advertising fees" and that is just as bogus as the destination charge IMO. All those bogus fee's added to MSRP sticker vary by state and even cities as dealers gets those stickers from the manufacture who adds those charges based on local and state laws.

    When you buy a car, make sure you look at the purchase contract for bogus fee's, remember anything your local state or city allows your dealer to charge you, you will have little to no power negotiating with the dealer because everyone is paying those fee's in your area but if the dealer tries to add something like a "Dealer fees" or "Car Preparation fee" or anything else not listed on the MSRP sticker from the manufacture into the purchase contract, then you can certainly negotiate to get that removed as the dealer might try to throw some of those fee's into the purchase contract hoping most customer will not notice them and they certainly know if you goto another dealer chances are either wont charge those same fee's or not have them at all so more than likely won't risk the loss of a sale over those extra bogus fee's.

    In other states like CA for example, dealers are allowed to charge some bogus fee except CA limits the amount on some of the those fee's like Doc Fee and Bank Fee. Those fee are somewhat negotiable but not 100% either I have never been able to get any dealer to completely remove those fee's but have been able to get them to some times lower them from the max allowed by law as all dealers will try to charge you the max always hoping you either wont notice or complain. Doc fee is limited to $45 max in Ca so not worth arguing over but Bank Fee has a $1095 max cap in CA and for example MBF charges $795 only so a dealer will never go below $795 as they have to pay that to MBF but will almost always try to list that fee as $1095 on the finance contract which allows them to make an extra $300 on the deal. That fee will vary based on which finance company you use, for example official BOA fee is $195 for car loans, Chase fee is $295 for car loans and $495 for leases and US Bank is $95 for car loans and $295 for leases and in all cases dealers will almost always try to mark that up to $1095 which is max allowed in CA.

    So even if you negotiate a deal at invoice for example, the dealer can make money by marking up the rates on your financing and even the fees the bank charge. In Ca they can not mark up a rate more than 3% but 3% on a $50k car is $4.5k profit on the loan itself.

    For example lets say you are happy you made a deal at straight invoice and you think the dealer is basically giving you the car at cost just to get rid of it. Think again, he will end up charging you Doc Pre Fee of $45 for example 1-2x depending if you pay cash for the car or fiance it. Then most of the time he will make a profit off the bank fee that the bank charges you to get the loan anywhere from $300-1k and he might even mark up the rate by as much as 1% too which in effect on a $50k means the bank will pay them a premium of $1.5k for getting them a loan above market rate. So a dealer using say US bank loan could in theory market up the rate by 1%, mark up the bank fee to $1095 and you would pay the doc fee 2x meaning he will make $2595 profit even selling you the car at dealer invoice. And most people will never know how much the dealer is marking up the loan or bank fee as neither need to be disclosed in CA either.
  • outieoutie Member Posts: 42
    This looks like a great deal. Did you get the loyalty discount or just the fleet discount? I am still trying to figure out how much to offer my dealer for the price of the vehicle. Thanks.
  • jwilliams2jwilliams2 Member Posts: 910
    BYW, is the destination charge just a bunch of crap?

    Don't really think it's a load or bogus. It covers the cost of shipping the car from the assembly plant to the dealer, and is set by the manufacturer.

    Cars have had destination charges for at least the 50 years or so that I've been buying them. All cars have it, and everyone pays it.
  • poorprofpoorprof Member Posts: 124
    About USAA's invoices: I appreciate your feedback, but USAA adds several hundred dollars on top of the Invoice plus shipping. For example, on the E class, USAA's invoice is $46,673, six hundred more than the $46,073 invoice everwhere else. I am just wondering why? And this is the case with most cars USAA has invoice on although the amounts vary.
  • sis7sis7 Member Posts: 8
    Hi: I'm new to leasing and would like your opinion on if the following is a good lease ( I live in Southern California). Also, if it isn't, what should I counter to the dealer? Thank you!

    MSRP - $57,225
    Miles - 10,000
    Months - 36
    Down Payment - $10,000
    Monthly payment $650
  • ob995ob995 Member Posts: 40
    First off you leave some very important information out, like the car selling price which will drastically effect your lease payment.

    Using the info you provided I was able to play around with selling price to try to create a lease payment as close to $650 per month after tax as possible assuming $7.5k cap reduction and MSRP of $57225. Assuming current residual of 61% and current MF of 0.00305 that means if the selling price is $55225, drive off of $2.5k and cap reduction of $7.5k that would make your payment $661.50 per month after tax. So the dealer is effectively discounting the car $2k from MSRP, Do you have a AAA or Costco card? If so should be able to get somewhere between $3-4k off MSRP and with a $4k discount with $7.5k in cap reduction your payment would be $613.83 after tax if you have a USAA membership the negotiated price is $6k off of MSRP and your payment should be $547.16. While the USAA price includes a $2k fleet discount so that price is not obtainable for non members, getting the car at invoice or close to invoice considering you are putting down $7.5k in cap reduction should not be unreasonable either.
  • sis7sis7 Member Posts: 8
    Sorry, car price is $54,500.
  • ob995ob995 Member Posts: 40
    Based on your selling price the lease is about right, but more than likely it should be not too hard to get that for between $500-1k cheaper especially in So Cal considering their are over 20 dealers in this area.

    If you have a Costco or AAA membership you can save $575 off the selling price pretty easy. If you were able to get the car at invoice that would be $1165. So basically you are talking about $20-35 difference per month on your lease, not sure how willing you are to spend the time required to save. If you had an USAA membership then you could save a big amount as that would make the difference almost $3k off the selling price.
  • sis7sis7 Member Posts: 8
    Change of plans, decided to put $6,000 down with the following:

    MSRP - $57,5225
    Discount - $5276.71
    selling price- $51,948.29
    36 month/10,000 miles - $690

    How's this deal?
  • ob995ob995 Member Posts: 40
    That is a much better deal honestly. Think of it this way you are paying $40 more per month over 36 months so that equals $1440 and you are savings $4k upfront so your net savings are really $2560 over the lease term.
  • ekh443ekh443 Member Posts: 20
    edited April 2010
    Just wondering if this is a good deal. Any comments are appreciated. Thanks.

    2010 E350 Sedan

    P2
    Wheel pkg
    Sport pkg (No charge)

    MSRP $56,575
    Invoice $52,677

    ZERO drive off, sign and drive

    39 months, 10k miles, $807 per month including Los Angeles 9.75% tax.
  • drfullmoondrfullmoon Member Posts: 3
    I like it, especially, zero drive off? I live in LA too,, where did you get your deal? I want to go there.. Thanks
  • outieoutie Member Posts: 42
    So what's the selling price, MF, and residual? Is it for March or April's lease program?
  • ekh443ekh443 Member Posts: 20
    I didn't write those numbers down. All I was concerned about was the final numbers. I know some people are concerned with those numbers, but for me all I care about is the MSRP and the monthly payment, since I always due zero drive off. I got the quote yesterday, so I guess its for whatever the April program is.
  • outieoutie Member Posts: 42
    edited April 2010
    Without knowing what those values are, it's hard to tell what kind of deal you are getting. For example, if the MF really dropped to 0.00195 like the other poster said (not confirmed, 90% confidence), then your # is a bit high. If the MF is still 0.0027, it is about right.

    I was looking at the exact same MSRP car for 1k below invoice ($51,500 negotiated price), payment is about $761 LA (9.75%) tax included, before fees, for March MF 0.0027, 59% 10k, 39mo.

    If MF is 0.00195, the same car is $691/mo.

    Now, you know why those #s matter.
  • ekh443ekh443 Member Posts: 20
    Thanks Outie!

    I will call the dealer and ask for all those numbers.
  • ekh443ekh443 Member Posts: 20
    Just bought the car!!!! Outie, April's money factor went down a little it is .0025 and the residual is the same 59%.

    It has a little more options than I wanted but what the heck.

    Premium 2 Package
    PARKTRONIC w/Parking Guidance
    Wheel Package
    Rear Side Airbags
    Black Ash Wood Trim
    Sport Package

    MSRP $57.935
    39 months
    ZERO drive off, sign and drive
    Maintenance plan (10k, 20k, 30k)

    $832 a month. I could have probably gotten a little better, but I'm so sick of this car shopping crap. Love the car!
  • s9r9d4s9r9d4 Guest Posts: 10
    I got a 2010 MB E550 4MATIC with....

    P1
    P2
    4MATIC
    Sport Styling
    Parktronic
    Multicontour Driver Seat
    Chrome Handle Door Inserts

    12k miles per year, 39 months, $0 down for $1,100 per month.

    What do you think?
  • ob995ob995 Member Posts: 40
    edited April 2010
    You left out of a couple of important factors out but I will do my best to explain why you got ripped off. Without knowing your local sales tax and if that amount is included in your monthly lease payment it is going to be hard determine how badly you got rip off.

    Residual is 55% for 12k and MF is 0.0025. MSRP of your car is $68175. If we assumed minimal drive off of about $2100 in CA (could be higher or lower depending on where you live) only ie tax, registration and first month lease at MSRP with no discount your lease payment would be $1050.65 per month plus tax. If you got a AAA or Costco card then the negotiated price is $63400 and your payment would be $916.56 + tax. If you currently have a MBF loan or lease then you would qualify for an additional $2k loyalty discount which brings down the selling price to $61400 and your lease payment would be $860.28 per month + tax. If you happen to be a USAA member that adds an extra $2k fleet discount bringing down your price to $59400 which makes your lease payment $804 per month plus tax.

    Now I know it is hard to get a USAA membership as you need to be either active or retire military to be able to join, but getting a Costco or AAA card is as simple as paying the annual membership. And even assuming CA high taxes that still puts your payment under $1k per month including taxes and around $940 after taxes for returning MBF customers. So basically you are over paying by $100 per month on your lease or more depending if you are a returning MBF customer or not.

    Also without knowing your local registration fee etc, as you rolled them back into the lease going to be hard to figure out how badly your got screwed. For example if you live in CA you basically are over paying $1800 over your lease term but if you live in a state like Oregon then you are over paying by almost $4k.

    The reason why I calculated the lease payments with minimal drive off is those fee will change depending on where you live so it is very hard to know what your DMV fee's and bank fee's are taxes are in your local area.
  • poorprofpoorprof Member Posts: 124
    OB995 really knows his stuff. I agree with him fully.
  • s9r9d4s9r9d4 Guest Posts: 10
    I got the car at Rallye Mercedes, in Roslyn, NY (on Long Island). Something else I forgot to add was that I added a special wheel protection package and a paint protection package that was rolled into the payments. Originally, the payment was around $1,080 but then with the addition of the two protection packages and chrome inserts, it came out to about $1,110.
  • ob995ob995 Member Posts: 40
    I added the chrome inserts as you listed them above but even assuming the extra $1100 still only adds about $15 per month to the above lease payments. I personally do not know the DMV fee's in NY nor the sales tax you are paying or if your payment includes sales tax but to get a payment around $1100 even after tax means you paid close to MSRP after you rolled in all fee's.

    Look at the negotiated selling prices I listed, if you pay around those prices you did not do so bad. If you are a returning MBF customer and paid more than the negotiated AAA or Costco then you got taken because I am sure the dealer gave you the loyalty discount which allows them to get reimbursed $2k from MBUSA off the selling price and difference between MSRP and invoice is about $4700. Like I said getting the AAA or Costco discount is as simple as paying the membership so their is no reason to pay more than invoice for E-Class.
  • seekingaudia4seekingaudia4 Member Posts: 66
    edited April 2010
    ob995, I have a question for you, there is talk about an MB loyalty program, does it apply to those who currently own an MB or is it only good for an MB lease return customer? Any details about this program?

    We purchased an MB a few months ago through MBF, consider possibly making MB the second car too, but when I asked several MB sales guys they seemed to draw a blank.
  • buddyluv1buddyluv1 Member Posts: 9
    does anyone know if there have been any changes to the lease programs on the E350 coupe for April? My lease is up this month on my current E350 (2007) and I'm trying to decide whether or not to extend my lease for another 6 months or so. Right now I pay $515 including tax, drive off was $2,600, 33 months, 12,000 miles a year. Now, I can extend for up to a year but I will have to change the brakes and the tires, which will run a couple thousand. Really love the coupe...don't like the look of the new sedan. Thoughts??
  • ob995ob995 Member Posts: 40
    The loyalty discount is for returning MBF customers. If you are trading in a car financed via MBF you also qualify for that discount. I am not sure if you are simply eligible for the loyalty discount if you happen to have another car which is financed via MBF and choose to buy another car. That loyalty discount is really meant as a way to keep current customers from switching car brands.

    Also just so you know not all models qualify for that loyalty discount either only current E-Class(211) and CLK(W209) coupe customers qualify for that loyalty discount. And that discount can only be applied to E-Class Sedans.

    I think the reason behind that loyalty discount based on the fact most of the E-Class and CLK customers coming off leases right now were paying considerable less than what it costs to lease today E-Class with the same engine as those people were paying under $600 a month 3 years ago for E350 and under $800 a month for E550 and today those same leases on car with the same engine which costs the same are running $150-200 more a month. So by offering that $2k discount basically allows customers to get into the new E-Class Sedan with a much smaller increase which MB thinks is doable for most of their customers. So I think MB is trying to avoid loosing tons of current customers over the fact leases are not as attractive today as they were in the past.
  • ob995ob995 Member Posts: 40
    edited April 2010
    April leases rates on E Class Coupe are unchanged at all and still use the standard money factor which is 0.00305 which equals 7.32% interest rate.

    The whole problem with Coupe leases rates are 100% based on the money factor being a joke, no factory incentives at all and no lease specials at all. Their is no returning loyalty discount for the coupe like on the Sedan, their is no 39 month lease special using the same residual and money factor as the 36 months thus allowing you to spread out your depreciation over 3 extra months thus lowering your payment. And the difference in the Money Factor is 0.0025 vs 0.00305 which is basically 6% vs 7.32% over the lease term. And on a $55k car that comes out to a difference of about $2200 extra in interest over 36 months.

    So between the higher interest charged on E Coupe leases, the loss of the $2k loyalty discount their alone makes the E Coupe lease in effect over $4k higher over lease term. The difference between being able to divided the deprication over 39 months vs 36 months also lowers your payment by about $56 a month.

    So if you add up all those discount available on the Sedan that the coupes does not qualify for it adds up to a little more than $6k over the lease term. And that is the real difference in lease price of the Sedan vs Coupe. You are paying a $6k premium for the E Coupe based on the fact MB think demand for the coupe is much stronger than the Sedan and supply of Coupes is much less than Sedans. Of coarse if people stop paying that premium and sales fall off MB might start to offer some incentives sooner than later on the Coupes but as of right now sales of Coupes continue to be strong so MB is not going to offer any incentives any time soon.
  • msc5msc5 Member Posts: 25
    Just got a call from the dealer that my lease is up in 5 months and MB has a program now which will forgive my last 5 payments if I would like to lease a new vehicle. I currently have an E350. If I can get the 2010 for about my same monthly payment then I would absolutely do this. If I wait until my lease is up then the 2011 E350s will be out and prices will be higher. I'm in Arizona by the way. I know that there is a $2000 loyalty discount now. I'll have to go in to the dealer to compare the new lease prices. My current lease used a MF of .0009 and the RV was 63% and there was a $2000 loyalty discount back then too. From what I can see, the prices of the cars have dropped but the lease programs do not seem as attractive----so I'm thinking my monthly payments will probably go up. Just want to have the correct info. before I hit the dealer.

    First, what is the MF and RV for April for both a 350 and 550 sedan for 36 months at both 12,000 and 15,000 miles. (I was considering the coupe but can see from the above posts that it will definitely cost me more. Also, was wary that the backseat only holds two passengers anyway. So no more coupe for me!) Are there any other lease timeperiods (24 months, 39 months, etc.) which are offering a more attractive program at this time. I can also wait another month or two if the lease programs are thought to become more attractive. I'm thinking that the MF might get better the closer to the 2011 models we get but there will be less cars to choose from and the RV might go down even more??

    Also, I see people keep posting info. about a Costco and/or AAA (I have both) discount. Do you know what discount is offered on these models with these programs? Thanks for the info!!!
  • ob995ob995 Member Posts: 40
    AAA/Costco negotiated price is invoice on Sedans. Invoice is 7% off MSRP excluding all dealer installed options and delivery charges.

    RV for 36 and 39 months at 15k miles E350 is 56% and E550 is 54%. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr.

    Money Factor currently for 36 and 39 months is 0.0025 on both E350 or E550.

    The current lease special is 39 month which allows you use the 36 months numbers on a 39 month lease allowing you spread out the 36 month depreciation over 39 months thus lowering your payment by about $50 a month.

    Even with all the current promo's your lease is never going to be cheaper as leasing business has drastically changed over the last 24 months. Residual values across the board have dropped for most manufactures and lease rates today in general are higher than they were 24 months ago as their is much less competition today and most manufactures want to get out of the leasing business as well.
  • icb2779icb2779 Member Posts: 25
    Does anyone have the residual value and money factor for the 2010 E350 4-matic for 39 months? Does the loyalty apply if you returned a 2008 E350 lease back in November and want to get one now? Thanks for the help.
  • poorprofpoorprof Member Posts: 124
    edited April 2010
    My car that I ordered back in December will finally arrive in LA on Wednesday and at the dealership a week from today. Now comes the haggling part!

    Does anybody know if Mercedes has a program where you can leave extra sec deposit and lower the MF? If so, how much does every sec dep lower the MF?
    Also, any other ways of lowering the MF not commonly known, for example, if you have a credit score of over 800, would they lower the MF?

    p.s., I just had to explain to my teenage son that MF stands for Money Factor and I wasnt trying to be hip..... God help me! :lemon:
  • outieoutie Member Posts: 42
    I searched this thread about multiple security deposits and found that yes MBF allows them, up to 10. Each reduces MF by 0.00007.

    I have also read that someone said his dealer said you can't do MSD in CA. You may want to ask your dealer for sure.
  • poorprofpoorprof Member Posts: 124
    edited April 2010
    Thank you Outie. Much obliged. BMW and Infiniti do MSDs in CA, so I will ask the dealer.

    But if there is a MSD, then say for a payment of $840 a month, each sec deposit will reduce the payment $8 a month or $96 a year. So you basically get $96 on a refundable deposit of $832 or 11%. If you max out on MSD, payment goes down to 762.50 or down about $80 a month or $960 a year on a deposit of $7,620 for a return of 12.6%. This sounds to good to be true. BTW, I am assuming an MSRP of $64,355 and a selling price of $58,100 for a E-350 Lux with 10k/year for 39 months. Am I missing something?

    p.s., if you havent bought your car, give me a way to contact you and I will return the favor by showing you how to save some money.
  • outieoutie Member Posts: 42
    edited April 2010
    I know it sounds too good to be true but it is the same case with BMWs, except they only allow maximum of 7, or a max deduction of .00049. I can tell you it's real as we've done it in the past (BMW). I would definitely do it again.

    Based on your #s, with April's MF of 0.0025, with 10 SDs it will go down to 0.0018, which would reduce the payment from 756 to 689 before tax, or a diff of $67 per month.

    Don't forget that each deposit is calculated based on the monthly payment rounded up to the nearest 50 (it is the case for BMWs, not sure for MB). So your returns % may be a little off.

    I still haven't bought my car yet. I am even thinking to wait for May's rate to come out on 5/4 as it looks like the MF will continue to drop. I would definitely want to know how to save even more and will email you my info. Good luck.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi icb2779. Here's the information that you're looking for. Mercedes-Benz Financial's April buy rate lease money factor and residual value for a 39 month lease of a 2010 E350 Sedan 4-Matic with 15,000 miles per year are .00250 and 56%, respectively.

    Unfortunately, I doubt the fact that you returned a Mercedes back in November makes you eligible for the loyalty cash offer. Having said this, you might as well ask, you don't have anything to lose by trying.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • ob995ob995 Member Posts: 40
    edited April 2010
    Car_man the loyalty cash offer is limited to current W211(older body E-Class) and W209(CLK Coupe only) MBF customers who purchase or lease W212(current E-Class Sedan only). CLK Convertible customers do not qualify for the $2k loyalty discount towards E-Class Sedan.

    So I doubt that Mercedes Benz Financial is going to kick in $2k loyalty discount for someone who turned in a car 6 months ago even if they were a MBF customers considering if you are a MBF customer who already paid off your loan or say currently have an S Class financed or leases via MBF you do not qualify for the $2k E-Class loyalty cash either.
  • poorprofpoorprof Member Posts: 124
    if your car is totalled, do you lose your security deposit? How about if you left multiple SDs?
  • danmizdanmiz Member Posts: 11
    edited April 2010
    What do you think of the following deal for a Mercedes E350 in NY:

    4Matic
    Sport Styling
    Premium 1 Package
    39 months
    10,000 miles per year
    $0 down (other than 1st month and plates)

    I was also told the following:

    MSRP: $55,925
    Selling Price: $51,000
    Residual: 59%
    Money Factor: .0024

    The deal I got is $715 per month.

    Is this a good deal? Thanks for your help.
  • poorprofpoorprof Member Posts: 124
    I picked up my E350 Lux today. Here are the details:

    MSRP $64,325+ Window tint (they let me capitalize that)= $64,625
    Invoice $60,685
    Sold for $57,805 (I got the upper hand here)
    Drive off: $2806.35 (they got me here for $300 as they charged me $1,095 for Acquisition fee + plates, etc.).
    (non-military USAA member, no loyalty or other incentives-they will do $1,500 to $1,800 below invoice for referrals)

    Residual: 59% for 10k miles a year
    MF: .00268 (they got me here for 0.00018)
    Monthly payments $873 including CA's 9.75% tax)

    Then I put $8,500 (10 refundable sec deposit-they agreed to round down) and bought down the MF to 0.00198 and my payment came down to $698.66 plus tax or $767.

    It was like a chess match haggling element by element. They were very professional even though the process wore both of us down. I had the iLeasemyCarPro app on my iphone and I could do the math automatically before they could. That was a huge advantage and I could tell they didn't like it.

    r.e MSD. I saved $110 a month by depositing $8,500. That's $1,320 a year for on a deposit of $8,500 or 15.5%. So, if you can, go for it!

    The car is sweet. I have been on this board for 6 months and learned a lot from you all. Thank you.
  • msc5msc5 Member Posts: 25
    What are people's feelings (best guess) as to what Mercedes Benz Financial will do to the money factor and residual value for May. Trying at decide whether to lease my E350 this month or next month? I believe that the $2000 loyalty cash will still be there in May. I know it is not a guarantee but I'm guessing that the loyalty cash won't go away yet. I'm inclined to wait.
  • ob995ob995 Member Posts: 40
    edited April 2010
    The money factor on E-350 Sedan is 0.0025 which converts to 6% rate interest rate except for V12 models, AMG models and E-Class Coupe which use standard money factor of 0.00275(MBF lowered the standard rate from 0.00305 to 0.00275 this month) every other model from MB uses a lower money factor with the next highest model money factor being 0.00225 and the lowest money factor being 0.000125(SLK).

    So it is not too far fetched to think MBF might lower their MF especially when most other manufacture MF are under 0.002 and most are under 0.015 considering car loans via most banks today can be had at rates sub 4% without even looking at all and sub 3% rates can be found at many credit unions for 36 months. So MBF cost of money is less than 4% for sure and more than likely under 3% as well.

    The only reason the current money factor is so inflated is based on the fact MBF sets their rates to come up with a payment and not based on interest rate environment at all. They consider their competition on E-Class Sedan to be BMW 5 series which is being replaced this fall and Audi A6 which is getting replaced next year. All 3 leases come out pretty close to each other for similar priced cars. As both models are on their last stretch of life so their residual are super lower at this time vs MB is a new body so it has a much higher residual currently.

    The BMW 5 series currently has a 46-50% but I expect that to be much higher on the new body coming out in Aug/Sept so if BMW puts an aggressive money factor on that car, you can expect MBF to react quickly and lower their money factor aggressively as well. On the flip side if BMW tries to pull a MBF like they did on E-Class Coupe and use a standard MF, then I would not expect MBF to lower or offer any other incentives on the E-Class sedan because it will lease cheaper than BMW 5 series.
  • outieoutie Member Posts: 42
    edited April 2010
    Hi everyone, I just want to share some info regarding to MSDs (multiple security deposits). Please correct me if my info is wrong.

    The finance manager told me that the April's MF of 0.00250 is a special rate which CANNOT be further reduced by MSDs. No way in hell he would do it even if I mentioned the other dealer could do it (per poorprof's deal). If I really wanted to use MSDs, they would have to use a "standard" MF which is in the range of 0.003xx. So the MF w/ MSDs will still be higher than the "special" rate of 0.00250. So, I walked up and left the place.

    Can anyone confirm on this issue? Isn't the "standard" rate 0.00275 per ob995's post? Thanks.
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