Mercedes-Benz E-Class Lease Questions

seattlecruiser · September 2011

That is not accurate and I have the paperwork to prove it. I would go with another dealer. BTW, I asked them also what the MF would be for a prepaid lease (one balloon payment up front), and I was also quoted a 2% reduction in interest. So I agree, MSD are the way to go!

ghstudio · September 2011

The easy solution to this (and the one dealers just hate) is to suggest that you and their marketing or finance manager call mercedes finance on a speakerphone and ask if the MSD's apply to the .00192 finance rate. To be fair, they may actually believe that they are right and they need to make that call to understand that the .0192 is not a promotional rate. But be sure that you hear mercedes answer yourself.

BTW...if you find, using this method, that we are wrong here...please post back.

elonepb · September 2011

I'm rather "uninformed" when it comes to some of this, but I read through a bunch of pages and would appreciate any help.

Looking at leasing a E350 Coupe (this would be a corporate lease) very soon. Options will vary based on what the monthly price would be, since this is being paid for by my company. I'd like to come to them with an offer under $700 a month but be decently equipped.

Can do 2 years, 3 years, doesn't matter but I will definitely need 20,000 miles a year. I'm based in NJ - can anyone help me get started on figuring out where I need to be to meet my needs, if it's even possible?

Thanks!

whichluxurycar · September 2011

Guys - sorry to ask, because I bet this info is already posted somewhere. But how does the automatic payment option affect MF.

I think this is the answer: buy rate is .00192. Auto pay drops it by .0001 to .00182. Is this accurate?

ghstudio · September 2011

elonepb....I know you said coupe, but your best bet on meeting your price objective and getting a fully equipped car would be to get a bluetec (diesel) sedan...which would also save quite a bit on fuel, although you probably charge that to the company so maybe that doesn't matter. The key is the much higher residual on the bluetec. In fact the bluetec on a 24 month lease may give you the best (lowest) monthly price. Most gas models optimize at 33 months, but that changes. My guess is that a bluetec car on a 24 mo lease will cost you about $125-150 less than an equally equipped gas car.

Your company could do a one time lease..pay everything up front which would drop the monthly cost quite a bit,albeit with a risk should the car be stolen or totalled during the lease (you lose the benefit of gap insurance). They could also provide the cash for multiple security deposits which they would get back at the end of the lease.

I am not sure if Mercedes will actually write a 20k/year lease...you might have to get a 15k or 18k lease and pay for any miles over that. Also watch that the lease doesn't have a maximum total number of miles allowed....where if you exceed that, you have to buy the car. (I've seen that in some leases).

ghstudio · September 2011

yes, it drops the mf by .0001. In my case that was about $10 a month. I opted not to take it (actually they never offered it to me, but I knew about it and did the calculations myself).

I don't allow anyone to take money directly out of my bank account without my specific permission and the only way I do that is thru PayPal.

There is a common sense rule of thumb....if "they" have the money already, you will have a much harder time getting it refunded then if "you" have the money and "they" are asking for some payment you don't believe is owed.

elonepb · September 2011

Thanks gh, I doubt the options you listed (one time lease and MSD's) will be an option. And I guess I'll have to ask the MB dealership if they do 20K. I was also looking at the Audi A5 and Audi offered a 20K lease.

I'll look into the BlueTec, but the coupe suits my needs better (although I pay for gas myself, so Diesel is attractive).

Under $700 though?

weakestlink · September 2011

Although I was initially quoted a rate of .00192 less the MSD rate discount, I was later told that you if you use MSDs, you have to use the buy rate (.00225) as the starting point and not the promotional rate (.00192). I joined the finance person and the finance manager on a call with MBFS and the MBFS rep confirmed that you start with the .00225 base rate.

Since I was originally told .00192, the dealer basically adjusted the selling price to compensate for the rate. I do believe that there is confusion amongst dealers about the MSD, probably because they do not use it very often. There may even be confusion and inconsistency at MBFS.

Hope that helps.

rx5zigen · September 2011

First quote I got do you think I can do better, especially if I'm paying msd's.
This is e350 4matic lux pkg quartz blue w/ p1 & wood steering wheel. Msrp is $58085. Thanks for any advice.
Lease numbers are:
24 Mo
7500 miles per year
$548.10/mo(inc NJ tax)
$8804.52 total due at delivery-inc $6500 refundable deposit.

aawaara · September 2011

Today I picked up my new car and to my surprise my car had a rear deck spoiler. When I said the dealer, he said he wanted to surprise me and he threw it in for free.

I got a great deal thanks for everyone here.

Thanks

dewarsandsoda · September 2011

There is definitely inconsistency at MBFS as I called them independently (not in the presence of a dealer), and they told me that they simply purchase the lease contracts from the dealer. Hence, the dealer has the discretion as to the application of MSD and the subsequent reduction in MF. MBFS is not imposing any restrictions (i.e., stating that 0.0007 cannot be subtracted from the buy rate of 0.00192).

Thanks to all for making this an active forum, providing insights and guidance as its great to be an educated consumer. btw, I'm picking up my wife's bluetech tomorrow.

Cheers!

whichluxurycar · October 2011

It is the first day of oct. Are there new numbers? Is 4k conquest the same?

I'm interested in bluetec 24 and 36 mos. 10 k miles.

Thanks everyone!

whichluxurycar · October 2011

Guys. Just giving back a little info from my deal yesterday.

Apparently, the maintenance cannot be residualized on BLUTEC or on AMG.

Also, in keeping with posts of several others, my dealer would not combine msd with buy rate.

Happy car hunting all!

M

insidecarbuy · October 2011

Again its the dealer looking to score. You definitely can residual the maintenance on both the bluetech and AMG models. You also can use MSD while using the dealer buy rate. Don't forget autopay reduces the money factor by .00010 as well!

ghstudio · October 2011

I agree....maintenance can be residualized on blueTec's....it has to be the maintenance offered by Mercedes though. Some dealers (e.g. mine) try to sell you their own "prefered maintainence" so they can keep the total amount...and they will tell you most anything to avoid you getting a deal on your maintenance.

I believe .00192 is the rate and MSD's apply to that rate. If the autopay discount applies, then MSD's apply.

whichluxurycar · October 2011

Well, they certainly may have snookered me. But she sounded convincing when she pulled out some book and read from it. Of course, the page in front of her could have said anything (I couldn't see). And she could have typed the page herself for that matter.

My solution, for what it's worth, was simply to pass on the maintenance package. It is the 24 month lease, and I drive very very few miles. Certainly didn't feel like the full retail add would be worth it for me. So...if they were trying to pocket the whole maintenance fee, they didn't.

jk16 · October 2011

Better yet as I just experienced, wait til the last day of mth and have them throw in the 2 yr maintaince as a sweetener to the close deal! Also, I had my sales person go to forum and match prices and I never step into a dealership to buy and to boot they always deliver!

dewarsandsoda · October 2011

Picked up my wife's 2011 E350 Bluetech on 10/1, and the details of my deal are below.

Arctic white, P1, Split folding seats, Spoiler kit, parktronic, sport pkg, and tinted windows

Lease: 24/12
MSRP: $57785
Final sales price: $50740 (includes $4000 Conquest)
Cap Cost: $51585 (includes marked up acquisition fee $1095)
RV = 76%
MF = 0.00112 (includes MSD & autopay)
Downpayment: $250 (split cost of tint with dealer)
Upfront: Down + DMV + 1st month = $1200
Monthly payment = $460 (includes 7.75% tax)
MSD = $4800

kyfdx · October 2011

Wow.. another great job!

What state is that?

CarMan@Edmunds · October 2011

Hi jk16. I don't believe that the 2012 E350 Sedan Blue Tec has been introduced yet.

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CarMan@Edmunds · October 2011

Hi whichluxurycar. I haven't heard yet, but I suspect that the conquest cash is indeed still available.

As far as this car's lease program goes, Mercedes-Benz Financial's October buy rate lease money factor and residual value for a 24-month lease of a 2011 E350 Bluetec with 10,000 miles per year are .00192 and 77%, respectively for consumers who qualify for its top credit tiers.

The numbers for an otherwise identical 36-month lease are .00192 and 60%.

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dewarsandsoda · October 2011

Leased in CA...SoCal

enano74 · October 2011

Carman:
Thanks for all your help! Do you happen to have the October lease rate and residual for a 2011 E350 Bluetec for 7,500 miles/yr?
Also, what is a realistic discount for a car with a MSRP of $59,000? I qualify for the $4,000 conquest cash. I'm hoping to get close to 10k off MSRP but I'd like to get your feedback.
Thanks again!!!!!

gator5000e · October 2011

I am looking to lease a 2012 E350 Coupe. I see MB just posted a national lease program for the coupe with the following basic terms for a Premium 1 package: $619/month for 36 months with $4,213 due at signing. The cash due at signing includes $2,799 capitalized cost reduction, $795 acquisition fee and first month's lease payment of $619.

I have gone through the forum but find myself confused with the different ways to try to get the best deal from MB. I know this national deal is likely not the best. I have seen threads about multiple down payments, Conquest cash and other items.

I am coming out of a Cadillac CTS lease (2 months left).

If someone could either point me to thread where all of this is summed up in a post or two, or else set forth in a sort of summary fashion the info I need to know to get the best deal on the 2012 350 Coupe , I would appreciate it.

Thank you for any help or information.

ghstudio · October 2011

The best way to start negotiating a lease for that car would be to forget the advertised deal completely. Start from scratch....

1) Establish the cash selling price of the car....what is your discount off MSRP.
2) Establish how long you want to lease the car
3) Explain that you want to pay no capital cost reduction....you will pay the first month's payment plus registration fees and required taxes...nothing else when you pick up the car.
4) Establish the "acquisition fee" which should be $795, but some dealers decide that they deserve more so they try to charge more. $795 is the Mercedes cost.
5) Establish the money factor that they are using for your lease...that's .00192 or something like that...not 4.8%.
Before they calculate anything, get them to write all of the above down on a piece of paper.
6) Since you are leasing, you have to have your service done by Mercedes, so buy your service as part of the lease...buy Mercedes service, not some special service offered by your dealer...and make sure they include it like any other option on the car. You will save significantly doing it this way.
7) At this point they have enough to give you your monthly charge.
8) Now, if you can afford to loan Mercedes 10 monthly payments for the life of the lease, you can reduce your money factor/interest and make about 10%/year on that money by making what's called multiple security deposits. The key here is that you get the money back at the end of the lease vs a capital cost reduction which you don't get back.....and it lowers the interest you pay. It's a great deal. As them to recalculate the lease using 10 Multiple security deposits (which should reduce your money factor by .0007 which doesn't sound like much, but it may be $50 or more a month.
9) Post all of the above here (including the MSRP of the car) and wait for someone to comment...just in case you missed something.

When you first walk in, you may hear: the published deal is a terrific deal...don't bother with all that other stuff. Don't do it....take the time to do it right. Finally, when it comes to MSD's, some/many dealers aren't aware of that option....(which in fairness is not allowed in every state (e.g. NY)), but if they don't know about MSD's, ask them to read their program information or call Mercedes.

Note: they may have a promotional interest rate that they are using in the "special offer"...if so, you probably won't be able to use MSD's if you want that rate.. which may or may not be less than the standard rate less the MSD discount. Obviously, you want the lower rate, whichever it is.

We'll try to help you save some money....

rerodgers · October 2011

I am looking at MBFS Lease Polices and Guidelines for July and in the MSD section it states: "May not be used in conjunction with Special money factors, unless otherwise noted." I checked the special rates section and it does not otherwise note that they can be used. It also states: "Security deposits for the Multiple Security Deposit program are calculated by rounding the base payment (using original Standard money factor) up to the nearest $50 increment.

chuckjr · October 2011

I had a great experience leasing my 2011 E350 from the internet sales dept of a local SoCal dealer.
2011 E350 w Palladium, Premium P1, sport, parktronic and split folding seats - MSRP $56.4
Paid $46.7

30 mos - 10K/yr
Drive off $1031 including license and first months payment of $535

ghstudio · October 2011

Clearly Mercedes finance writes and what dealers do has little relationship.

Is .00192 a special rate or is that the rate for e's in Sept/Oct? I leased in August so we used .0024 as the rate and then took the MSD adjustment off that.

I gave 10 MSD's to reduce the rate and the dealer insisted that each Security Deposit was the monthly payment calculated after taking the MSD discount including local sales tax...unrounded. I even asked if they had to round it to the nearest $50 and if they were using the right calculation for security deposits....they said they were doing it correctly.

I think what you are saying is correct....I know that my dealer talked to someone at Mercedes Finance to make sure they were doing it right. before they did the paperwork. The blind leading the blind....

gator5000e · October 2011

Thank you for the great post. BTW, where can I find out about the Conquest Program? I would like to know if I qualify for it and if so, for how much? Anywhere I can find that out?

Thanks again.

rerodgers · October 2011

The .00240 MF was the Standard rate for a Tier 1 credit level.

enano74 · October 2011

I took delivery of my Steel Gray/Black 2011 E350 Bluetec with premium package 1 and sports package yesterday and this is what I got:

MSRP: $57,235
Selling price: $47,886 (including $4,000 conquest cash)
24 months/ 7,500 miles/yr
10 MSD's ($4,500) to reduce money factor by 0.0007
Autopay to reduce money facto by 0.0001
Qualified as A1 tier therefore base money factor was 0.00195 (you can not use the MSD's in conjunction with the special lease rate of 0.00192. Some folks here reported success stories but if your dealership talks to MB FS they'll tell them no)
Final money factor: 0.00115
Residual value: 78% (if you want 10,000 miles per year, residual goes down to 77%)
Drive off was around $600 (first month + tags + processing fee) + $4,500 for the MSD's which is fully refundable at the end of your lease
I rolled VA sales taxes (3%) and acquisition fee into the lease ($1,440 + $795)
Final monthly payment: $337.50

For a $57k car this is a steal! A couple of things to consider:

A) You have to have $4,500 to get the money factor down.

You gotta find an E350 Bluetec in stock
C) Include the MB maintenance plan in the lease, that way you pay only a portion of it since you are leasing the car. This is a no brainer! ($1,129 for 2 years)
D) Keep in mind that MB switched the COMAND from 4.0 to 4.5 and the dashboard to the new 2012 model around june/july 2011. The easiest way to tell is to check the memory card slot under the radio controls. If the car has the bigger one, then it is the old version.
E) Remember that MB allows you to change your lease mileage allowance during the first 12 months. If you are at month 11 and you see that 7,500 miles are not going to be enough, you can call them and they'll restructure your lease. Of course you'll have to pay for the difference (1% less residual if you go from 7,500 to 10,000) but it is a great feature and not a lot of people know about it. Plus, it is better that paying $0.25 per mile if you go over. Also, if you plan on leasing another MB at the end of the current lease, call your dealer 4 months before your lease is up and they'll waive some/most/all of the fees providing you get a new lease (excess mileage, tires, disposition fee, etc).
F) Don't overthink this. It is an awesome deal!

I've got mine from Euro Motor Cars in Bethesda, MD. Call John Johnston and tell him Angel sent you. He is great and won't play any games with you. It took me a couple of hours and some emails to get the deal done. They still have 2 2011 E350 Bluetec's in stock. Their website shows 3, but I took one

Good luck everyone!

kyfdx · October 2011

I am definitely looking into this... only 2 diesels within 200 miles of where I live... hope they are desperate....

enano74 · October 2011

If you qualify for the conquest cash and have the money for the MSD's it is insane! Plus, the car is freaking awesome!

kyfdx · October 2011

I've got some feelers out..... lol

CarMan@Edmunds · October 2011

Hi enano74. Mercedes-Benz Financial's October buy rate lease money factor and residual value for a 36-month lease of a 2011 E350 Sedan with 7,500 miles per year are .00192 and 56%, respectively for consumers who qualify for its top credit tiers.

As far as the selling price goes, this car probably has a spread of between $3,500 and $4,000 between its full MSRP and its dealer invoice price. Add the $4,000 conquest to that and you have a total of $7,500 to $8,000 to play with. I personally don't think that you're going to be able to swing $10,000 off. Probably something like $7,000 is more likely.

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gator5000e · October 2011

Is the same info available for a 2012 coupe with 10,000 miles on a 24 or 36 month lease?

Thanks.

kball2 · October 2011

Will you please provide the details of the subject lease?

Thanks

kball2 · October 2011

Picked up my wife's 2011 E350 Bluetech on 10/1, and the details of my deal are below.

Arctic white, P1, Split folding seats, Spoiler kit, parktronic, sport pkg, and tinted windows

Lease: 24/12
MSRP: $57785
Final sales price: $50740 (includes $4000 Conquest)
Cap Cost: $51585 (includes marked up acquisition fee $1095)
RV = 76%
MF = 0.00112 (includes MSD & autopay)
Downpayment: $250 (split cost of tint with dealer)
Upfront: Down + DMV + 1st month = $1200
Monthly payment = $460 (includes 7.75% tax)
MSD = $4800

What was the original money factor prior to putting down the $4,800 dollars (MSDs)? Do you get all the MSDs back at the end of the lease?

texasplaythin · October 2011

I negotiated for 3 days. Only 2011 Bluetec left:

MSRP: $58,950
TERMS: 24 months/10k miles per year

I live in Texas, so we must pay sales tax on ENTIRE car. Luckily, I "qualified" for the Conquest $4,000 credit, which more than offset taxes. I didn't use MSDs, but thinking now maybe I should have.

I paid only $1,000 at closing for registration and acquisition fee.
Thereafter, 24 payments of $553 per month.

Is that a decent deal? I thought it was considering the dealership's first offer was $4,200 down (to cover taxes, registration, and acquisition fee) and $749 per month.

Thoughts?

kball2 · October 2011

All,

Is the good 24 month lease deal that I am seeing on this board only on the 2011 E350 Bluetec? What are the money factor and residual % on a 2011 E350 4 Matic for 10k miles and 24 months?

texasplaythin · October 2011

According to MB, you can't residualize maintenance for diesels:
http://www.mbusa.com/vcm/MB/DigitalAssets/pdfmb/serviceandparts/prepaid_maintena- nce_brochure.pdf

kyfdx · October 2011

Also looks like the two-year plan couldn't be residualized in either case....

dewarsandsoda · October 2011

Hi Texasplaythin,
Coupling your info with assumptions, based on prior posts, I made the following calcs below.

RV @ 77% = $45392
MF=0.00192
Acq Fee=$795
Sales price = $50450 ($8500 off list)
Cap Cost = $51245
Monthly depreciation = (Cap Cost - Residual)/24 = $244
Monthly interest charges = (Cap Cost + Residual) x MF = $186
Monthly taxes* = Sales price @ 8.25% / 24 = $173
Monthly lease payment = $603

If you had done MSD (MF=0.00112), I calculate a monthly lease payment of $526. All in all, it seems like you did well.

Cheers!

*I'm not sure if I calculated the taxes correctly, but you noted that you have to pay sales tax on the full purchase price.

kball2 · October 2011

Anyone have an opinion if the 2012 E350 will
get conquest cash yet this year?

kyfdx · October 2011

That is a lot of tax! I think TX tax is 6.25%, though..

I'm guessing that sort of tax treatment cuts down on short term leases in Texas...

kyfdx · October 2011

I think the 2012 model already has $2000?

texasplaythin · October 2011

Yes, your sales tax calculation is correct. It's ridiculous in Texas that we must pay entire sales tax on car (not just for months we use it).

Normally, I won't lease a car unless the dealership gives me sales tax credits (car co. finance arms over-pay in sales tax, so every once in a while they will give "credits" to dealers), but this was such a freakish deal, and the Conquest credit more than offset the sales tax. But I will definitely use MSD's next time.- probably could have lowered my payment by $50-60 per month.

That's one thing not many people have posted on here - how to negotiate and know when dealers have the sales tax credits. Any thoughts? Experience? Advice? I just ask. Dealers are sometime open about it "We don't have any now, but maybe next month..."

I LOVE the car by the way - the diesel is so cool, and love the torque.

texasplaythin · October 2011

It does, but usually (especially in November and December) and educated lessee can negotiate for sales tax credits to offset.

kyfdx · October 2011

Interested in the Bluetec, but none locally, so thought we would go drive an E-Class before we started contacting dealers with diesels..

E350 4Matic with P01 pkg, Parktronic, metallic paint and fold down rear seats.. MSRP $58,900.

Quoted 33 month, 12K mi/yr lease, with scheduled maintenance plan included.. for $647/mo + tax, with around $1250 due at signing...

Actually, not too bad... But, not in our budget, either...

My wife did like the vehicle.. I hadn't been in a new Mercedes in a long, long time.. Bank vault solid and very quiet. You can see where the money goes...

They only had two 2011 models left at this dealership...

ghstudio · October 2011

If you are eligible for the conquest $'s (based on what other cars you own), you should be able to lease that car for 24 mos for less than $500/mo with tax. (33 monthss is not optimal for the bluetec lease...24 months is what you want). Also 1250 is too much due at signing...should be first months payment plus registration and other fees required by law...nothing else.

The residual on the bluetec is much better than the car you drove/priced....

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