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Mercedes-Benz E-Class Lease Questions



  • Does that monthly payment amount include tax?
  • Yes - only thing it doesn't include is tags. I'm trying to get him down to $639.
  • ghstudioghstudio Posts: 970
    He should use the rate for your credit category.....some dealers try to use the tier 2 rates for everyone, so if you are tier 1, you should pay less. Once he gives you the proper interest rate, then consider multiple security can make 10 deposits and lower your money factor by .0007...a very good deal.
  • Any changes for November in MF, Residuals, conquest cash, incentives, etc. on leases?

  • snooplivessnooplives Posts: 12
    edited November 2011
    Bump on that. I just got off with one of the private leasing companies I am working with and it sounds like they got better on the 2011's and maybe worse on the 2012's. Any clarification would be great as I'm getting ready to pull the trigger on a new lease. I was looking at the dealer website and it looks like the residual value on the E-350 Luxury 4-Matic Sedan is about 66%. I believe that's down a point from October.
  • chasieboy1chasieboy1 Posts: 6
    edited November 2011
    I just leased 2011 E350 P1 AMG Sports Pckg with $999 drive off and 539/month including tax(8.75) 12k/yr 33 months and they covered 4 more months remaining on my 09 C300..MSRP was 55000 and selling price was 45388..all my discounts includes conquest,loyalty..
  • Hi chasieboy1.

    May I ask which dealership you or which state you are in?

    In Southern Californi I was just quoted:

    P1, AMG Sport Package, Panormaic Sunroof,

    1. 1200 miles/year
    2. 33 months
    3. $2300 drive off
    4. $580/month including tax.
  • got mine from RAB motors in Marin City CA Bay Area..I was originally getting 2012 ML350 but not much incentives compare to an E class..Im paying 70 bucks less from my 09 C Class which Im happy to get an E..Goodluck!
  • I am trying to surprise my husband with a new car. I never leased before. I would like to lease a 2012 E350 Mercedes sedan and need some help.

    I negotiated the following:

    $5000 down, including taxes and charges
    $575 per month
    30 month lease
    Palladium grey with black interior Sport

    I think I can get them down to $525. What do you think? Thanks
  • You can do much better and your leaving out important information to get a correct answer back. What is the M.S.R.P. - How many miles per year for the lease are you allowed and what state are you in? What other cars do you currently own?
  • Thanks.
    12,000 miles per year.
    MSRP $59,215
  • ghstudioghstudio Posts: 970
    edited November 2011
    Do not put that $5000 down as a down payment. It looks good because it lowers your monthly payments, but effectively you are paying $5000/30months or $166 a month more than what they are quoting your lease is $525+166 (prepaid) or almost $700 a month for that car.

    The "smart money" way to use the same $5000 is to tell them you want to put that money towards multiple security deposits....and remember, unlike a down payment, you get all your security deposits back at the end of the lease. That's a very big difference. But the biggest advantage is that by making multiple security deposits (which is effectively just loaning mercedes that money), you will cut your monthly payments from $700 to roughly $650 a month....a saving of about $50 every month. The problem you have looking at this is that in one case you are paying $525 a month and that seems like less than $650 a month...but at the end of the $525 a month lease, you don't get that $5000 back...and at the end of paying $650 a month for the same lease, you get the $5000 back. Add up the total you spent for the car in both cases and you've saved money by writing a larger check each month. (Obviously you have to work with your real numbers...but I'm not far off).

    Please be a smart leasor...don't fall for the money down trick.

    Warning...your dealer may tell you it's a terrible deal...each security deposit only lowers the money factor by .00007, etc. Ignore that...most dealers have no idea how multiple security deposits work and they focus on lowering the check people have to write each month. By the way, multiple security deposits are a standard part of the mercedes finance's not something offered by some dealers and not's just that most who lease don't know about multiple security deposits and the dealers don't offer it openly because customers don't understand that paying $650 a month is a better deal than paying $525 a month because customers don't realize that the down payment is just prepayment of part of the real monthly payment....just paid in advance.

    Next, Mercedes leasing provides gap insurance as part of their lease...that is, if your car is stolen or destroyed during the lease and it is worth more than your insurance will pay for the car, the leasing company will cover any difference. However, if you paid $5000 down, that money will be considered part of the insurance settlement so the leasing company doesn't refund it to you, even though you haven't made all the's gone. They can't do that with a security get that back even if your car is stolen or destroyed.

    Finally, if you do lease, buy the mercedes (not some other policy that the dealer says is "better") basic maintenance package and have it calculated as part of the lease...not after the deal is done. Maintenance is if they are charging you $1200 for the maintenance, you really only pay about $500 because just like the car itself, the maintenance "feature" has a residual value. If the residual value of the car is 60% after 30 months, then you will pay 40% of whatever the list price is on the maintenance, just like you are paying 40% of the price of the car over the life of the lease. (caution on this...some dealers claim that you can't residualize maintenance....if they won't residualize it, don't buy it this way).

    I know this probably confuses more than it helps....but leasing a car "smartly" as a surprise is not as easy as it sounds, if you are trying to get the best and safest deal.
  • Thanks. This is starting to make more sense to me. So first should I negotiate the MSRP down, lets say to maybe $54,000? Then state that I want buy MSDs with the $5000? But the Mercedes Benz dealer said that I need to pay $3380 due at signing? So we added the additional $1620 to reduce the monthly payments. But I see what you are saying. Why should I give them that money in advance? I keep that money gaining some interest on my end and pay it slowly. So am I not required to pay anything due at signing? Can I opt to just put the entire $5000 in MSDs? Will that $5000 only equate to a $50 reduction of the monthly? Is there a formula to know how to calculate the monthly lease payment with MSDs? Is it the $5000 in MSD will reduce the monthly by $50 but if I get $4000 MSDs, it will reduce it by $40?
    Also I put $500 down to hold the car today but they have to have the car delivered. Can I cancel my contract tomorrow? I believe I can because its within the three days to cancel a contract. Thank you so much for your help. I want to surprise my husnband but I dont want to disappoint him with a bad financial decision.
  • ghstudioghstudio Posts: 970
    I don't know what state you are in but that can effect the money you have to pay up front. When you pick up the car, you should pay the first month's lease payment, the title/registration fees and any taxes required by law. Some states require all the taxes paid up front, but most don't. $3380 is a very large out the door payment, but if your state requires taxes paid that way, then you are stuck. I should also mention that a few states do not allow multiple security deposits....NY is one of them...but again, most states do allow them.

    The monthly savings from MSD's has to be calculated because each MSD (10 max) reduces the money factor by .00007....the dealer really has to run it thru their computer to know the monthly payments. Here's another confuser (sorry) some cases mercedes offers what they call a promotional money factor...and you can't reduce a promotional money factor with MSD's. Ask the dealer what the money factor will be with no MSD's and then ask what the money factor will be with 2 MSD's (that's about what $1200 will buy). pick the option with the lowest money factor. Even if it's $1200, don't make a down payment up front....keep the money and pay it as you go....just in case the car is stolen/destroyed.

    Did you look at a 33 month lease...usually that is a better deal than 30 months, but not always. If you are considering a bluetec (diesel), then a 24 months is a great great deal. Not sure of this months numbers, but you can lease a bluetec for about $125-$150 less per month than a gas e350. I don't think I'd surprise my spouse with a diesel, although it's really a terrific car (I own a 2011)....
  • ghstudioghstudio Posts: 970
    edited November 2011
    One more ask if the $5000 will only save $50 a month. If you do the math, then for a 30 month lease, you will save $1500........think of it this bought a 30 month CD for $5000 and at the end of 30 months you now have $6500...the money you saved plus the original $5000 that Mercedes returns to you at the end of the lease. That's about 10% a year. Of course these are guestimates....but the numbers will work out close to that. Of course you could put the money into a real CD for 30 months and you might get 2% per year from the bank. Which would you pick :) I would give them 50 security deposits if I could.....where else can you get 10% guaranteed on your money.
  • Thank you for your time and advice. I live in NY.
  • ghstudioghstudio Posts: 970
    I believe that if you lease the car from a dealer in NJ, you can lease it with multiple security deposits. I am not sure if they will require you to pay the tax the same way as in NY might not have to pay that tax up front. It would be worth a phone call to check.
  • Thank you. I will make the call. You gave great advice. I usually make these decisions with my husband. Thanks again.
  • hannabhannab Posts: 22
    ghstudiuo is correct - I also live in N Y and generally lease from a NJ dealer, and do make multiple security deposits. As for the sales tax, NYS requires it to be paid in full (only the portion for the term of the lease payments) at the time of registration. It can, however, be rolled into the payment at the prevailing MF, which means drive off costs can be as little as first month and registration fees. The advantage is should some unfortunate event result in the total loss of the car, or for other reason you end the lease early (i.e. pull ahead program or swap-a-leae) you have only paid tax on your actual payments.
  • Has anyone had a chance to post them for November yet? If so, I missed them. If not, thanks in advance.
  • Great post! I am currently looking at leasing a MB, and I am trading in another car that I own outright. I live in a high sales tax state (9.8% on vehicles), and I have been told I only get a sales tax credit for the portion of my trade-in that is actually applied toward the lease as a down payment. I can't just take the money from the trade-in as cash or I will have to pay sales tax on the lease payments. So I have looked at a one-pay lease, which is actually pretty attractive. The MF is reduced by 0.0008 to what amounts to 1.77% interest and I won't pay any sales tax. So a $37,355 before tax vehicle will cost me $11,400 up front, everything included for 30 months. But reading your post I am now concerned about the risk of loss -- is there a way to protect yourself from the scenario you describe above?
  • bknycbknyc Posts: 61
    Car man
    List $68,605- P2, Apperance, Metallic paint, Lane Departure....36 month lease, 10k miles, 3 yr maint. plan. $695 p/month (including NJ sales tax) $1900 out of pocket (1st month, title, reg, tags, bank fee) also includes fleet of $2k and loyalty of $2k-

  • I live in VA and I am having a heck of a time getting the dealers to let me do MSD's! They are suck on their promotional rate of .00186 on a 2012 E350 Sedan. They say this rate is better than buying 10 MSD's on a standard rate and won't even give me a standard rate for me to do the calculation myself. They are willing to do the following:

    MSRP - $57,145.00
    Selling Price - $52,467.00
    RV - 65%
    30 month lease
    Taxes / $795 Fee/ $55.75 Cap Fee = $1,269.75 rolled in lease
    12K miles per year
    Final monthly lease = $755.16

    What should I do?
  • ghstudioghstudio Posts: 970
    I don't think you can protect yourself....Mercedes will want the value of the car as of the time you are ending the contract (much like buying your way out of a lease). Your insurance company will pay you the fair market value of the car which may be (most likely will be) less than mercedes wants. Since you have already paid mercedes for the total lease, they will keep the money you paid and will want you to pay the difference to buy the car at the buy out price....they will not just accept the total paid by the insurance company. A bit confusing, but hopefully you get the idea.

    If you are just paying monthly, you declare the car stolen/destroyed and they should accept whatever your insurance company pays and their gap insurance will cover the difference between the amount your insurance company pays and the 'buy out' price.

    Of course it's never as easy as it should be...but essentially that's the difference.
  • ghstudioghstudio Posts: 970
    I don't know this month's rates...they could be right, but without knowing the standard MF for someone in your credit tier, you can't tell. I don't understand a dealer that won't give you the rate....I'd just walk out and find another dealer...but that's me.

    what's the $55.75 cap fee?
  • kyfdxkyfdx Posts: 70,320
    Generally, one-pay leases aren't treated as an upfront cap cost reduction. The lease is figured as a pay-as-you-go, just with a lower money factor.

    So, the upfront payment is put in escrow, and used to pay the (lower) lease payment each month..

    If the car is totaled, those remaining escrow payments revert to the lessee.... insurance pays off, GAP coverage covers the deficit, just as in a regular lease..

    So, basically, you are covered the same as in a normal lease... with one caveat... If you are in a state that collects the sales tax upfront, then that portion of your one-pay lease amount is gone, and won't be prorated..



    Prices Paid, Lease Questions, SUVs

  • ghstudioghstudio Posts: 970 could well be right, but that's different than what I had been told so I guess I'll go find my lease and see what it says.
  • I wholeheartedly agree with ghstudio's approach. I would also add that you,
    1. Ask carman for the base rate MF for 2012 E350 sedan, and I highly doubt the rate for 2012 exceeds 2011 models significantly
    2. Show the dealer the actual calculation of MSD as MSD coupled with autopay is equivalent to 1.92% (2400 x 0.0008) reduction in interest charges. Further to #1, even if the dealer suggests a marked up MF = 0.00240, you would still be saving on interest vs. their promo rate = 0.00186.
    3. Send them a link to Sally Struthers' correspondence schools for an online course on remedial math, then check out other dealers in VA.

    As an aside, my father lives in NoVA (DC area), and after he heard about my deal, he contacted a few dealers in the area on an S class lease. He had a similar issue, so he tried a few in MD where he had success. Two of the VA dealers' GMs reconnected, claiming that they would do MSD, but by then they had lost his business.

  • Hi lamscott,
    I would highly recommend contacting MB of Long Beach and ask for salesperson with initials G.O. He's transparent and will provide you with base rate MF + MSD. Tell him that the folks from San Diego who leased a 2011 bluetech on Oct 1st recommended you.

  • I got an offer from Long Beach dealer. Including with 2000 conquest money,
    it is 75k off MSRP (57,415) for 2012 Diesel e350. The 4 year 12K 's residual
    is 57% and the MF is 0.00225. So for 4 years is 1500 drive off and monthly
    payment is 560 + tax.
    I don't know if they mark up the MF. But I plan to bargain another 1k from
    the sale price and ask for MSD
This discussion has been closed.