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Mercedes-Benz E-Class Lease Questions

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  • wp1978wp1978 Member Posts: 1
    I am in No. Calif. and looking for information on lease for a 2012 E350 Convertible (P2 pkg). I have been told that a residual of 57% and money factor of .00167 are market for a 36 mo/10K lease and want to confirm. Thanks for any help.
  • corantrepcorantrep Member Posts: 12
    Dealer quoted $12/mo ($396 total over 33mos) for 30k Maintenance (3 - 10k service appointments).

    Seems reasonable as it supposedly lists for $750-800 from what I was told. Thanks for the suggestion.
  • got_itgot_it Member Posts: 1
    edited January 2012
    Signed a lease today for E350 / P1 / Sport/ Rear spoiler

    MSRP - $55265
    Sale Price - $47988
    10 K / 33 months

    - Scheduled Maintenance for 33 months covered
    - First class lease protection

    $1200 drive off -including first month and DMV / fees
    Base payment - $577.15
    With CA tax - $624.76

    Let me know how I did. Didn't own any previous benz or other luxury car. Went through costco auto program
  • 1_porsche_fan1_porsche_fan Member Posts: 10
    it seems like there is not much discussion about E550 although 350 being very active. I'm thinking to lease E550 with P2 and options as below. Need your input on lease deal I'm being offered and I'd be much appreciated if someone could tell me what the current MF/residual value is

    desgino graphite color
    P2
    high performance tires special order
    illuminated door sills
    appearance pkg
    mbrace
    distronic, lane keeping, blind spot

    Lease term:

    36months / 12k miles
    MSRP: 72000
    mf: .00225
    residual value: 54%
  • jeffkadjeffkad Member Posts: 4
    Corantrep, is this an east coast dealer? NY Tristate area?
  • ghstudioghstudio Member Posts: 972
    That looks like Mercedes standard money factor. You should use multiple security deposits to reduce the mf to .00155 which will save you a fair amount...if you are in a state that allows them (most do...NY doesn't).
  • 1_porsche_fan1_porsche_fan Member Posts: 10
    thanks for your input but I wouldn't pay any $ up front unless I have to. Even T&L I'm trying to residualized to save $.
  • ghstudioghstudio Member Posts: 972
    You apparently don't understand multiple security deposits and how they work. They are SECURITY DEPOSITS, not money down on the car. Unlike money down, you get security deposits back at the end of the lease....they are effectively a short term loan to mercedes finance. For that loan, mercedes finance will reduce the money factor on your lease by .00007 for each security deposit (monthly payment) you loan them. Maximum of 10 gives you a .0007 reduction in your money factor and that gives you a significant reduction in your monthly payment....and YOU GET THE DEPOSIT BACK AT THE END OF THE LEASE.

    making MSDs will save you money.

    Don't believe me.....ask your dealer to run two cases....1) the deal you were given and 2) the same deal with 10 multiple security deposits. Add up the total cost of each lease...total money out, total money back at the end of the lease.

    BTW...you will find that if you loan mercedes $5000, you will save more than $500 a year on your car....or, of course, you could leave that money in a bank and make less than $100 a year. Which one works better for you???
  • joescar1joescar1 Member Posts: 5
    Hi CarMan - Would you give me the mf and residual on a 2012 E350 coupe 3 yrs 15k/yr? Thank you!
  • eric312eric312 Member Posts: 71
    Are there any rebates for customers switching from BMW?

    Are there any rebates on E350 right now?

    My lease is ending at the end of Februrary. Historically, are MB february or march lease deals better?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi joescar1. Mercedes-Benz Financial's February buy rate lease money factor and residual value for a 36-month lease of a 2012 E350 Coupe with 15,000 miles per year are .00162 and 57%, respectively for consumers who qualify for its top credit tier.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Yes, eric312, Mercedes is currently providing a $2,000 cash incentive on E350 4Matic and $3,000 on E350 non-4Matic models to current owners and lessees of BMWs. This is a certificate program though and dealers may have a limited number of them to use.

    It's difficult to say what Mercedes' March lease program will be like at this point.

    Car_man
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  • eric312eric312 Member Posts: 71
    edited February 2012
    Thank you car man!

    Are there any rebates on e350 in addition to BMW customers rebates?

    On mbusa.com specials are for 33 months. Is it possible/better in order to get lower monthly payments to do 36 or 39 months lease?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome eric312. The way Mercedes-Benz has its lease program currently structured I suspect that the 33-month term will result in the lowest monthly payment.

    Other than owner loyalty cash, which probably cannot be combined with the conquest cash, I am not aware of any cash incentives that are available on this model.

    Car_man
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  • ghstudioghstudio Member Posts: 972
    edited February 2012
    If you haven't considered the bluetec, you might want to drive one..it's quite a car...and it has a very high residual value so it may actually be the least expensive e350 to lease. Check the 24 month rates...on the diesel, they have had the highest residuals and therefor the lowest leasing costs.

    Just for interest, ask your dealer to price out a 24 month lease on a bluetec using 10 multiple security deposts vs a gas e350 equipped with the same features on a 24 or 33 month lease. I think you'll be shocked at the difference in the lease costs....the bluetec may be much more interesting to you after that comparison.

    Note: MSD's are not "money down"...they are a loan to mercedes to reduce the money factor and you get the money back. You can read about them in this forum...
  • jarhead87jarhead87 Member Posts: 1
    Hi Car_man,

    I sure wish I had found this site and the information from you and others earlier. Here is the deal I worked up today, I hope I did good. (I pick it up Thursday and actually finalize the rates then so if there is someone to get a better rate please let me know. I already have them checking into the security deposits option mentioned earlier).

    2012 E350 Cabriolet
    Diamond White Metallic
    Almond Mocha leather
    Premium 2 Launch Pkg
    Rear spoiler
    Wood Trim Pkg
    Appearance Pkg
    mbrace
    Burl Walnut wood trim
    Black Soft Top
    Driver Assistance Pkg
    3 Yr Maintenance Pkg

    Retail Price: $73,609.00 (MSRP $72,840.00 + $769 - 3 yr Maint)
    Negotiated Savings: $ 7,336.00
    Selling Price: $66,273.00
    Fees: $ 903.50
    Sales Tax: $ 4090.59
    Net Sales Price: $71,267.09

    (Note: Current USAA Special Pricing released yesterday is: -$2,750.00 under invoice)

    Lease Will be:
    36 Month / 10K Miles
    $1325.67 at signing
    $950.58 / month

    *Note – I was going to put between $15K down which would be a payment of $526.02.
    I think I will keep my money and go with a higher payment.

    I was told the Money Factor was: .00207
    The dealer mentioned you can get a ¼ of a percent off the rate if you go with automatic payment debits.

    USAA seemed to save a lot. How does this look above?
  • ghstudioghstudio Member Posts: 972
    If you make multiple security deposits (max 10), you should be able to reduce that mf to .00137 and you get the money back at the end of the lease. It should make a significant difference in your payments and your total cost.
  • psoftpsoft Member Posts: 1
    Hello Got it! Can you share where you got this lease - i am on the prowl for same car. Thanks
    A.
  • eric312eric312 Member Posts: 71
    How much is each security deposit?
  • ghstudioghstudio Member Posts: 972
    There is some confusion on the part of dealers on this....and I don''t know what mercedes actually says it should be...in fact, they seem to accept most anything. In my case, each security deposit was the amount of my monthly payment including tax. Others have paid the amount of their monthly payment without tax but rounded up to the next $50. I actually think the latter is right, but I haven't actually read mercedes manual on leasing (and apparently the dealers haven't either).
  • fungracingfungracing Member Posts: 7
    I just got a quote for 2012 E350 bluetec with P2. $8240.21 drive off. $7000 are in MSD. 24 month/ 10k. Is this good??
  • ghstudioghstudio Member Posts: 972
    Doesn't sound right....$700/mo payment is too high...what are the details?
  • richardnvarichardnva Member Posts: 91
    Car Man,
    Can you post the MF and residuals for both the E350 BlueTec and 4Matic sedan at 10,000 miles/year for 33 months?
    Thanks,
    Richard
  • ghstudioghstudio Member Posts: 972
    You are asking the wrong question. My guess is that some salesman told you that 33 months is the "optimal" lease point and you believed them.

    You have to look at the specific cars and all of the lease lengths to see which is the best deal. BTW, the best deal has been on the bluetec for 24 months....33 months actually cost more per month.

    I encourage you to look at 24 mos, 33 mos and 36 mos and then work all of them thru....with and without MSD's to see what the best deal is for the car you want. Don't just guess which is best by eyeballing the money factor and residual values....and don't rely on the dealer to tell you which is the best...unless he can show it to you in comparison with the other lease lengths.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jarhead87. The selling price that you were quoted, $2,750 under invoice, looks good. The money factor looks a little high though. Mercedes-Benz Financial's current buy rate lease money factor for this car is only .00167 for consumers who qualify for its top credit tier. Make sure that the dealer uses this factor to calculate your car's payment.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I believe that Mercedes-Benz Financial's security deposit is one's vehicle's monthly payment rounded up to the nearest $50 increment.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Richard. Mercedes-Benz Financial's February buy rate lease money factor and residual value for a 33-month lease of a 2012 E350 4Matic with 10,000 miles per year are .00158 and 64%, respectively for consumers who qualify for its top credit tier.

    Mercedes-Benz is not providing any lease support on the E350 BlueTec right now. As a result, if you were to lease one through Mercedes-Benz Financial you would have to use its standard lease money factors. This car's residual value for a 33-month, 10k lease would be 70%.

    Car_man
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  • ghstudioghstudio Member Posts: 972
    And you want to compare the 33 month lease on a gas car to a 24 month lease on the blutec...with a residual of about 76% (guess) and with the MSD's it brings the standard mf down to about where the gas car is "promotionally" priced. You have to run both cases to compare the cost of each lease...

    So CarMan....what is the mercedes "standard mf" rate for tier 1 this month and what is the residual for the blutec for 24 months?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi ghstudio. Mercedes-Benz Financial's current Tier 1 buy rate is .00225, though this may vary somewhat by region.

    The 24-month, 15,000 mile per year residual value for the E350 BlueTec is 75%.

    Car_man
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  • bobby29ocbobby29oc Member Posts: 3
    Car_man

    I am looking to lease a 2012 E350 Sedan or E350 Coupe, Could you please tell me the February buy rate and residuals for a 24, 30, 33, and 36 month lease @ 12k miles a year.

    Thanks!
  • jk7jk7 Member Posts: 36
    Hi Carman,

    For the 33 month residual, does it go down by 2% for 12000 and another 2% for 15000.

    Are the 36 month residuals only 52% for 36 month?

    Are the 33 month residuals similar on the 550 sedan?

    Thanks
  • puripuri Member Posts: 19
    Was just offered a lease with the following details, let me know if this is good?
    2012 e350 p1, sport, spoiler, comfort box, split folding seats
    Msrp 58,494
    33 month
    $2030 at sale including 1st month
    $642/month Incl tax
    Maintenance for 33 month included
    15k miles

    Look ok? Need advice ASAP! Thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi bobby29oc. Mercedes-Benz Financial's February 2012 buy rate lease money factor and residual value for a 24-month lease of a 2012 E350 Sedan with 12,000 miles per year are .00157 and 68%, respectively for consumers who qualify for its top credit tier.

    The numbers for otherwise identical 30- and 36-month leases are .00157 / 63% and .00157 / 54%.

    If this car is eligible for Mercedes' "Value Added" program, and I suspect that it is, you can use its 30-month terms for a 33-month lease.

    The 24-, 30-, and 36-month numbers for the 2012 E350 Coupe are .00162 / 69%, .00162 / 63% and .00162 / 59%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jk7. Mercedes-Benz Financial's 12,000 mile per year residual values are 1% lower than its 10,000 mile per year residuals. Its 15,000 mile per year residual values are 3% lower than its 10k resids.

    The 36-month, 15,000 mile per year residual value for a 2012 E350 Sedan 4Matic is indeed only 52%.

    I don't know if the E550 Sedan is eligible for the Value Added program, that enables consumers to lease for 33-months using the 30-month terms. I suspect that it is not. The 30-month, 15k residual for a 2012 E550 Sedan is 58%.

    Car_man
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  • grandmamagrandmama Member Posts: 10
    What's a good monthly payment for a 33 or 36 month lease for the E550 4matic (msrp $72k) with 5k down?
  • jk7jk7 Member Posts: 36
    Thx Carman
  • ghstudioghstudio Member Posts: 972
    Putting $5K (or anything) down on a lease is not a good idea. If your car is stolen or totalled, Mercedes will use that money instead of their free gap insurance. Either use the money to make multiple security deposits or keep the money and use it to pay the slightly higher monthly payments.
  • ghstudioghstudio Member Posts: 972
    edited February 2012
    I just ran the numbers on two 12K mile/yr leases using February rates. My "typical" gas car MSRP was $58800 and an identically equipped BluTec was MSRP $60000. I kept all bank fees, dealer fees the same in my calculations and included no tax. For the gas car I used a 33 month lease (mercedes claims to be the best) run at the 30 mo rates....MF=.00157 residual 63%; for the Diesel, I used 24 months which currently has a mf=.00225 and residual of 77%. I applied the maximum of 10 MSD's to the diesel but I did not apply it to the gas since the promotional rate is lower than the standard rate less the MSD's. I assumed that the actual selling price of each car was $3000 below MSRP so the discount is identical. Even though they are the same, I used $1295 as the bank fees + dealer admin fee) in my calculations.

    Results:

    The gas car leased for 33 months: your monthly payment will be $755
    The Diesel car leased for 24 months: your monthly payment will be $665

    The real total cost of the lease (including all payments including the $500 end of lease fee and remembering that you get the ~$7500 MSD cost back) is:

    Gas: $809/mo (putting $5K down only drops this to $801/mo)

    Diesel $740/mo (loaning mercedes ~$7500 (10 MSD's) which you get back)

    BTW, the real total cost per month should be the only number you care about in a lease.

    I did this excercise because I have been advocating considering leasing a bluetec on a 24 month lease and I also advocate using MSD's. This case illustrates why.....it's cheaper :)
  • jk7jk7 Member Posts: 36
    Hi Carman,

    I am trying to do a european delivery on a e350. I am getting quoted the following

    33 month 15000 lease 61% residual and MF 0.259.

    That money factor seems high from what Ive read on previous posts. I asked about multiple security deposits and was told that this residual was a special and hence cannot be combined with MSD. I dont believe this to be true, can you comment on this.

    Thx
  • ghstudioghstudio Member Posts: 972
    edited February 2012
    yes, the money factor seems high and personally, I have never come across a lease with a special residual. On the other hand, I have never leased a car for European delivery.

    My guess is that the dealer is blowing smoke and figures they can make a few extra dollars....go to, or just call, another dealer and see what they say.

    The reason I am very suspicious is that they aren't telling you what the deal would be WITH multiple security deposits. OK, if this actually is some special residual, what would the residual be with MSD's and how does the lease compare.

    I feel pretty safe with my blowing smoke, or perhaps smoking something hunch..

    Using a sample car msrp 60000, discount $3000, leased from your local dealer with MSD's (15K miles 33mo lease) and 10 MSD's would cost you about $725/mo. Using the same car, same terms and discount but your dealer's "special" numbers and no MSD's, your car would cost about $850/mo. Not sure what the discount is on european delivery, but you should compare the two leases and my guess is that finding a car in the US to lease will save you money.
  • jk7jk7 Member Posts: 36
    Thanks..

    I think the discount on ED will be 7% off MSRP plus maybe another 2%. The more I think if it, if I order through the dealer and put money down I will be stuck with their terms. Can probably negotiate a better lease if i just leased it locally.
  • eazyduziteazyduzit Member Posts: 2
    Have a 3-yr, 30K mile lease on a 11' E350 which I got in Sept. Currently have 3,400 miles.

    Mileage was fine with my old job with a short commute. I now have a new job and have to do a 120 mile round trip commute 2-3 times a week. This is obviously untenable with my lease.

    What would you do in this situation? I'm only vaguely familiar with lease buy outs. Have also thought of buying a cheap commuter car.

    Would appreciate your thoughts.
  • ghstudioghstudio Member Posts: 972
    Ask your dealer what it would cost to get out of your lease. I did with my 2011 infiniti m37 about 12 mos into a 39 mo lease and the cost to me to turn the car back in early was $1000.

    You might get a better deal if you explain the situation and lease an e350 Blutec which is an outstanding car. Let the dealer figure out the options for you.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome jk7.

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  • msnjmsnj Member Posts: 5
    edited February 2012
    I as I am new to leasing trying to figure out I got an offer for lease a 2012 E350 blutec
    buy price 52000 money factor .00225
    24 month lease : payment $568 residual $45072
    36 month $680 residual $36982
    both includes NJ taxes of 7 %
    something special only for Feb. Is this a good deal ?
    thoughts of how I can use MSD to make this a better deal.
    I was thinking of doing a trade in is that a good idea?

    appreciate your advise.
  • ghstudioghstudio Member Posts: 972
    edited February 2012
    MSNJ: There really is no special deal in February for the BlueTec....but there is one for the non diesels. The diesel 24 mo lease remains the best deal in cardom. The price quoted looks right.

    You should take the maximum number of MSD's (10) which will require you to "loan" Mercedes roughly $6000 (depending on how your dealer calculates it). That will reduce your MF to .00155 which will result in a monthly saving of about $65. If you kept that $6000 in a CD, it would earn less than $120 in the two years. Using it for MSD's, you will save about $1600. That's a great deal!!!!

    You should also price the lease with and without mercedes (must be mercedes) basic maintenance included. Some dealers allow you to residualize it like any other feature....so you would only pay about 75% of the total cost. That's another terrific deal. If your dealer doesn't do it this way and you have to pay the total MSRP over the 24 months, then it's up to you...no reason to take it or not.

    Good Luck...it's a great car (I drive a 2011 e350 BlueTec P2 and there are really almost no changes for the 2012)
  • msnjmsnj Member Posts: 5
    thank you ghstudio appreciate your guidance.
    I was hoping to keep the car after the lease but the residual looks high any way I can negotiate it down ?
    will it make sense to do a trade in this case ? can I use the trade in for the MSD ?
  • ghstudioghstudio Member Posts: 972
    IMHO, the car will not be worth 77% of it's msrp in 24 months....even my dealer agreed. It's a great leasing deal and at the end, you walk away and get a different car. You don't want to lower the residual because that's what's keeping the monthly cost down.

    Your trade is completely independent of your lease deal...no matter what the dealer tries to tell you. Tell them you want cash for the trade in because you don't want to use it for "money down" (and you really don't want to put money down up front on a lease). This will, of course, confuse them....but they'll live with it. If they offer you $5000 as a "money down" for your trade, just ask them for a check for that amount. Then use that cash to pay the multiple security deposits.

    If your dealer understands multiple security deposits (and based on my experience, that's about 5% of the dealers), they will understand what you are doing. If they don't understand MSD's they will be very confused by the entire transaction...wondering why you are doing this strange thing which no one else does.
  • puripuri Member Posts: 19
    Ghastudio - what did you pay out of pocket and hiw many miles and for how many months?
    I am looking to buy ASAP!
    Thanks in advance
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