Mercedes-Benz E-Class Lease Questions

bocastephen · March 2008

Thanks for the rate information! those look very nice....are the selling prices on the Bluetecs in line with the deals folks are getting on the gas model, or do buyers end up paying a premium/close to list?

ocautoseeker · March 2008

There's deals to be had on the diesels... just negotiate as if you were on a gas model.

japhale · March 2008

Could you please send me the lease details & dealer info to japhale@yahoo.com?

jaybird12 · April 2008

I have a 06 E320 CDI which is up in 5 months. I received a letter from my dealer stating that MB will let me waive up to 5 months if I lease an other mercedes. There are some good and great money factors, (CLK, SLK .9%) (E, ML 2.9%). I would look to move forward by april 30th and was wondering since the 09's are due out soon, what are the chances to go below invoice on an 08 model and what kind of dollars would I expect if this is possible. also, is there any cash back programs this month. I have not seen any.

viper2 · April 2008

I helped someone lease an 08 E350 4Matic on Saturday. MSRP of 57,XXX. Sold for 52,XXX. Car had P1 package, NC sport package, Ipod adapter, walnut interior, and metallic paint. MF was 0.0005 and residual for 33 months and 12,000 miles per year was 57%. Leased for $690 per month. Only $690 due at signing. All fees (taxes, MV, doc fee, etc.) were added to the cap cost of the lease.

This was at DavidMichael Mercedes Benz of Freehold, NJ.

Peter

jim53 · April 2008

MF was .0005? I have never heard of a rate that low. Is that through MB Credit?

jaybird12 · April 2008

Yes it is true. Was at a dealer on Monday and E350 4matics are (.00050) 1.2% and 2wd E350 is (.00080) 1.9% thru MB Finance. I am working a deal now.

jim53 · April 2008

that's unreal. Do you (or anyone) have any idea what the E63 money factor is? I leased one last month and am curious how much better it could have gotten had I waited.

japhale · April 2008

Hi:

Ready to lease E350. Could you please send details of your lease to japhale@yahoo.com so that I can manage my edaler better?

Dealer contact, months leased, miles per year, pmt. per month, upfront payments, & options on the car.

Thanks in advance.

Jay

ocautoseeker · April 2008

They did NOT change.

loveandlight · May 2008

Hi all,

does anyone know the May money factor or lease rates for the C300 and C350 sport? Is it possible to get these cars at invoice? Thanks for your help!

ghstudio · May 2008

My local (Florida) dealer offered me a 2008 E350 with P1, burl walnut dash and Metalic Pewter paint for invoice price.

I prefer to lease the car, taking advantage of the $2000 lease money...so my capitalized cost would be invoice less $2000....which he said is right.

He quoted me the following but I think they are wrong, based on what I've read here:

24-27mos MF .0018 Residual 63% (12K miles)
36-39mos MF .0018 Residual 52% (12K miles)

Are those residuals and rates correct for an E350 this month??

He will sell me the 320 for about $1000 more.......but we didn't negotiate that one.

comments please.....

jackk1 · May 2008

I was at a dealer this afternoon and they had the $999/mo sticker on the car sitting in the showroom. The salesman said it was over, and the sales manager said it was still good. Does anyone know what the real dealer incentive and rates are? I'm sure I can get $999/mo anytime if I put down a huge cap reduction, but I would like to do the first month and whatever necessary fees only. Has anyone done a deal on an E63 this month?
Thanks in advance.

ocautoseeker · May 2008

I'm assuming that you're looking at a 2wd and not the 4-matic.

2008 Mercedes E350 (2wd)
24 Mo -- Residual 63% -- .00085
27 Mo -- Residual 63% -- .00085
36 Mo -- Residual 52% -- .00130

The E-350 4-matic and Blue-tec's carry different numbers so let me know if you decide to go with one of those instead.

madmarlin · May 2008

I've done a search and haven't been able to easily find an answer to this question (which I should probably know). Forgive me for the basic nature. How do I take the residual and money factor you guys are posting and calculate the lease payment? Many thanks and apologies at the same time.

peteropny · May 2008

We were thinking of just buying a new C300-4matic but the dealer was pushing this promotion on E350-4matic - Sticker $58,020 for 27 mos lease with $0 drive off (including them paying first month's lease) for $569 per month with residual of $36,200. I think this is a good deal but wanted to get opinions. Thanks!!

ghstudio · May 2008

You don't say if this is a 10k, 12k or 15K lease but a simple calculation says that the dealer is selling you the car for his invoice and there is no interest on the lease. Mercedes is currently offering an extra $2000 downpayment which they apply to the lease bringing the capitalized cost down to 51000 or so.

You aren't going to do any better than that.....you just have to decide if you want to buy the C or lease the E. I would suggest that you drive them both before deciding (and drive the 4wd...not the 2wd).

peteropny · May 2008

Oops - knew I forgot something - its 10k miles - we use the car just under 10k miles a year. Thanks!!

ocautoseeker · May 2008

The following formula is known as the constant yield method and is the industry standard when calculating lease payments.

You'll need to understand what each term is before calculating:

Capitalized Cost (Cap Cost) - The agreed upon price or selling price.
Residual Value - The projected wholesale value of the vehicle at the end of the term. It is expressed as a percentage of the of the total MSRP of the vehicle when new.
Term - 24, 27, 33, 36, 39, 48 months etc.
Money Factor - A decimal number which represents a leasing company's usage fee. It's basically the equivalent of an interest rate when purchasing. Simply times the money factor by 2400 and you get ~ an APR equivalent.

Depreciation - The difference between the cap cost and the residual value.

The Formula:

(Cap Cost  Residual Value) / Term = Depreciation
(Cap Cost + Residual Value) X Money Factor = Interest
Depreciation + Interest = Base Monthly Payment

bkj1s · May 2008

I'm getting ready to lease the 2010 E350c for my wife but I need to make sure that the dealer that i'm talking with is not adding in extra stuff. OK here we go, I got a great offer through my bank (USAA) that would get me this car for $3500 under invoice (thats ending at the end of the month) the package that she wanted was the Premium pack 2 and the Appearance pack the msrp is $57,225 my price is $50,381 i'm putting $4000 down and would like to lease it for 36-42 mos. and 10K per year the dealer quoted me $749.37 per month with tax do you guys think thats about right or are they adding some other cost in their? I live in So Cal. and the tax here is 8.75% if this would help.

madmarlin · May 2008

Got you covered ocautoseeker. I knew all of the terms, just wasn't sure on the overall calulation. Got it now. Knew I was missing somehting. Thanks for the info. I appreciate it.

madmarlin · May 2008

Quick question OC.

In your explanation, you say to multiply the MF by 2400 to get an approx. interest rate. On the Bluetec Diesel for March it was posted as .00225, which would equate to an approx. interest of 5.4%. If I do the calc based on the March info and assume a cap cost of $52,000 and a term of 36 months I get:

52,000 X 55% = 28,600
52,000 - 28,600 = 23,400
23,400 / 36 = 650
(52,000 + 28,600) X .00225 = 181.35
650 + 181.35 = 831.35

Now, If I were to assume that I could make a lump sum for the depreciation of $23,400 and amortize over 36 months at 5.4% (the approx rate) I come up with a payment of only $705.53. To get to the payment of $831.35, the actual assumed interest rate is approx. 16.75%. That is based on amortizing the depreciation of $23,400 over 36 months (Assume you were to bouy a car for $23,400 and pay it off over 36 months, to equate to a monthly payment of $831.35, you would basically be getting charged 16.75% by the bank). Is there something amiss in the above calulcation?

At a payment of $831.35, you are paying a total of $29,928.60 when you are theortically using $23,400 of the value of the car. Total interest is $6,528.60. At $705.53, you are paying a total of $25,399.08, so total interest is $1,999.08.

kyfdx · May 2008

In your comparison, you are paying the depreciation in one lump sum.. What you fail to do in that scenario is account for financing the residual amount ($28,600).

When you lease a car, you are borrowing the whole amount, not just the depreciated portion... Even if you paid the entire depreciation upfront, you'd still owe a finance charge each month.. In this case:

$28,600 (cap cost) + $28,600 (residual) X .00225 MF = $128.70 per month...

Hope that helps..
kyfdx

madmarlin · May 2008

kyfdx

i understand what you are saying. the one fundamental problem I've always had with leases is the concept of paying interest on the residual. The residual theoretically represents the value of the car at the end of the lease. When you turn it in, that should represent what the dealer could then sell it for to a new buyer. At that point, they would then charge interest on that value to the new buyer. By also charing interest to the lessee, they have, in effect, double charged the interest and recorded more profit. That is whay the actual interest rate I arrived at is 16.75% when you strictly look at the value the lessee is supposedly deriving from the car over the term of the lease.

Not saying leasing is bad, by any means. there are deals to be had and you can always work a better one. there are other factors, too, that make leasing more attractive than buying. But the rates can be a bit harsh when viewed pragmatically in comparison to the value derived.

With all that said, i still want to try to work a lease deal on a new Bluetec, potentially. We'll see what happens.

kyfdx · May 2008

Leasing is simpler than that...

First... the dealer does nothing but sell the car to a bank.. what happens when the lease is done really has no effect on your deal.

In essence, you are taking out a loan for the full amount of the selling pricee, and paying the loan down to the residual, at which time you sell the car for what you owe on it (actually turning it in, but the same concept).

There is no double interest or additional profit. It is no different than if you bought the car, then sold it to a private party after 3 years.

But, leasing isn't for everyone!

regards,
kyfdx

mynextcar · May 2008

I am considering E350 lease or purchase. I see a couple of people mentioned about $2000 lease money but in Edmund incentive section, it also lists $2000 marketing support apply for all E classes. Since MB also offering 0.9%APR, would it be better to lease or buy the car? I drive only 10k annually.

ocautoseeker · May 2008

How long do you "realistically" want to keep the vehicle?

mynextcar · May 2008

I will keep this car for at least 5 years.

jackk1 · May 2008

I am looking at a 2008 E63 Retail Price 95440, cap cost 86940 and I have been told two different MF and Residual values from two dealerships.
I am looking at a 27 month 15k mi. per year lease.
.00150 and .62 and .00120 and .59 are the two I was quoted.
What are the real numbers from Mercedes Financial?
Thanks.

peteropny · May 2008

We don't usually lease cars. But with the deals that are around, we decided to lease - our deal 2008 MB E350-4matic - white, tan MB tex, P1, Ipod, Panorama Roof, Wood Steering Wheel, "Natural Wood Trim", Sport Package - $58,220 list - Lease deal (10k miles per year - $585 monthly payment - 27 months (1st month paid by MB/dealer) - residual of $36,600 - $0 down) - so if we bought the car at the end of the lease the total cost is $51,810. We figure that this is "free financing" with the option to change cars if we want in 27 months or if the value then is lower than residual, there is a possibility of paying less than the residual on the buy then. We'll pick up the car on Tues or Wed.

calbear05 · May 2008

Hey guys,

Is this a good deal?
2008 E350
Sport Package
PII
Parktronic
Panoramic Roof
Ipod Kit
Window Blinds
Electronic trunk closer
MSRP: 60540
Selling: 55300
MF: .00085
Residual: 64%, 10,000 miles/year
Monthly $750 with CA tax

Thanks!

shawn757 · May 2008

I was offered $8000 below MSRP last month in california. I Think it's still available. If the dealer is willing you should get it.

topgun7 · May 2008

"If I do the calc based on the March info and assume a cap cost of $52,000 and a term of 36 months I get:

52,000 X 55% = 28,600 "

this part of the calculation is not correct. The residual is based on MSRP not your cap cost (so if the MSRP is 56000. The residual is 56000x55%)...

"$28,600 (cap cost) + $28,600 (residual) X .00225 MF = $128.70 per month... "

Kyfdx, this calculation is not correct.. the original one is the correct way to calculate the rent (or the finance cost) ...

Also don't forget to roll your acquisition cost and dealer doc fee either into the lease or the upfront payment.

I think this information from Leasecompare.com will help...

(Cap Cost  Residual Value) / Term = Depreciation
(Cap Cost + Residual Value) X Money Factor = Interest
Depreciation + Interest = Base Monthly Payment

mynextcar · May 2008

Thank you. Sounds like you made a pretty good deal. I too, never lease a car so a little reluctant to go with lease but given the market condition this time, it may make more sense to lease.

ocautoseeker · May 2008

Kyfdx knew what he was doing, he just accidentally plugged the cap cost in as the residual by accident. He's a smart car guy and I can vouch that it was simply a typo.

ocautoseeker · May 2008

Tough call - Mercedes has "incented" the deals from both a finance and lease perspective. My advice would be... if this is your first experience with this particular vehicle, I'd take advantage of a lease to see if you like the car. Plus the fact that you drive so few miles/year makes you an excellent leasing candidate and keeps the vehicle within warranty for the duration of the lease.

kyfdx · May 2008

Actually.... my point was..

if you pay all the depreciation upfront, then your net cap cost is the same as the residual... and you'll still have a monthly payment..

The biggest misconception about the finance charge is that it only applies to the amount of depreciation, when in fact, you are borrowing the whole car, not just the part you use up..

sonnus · May 2008

What are the current Residual/MF numbers for the E320 Bluetec.
Also, are there any hidden (dealer) incentives on these cars right now?

Thanks

ocautoseeker · May 2008

'08 Mercedes E320 BlueTec Sedan
24 M  Residual 65%  .00150
36 M  Residual 55%  .00225
48 M  Residual 46%  .00225
60 M  Residual 42%  .00330

Posted residuals are indicative of 15k annual miles. Add 2% for 12k, add 3% for 10k.

Finance Special:
1.9% APR (terms up to 72 months)

Hope that helps.

Btw - diesel was $5.09/gal in SoCal today (ouch!)

kyfdx · May 2008

Btw - diesel was $5.09/gal in SoCal today (ouch!)

Still sunny and high '70s, though, I bet..

ocautoseeker · May 2008

Funny you should mention that - the past three day we've had thunderstorms, heavy rain, hail and even had two twisters touch down that flipped over some rail cars. Some weird wx, no doubt!

Got three rounds of golf in last week though, when it was sunny and 95 (nice breeze though)!

jackk1 · May 2008

I am trying to close a deal on a 2008 E63 and I really need to know what the real numbers are for May. I am getting very different numbers from 2 dealers. I want to do 27mo. 15k/yr. Someone please tell me the MF and Residual numbers for that vehicle from Mercedes Financial. If anyone has leased one this month it would be great to know what your MSRP, cap cost, MF, Residual, payment and tax rate are.

Thank you.

ocautoseeker · May 2008

Here are MBC's numbers for May on an E63 AMG lease with 15k annual miles. Be sure and have them factor in the $2000 MFD incentive when negotiating your cap cost.

24 M -- Residual 59% -- .00100
27 M -- Residual 59% -- .00120
36 M -- Residual 50% -- .00175

The cap cost you mentioned ($86,940) in your previous post looks very aggressive. If you opt for the 27m/15k term, you'll be around $1300/mo + tax. Standard drive off costs will apply.

Hope this helps...

jackk1 · May 2008

Thank you very much. What is MFD? Mercedes Financial D?

ocautoseeker · May 2008

MFD = Manufacturer-to-Dealer (cash), 'aka' marketing support, 'aka' trunk money as dealer's will so refer to it.

In this case, there is $2000 on the table (dealer does NOT have to share this with you), but he most-likely will pass it along to you in the form of a cap cost reduction if you let him know that you're aware of it.

Good Luck!

jhujb · May 2008

I was offered by one current E350 mercedes owner to take over/ transfer his lease to my name. The offer was as follows;
Lease ends March 2009.
The seller pay the changeover fee to MB Financial...
$0 down.
Monthly payment = $480.03/month including sales tax
Residual $39,272 (plus $595 turn-in fee if not purchased)
11,000 miles remaining through March 2009
$500 cash incentive up front.

Is it good deal? What should I ask him more?

ocautoseeker · May 2008

Yeah - that looks like a really good deal, especially since the current lessee will pay the assumption fees. You only have 9 months left to drive that car, though. What are you planning on doing at lease-end?

commex · May 2008

I just recently bought a new Mercedes Benz 2008 E350. Came with Cognac Leather, Black, P2 package, iPod integration, Burl Walnut, and Sport package for an MSRP of $58500. Got it at $53500 and now paying $742/mo with $3500 down incl taxes and everything for 33 months. This is in Florida. Did I get a good deal? I also contacted regency leasing after I bought it just to see what they could give me and they said $740/mo with $1800 down but that seems to good to be true as I got it $3000 below sticker, just wondering if I got a good deal.

topcck · May 2008

I would be careful about assuming a lease for the following reasons. All responsibilty is transferred to you. If the car needs tires or has excessive w/t when you turn it back you will get billed. Also, if the car has been in an accident and upon turn in inspection they find something wrong, you would get stuck with the bill. Also, any aftermarket changes to the car could trigger a bill to you at lease end.

It can be a good way to get a short-term lease with no money down. Check swaplease.com as they have thousands of people trying to get out of their leases. Again, I would use caution because if the car messed up in any way you could be stuck. There are inspection companies that you could hire to look the car over before you assume the lease. You can find them on the internet.

calbear05 · May 2008

Signed the deal today...what do you think?

2008 E350
P2
AMG Package
Panoramic Roof
Ipod
Rear Window Blinds
Electronic Trunk Closer
MSRP 61370
7500 miles/yr
27 months
$650/month including 8.5% CA tax
$1200 drive off - First month, Tags/Title, Doc fees

Mercedes-Benz E-Class Lease Questions

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