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Mercedes-Benz R-Class Lease Questions

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Comments

  • maxxiemaxxie Member Posts: 8
    Got the car.

    MSRP $58,8xx $6k off invoice. Not nearly as good as $8k off that a6 mentioned above but it's ok for me because my old car was totalled in an accident.

    Thanks to everyone who helped.

    I think $6k ~ $7k off invoice is very realistic. Especially for cars with higher sticker price. for a $61K car, $6.5k off sticker should be a no-problemo IMHO.
  • glipperglipper Member Posts: 13
    So you goy $6k off of the invoice; not the sticker. So in effect the $5k that BMW kicked in plus another $1k off the invoice?

    Is that what I should expect?
  • maxxiemaxxie Member Posts: 8
    $6k off invoice is your bottom line. I had two dealers agreed on this price so it is not hard to do. I believe you can push it to $7k off invoice if you are a really tough negotiator or at least $65k off invoice.

    You meant MB, not BMW, didn't you?

    So far the car feels great. Resembles ML350 very closely from inside. There are lots of areas of improvement. Lots of cheap details. The most annoying thing is that there are no cover/liner inside the center console cup holders. Instead, there are two indentations with two big screws bearing their souls inside. Yuk!

    I can only say the sticker on this thing was just way too high.
  • glipperglipper Member Posts: 13
    Thanks for the insight. I own a BMW so had that on the brain.

    Question: would you buy it again? or are you having second thoughts?
  • kensingkensing Member Posts: 4
    Can somebody please tell me what the residual percentage is for 7500 miles per year with a 27 month lease.

    I don't put in much miles per year so I'm looking for a low mile lease.

    Is the money factor still .00285?

    Thanks,
  • maxxiemaxxie Member Posts: 8
    To glipper, yes I would buy it again in a heartbeat. of course first gen models have their flaws, that's why leasing makes more sense at this point. from the similarities I saw between R350 and ML350, I do believe Rs are overpriced.

    If you are used to BMW's acceleration you may not like the R. It's a very big car although it doesn't look so from the outside. Nevertheless it's a great family car.

    I wish it had more seats and the power liftgate has the safty feature similar to that of Sienna's. Sure it will go back up if it meets resistance on the way down but that resistance has to be very strong so be careful with your kids or your hands.

    You will want to drive more in this car so get a more generous mileage allowance when you lease. :shades: :shades: :shades: ;);)
  • glipperglipper Member Posts: 13
    $400 "Marketing Allowence". I matched my car's invoice price on this website but then when I saw dealer invoice they had a $400 fee which I was told is standard.

    My net cost turns out to be $5500 under the invoice, which includes the $400 marketing fee. Am I getting jobbed on that $400 and in effect paying actually $5100 below real invoice.

    Please help
  • pp1111pp1111 Member Posts: 2
    I am considering leasing R350. The lease works best for 27 months in this case. For a 39 month lease, it would be higher. My dealer assures me that MB would extend the lease, if requested 3 months before the end of the lease, by up to 12 months. He won't give me this in writing. I was told the same thing by a volvo dealer without my asking. Has anyone heard or experienced this? What happens to residual in that case? Thanks.
  • kendikendi Member Posts: 5
    Just came back from dealer, purchased the car. MSRP $58155, purchase price $47100. 7K off invoice, 11K off MSRP, with 1.9% 36 monthes financing. Not the best deal in the forum. But we are happy since the car we got just have the options we wanted.

    Thanks for everyone sharing their experience here.

    I live in North Jersey area.
  • youssefmoyoussefmo Member Posts: 6
    Kendi -
    Did you have to haggle much to get the $7K below invoice deal? The one I'm looking at must be similar option wise to your vehicle as it is $58,2xx. I already have a 6K below invoice offer from a dealer, so, I'm just trying to see how low I can get them to go. :D

    Thanks.
  • kendikendi Member Posts: 5
    No, it was very quick. He gave us the price already $6.5K off invoice at the beginning. We only push down $500 more. I feel I might can push another $500 down(I didn't try though). Since the salesperson is a nice person, just don't feel that good to push too hard.

    But we talked with this salesperson since memorial day and he called us back 2 weeks ago and told us he will give us good discount. With other two biggest dealers in New jersey. We stayed both of places for more than 2 hours, the maximum we can got is 6K off INVOICE plus they didn't give good financial rate.

    I feel it is highly depend on the dealership and salesperson. Whether they finished their monthly quote or not... In my opinion, by next weekend, you can get at least $6.5K off INVOICE.
  • youssefmoyoussefmo Member Posts: 6
    Thanks Kendi. I'll be finalizing the deal this weekend. The first offer I got from any dealer was $6K below invoice, so I think $7K below should not be a stretch by this last week of the month.
  • bits1bits1 Member Posts: 6
    This is not a bad deal depending on the options. At the end of May, we got an R350 with Sunroof (not panaramic), supplemental side door airbags and power liftgate for a $10,650 on time payment. That included NY Sales tax (8.375%), registration fees, acquisition fees, etc. The only other payment that we will have to make is the lease surrender fee of $595 at the end of the lease. Hope this helps.
  • bits1bits1 Member Posts: 6
    I have heard this as well from a family member who has leased MBs before.
  • martinfmartinf Member Posts: 121
    I am looking to lease a Mercedes R500 for 24 months, 10k miles/year, using a one single payment method. In my investigation, I have found prices about $10,000 to $10,600 off MSRP (about $6000 to $6600 under invoice), but the one pay lease payments have varied widely. Does anyone have any great experiences with Southern California dealers for R500 leases? I am hoping to finalize any deal by 7/31/06 to take advantage of the factory incentive cash to the dealers. Thanks!
  • cary28cary28 Member Posts: 53
    I found a pretty good deal on an R350, but this is the first time I'm doing a lease; thus would appreciate any expert advice and validation if this sounds right.

    MSRP: $64,120 - pretty loaded vehicle
    Price: $51,869 - includes the $5K MB dealer kickback
    Term: 27 months @ 12K miles/yr
    Residual: 73%
    Money Factor: 0.00285
    Minimal drive off payment: $1400
    Monthly payment: $512 + tax

    I input the values into a couple of online lease calculators, and most came back with a smaller monthly payment. Am I missing some other up front cost for doing a lease? Can the experts tell me if the monthly payment is right? If my tax rate is 8.25%, what should I expect for the total monthly payment? Is there any benefit to this one payment lease I hear about, as it reduces the money factor? Thanks for your help.

    Cary
  • martinfmartinf Member Posts: 121
    I have found the same curious situation. I will get a quote of $11,000 off MSRP and another for only $10,400, and my lease payment (what I am most interested in) can be significantly less on the deal with the lesser MSRP discount. If cash flow is not a significant problem, I would strongly suggest a peak at the one payment lease. On the R class, it will lower your "money factor" (lease speak for interest rate divided by about 2.4) from .00285 to .00175 or, in English, from about 6.84% to 4.2%. I believe it cuts down your overall lease costs by about 15 to 20% over the life of the 24 or 27 month lease. What dealerships gave you such a great $12,000+ MSRP discount? If you are into the $64,000 MSRP range on the R350, I would strongly suggest you consider the R500. I have driven both and have read enough on this and other forums that suggest the R350 is a bit anemic for many people. I had initially dismissed it as being an insignificant horsepower difference (from 302 to 268), but the torque difference of about 80ft/lbs. translates into a 0-60 difference of 1.4 sec (6.7 for the R500 and 8.1 for the R350) that is simply noticeable. Anyway, good luck, I think these are great yet underappreciated vehicles!!
  • shoreboundshorebound Member Posts: 6
    I envy you guys getting $10.5k to $12k off MSRP. I haven't had a dealer offer more than $5k off invoice. Where are they getting the money from? Are you guys getting an overallowance on a trade or are these straightup #'s.
  • cary28cary28 Member Posts: 53
    Martin,

    Thanks for your suggestions. I thought about that before, but if I configure an R500 with the options on this car, the MSRP will approach $70K. The problem is I don't really need the GPS, since I have a Garmin C320 which works really well. But most of the cars with the other options have the premium package, which includes the GPS and jacks up the price. Frankly, MB should have included many of these options as standard equipment for a $50K car; perhaps they will do that for the 2007 or 2008 models.

    Shorebound, These prices are valid for this vehicle, as its been on the dealer lot for the past 3 months. I guess they need to sell it before the 2007s arrive.
  • martinfmartinf Member Posts: 121
    $5000 off of invoice is about $9000 under MSRP, so you are getting close. Most of the deals that I have seen have ranged around $10,000 to $10,400 off of MSRP. As I have been shopping 24 and 27 month, single payment leases (with absolutely no intention of purchasing at lease end), I have been amazed at the huge spread in those bottom line figures. What can look like a similar MSRP and capitalized cost can vary by $1500 to $2000 in the single payment lease cost. Even with the same money factor (.00285 less .00110 for the single pay equals .00175 or about 4.2%) and all else being equal these variations can be significant. If you do intend to lease the R class, it is IMPERATIVE to do so by 7/31/06. Apparently residual values are being adjusted 6% downward on the R350 (from 73% to 67% on a 24/27 month/10K lease) and 4% downward on the R500 (from 72% to 68% on a 24/27month/10K lease). The $5000 factory to dealer cash is also scheduled to "expire" on 7/31/06, but considering the vehicles are still around and they have been offering that incentive for several months (each for a "limited time"), it is likely they will renew the $5000 "cash in the trunk" by early August. It is the residual value changes that could cost a potential lessee $2400 to $3600 on a 24/27 month lease - approximately $100 to $150/month. Good luck! Despite market sentiment, these are great vehicles.
  • shoreboundshorebound Member Posts: 6
    Thanks for your reply. I'm going in to do battle again today. At the end of the day, it is a great lease deal.
  • cary28cary28 Member Posts: 53
    Well, I signed the contracts yesterday, and will pick up the R350 this morning!

    It turns out the salesmen used 10K instead of 12K miles/yr to arrive at the $512/month lease payment. However, when I opt for the one payment lease, the final monthly came out to $460.30 inclusive of tax. So I got a very good deal of paying $12880.39 out the door(includes license & junk fees), with nothing to pay except for disposition when I return the car in 27 months. I am amazed at the low cost for a $64K sticker, since I paid more when I financed a loaded 2001 T&C limited back in 2001. I guess that's the advantage of leasing, since I don't really own the car.

    The dealer is Smythe European in San Jose. They have 10 R350s and quite a few R500s on their lot, so I think they are motivated to sell these before the 07 models arrive. I checked the log sheet, and it turns out they have 3 very similar R350s which has been there for 72 days. I got this one and I'm very happy with the deal.

    Send me a PM if you need further details.
  • boovillebooville Member Posts: 1
    We just signed our lease and picked up our car yesterday.

    Let me preface by saying I have never leased before and know little about the process. We wanted a particular car that was hard to find and the dealer had to bring it in from another location. My wife ONLY wanted an R350 with Obsidian Black, Macadamia interior, 18" rims, and panorama sunroof; most of the cars had all black interiors. She would not consider a black on black car because she felt it looked like a hearse, and she didn't like any of the other lighter colors. (Pewter is not a dark color.)

    All dealer searches pulled up only two cars with these specs; and one had dvd and nav, which I did not want and did not want to pay for.

    We are VERY concerned right now because it appears our monthly payments are much higher than everyone else's here on the board, including those who had an MSRP thousands of dollars more. So, did we pay way too much, and if so do we have any recourse at this point?

    These are the numbers.

    msrp -- 56865
    sold to price. 49615, which equals 7250 off msrp.

    check given to dealer to drive car away = $3553, which includes first month payment of $575, $2375 capital cost reduction, supplementary title fee $198.46, plus registration fees.

    $575 month
    $12k miles.

    Did we get a good deal?

    I have flawless "Tier-One" credit.

    Total expenditures once lease is completed = $19,105+.

    Can we still do a lump sum payment that I see people are paying in the neighborhood of $11k for 27 months?

    Can I walk into the dealer and demand they do something?

    What are our options. Remember, we wanted a specific car that was not in the dealer's current inventory.

    Thanks,
    Richard
  • martinfmartinf Member Posts: 121
    You may have a chance at having them convert your lease to a single pay. That alone will change your "money factor" (lease-speak for interest rate) from .00285 (about 6.8%) to .00175 (about 4.2%). Most states do not allow for a "cooling off" period during which you can change your deal. I would be very polite and respectful, and you may have a shot at switching to the one pay. Good luck! It is a very nice vehicle and certainly much less than you would have paid a few months ago.
  • caveatesqcaveatesq Member Posts: 6
    Can anyone post whether the $5,000 incentive has been renewed for August and details (residuals and money factors) for the August R350 lease program?
  • martinfmartinf Member Posts: 121
    Autobahn Motors in Northern California said that the R500 24 and 27 month residual has dropped 4% from 72% to 68% and the money factor on the single payment has gone from .00175/4.2% (.00285 less .00110 for single pay) to .00210/5.04%. I was told that the R350 residuals on the 24/27month leases were going down by 6% by another dealer earlier this week, but I have not followed up. I do not know about the renewal of the $5000 factory to dealer cash, but judging from the last several months, I would imagine it will be reinstated shortly (apparently they reinstate these by the 4th or 5th of the month).
  • desgnconcptsdesgnconcpts Member Posts: 53
    Car_Man, are you still posting on these boards? If you are (or if someone else knows this info), please reply.

    Today (Sun 8/6) Loeber Motors in Chicago advertised 12K off MSRP for R350's -- which is just about $2K more generous than the July incentive. In JULY, on a sticker of $58,815, invoice is $53,754 -- less the $5K cash-to-dealer made the out the door price for lease at $48,754 plus TTL.

    This ad would make me believe the cash-to-dealer has increased and the net cap cost would be lower yet for August.

    But, what about the Resid Value -- these are 27 mo leases and I would be interested in 12K miles or 15K miles per yr.
    And, what of the MF -- previously at .00285 (or 6.84%). I really need the residual and MF to be able to make a deal.

    Thanks -- look forward to help here.
  • qkslvrqkslvr Member Posts: 34
    Cash to dealer went up from $5K to $7K, that's why you are seeing up to $12K off MSRP. The residuals dropped to 66% for 15K miles, 68% for 12K miles, and 69% for 10K miles. 27 month rate should be .00295. These rates are all based on 2006 R350.
  • desgnconcptsdesgnconcpts Member Posts: 53
    Qkslvr,
    Thank you for the resid %'s and MF.
  • krishnamkrishnam Member Posts: 29
    Can you please post the details for the lease (27 month)?

    thanks,
    Krishna
  • cary28cary28 Member Posts: 53
    I just checked dealer prices for the 2007, and it looks like MB has made some adjustments. Here is just a snapshot, as I'm sure more details will be coming out:

    1. MSRP for the R350 is now $43,000 w/o destination
    2. MSRP for the R500 is now $50,500 w/o destination
    3. A premium I and premium II package is available
    4. The premium II cost a little over $8000, but includes most options
    5. A rear camera is now included in the premium II package, along with Hands Free Communications

    I checked some dealer inventory and it looks like the 2007s are just beginning to show up.

    Cary
  • lupinlupin Member Posts: 1
    Need advice:

    I currently own a 2001 ML350 and am looking to lease the new 2006 R350. Manhattan Mercedes is offering a 27 month lease for $329 with $3000 down (includes sunroof, heated seats and CD changer) . I want to add some options to it ( 18" wheels, NAV and maybe couple of others).
    Since this would be my first leased car I am uncertain how to approach the situation when negotiating.

    ANY help is welcome!

    Thank you.
  • taketheoffertaketheoffer Member Posts: 26
    I am considering adding a minivan to the garage as a family hauler (as opposed to another SUV or HEMI). Then I got an email from a local dealer with an incredible lease offer on a 2006 R350, so I went to go check it out. The truck (van?) was beautiful and drove tight and very similar to the ML. The second row had a lot of room (more functional space then an Escalade the salesman told me). It seems that the second row armrests interfere with getting to the 3rd row. Wouldn't this make the easy entry feature (folding) of them folding useless when a car seat (with latch) is installed? Then how do you get in the back row? Also it seems like the huge second row door would have problems fully-opening in my 2-car garage. Also the email "deal" was for a car that DID NOT EXIST. BUT they were going to give me a good deal on one with more options and a much higher sticker. Pissed at wasting my time I wore the salesman down to what I guess was an OK deal for an MB but it still seemed very overpriced for a minivan with less standard features then a Chrysler. The insult to injury is the $900 (est.) bank fee and $500 (disposition fee) even if you use MB credit! What a joke that MB needs to steal another $1400 from customers! I have leased at least 5 cars and have never paid a bank fee or disposition fee and I am not going to start now. Is anyone else seeing these bait & switch tactics with the R and does anyone else feel the bank & dispo fees are a joke?
  • carman312carman312 Member Posts: 7
    I just took delivery of a 2006 R350 today. Overall I think I got a good deal: 27 months, 12.5k/yr, $4,800 down (all in fees, tags, ect), and $365/month (including Taxes). The MSRP on the car was $55,065. Wanted to get people's opinion on whether I got robbed or not. I was surprised with how dealerships varied for a similarly loaded car ($450-520/month) So when I heard $365 I jumped on it. I agree with previous posts that the fees are junk, but I have a hard time saying no to a $365 lease on a $55,000 car. Overall my sales person was great and with the exception of the finance associate the dealership experience was all I could have hoped for. I doubt we will be seeing deals like this next year (with MSRP Adj. for market). I would appreciate anyones feedback.
  • fq1fq1 Member Posts: 56
    That is a great deal I also just picked a fully loaded R500 with similar discunts as yours. I did a one-pay lease. You are right, it is highly unlikely that such lease deals will be offered again any time soon. If the vehicle's sales do not pick up, MB will just shift production towards higher numbers of the GL and ML. Even with the high fuel prices, those vehicles are still enjoying decent sales. In the long term, MB will most likely be happy to have US sales for the R in the 1,000/month average. Add to that about 3,000 in ML and 2,000 GL and they are looking at 72k (conservatively) annual numbers for vehicles that share a common platform. That should allow them to show healthy profits for Tuscaloosa.

    The deals on the R for 2006 happened because of a completely botched new product launch. Cars were produced with odd options. The options were mispriced. The most important options for this segment were not available. And then they overproduced, resulting in high inventory levels. I doubt they will make the same mistake next year -- especially since they now have three different vehicles based on the same platform and built in the same factory.
  • mah4546mah4546 Member Posts: 8
    ou are right, it is highly unlikely that such lease deals will be offered again any time soon. If the vehicle's sales do not pick up, MB will just shift production towards higher numbers of the GL and ML. Even with the high fuel prices, those vehicles are still enjoying decent sales. In the long term, MB will most likely be happy to have US sales for the R in the 1,000/month average. Add to that about 3,000 in ML and 2,000 GL and they are looking at 72k (conservatively) annual numbers for vehicles that share a common platform. That should allow them to show healthy profits for Tuscaloosa.

    R-Class sales are not bad. It sells around the same as the GL-Class, and still 3/5 the rate of the M-Class. In some months this year, it has out-sold the E-Class.
  • fq1fq1 Member Posts: 56
    I agree R-class sale are not bad, however, the E-class is MB's bread and butter. R-class sales have never exceeded those of the E-class; you are probably thinking the S-class.
  • billythecbillythec Member Posts: 2
    Hi,
    What would be considered a "great price" for a 2007 with Premium II package? I'm in western NJ and am considering it if the new pricing scheme is decent? As above, would it be $43000 plus $8000 + delivery? Woould there be any room within the "new" sticker price??

    Also, any experiences on E-class trades, do dealers get aggressive or is it typical?
  • bendotorgbendotorg Member Posts: 7
    Reality check here:

    Your monthly payments are $542.77 not $365. You paid $177 a month up front it seems.
  • carman312carman312 Member Posts: 7
    I agree if you are looking it as a zero down lease all in. The $4800+ up front is the standard amount built into any of the promotional fees $499/month Premium or $329/month Standard Package that you see in all the e-mails or adds. So in reality if you consider any of those you are talking $676/month premium and $506/month standard package. To Top that the standard only gives you 7500 miles/yr. It is hard to line up leases for comparison. There are too many factors to consider.
  • carman312carman312 Member Posts: 7
    As far as E-class trades it depends what body style you have. My mother in-law wanted me to inquire what she could get for her 2001 E320 as a trade for a newer E class. Her car is perfect and had about 30,000 miles on it. they only wanted to give her $16,500 for it. This was done over the phone and I might have gotten them to give me a little more if they saw it, but that was it. I would think if you had a 2003 higher you would do much better (more then just being a more recent yr). Although for 2007 they have Freshened up the front and rear of the E-class so IDK if that will be a factor. Hope this helps.
  • cyberdentistcyberdentist Member Posts: 1
    I am looking for a R350. Dealers are saying there are very few left to pick from and basically only want to deal with what they have in their own inventory. i went to 2 dealers and got 2 quotes.
    First is R350 with 18" tires, heated front seats, and regular sunroof. the cost would be $43,322 then figure out the standard 27month mb lease from there.
    The other is a base R350 with only heated seats for $41,456.

    How much lower do you think I could get these.
    Location is on Long Island
  • driverdandriverdan Member Posts: 5
    Same story in Westchester with very low inventories. I think these cars are still quite nice even without many options. What money factor and residuals would apply to leases, are there incentives?
  • cptcpacptcpa Member Posts: 2
    This is a really good deal, I think the dealer dipped into his holdback to make it work. What is the monthly payment before sales tax? Was $4,800 the only check you wrote when you picked it up? Thanks and enjoy the car.
    cpt
  • carman312carman312 Member Posts: 7
    The monthy payment before sales tax was $341. The $4800 was the entire out of pocket fee including the 1st month's payment. Overall a pretty decent deal, Although not too happy with the fees.
  • billythecbillythec Member Posts: 2
    My dealer just quoted a measly 2.5k discount and about the same (15-16.5) for a 2001 E3204 trade. Ho hum. Who is most aggressive in NJ? Any recent "real" experiences?
  • pittpenguinpittpenguin Member Posts: 1
    Carman, the current incentive lease (499 a month, 10K miles, 1500K at signing) is not a good deal? How did they get the down to be 4800? Is it better to establish a price first then negotiate the lease, or is the current incevtive good?
  • pureautomobilepureautomobile Member Posts: 47
    And they are dealing. Most dealers will tell you straight up that the current incentive is $7000 and will give you the MB Financial buy rates & terms. The largest MB dealer, FJ Motors has over 80 R's, Long Beach MB and House of Imports have over 50, Downtown LA MB has 18, Penske has over 20. These numbers are all just R350's. I am not counting R500's. Given the # of cars, does anyone know if MB will raise the incentive along with the MF in 9/06? How often does the residual change?
  • carman312carman312 Member Posts: 7
    Do you mean the Std Prem pac Lease? Does your 1500k @ signing include everything? I know the standard terms require $2,444 @ signing plus taxes are not included. In my experience I found it hard to get a dealer down for an R with prem. pac.. I had one dealer tell me that they want to get the full cost of the prem pac into the lease. At best I was able to get 12k for the price of the 10K no movement on the $499 + tax ($534). If you only have to pay $1500 at signing I think it is a pretty good deal.
  • carman312carman312 Member Posts: 7
    The down was a standard set of $2,995 down payment, MV fees and lease/dealer fees. I never really negotiated the lease price instead I negotiated the lease pmt (based off the standard amount dwn). The fall out however was the lease price about $11.5-12k off MSRP. Hope this helps, but like I mentioned in the previous post I couldn't get to $11.5-12k off MSRP when the car had the premium Pack. Although the dealership I got the car at did not have any premiums to offer me, so it could just be the dealership. I would say definitely shop around some people want to unload these and others don't seem to care.
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