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Sunroof, sirius, power lift and heated seats. MSRP $52,665.
Price $42,950. $5400 at signing (approx $3000 cap reduction) and $390/mo.
Not sure there are many left in the Bergen County NJ area.
MSRP 56340
Discount 9550
Selling Price 46790
10K miles/yr, 27 months
money factor .00295, residual 38874.60
Paid first month, tax, tag at signing (no cap cost reduction)
Total "out-the-door" check was $1600
Monthly payment (incl tax) $595
Any opinions on this deal?
MRSP 58xxx, 27 month, 12K,
Total out of door cost is $1500, including the first month payment, monthly payment is $535 (including NY tax). Only 2 more left in the same dealer. NO stock in 2 other big NJ dealers. I was quoted by one dealer for R350 2007 model for 2300 down, $680 monthly for a MSRP $52xxx. I think the lease for 2006 model is a good deal now if you can find one.
After signing, when is it binding on me to take the car. The dealer clearly wants me to take it by month end. Can I delay taking possesion and starting the leases into Spetember or do I risk the terms changing. If I don't complete the transaction do I risk loosing my deposit, or something worse?
I still have two months on my current car, and the dealer is not helping with that expense.
Anyone thinks MB Financial will lower the MF on the R500 and increase incentives base on your experiences? The residual will be lowered but may be offset by the potential increase of incentives.
Does anyone here work for MB and heard of any news for Sept?
R500 $65830 MSRP, Premium pkg, Trim pkg, Parktronic, Wood/Leather steering wheel, 2nd row console, rear side air bag, airmatic suspension, one time pay of $15,828 drive off, 27 mth, 12k mi/yr.
R350 $61865 MSRP, Premium pkg, Trim pkg, Comfort pkg, 18" design II wheel, Rear seat entertainment system, one time pay of $13,427 drive off, 27 mth, 12k mi/yr.
There were some MB exec R500 demos that were even better deals with 3k to 5k miles and can be purchased as new MB with all the incentives and buy rates and residuals.
I can go on, but it's getting late.
My salesperson told me that in 9/06, according to his GSM, money factor will go up, residual will go down, and incentive may stay the same. Of course, he is trying to sell cars. There are plenty of R500 left and much less R350s around.
Regardless, these are great cars at these prices. Anyone doesn't want to take the risk of 9/06 MF and residuals, you've got one day to take advantage of these deals. Email me if you wish to know where I've shopped in southern CA.
i assume the cash incentive does not/did not apply to 2007 Rs....
Best in $ would have been Fletcher Jones on 8/31/06. The sales manager was willing to sell any R class with 11% off MSRP +$7000 off. This would have been right at or below 5.5% holdback. Of course, they had over 70 R's when I visited.them. If you are in Orange County, it would've been foolish not to buy from them. But I live too far from their dealership.
Downtown LA has been known for their low prices and they came very close to Fletcher for me. Obviously DTLA's dealership does not have the same ambiance as Fletcher, and Fletcher will wash your car once a week for the life of your car.
Southbay was also very willing to go at 4.5% into holdback.
Keys Mercedes has a very smart, friendly, but intelligently intimidating sales manager. Keys didn't willing to dig into holdback for the one-of-a-kind-optioned R350.
Penske was very friendly but extremely busy internet department. We were there Tuesday night and most of the sales person were signing papers. The internet mamager gave us the keys and let us look at the vehicle by ourselves (no driving of course). There internet pricing was above others.
2007 R Class MF: 0.00165
2006 R Class MF: 0.00295
Residual Values:
2006 R350 24/27 months: 66%
2006 R350 36/39 months: 56%
2006 R500 24/27 months: 65%
2006 R500 36/39 months: 55%
2007 R350 24/27 months: 67%
2007 R350 36/39 months: 57%
2007 R500 24/27 months: 66%
2007 R500 36/39 months: 56%
I also got the GL 2007 just for giggles:
2007 GL Class 36/39 months RV: 61%
2007 GL Class MF for 36-51 months: 0.00320
Gent
hypothetical $15k discount ($7k factory + $5050 discount to invoice + $2950 [4% of the 5.5% holdback])
selling price $55,075
money factor .00295 (why is '07 more heavily subsidized???)
27 mos
12k per yr
resid 67% (65% +2% for 12k)
no sales tax
no tags or acq fee
ONLY $602month.
is this right??
At lease end, there is no way I would want to pay $46,900 for a 27 month old, 27,000 mile R class, when I could probably buy a new one for not much more. You know that, I know that, and Mercedes will certainly know that in 27 months. Until I started reading these forums, I had no idea that you could negotiate the lease-end buy-out or even negotiate very favorable lease extension terms (less than your original lease monthly payments - makes perfect sense that it would be cheaper to lease a 27 month old car than a new one). If you are inclined to want to buy the vehicle at lease end, you will absolutely need to negotiate a far more favorable buy-out than what is in your original contract. If you pay the original lease contract price, you are absolutely losing the benefit of the factory to dealer cash and the dealer discount.
Thirdly, where did everybody else go? Is no one else still buying and/or negotiating on R classes?
For 9/06, after I found out that the MF for 07's were much lower than 06's (though the residuals were the same), I re-calculated my lease vs. an '07 equally equipped and found that an '07 is about $2,400 more for one time pay. Not bad for an '07 but like most everyone said here, '06 R's are great deals.
Martinf, and everyone else here, how about starting a forum discussing the "perfect storm" leases that are currently out there? This will save a lot of our time, not mentioning $$$. Start the blogs, folks.
leasing an R350. Any good deals in the dealers in Southern
California for R350? Who has the most inventory? I have
been quoted $399+tax 3k drive-off 12k/yr for 27 MO (MSRP $58k).
How does that sound? Just don't like the color they have.
Base on my calc, $58k MSRP (assuming $54k invoice), your total payment should be a hair shy of $14K for 27 MO 12k mi/yr including sale taxes and lease inception fees. This is assuming your dealer is willing to give you 4.5% of the 5.5% holdback.
Base on your deal, the total with sales taxes is $14,661, which means he is at about 3.5% into holdback. Not a bad deal.
I can get the R350 or spend an extra $222 per month and get the R500. Should I spend the extra money for the R500?
All opinions are wecome. Thanks
Help!
Last week I've started looking for the deals on the R350.(Test drove it and liked it)...
The dealer here (in Bergen county, NJ) sent me email 2 days ago, saying that he has a 2006 car with
MSRP $59K 3K drive-off 12K/year for 27 Mo - $609 (includes all)...
Yesterday, when I came to see it, he said the car is gone and no more 2006.
Ge gave me price for 2007 - basic with Premium 1 package -
MSRP $49K 3K drive-off 12K/year for 39 Mo - $619.
Any advises?
Thanks in advance!
I have a question to you.
I'll still work under the 2 variants(2006 and 2007), but...
let's say I'll go for 2007, how much below the MSRP has to be my TARGET?
What lease period is more preferred (from your point of view)?
What will be the best possible deal, based on 49K MSRP (or 53K)?
Thank you
2. In my opinion, the 27 month is the sweet spot. Although you have to pay one more year's registration, the residual value for 24 and 27 months has been the same. What that means is that you only pay interest and no depreciation for the last 3 months of your lease (i.e., the last 3 months are about "half price."
3. On the 2007's expect a "money factor" of .00165 (3.96% in English language)for a monthly pay lease. I advocate the one pay only if there is a money factor savings to justify it. With the 2007's, it does not pay. With the 2006's, the one pay lowers the MF from .00295 to .00185 (7.08 down to 4.44%)
Thanks again for your help and detailed explanation.
Issue with the 2006, that it's very few left on market (at least what I see). Anyway I'll try to find a deal, if not on 2006 than on 2007.
1. Any ideas what could be the target price in case of 2007 (MSRP 49K), how lower from the MSRP?
2. About time period. I understand that you prefer 27 months (and I see why). What about 39 months?
3. I got your point about advantage of "one pay", thanks.
Also, I have a question about your lease calculation. Based on your email I have a formula -
LEASE price = DEPRECIATION cost + LOAN fee
where
DEPRECIATION cost = SELLING PRICE - PRICE AFTER LEASE
6800 = 47K - 42000(MSRP * RESIDUAL value (60K * 0.67))
and
LOAN FEE = INTEREST * LOAN
6000 = (MONEY FACTOR(.00295)*2400)= 7.08%) * SELLING PRICE
Is it correct?
What is the 2400?
Thank you.
Make sure you shop this vehicle hard! There are dealers out there that are selling the R 350 at $5000 UNDER invoice on the 2006 and $1000 UNDER invoice on the 2007. It is a CA dealer, but you can have it shipped to NJ for 800 to 1000. You are looking at a close to 10K off MSRP on an 06 and 5K on an 07.
$47000 Purchase price
27m/ 10k yr w a MF .00295 Res 65% (I think those are the right numbers still)
He countered at $48500 purchase price, which is basically invoice - $7k. Any thoughts on this?
Also, can anyone explain if the 5.5% holdback comes from MSRP or sales price? Or if it works differently? Otherwise, I don't understand where the $12-15k off MSRP that I see people using on this board comes from. (MSRP is only 4k over invoice plus the 7k incentive gets me to 11k. Is the dealer getting another 4k in holdback?)
dealers are going below invoice (and of course the $7k factory cash) into their 5.5% holdback.
MBWC has 16 350s and 21 500s in stock.....and the 07s are arriving....
The dealer is giving away 4% of their holdback without even negotiation. This is the perfect storm that MartinF mentioned. Get the R before MB put the brakes on production.
So Cal dealers will make every effort to get you buy here. They may even ship the R to you at their cost, or negotiate into the lease. North Cal will do the same.
The 2400 is the way to convert the money factor (lease speak) into interest rate (normal speak). e.g., Money Factor of .00185 equals 4.44% interest rate. Swapalease.com does a very good job of walking you through the entire lease business, and it does it in just a few pages of easy reading. I would recommend it to any new or even experienced potential lessee. I found the information helpful, too. Your equation for the depreciation is exactly correct, but your equation for the "loan interest" may be off a little. That's where the swapalease site will help. Good luck and my thanks to pureautomobile for a lot of helpful information on this forum!!
I am still trying to find other "perfect storms" out there, but I have yet to find anything close on vehicles we would really want. Maybe a Lincoln TownCar or Navigator or Cadillac Escalade (previous bodystyle). The new BMW X5 is due in November, and we may see similar deals on the 2006 BMW X5 leftovers. I will keep you posted.
Thanks for your help and explanation.
Finally, found ok offer on the 2006:
MSRP $56K 3K drive-off 12K/year for 27 Mo - $480(includes all)...
Definitely not the best on the forum, but...
R350 w/ a few options, comfort, park, entertainment, MSRP $54,745
Selling price: $44745 ($10K discount w/o even trying)
MF: 0.00315
Residual: $37266
Payment: $538 27months/12K does not include sales tax
Fees down: $2600(seems a little steep, must include acquisition fee)
How am I doing here? How much more room do I have to get them down?
I'm in the phoenix metro area...