Mercedes-Benz R-Class Lease Questions

sjsilverman · October 2006

Does MB have a balloon program (loan + guaranteed repurchase price after 3 years or 4 years)? Leasing isn't a great option in Illinois, which charges sales tax on the full capitalized cost at lease signing. (It's actually charged to the finance company that is purchasing the vehicle, but is always reimbursed by the lessor.)

irishrogue1 · October 2006

well i finally got a deal done on an 06 R500. i didnt get the car i wanted, but we should always settle when buying a $60k car.....(at least that is what i keep telling myself). i cant believe i just spent that much money and i dont even have leather interior....how do they even sell a $60k car without fancy vinyl...uhh....naugahyde....errr i mean mb tex????

anyway here it is -
Options
317 Comfort Package
326 Premium Package
MSRP = $62,740
Cap Cost = $46,240

Drive-off amt = $1,372.56

- Ca State Title Transfer fee = $15.00

- 1st month payment = $508.81

- MBF Bank Fee = $795.00

- Ca dealer documentation fee = $45.00

12k miles per year
27 months = $508.81 + tax
MF.00400
Residual = 67%

sigh....options aside, i got a great deal. it sure as heck was not painless though. while the sales manager and dealer i ended up buying from was good, the overall experience sucked.

the guys at walnut creek are a bunch of hacks. the salesman is twit. the manager started out great and then pulled the classic bait and switch as we got close to signing paperwork. and then just blamed not doing a deal on someone higher up....nice waste of my time.

the new guy at beshoff is a straight shooter. if only he could have found some more money over $15k for me, i would have preferred to buy from him. he never changed his tune and was honest that he couldnt go lower. fair enough.

ill post the name of my dealer/sales manager after i sign the fedexed lease docs....

thanks for everyone's help AND MORE IMPORTANTLY THE CONSTANTLY UPDATED INFO. this site was invaluable in allowing me to know which dealers were dealing, had large inventories. without it, i would neve have gotten $16500 off msrp. this board is fantastic!

thx again
Sean

kyfdx · October 2006

"ill post the name of my dealer/sales manager after i sign the fedexed lease docs.... "

Please don't... as that violates forum rules.. Please see the message printed in red on every page...

Thanks!
kyfdx

martinf · October 2006

I believe it is OK for irishrogue1 to list the name of his dealership, just not mention the name of the sales person/manager. In any event, I believe he got the vehicle from W.I. Simonson in Santa Monica. I had posted their $16,500 off MSRP a few days ago. Good luck with the R500 irishrogue1! You got one of the best deals out there!!

martinf · October 2006

You can save about $2700 over the 27 months of this lease by going with the single payment option. I just thought I would mention it to you. It's a personal call, but $13,000 in a 6% CD would only yield me about $1400 to $1500 over the 27 month period (by the way, World Savings Bank has about the most aggressive CD returns in the market. Unfortunately, bankrate.com hardly ever lists them because they mostly offer odd terms like 7 months, 13 months, or 15 months). Even if you have signed the paperwork and are driving the vehicle, I don't think it is difficult to switch over. Again, congrats - GREAT DEAL!!

irishrogue1 · October 2006

yes, simonson in santa barbara. internet manager (linked on their website) is a stand up guy. not even 2 secs of BS during the process.

all of my cash is tied up in my second business otherwise i agree that the one pay makes this even more attractive. although what happens if you total the car during the lease term? i always heard that you lose....doesnt sound right..but....

rider88 · October 2006

I see so many great info on '06, but I am looking at an '07.

Need some comments/help on this quote:

'07 R500 MSRP $66340, out-the-door cost around $3900 (1st month, all taxes, bank fee, registration, etc..), $0 cap-cost reduction, Term 27 months, 15K miles. Monthly around $730.

Any thoughts on these numbers, and any suggestions on what I should be targeting?

Any feedback would be much appreciated!

jprescott1 · October 2006

@%#$. I had an E500 before and I loved it(minus the multi bugs and bad electronic breaks) so I'm happy for my wife. It's hers but I look forward to our ski trips.

amcdad · October 2006

These deals on the R-class are pretty darn good...It would fit our needs, but we won't be in the market for a replacement for our Cadillac SRX until next spring. Does anyone know how the R-Class is selling? I know its hard to predict, but I am hoping the lease incentives continue for a while...

irishrogue1 · October 2006

i agree that the R board on mbworld never even got off the ground. this one was hot for a while, then it slowed down and i m glad to see it picked up again just in time for some of us to benefit for $10k factory cash.

not sure what your tax is per month, but it looks like your neighbor didnt give you best deal that he could have....maybe took $50-75 per month more than he "should" have.

people are going to line up for the new MDX....

jprescott1 · October 2006

R-class is actually moving here in Cleveland. I tried to improve the deal a bit but wanted to balance it with saving face with my son's best friend's dad ( he through in navagation). I still feel like I was saved from another XC90(not a great car) at a better price. $620/month for a $45k car v.s $600/month for a $62k car.

irishrogue1 · October 2006

i agree that the R class beats the volvo in every way. the R drives like an S class. the xc drives like a refined SUV. roughly same weight for the xc V8. R is 14" longer, 5-6" lower with the same headroom and 1" wider.

rider88 · October 2006

Any comments on this?

I see so many great info on '06, but I am looking at an '07.

Need some comments/help on this quote:

'07 R500 MSRP $66340, out-the-door cost around $3900 (1st month, all taxes, bank fee, registration, etc..), $0 cap-cost reduction, Term 27 months, 15K miles. Monthly around $730.

Any thoughts on these numbers, and any suggestions on what I should be targeting?

Any feedback would be much appreciated!

martinf · October 2006

First, the real deal on these Mercedes R Class vehicles is the 2006 vintage. With up to $16,500 off MSRP on these cars, you are getting pre-refunded about 25% out of the 35% depreciation part of your lease (based on 15,000 miles/yr.), leaving you to only pay for about 10% of the MSRP in depreciation. Even with the money factor at .00400, that break on the depreciation component of your lease is very hard to beat. Net cost with minimal drive-offs on a comparably equipped 2006 is about $540/month, about 25% less than your 2007.

That being said, I do not understand your $3900 out the door costs. 1st month should be $730, bank fee should be $795, even California registration is about $380. I don't know where the extra $2000 is coming in, unless you live in a state that charges up-front sales tax on the full amount of the vehicle. What is your capitalized cost (i.e., what is your discount from MSRP?)?

rider88 · October 2006

martinf - thanks for the reply.

I tried looking for 2006 with rear airbags, but was not successful, hence we are looking at 2007s.

The 3900 out the door cost includes all the state sales tax to be paid up-front.

MSRP is 66840 (but calculating from MB website, it seems like the MSRP is actually 68K, cap cost is 61061. I think invoice is 60975 (according to Edmunds).

What do you think of this for an 2007?

martinf · October 2006

It looks like you are getting about $5800 off MSRP. At this point in the model run, I think that is about as good as you are going to find. Apparently, MB has a 5.5% "Dealer Holdback" on these vehicles, giving the dealers only about another $3600 to play with beyond invoice. If you are not in a big hurry, you might want to wait for Mercedes Winter Sales Event which I think will kick in sometime in November. It may also give MB a chance to see if they need to start giving factory to dealer incentive cash. One very positive note about the 2007 R is that money factor is a ridiculously low .00165 (3.96% in English). Versus the .00400 money factor on the 2006's, that low money factor will save you about $6000.

I would still try to check other dealerships for 2006's with rear airbags. If you have small children, however, most manufacturers recommend disabling the rear airbags. I have them on a 2000 BMW 528it and they have always been disabled due to my two little boys' ages. Where are you located?

hockey81 · October 2006

2006 R 350, list 58K, discount $10,100 (includes dealer/factory rebate of $7K). Money factor 0.0021 for single payment for 27 month lease of $16.5K including 6% sales tax? Deal also comes with free servicing for 2 years

martinf · October 2006

You can get a similar vehicle in Southern California for about $13,000 for the 27 month, single payment lease (including 7.75% sales tax). Look at other postings on this board for dealers (e.g., Simonson (Santa Monica), Fletcher Jones (Newport Beach), Caliber Motors (Anaheim), Beshoff Motors (Northern Cal.) irishrogue1 just got his from Simonson and found the deal and the experience exemplary.

At only 10,100 off, with factory to dealer cash of $7000, they are slightly above invoice. Most So. Cal dealers are dipping $1500 to $2000 into dealer holdback - at least. Big picture, your deal is probably $3000 to $4000 higher than the best deals in So. Cal.

martinf · October 2006

With the extra $3000 factory to dealer cash on the R500 (bringing the total factory to dealer cash to a whopping $10,000), you may want to reconsider the vehicle. Many posts on this and other R class forums by R350 owners have expressed lament over not at least "test-driving and test-pricing" the R500. Be aware that the money factor will be higher on the R500 (currently .00290 on the single pay).

hockey81 · October 2006

One problem with the West coast dealers, I live in New England. Has anyone found that type of discounting in the Northeast? I looked at the R 500 it had a better deal as far as the discount but the difference in the money factor was an offset. Also the dealer selection for the R500 was limited to black which my kids said would only be good it I were a funeral director (I agree).

fabeneag · October 2006

Thanks to everyone in the forum for their feedback. It has been very helpful to me!!

In the Boston area and signed lease for '06 Iridium Silver w ash R500. Has premium package, design II wheels and center row console. MSRP was around $62,000. Cap cost for the lease was around $48,000. 15K miles. 39 months at $730 incl. tax. Up front totals $1,095.

Feels like I got a good deal given what's been on this board. Selection in Northeast isn't great. Wanted Sirius but couldn't fine one that I liked.

Thanks again!

jimscays · October 2006

I have a question. If you do a one pay lease, are you paying the difference between the selling price and the residual price at the end of the lease?
For example, if the MSRP was $52,000 and the sales price ended up being $40,000 and you were doing a 36 month lease, the residual being 56% of $52,000 which is $29,120, on a one pay lease would you then be paying $10,880 plus tax, tag, and bank doc fees? Or is there still a finance charge associated with the lease even tho you are paying all of the payments upfront? Thanks your information would really help and ia much appreciated.
I am debating between the R class and a loaded FX 35, both have similair sales price numbers. :shades:

martinf · October 2006

There is still a "finance charge." Since you are not paying the full $40,000 sales price, but only the difference between that price and the residual, you pay interest or a finance charge on the $40,000. With MB Financial, they do give you a break of .00110 on the money factor(approximately a 2.64% discount), but it has a floor of .00150. For example, if the MF is .00295 (7.08%)on a monthly pay lease, your single pay MF will be .00185 (4.44%), representing a discounting of the rate by 2.64%. However, if you are considering the 2007 R350, the monthly lease MF is .00165. It would not make sense to do the single pay on that car since they would only lower your MF to the floor MF of .00150. At that point, keep the money in the bank (World Savings has great CD rates that you won't find on bankrate.com since they are usually odd terms like 5, 7, or 13 months)!

That is also why your credit score is important. I originally thought that by doing the single pay, the finance company would not even need to check your credit score. The only problem with that reasoning is that your single pay only covers a portion of the $40,000+ car you are driving away with. I hope this helps!

Between the FX35 and a 2006 R350, you will probably find the R350 to be far cheaper to lease. You are getting the benefit of a high MSRP (higher residual value) and a large discount from that MSRP that essentially will wipe out 23% of the 44% depreciation. I do not think you will find similar numbers on the FX35.

As an additional note, the sweet spot on the R350 lease is the 27 month lease. The residual value is 67%, so with the $12,000 discount, you are actually only going to pay an effective 10% in depreciation, or about $5200. Increasing the lease term to 36 months has you paying an additional 11% for just 9 more months of lease term. This is a highly unusual set of circumstances wherein it is actually cheaper to take the shorter lease than the longer one. Good luck and try to find the R350 that is equipped to your liking. You won't pay that much more for a heavier equipped car because of this unusual high MSRP/high discount scenario. Do be sure to check out the 27 month numbers.

guest · October 2006

I have been getting emails from a dealership in Los Angeles
area offering very attractive price on their R500 since they don't have the color I am looking for so I called other dealers to see if they would beat/match the special offered by the first dealer so far they either reject the offer or would ask me to go down to their dealership saying they can't quote prices on the phone or by email. Here is part of the ad relating to R500.

Please let me know if this is possible.

--------------------------------------
2007 R350
(Only 2 available / No substitutions)
(Premium Package 1 and Cargo Cover)
MSRP = $48,150
Drive-off Total = $4,999

7,500 miles per year

27 months = $393 + tax

or

10k miles per year

27 months = $410 + tax

------------------------------------------

2006 R500

$16,500 off MSRP

Sample

(18in Wheels,Comfort Pkg,Entertainment Pkg,Sunroof Pkg)
MSRP = $59,430

Your low Price = $42,930
or

Lease (sample)

Drive-off = $2,999
10k miles Per year

27 months = $389 + tax
-----------------------------------------------------

jimscays · October 2006

Thanks for your advise, appreciate it very much.
:shades:

martinf · October 2006

That is Simonson's ad from Santa Monica. Very attractive pricing on both, but the real deal is the 2006 R500. Check with Fletcher Jones in Newport Beach, internet department. They will likely meet the Santa Monica deal on their R500's and I believe they still have a large stock. Don't be afraid of a more equipped vehicle than you want. The leasing numbers are usually not that different.

gtli · October 2006

what happens if you do a one pay lease and the car is totlaed or stolen?

sussan · October 2006

The second part of the ad is about 2006 R500.
I called the Fletcher Jones in Newport Beach
and even email the ad to them but they don't
want to quote prices on the phone or email, I
think that can cost them at least my business
since I don't want to drive 3 hours round trip
to go to Newport Beach and not get the deal.

martinf · October 2006

I think the "gap" insurance that is included in the MB Financial Lease will cover that eventuality, but I would check with MB Financial directly to make sure. I have seen that objection to the one-pay lease option before, but I do not know the veracity of those comments. In fact, I may just call MB Financial myself tomorrow to try to ascertain the real story. Somehow, I can't imagine that MB Financial would make the single pay lease available and not provide a significant caveat if there was a significant risk of a serious problem were a theft or total loss were to occur.

marley2326 · October 2006

Wanted to thank everyone on the thread for some very useful information. I just leased a 2006 R500 demo up in Boston. The rates and terms I used on this site were invaluable, here goes....
2006 r500 pewter/black 8k miles, mbusa demo
premium pack, keyless go, full leather, heated seats, rear side airbags, parktronic sticker $65,540.
27 mos/12k year
$1700 due at inception...first payment, bank fee, title/tags
$560/month + tax
I opted for the one payment which came to $14,100...saved $3300 or $116/month.

I had gone there to get a new r500 also pewter/black w/ $61,345 sticker, but wasn't crazy about no parktronic or heated seats, so the i went for the added options and probably paid $25/month more than the ideal math, but I got exactly what I wanted. The terms came out to $17,200 off sticker due to demo, 66% resid b/c mileage at end would be 35k, not the 27k i have in the lease. The mf for monthly pay was .004, and the one pay worked out to .0027, calculating backwards. I almost bought one from CA earlier in the month and have it shipped earlier in the month but, wasn't crazy about the color and $1200 to ship($50/mo on 27 mo lease). So looks like the Northeast pxing is getting aggressive. I was quoted $730/month and ~17,500 for a one pay, with less options, from another local dealer 3 weeks ago.

Thanks again, info was invaluable.

marley2326 · October 2006

also, i was quoted $530/mo + tax for the r500 $61,345 sticker, same terms and ~ the same due at inception FYI

sussan · October 2006

I was able to go to downtown MB dealership yesterday since
they told me they will beat the competitor's offer.

This is what I got on the 2006 R500 with MSRP of over $62K I think they discounted it to $46500 with $2350 drive off and monthly payments of $680/mo. 12k/yr. 27 mo. The one time pay was $17500 for 24 mo., since they said they can't do one time pay for more than 24 months.

They said my credit scores were low. The highest score was a little over 680. They were calculating my lease at tier 3. There was a big gap between what I want to pay and what they are offering me. So they said on Monday they will call MB financing and see what they can do.

They asked me what is the maximum I can pay and I told them
$450/m. $2000 drive-off, 12k/yr. for 27 mo. or $13000 one time pay. I think I may have over estimated the one time pay. What do you think? Thank you for all the help you have given me by having a very lively forum I have learned a lot.

gtli · October 2006

5 weeks ago I paid $13,700 one pay for an R500 with a $63,500
sticker price, Tier one credit.

Likely they look at middle score, still does not seem that you should be tier 3

martinf · October 2006

$13,000 single pay for a $62K MSRP R500 is just about right on for an excellent, but entirely attainable deal. I don't think you could get much lower.However, Simonson in Santa Monica has been openly advertising $16,500 off MSRP on their remaining R500's, so I would check with them before signing up with Downtown LA Motors. As you apparently discovered, they can do single pay leases for 27 months and that is the way to go since your residual does not change when going from 24 to 27 months, and you only pay the finance charge for the additional three months instead of both finance charge and depreciation. The Simonson internet salesperson believes you are better off with the 24 month lease, but the math suggests the 27.

sussan · October 2006

What do you think of thier offer and my counter offer?

pureautomobile · October 2006

Fletcher is known for their non-disclosing over the phone approach. They want you there because they know it will help them to get your business.

10/31/2006 is the last day of the month, and they will give you a price or discount factor over the phone. Be aware that they will change their price if your credit is in a different tier than tier 1. Let them know ahead of time over the phone.

Since we can't mention names of salesperson in the forum, at Fletcher, ask for their internet sales manager, and he will deal especially it's the end of 10/2006.

martinf · October 2006

Pureautomobile is right. Try calling Fletcher Jones again and speak with the internet manager. I think the month end timing is key. I really don't know the impact your non-Tier 1 status has on the deal. I would also try Simonson again. I know I spoke with the internet manager there and he was easy to deal with and very willing to quote prices on the phone or via email. The internet manager at Keyes in Van Nuys was also easy to deal with. The internet manager at Mercedes South Bay is also worth checking.

sussan · November 2006

I finally got my R500. Many thanks to those who posted
and who replied to my postings and guided me thru the process.
I called The Internet manager of Simonson in Santa Monica. He told me they don't have any R500 but I should try Long Beach, South Bay, Fletcher, ...

I just love the Simonson guy. He has always been incredibly straight, honest and quick in quoting prices. I buy/lease cars every two years. He will have my business next time I am in the market for a car.

I called the South bay Internet director at 6pm and he emailed me the description for two R500s one was $63k the second was $62k. I picked the Alpine Rain with MSRP of $62k. He agreed to match the quote that I had from Simonson.

By the time we got to South Bay they had added $800 to the
drive off. They said the quote of $2999 from Simonson is just the drive-off price. The drive-off price ant total drive-off are not the same. The $2999 was the drive off and $3800 was the total drive off! Also they added $25 to the monthly payments saying they will try to amend the contract the next day to show $389 which they have not.

The next day we noticed the car was missing the cargo net, cargo cover, grocery bag holder, and cargo tie downs. The car was not cleaned and had barely enough gas to get us home. I have called them and emailed them and now I am waiting to hear from them. I will keep the forum posted.

Overall I love the car and it drives great. I am still figuring out the gadgets.

irishrogue1 · November 2006

so, what was your monthly payment? lease term? cap cost (discount from msrp)?

pinkmelrose · November 2006

I am living in near by Buena park,CA. I had been read those deals in this forum, I feel like I am totally trapped by those silly lease deal by finance manager, which is I never had it before. I will never never make a deal without reading carspace.com's advice.

Here is what I have so far in my R500,(MSRP $65000)and had deal with $15000 discounts,

panorama sunroof,
navigation,
Auto tailgate.

You guys can laughing at me :sick:

sussan · November 2006

The MSRP = $62,365
It has 220 Parktronic $750
326 326 Premium Package: Entertainment Package $4,400
413 : Panorama Sunroof
27 month lease
$3,800 drive off
$414+tax = $449/month

I have leased/bought three BMWs, one lexus, one Infiniti,
two Mercedes Benz so far. This last expirence with R500
been the worst in terms of customer service.

The description of R500 states the following are standard
equipments:

Rear Cargo Cover, Cargo Net, Cargo Tie Downs, and Grocery Bag Holder.

Did any of you get the above items with your R500?

martinf · November 2006

The numbers on your deal are excellent. Insofar as the Cargo items, I would call the salesman at the dealership and get them. You do not want to be stuck in 27 months "owing" them back to MB financial. What was the name of the dealership you finally went with? Please post, they did give you an excellent deal!!

sussan · November 2006

I lease the car from MB South Bay dealership in CA.
I called and emailed the salesman and his boss at the dealership a few times. I finally connected to the salesman. He initially told me the R500 does not come with Cargo items. I then spoke to his boss, he was not so sure and he is suppose to get back to me.

I am very concern about owing them these items at the end of my lease. I am a bit frustrated by the whole thing. I
think they don't care about their customers after they have made their sale. I just hope I am wrong.

irishrogue1 · November 2006

by my calculations, you got about $15,500 off MSRP. a very good deal.

rider88 · November 2006

Which NJ dealer is good to go to? I'm getting the run-arounds from a local dealer I bought several cars from ....

guest · November 2006

I did not hear from MB of South Bay today. I was told by the Internet sales director that he will contact me today
after talking with the general manager.

I am missing Cargo Items from the new R500 that I leased less than one week ago. I am getting run arounds with the dealership.

I am concern about the day that my lease would end and I have to return this car. The MB financing may ask for these
items.

If MB of South Bay does not give me these items what are my alternatives?

zachman1 · November 2006

MSRP: 51,445
27 months at 12K per year
money factor: 67%
Negotiated price: 48,000

Are there better negotiated prices out there?

sharmahw · November 2006

Leasing Gurus: I am looking to get the 2007 R500 with Premium II Package and a 6 Disc CD changer (does not seem to be included in Premium II). I am looking at 0 down (plus the std. destination fee etc.) 15K/yr for 36 months. Can you please advise what I should be paying/month (Tax included). I noticed that current Winter Sale does not apply to R500

Thanks in advance for your help and Happy Thanksgiving.

sharmahw · November 2006

Sorry... re the post#355 (2007 R500) forgot to mention I am in NJ. Looking to go to Ray Catena Mercedes on Rt.1 in Edison, NJ. Thanks

23109vc · November 2006

i've been reading these deals, and it looks like there have been some pretty amazing deals on the R500. - 2006 models...

I would NEVER have even bothered to consider the R500...believeing it was out of my price range, but these lease deals clearly have proven me wrong. I'm seeing numbers here that basically show people doing 27 month leases, with barely over $1000 down/out of pocket, and payments under $600/month...for a car that has a $65k+ MSRP...nuts...

of course, I could just get an odyssey..but to get a "loaded" Odyssey...I believe the lease numbers with a comparabley LOW otu of pocket payment would probably put me in the high 400s...almost $500. so you're talking another $100-150 month to get a car that's worth double... no brainer...

Mercedes-Benz R-Class Lease Questions

Comments

Helpful Tools

Most popular vehicles