2014 Mercedes-Benz E350 E-Class - Money Factor and Acquisition vs. Termination Fees
veerman
Member Posts: 1
Hi Guys,
Leased an E350 in Feb 2014.
Wondering if any of you folks have had any experiences or comments to share about my lease:
3 years/12,000 miles for 2014 E350
Final Capitalized Price: $53,100 includes Acquisition Fee[$795] and maintenance for 3 years, plus Premium 1 Package, Lane tracking, Rear Deck Spoiler, Comfort Box, 3 Spoke Sport Steering Wheel, Keyless-Go Hands Free Access, 18" AMG Wheels, Lane Tracking Pkg: Blind Spot, Freight Charges.
Paid $2500 Down. Monthly Lease Payment is $704.
The dealership has also included a Vehicle Termination Fee for $595 if I decide to turn the vehicle back at the end of the lease. I read some online opinions on car leasing and they state that your car lease can either have an acquisition fee or a termination fee...Never Both...any opinions on this guys?
Now regarding the Money Factor. With my excellent Credit score above 810, the dealership states that since I am considered Tier1, I am getting the best MF rate which is 0.00265 and according to them, this MF rate is pretty much fixed and non negotiable as it is set by Mercedes Leasing/Financial services. I did check some reviews posted by other subscribers on Edmunds forums for e350 and found out that the Money Factor rate is actually lower and can be negotiated?? Any opinions here friends. The dealership says that I can call up Mercedes Leasing directly and ask them about the Money Factor and the termination fees. But they simply cannot lower them.
I am confused here, as I see a lot of posts stating that the MF can be lowered with a good credit score. I would appreciate any inputs in this.
Cheers!!
Veerman
Comments
Hi,
We have a dedicated leasing discussion, where other members are more likely to comment on your post. Try re-posting here:
http://forums.edmunds.com/discussion/16863/mercedes-benz/x/2014-mercedes-benz-e-class-lease-questions#latest
Congrats on the new car!
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These are both great questions, and I wanted to make sure I had the best up-to-date information, so I called Scot Hall, executive vice president of SwapaLease.com and WantaLease.com. Hall said he rarely sees a lease that does not include an acquisition fee and many leases have termination fees, which he estimates to be between $200 and $350. To answer your question he said that contracts can, and do contain both acquisition fees and termination fees.
Concerning the money factor (interest rate) on the lease for the 2014 Mercedes-Benz E-Class, Hall said the money factor or lease factor of .00265 converts to an interest rate of 6.36 percent (multiply the lease factor by 2400 to get the interest rate). If your credit is top tier, then there is "something fishy" about this rate, Hall said. Top tier credit should get you an interest rate of 3 percent or less. Some leases allow the dealers to markup the interest rate, which appears to have happened in this case. The best course of action would be to get a quote from a competing dealer and see what their monthly payment is with the same terms (length of lease, drive off fees and miles driven).
As the senior consumer advice editor for Edmunds, I find competitive quotes to be the easiest way to negotiate. Rather than dissecting leases and arguing with dealers, just ask for a quote and let them know you are shopping around. They know they have to beat the competition and will usually quote a low bid. This is the method we recommend in 10 Steps to Leasing a New Car.
Philip Reed, Edmunds.com
Philip Reed, Edmunds.com Senior Consumer Advice Editor
Getting a deal lease 2014 e350w rwd sedan MSRP$56,965 got a discount for $10,200 off. Sale price came to $46,785 with total on road including tax, tag, document fee comes to $50,165. Dealer wants $2k down and 15k/27months $552 monthly payment. MF.00136 and residual 65%. Is this a good deal? Can the money factor get any lower? He said he gave me the best? Or anything else I can do to get it down anymore?
And maintenance included
Maintenance, too? Not bad. That is the base money factor. If you sign up for AutoPay, I think they lower it by .0001 (to .00126). Is the $2000 your total due at signing? Or, a CAP cost reduction?
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Total due at signing including first month. I never asked about cap cost or about auto pay. First time leasing, just wanna make sure I get the best deal.