Is This a Good Lease Deal for a 2020 Mercedes Benz GLA 250 4Matic SUV?

meeso_ppmeeso_pp Member Posts: 39
edited April 2020 in Mercedes-Benz
Hello,

So the dealer has offered the following lease deal on a 2020 MB GLA 240 4Matic:

Term, 24 months, $0 down $757.01, $1K down $713.23, $2K down $669.44
Term, 30 months, $0 down $637.46, $1K down $602.71, $2K down $567.97
Term, 36 months, $0 down $544.57, $1K down $515.76, $2K down $486.95

The above payments are based on 12K miles per year, MF factor of .00017 and residual values of 59% for 24 months, 57% for 30 months and 56% for 36 months, which makes me believe there's some hidden fees somewhere for the payments to still be so high. Please confirm what the .00017 actually equates to as an interest rate.

Lease details:

MSRP $46,690
Savings $4045
Cap Cost $42,645

Total Add Ons $1050 (Tier 1 2yr/20K PPM)
Sales Tax $1126.60
Bank Acq Fee $1095
Doc Fee $250
Title Fee $15
Temp Tag $20.50
Out of State Registration $100

Total Price $46,302.10

Rebate $1100
Drive Off $1100

When I asked why the acquisition fee was $1095 and not $495, this is what he said, and it's quite confusing. It sounds like they're using the rebate to buy down the loan acquisition fee - is that the case?

Our worksheet printing system does not work great for situations like these where we are using dealer employee control codes like we are for you! Because it will not let me adjust the acquisition fee price on the worksheet, I put the discounted acquisition fee in the rebate line. If you'll notice, I have an $1,100 rebate showing on the worksheets.. that includes the $500 payment credit we have for this month, and the extra $600 is for the acquisition fee reduction... long story short, on the actual contract it will be the $495 acquisition fee!!

Please let me know if this is a good deal or not. This would be my second lease through this dealer, and during a pandemic, I'd like to get a bang for my buck. Also, let me know if it makes since to add the prepaid maintenance into the payment, or if that's not a good idea.

Thanks!

Comments

  • kyfdxkyfdx Moderator Posts: 197,675
    meeso_pp said:

    Hello,

    So the dealer has offered the following lease deal on a 2020 MB GLA 240 4Matic:

    Term, 24 months, $0 down $757.01, $1K down $713.23, $2K down $669.44
    Term, 30 months, $0 down $637.46, $1K down $602.71, $2K down $567.97
    Term, 36 months, $0 down $544.57, $1K down $515.76, $2K down $486.95

    The above payments are based on 12K miles per year, MF factor of .00017 and residual values of 59% for 24 months, 57% for 30 months and 56% for 36 months, which makes me believe there's some hidden fees somewhere for the payments to still be so high. Please confirm what the .00017 actually equates to as an interest rate.

    Lease details:

    MSRP $46,690
    Savings $4045
    Cap Cost $42,645

    Total Add Ons $1050 (Tier 1 2yr/20K PPM)
    Sales Tax $1126.60
    Bank Acq Fee $1095
    Doc Fee $250
    Title Fee $15
    Temp Tag $20.50
    Out of State Registration $100

    Total Price $46,302.10

    Rebate $1100
    Drive Off $1100

    When I asked why the acquisition fee was $1095 and not $495, this is what he said, and it's quite confusing. It sounds like they're using the rebate to buy down the loan acquisition fee - is that the case?

    Our worksheet printing system does not work great for situations like these where we are using dealer employee control codes like we are for you! Because it will not let me adjust the acquisition fee price on the worksheet, I put the discounted acquisition fee in the rebate line. If you'll notice, I have an $1,100 rebate showing on the worksheets.. that includes the $500 payment credit we have for this month, and the extra $600 is for the acquisition fee reduction... long story short, on the actual contract it will be the $495 acquisition fee!!

    Please let me know if this is a good deal or not. This would be my second lease through this dealer, and during a pandemic, I'd like to get a bang for my buck. Also, let me know if it makes since to add the prepaid maintenance into the payment, or if that's not a good idea.

    Thanks!

    The money factor and residuals are correct.
    Of course, with those numbers you shouldn't consider the 24 or 30 month terms.

    What does this line mean?: Total Add Ons $1050 (Tier 1 2yr/20K PPM)

    Is the dealer in Ohio?
    What is your location?

    What they say about the acquisition fee is believable.

    You have the residuals for 12K/yr.... is that what the payment quotes are for, as well?
    Does the "$0 down" signify $0 Due at signing? Not even the first payment?

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  • meeso_ppmeeso_pp Member Posts: 39
    The total add on line of $1050 is for the pre-paid maintenance plan
    Yes, Ohio and I'm in Michigan
    Yes, the payment quotes are for 12K miles
    I believe the $0 down does mean $0 cash due at signing. From the worksheet, it looks like everything is rolled into the lease payment. The rep said it was a sign and drive offer.

    Is it wise to roll maintenance plans into the lease payment. Would it be better to pay all fees up front, versus doing a $0 cash due at signing deal. I really don't want to lease the vehicle for more than 30 months, but the payment seems significantly lower if I do.

    Based on what's been provided from the worksheet, should there be wrong do negotiate more savings on this deal - maybe ask for more concessions to lower the cap cost even more?
  • kyfdxkyfdx Moderator Posts: 197,675
    meeso_pp said:

    The total add on line of $1050 is for the pre-paid maintenance plan
    Yes, Ohio and I'm in Michigan
    Yes, the payment quotes are for 12K miles
    I believe the $0 down does mean $0 cash due at signing. From the worksheet, it looks like everything is rolled into the lease payment. The rep said it was a sign and drive offer.

    Is it wise to roll maintenance plans into the lease payment. Would it be better to pay all fees up front, versus doing a $0 cash due at signing deal. I really don't want to lease the vehicle for more than 30 months, but the payment seems significantly lower if I do.

    Based on what's been provided from the worksheet, should there be wrong do negotiate more savings on this deal - maybe ask for more concessions to lower the cap cost even more?

    It would be foolish to lease for just 30 months, given the parameters.

    It isn't better to pay anything upfront, except for first payment and non-taxable fees (title/registration). The money factor is negligible. Like paying 0.40% interest.

    I wonder about the sales tax calculation. Ohio charges sales tax upfront, but MI taxes the monthly payment. Of course, this could be a "temporary" quote, that won't be accurate until they print the contract (like with the acq.fee).

    With $0 due at singing, $545/mo is reasonable for this vehicle.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • meeso_ppmeeso_pp Member Posts: 39
    Thanks for the advice!
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