Last post on Dec 07, 2013 at 6:57 AM
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Mercedes-Benz C-Class, Car Leasing, Hatchback, Sedan, Wagon
#966 of 1998 Re: July MF and Residual [bottomsup]
Jul 06, 2011 (4:25 pm)
Hello bottomsup. Mercedes-Benz Financial's July buy rate lease money factor and residual value for a 36 month lease of a 2011 C300 Sport with 12,000 miles per year are .00109 and 55%, respectively for consumers who qualify for its top credit tier.
The residual value for a lease with only 10,000 miles per year is 1% higher.
It would be easier to evaluate this deal if you were able to provide us with this car's MSRP and dealer invoice price. This will show us how large a dealer discount you are being given and if there is any room left to negotiate.
Prices Paid: Buying & Leasing Experiences Forum
#968 of 1998 Leasing with Maintenance
Jul 08, 2011 (2:25 pm)
I'm trying to understand how maintenance payments are handled.
I would have thought that the maintenance package costs would have been spread during the lease term, However it seems that the residual factor is applied and you don't pay the full amount...so what is the catch?
For example, if you take a $769, 3 year maintenance, the payment on a 64% residual car on 33 months only cmes out to $8.38 + tax. So you end up paying about 277, but fully use up the maint service.
So what is the catch? Do you have to pay the remaining portion at the end of the lease?
I have quotes from a dealer, but have not discussed this yet. Any insight would be greatly appreciated.
#969 of 1998 Re: Leasing with Maintenance [mb_ryna]
Jul 08, 2011 (4:06 pm)
The maintenance package is not residualized, just like anything else added to the capitalized cost. So you will pay the full amount over the term of the lease, with nothing due at the end. It's the same if you were to do a zero down lease, and spread the first months payment, acquisition, taxes, etc. over the term of the lease.
#970 of 1998 Re: Leasing with Maintenance [jwilliams2]
Jul 08, 2011 (5:11 pm)
jwilliam2 - see posting #949. That person, like me, also was provided a "residualized" portion of the maintenance...not the full amount.
My thoughts are the same as yours...but it seems that the dealers are providing it incorrectly and I'm concerned that they will ask for the remaining portion at the end of the lease. Guess I'll know when I receive the final paperwork tomorrow.
#971 of 1998 Re: Leasing with Maintenance [mb_ryna]
Jul 08, 2011 (5:53 pm)
Let us know how it works out. If doesn't make sense that they would residualize a maintenance plan. I was in sales and sales mgmt for 12 years selling MB up until a few years ago, and we always added it to the residual, the same as the acquisition fee. So you paid for the whole amount. Would be interesting to know if it has changed. And a heck of a deal as well.
#972 of 1998 Re: Leasing with Maintenance [jwilliams2]
Jul 08, 2011 (7:38 pm)
Please let me know your thoughts - I think I know what is going on now and think that the dealer has made a mistake factorng in the mainteance. Jwilliams2 message was helpful.
I have so many versions of the paperwork that it was hard to spot a change in the residual.
Here are the numbers without and with the maint.
C300, 4-matic, MRSP of 45195.
Sale price of 39000 (a bit over 11% off and taking 2000 off for conquest)
33 month, 10K/year, MF. 00109
64% residual = $29, 564
payment 452.01 which includes $69.45/month of tax
(pay 6% on full purchase price, so $2338)
With 3 year maint package $769:
all of the same as above except
Sale Price 39000 with 769 aftermarket
"64% residual", but now 30,057 -> thus $493 higher
payment $463.21 which includes $70.85/month of tax (total tax = 2338.08)
so with maint, the payment is $11.20/month extra x 33 = $370 + 493 "higher" residual, the intent was to charge $863 for a $815 product ($769 package + 6% tax).
Shouldn't the residual have been lowered by $493 or so rather than increased? If the residul is lower, then the payment is higher.
#973 of 1998 Re: Leasing with Maintenance [mb_ryna]
by kyfdx@Edmunds HOST
Jul 08, 2011 (8:09 pm)
The residual should have stayed the same... As noted before, a maintenance plan is just an additional cost, that isn't residualized...
I think the dealer is making a mistake, and it will probably be kicked back, once it hits the bank... If not, then taking the maintenance is a no-brainer and super cheap.
The only exception I've seen to this, is with Audi Care.. If you took that maintenance package, Audi was raising the residual of the vehicle by 1%. But, they still weren't adjusting MSRP... That seems wrong.. MSRP is MSRP.
#974 of 1998 Re: Leasing with Maintenance [kyfdx]
Jul 09, 2011 (5:03 pm)
I just confirmed today from another dealer that MB is allowing maintenance package to be residualized....if you get it, they are increasing the residual value f the car as it will be well taken care of.
This is good news as it means maint should only cost about $10/month during th term of the lease...big savings!!!!
#975 of 1998 Re: Leasing with Maintenance [jwilliams2]
Jul 13, 2011 (8:46 pm)
The maintenance package is resudualized as it is added to the cap cost. I just got my C300 and am paying about $12/month for a $700 package for 33 months covered till 40k miles.