Last post on May 21, 2013 at 1:00 PM
You are in the Prices Paid - Buying & Leasing Experiences
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Mercedes-Benz E-Class, Car Leasing, Sedan, Wagon
#2210 of 2973 Re: E350 Cabriolet Lease Nor Cal [kkdonn]
Mar 30, 2012 (10:13 am)
While car dealers make you think that the price they pay for your car is part of the deal for the new car..it is really a separate transaction. Just treat it that way....ask them what they will pay you for your car....NOT how much will my new car cost if I give you my old car as a trade in. Do not let them cloud what you are paying by using that money as "money down"...you don't want to put any money down...bad idea, bad financing even though every dealer will try to figure out a way to give you the lowest monthly payment, even if you pay more overall. Be a smart leaser...no money down.
OK...now that we have that out of the way...we can talk about leasing. the numbers you care about in leasing are: Money Factor, residual value, the list price of the car and the price they want you to pay. Please do not let them wing a number by you of $X per month with $y down. You don't want to put any money down...that means you will pay the first month's lease payment plus any legally required fees (registration/taxes)...that's it to walk out the door. Next, you want to price the car including mercedes (not third party) maintenance included in the lease. Next, I don't know if the rate on the car you want has a promotional money factor or not....but you should ask the dealer for a price with no security deposits and then a price with 10 security deposits (this is called multiple security deposits)..one short word on MSD's..you loan Mercedes 10x your monthly payment for the length of the lease and then you get that money back..very different then a down payment. The reason you do this is because it lowers your money factor and you save roughly $50 or more a month). Finally, you may be eligible for "conquest" money (rebate) of $2K because you drive a ford. You should strive for a capitalized cost of maybe $500 over invoice (see edmunds) less another $2000, if you are eligible.
Good luck...report what you find here and we will try to help you get the best deal....but please give us all the numbers I mentioned...not just the monthly charge and list price. Also give length of lease.
#2211 of 2973 Re: E350 Cabriolet Lease Nor Cal [ghstudio]
Mar 31, 2012 (8:05 am)
Here you go , went to 2 dealers and the numbers which look same like the MB Lease specials advertised
Dealer 1 Fletcher Jones , Fremont CA
E-350 Black Cabrillio (base option not S02)
The MSRP is 57720 for a buy option they can go Invoice +1000.
For a 3 year lease here are the numbers
Res Value - 60%
Money factor =0.00177(value is for 750 credit score not excellent like in 800's)
Cap Cost - 56720
Cap Cost Reduction 3999 ( which i guess is a rebate because i told him i want a no money down or a trade in option)
Acquisition fees is 795
The final lease amount is 699 + 61.25 (sales tax)= 760.25
We talked about conquest rebate but he was not sure if we can get one for 4Runner and said he will try to get .
This price is not including the 3 year maintenance as they have a one year free included in the package
He was not very encouraging on the MSD and said finance will go over that when we pull the trigger
Dealer 2 Smythe European San Jose
He did not have any E-350 Black Cabrillio (base option) and was trying to sell me one with S01 which was about 66000 or with S02 which was 63000 and did not have our color in their inventory . He kept telling me there is not a single car in bay area with a base option available where as i test drove the base option same day.
We plan to visit 2 last dealers in case they have our color and model if not then dealer 1 is our last choice.
Like you mentioned I did not talk about a trade-in which is a 4Runner SR5 2009 with 52K and leather seats &3rd row .Found out KBB value for private party for very good condition is 26,318 and and Trade in 24,218. I plan to put it on sale on Craigslist and try and sell it in next couple of days .
Thanks a lot , you cannot imagine the confidence this site gives when we go for negotiations . Great work , keep it up
#2212 of 2973 Re: E350 Cabriolet Lease Nor Cal [kkdonn]
Mar 31, 2012 (9:06 am)
Having lived in SF for some time before relocating to SD, I recommend calling MB of SF, MB of Walnut Creek, and then RAB in Marin. At MB of SF, ask for a sales manager with initials AC and simply tell him the particulars of what you are seeking. They are very transparent on RV and MF and will do MSD. Best of luck with your newfound confidence!
#2213 of 2973 Re: E350 Cabriolet Lease Nor Cal [dewarsandsoda]
Mar 31, 2012 (10:14 am)
Thanks , have contacted all the MB dealership you mentioned.
By the way what are your thoughts on a 5 Yr lease vs 3 year . Here are my numbers for 0 down and no due at lease ( dont know if its possible) , 4k in cap cost reduction and finally 4K 5 yr lease and increase MF to double of .0017
Car Lease E350 base Prm Pckg 1 No Down 4K(Cap Red) 5 Yr Lease
Capitalized Cost 56720 56720 56720
Capitalized Cost Reduction 0 4000 4000
Net Capitalized Cost 56720 52720 52720
Residual Value 34032 31632 31632
Total Depreciation 22688 21088 21088
Lease Length 36 36 60
Monthly Depreciation 630 585 351
Money factor 0.0017 0.0017 0.0025
Interest Rate 4.08 4.08 6
Interest Charges 154.2784 143.398 210.88
Pre-Tax Monthly Payment 784. 729. 562.
Sales Tax 68. 63. 49.
Final Monthly Payment 853.67 792.33 611.552
Due at Signing
Montly Payment 853.17 792.93 611.552
Acqusation Fees 795 795 795
Lease Fees 1 1 1
Cap Cost Reductuion 0 4000 4000
Drive off Amount 1649.1 5588.9 5407.5
#2214 of 2973 Re: E350 Cabriolet Lease Nor Cal [ghstudio]
Mar 31, 2012 (11:39 am)
Any thoughts on my numbers ?
#2215 of 2973 Re: E350 Cabriolet Lease Nor Cal [kkdonn]
Mar 31, 2012 (3:30 pm)
I assume that the car has an MSRP of $63315 (cabriolet, metallic paint, P1)...right?
A 33 month mercedes lease will cost less than a 36 month lease because they are usually allowed to use the 30 month residual for up to 33 months.
Personally, I would never lease for more than that....I'd buy the car.
You should include the maintenance FEATURE...it will raise the MSRP, but you will only pay part of that because it is residualized like any other feature.
Why is the first payment so high??
#2216 of 2973 Re: E350 Cabriolet Lease Nor Cal [ghstudio]
Apr 01, 2012 (10:27 am)
Here is the final offer dealership made for the car which is not on their lot , I guess they are getting it from another one in bay area
The MSRP for E350 + P1 package is 64545
MF = .00177
Down payment+Acq fees of 1095 = 6000 (Total drive-off)
To make my Monthly payment 729.12 including tax
Here are some discussion items we did
My Monthly payment was not supposed to exceed 730
No discussion of maintenance as that was supposed to be done with finance guys
They give one year free maintenance .
The deal did not go through because i wanted 6k for my car which they could not match and i decided to sell it outside to raise 6K and i said i will come back
From my calculations to get 730 monthly + 6K for this deal
Cap cost would be 54475
Adjusted Cap Cost (with 6K down) would be 48475
I saw Truemarket value for this from edmunds is
Base Price $53,941
Premium 1 Package $3,729
Destination Fee $875
Regional Adjustment ($124)
Total Price $58,421
What do you think ?
#2217 of 2973 Re: E350 Cabriolet Lease Nor Cal [kkdonn]
Apr 01, 2012 (12:02 pm)
1) have them run a 33 month lease on the same car. Add up the total costs (everything you pay) for both the 33 and 36 month leases and divide by the number of months...that will give you the actual monthly cost of leasing the car. My guess is that the actual cost per month will be less on the 33 month lease. The only thing to compare is the total cost of the lease....
2) If ypu buy mercedes maintenance from your salesman, it should be included in the MSRP of the car (note: must buy mercedes, not third party). That means that you will really only pay 40% of the MSRP cost...just like you are only paying 40% for every other feature on the car. Negotiate this with your salesman, not the finance guy who will try to sell you third party maintenance and then you have to pay the full cost. This is one of those "I don't care how you do it, mr dealer, but here's what I the buyer want to do." And subtract out the cost of an "A" service from the MSRP since they are apparently giving that to you free.
Negotiate the $1095 down to what mercedes actually charges the dealer which is $795.
Do not put money down up front (capital cost reduction) unless you have to do it for credit reasons. Under normal conditions, it really doesn't matter...but the condition you care about is if the car is stolen or totalled. Here's what happens:
Mercedes determines the value on their books of your car. They then subtract out all the money you have paid and any difference is paid by their gap insurance which is included in your lease. But if you have put money down up front, that's part of the money you paid so they don't have to use their gap insurance and you are out that money.
It is safer to just keep that money and pay it a little each month...in fact, if you make a 3600 capital cost reduction on a 36 month lease, your monthly payment will be $100 less. If you put that same 3600 in a bank and use it $100 at a time, you pay the same to mercedes, but you protect yourself from just losing that $3600. Yes, there's a little interest, but not enough to worry about given the possible risk.
That's why most familiar with leasing recommend that the first payment is only your first months lease payment plus any legally required costs. The aquistion fee is not a legall required cost and should be rolled into the lease like every other cost.
#2218 of 2973 Any one has numbers from MB
Apr 01, 2012 (9:38 pm)
I could not get my deal yesterday and I guess the new numbers for MF and Residual will come in play for the month of April
One more question i had for the forum ,
Is this a good offer for Black E320 Cab with P1 and Appearance package for 3 year term
MSRP - 64545
Cap Cost 48000 (I calculated this on my own using formula )
0 down (I plan to put money down only for credit reasons)
729 Per/mn incl taxes
2538 drive off cost
3 year MB maintenance rolled in Cap cost
Let me know and i will close the deal
#2219 of 2973 Re: Any one has numbers from MB [kkdonn]
Apr 02, 2012 (2:22 pm)
Did you check the 33 month lease to see if it's cheaper per month when you add up all the costs and divide by 33......vs the 36 month lease adding up all costs and dividing by 36. It usually is better/cheaper because mercedes lets the dealers use the 30 mo residual for 33 month leases.