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Prices Paid: Buying & Leasing Experiences Mercedes-Benz E-Class Lease Questions
1049 messages, Last post on Nov 25, 2009 at 12:39 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: ghstudio (May 10, 2008 12:14 pm) 2008 Mercedes E350 (2wd) 24 Mo -- Residual 63% -- .00085 27 Mo -- Residual 63% -- .00085 36 Mo -- Residual 52% -- .00130 The E-350 4-matic and Blue-tec's carry different numbers so let me know if you decide to go with one of those instead.
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Replying to: ocautoseeker (May 12, 2008 12:30 am)
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We were thinking of just buying a new C300-4matic but the dealer was pushing this promotion on E350-4matic - Sticker $58,020 for 27 mos lease with $0 drive off (including them paying first month's lease) for $569 per month with residual of $36,200. I think this is a good deal but wanted to get opinions. Thanks!!
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Replying to: peteropny (May 14, 2008 3:50 pm) You aren't going to do any better than that.....you just have to decide if you want to buy the C or lease the E. I would suggest that you drive them both before deciding (and drive the 4wd...not the 2wd).
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Replying to: ghstudio (May 14, 2008 4:11 pm) |
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Replying to: madmarlin (May 14, 2008 10:03 am) You'll need to understand what each term is before calculating: Capitalized Cost (Cap Cost) - The agreed upon price or selling price. Residual Value - The projected wholesale value of the vehicle at the end of the term. It is expressed as a percentage of the of the total MSRP of the vehicle when new. Term - 24, 27, 33, 36, 39, 48 months etc. Money Factor - A decimal number which represents a leasing company's usage fee. It's basically the equivalent of an interest rate when purchasing. Simply times the money factor by 2400 and you get ~ an APR equivalent. Depreciation - The difference between the cap cost and the residual value. The Formula: (Cap Cost – Residual Value) / Term = Depreciation (Cap Cost + Residual Value) X Money Factor = Interest Depreciation + Interest = Base Monthly Payment
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Replying to: ocautoseeker (May 14, 2008 10:10 pm) |
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Replying to: ocautoseeker (May 14, 2008 10:10 pm) In your explanation, you say to multiply the MF by 2400 to get an approx. interest rate. On the Bluetec Diesel for March it was posted as .00225, which would equate to an approx. interest of 5.4%. If I do the calc based on the March info and assume a cap cost of $52,000 and a term of 36 months I get: 52,000 X 55% = 28,600 52,000 - 28,600 = 23,400 23,400 / 36 = 650 (52,000 + 28,600) X .00225 = 181.35 650 + 181.35 = 831.35 Now, If I were to assume that I could make a lump sum for the depreciation of $23,400 and amortize over 36 months at 5.4% (the approx rate) I come up with a payment of only $705.53. To get to the payment of $831.35, the actual assumed interest rate is approx. 16.75%. That is based on amortizing the depreciation of $23,400 over 36 months (Assume you were to bouy a car for $23,400 and pay it off over 36 months, to equate to a monthly payment of $831.35, you would basically be getting charged 16.75% by the bank). Is there something amiss in the above calulcation? At a payment of $831.35, you are paying a total of $29,928.60 when you are theortically using $23,400 of the value of the car. Total interest is $6,528.60. At $705.53, you are paying a total of $25,399.08, so total interest is $1,999.08.
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Replying to: madmarlin (May 15, 2008 5:44 am) When you lease a car, you are borrowing the whole amount, not just the depreciated portion... Even if you paid the entire depreciation upfront, you'd still owe a finance charge each month.. In this case: $28,600 (cap cost) + $28,600 (residual) X .00225 MF = $128.70 per month... Hope that helps.. kyfdx |
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