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Prices Paid: Buying & Leasing Experiences Mercedes-Benz E-Class Lease Questions
1020 messages, Last post on Nov 08, 2009 at 5:13 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: kyfdx (May 15, 2008 7:10 am) i understand what you are saying. the one fundamental problem I've always had with leases is the concept of paying interest on the residual. The residual theoretically represents the value of the car at the end of the lease. When you turn it in, that should represent what the dealer could then sell it for to a new buyer. At that point, they would then charge interest on that value to the new buyer. By also charing interest to the lessee, they have, in effect, double charged the interest and recorded more profit. That is whay the actual interest rate I arrived at is 16.75% when you strictly look at the value the lessee is supposedly deriving from the car over the term of the lease. Not saying leasing is bad, by any means. there are deals to be had and you can always work a better one. there are other factors, too, that make leasing more attractive than buying. But the rates can be a bit harsh when viewed pragmatically in comparison to the value derived. With all that said, i still want to try to work a lease deal on a new Bluetec, potentially. We'll see what happens.
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Replying to: madmarlin (May 15, 2008 5:18 pm) First... the dealer does nothing but sell the car to a bank.. what happens when the lease is done really has no effect on your deal. In essence, you are taking out a loan for the full amount of the selling pricee, and paying the loan down to the residual, at which time you sell the car for what you owe on it (actually turning it in, but the same concept). There is no double interest or additional profit. It is no different than if you bought the car, then sold it to a private party after 3 years. But, leasing isn't for everyone! regards, kyfdx |
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| I am considering E350 lease or purchase. I see a couple of people mentioned about $2000 lease money but in Edmund incentive section, it also lists $2000 marketing support apply for all E classes. Since MB also offering 0.9%APR, would it be better to lease or buy the car? I drive only 10k annually. | |
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Replying to: mynextcar (May 16, 2008 9:42 pm)
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Replying to: ocautoseeker (May 16, 2008 11:56 pm)
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I am looking at a 2008 E63 Retail Price 95440, cap cost 86940 and I have been told two different MF and Residual values from two dealerships. I am looking at a 27 month 15k mi. per year lease. .00150 and .62 and .00120 and .59 are the two I was quoted. What are the real numbers from Mercedes Financial? Thanks. |
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Replying to: mynextcar (May 16, 2008 9:42 pm)
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Hey guys, Is this a good deal? 2008 E350 Sport Package PII Parktronic Panoramic Roof Ipod Kit Window Blinds Electronic trunk closer MSRP: 60540 Selling: 55300 MF: .00085 Residual: 64%, 10,000 miles/year Monthly $750 with CA tax Thanks! |
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Replying to: calbear05 (May 19, 2008 6:35 pm) |
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Replying to: kyfdx (May 15, 2008 7:10 am) 52,000 X 55% = 28,600 " this part of the calculation is not correct. The residual is based on MSRP not your cap cost (so if the MSRP is 56000. The residual is 56000x55%)... "$28,600 (cap cost) + $28,600 (residual) X .00225 MF = $128.70 per month... " Kyfdx, this calculation is not correct.. the original one is the correct way to calculate the rent (or the finance cost) ... Also don't forget to roll your acquisition cost and dealer doc fee either into the lease or the upfront payment. I think this information from Leasecompare.com will help... (Cap Cost – Residual Value) / Term = Depreciation (Cap Cost + Residual Value) X Money Factor = Interest Depreciation + Interest = Base Monthly Payment
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