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Prices Paid: Buying & Leasing Experiences Mercedes-Benz M-Class Lease Questions
569 messages, Last post on Dec 06, 2009 at 9:56 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: Car_man (Oct 11, 2005 2:23 am) thanks again, LD |
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Hi everyone. I have never leased before and am suspicious of the payment Mercedes is giving me. I want to purchase a 2006 ML350 with MSRP 48,000. I am trading in a car with equity of 10,500 after they give me my trade in value. I have tier one credit and they have quote me a 39month lease with 15,000 miles a payment of 540 plus tax/month after I give them the 10,500. Am I getting ripped off? I talked with the business manager and he said that the lease payments are based on a money factor of 0.33 , interest rate of 8% and a residual value of 28,000. Please help
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Replying to: jkeus (Oct 13, 2005 4:02 pm) ML350 Metallic Paint Trim Package Heated Seats Power Gate Wood sterring wheel. $46,615 with 2k off for 44,615 62% residual .0035 money factor. this money factor seems a little high to me, does anyone know what the money factor should be for mercedes? I think this lease is still a little pricey. Any suggestions. thanks |
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No problem linodis. That sounds like a pretty good deal to me. If you like the truck, go for it. Car_man Host Smart Shopper / Prices Paid Forums |
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Welcome jkeus. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. In your post, you stated that you are trading in your current vehicle that you have $10,500 worth of equity in. Trading in vehicles is fine when leasing, but it is in your best interest to have the dealer that you are working with cut you a check for your trade rather than using its proceeds as a capitalized cost reduction for your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your M-Class would be exactly the same, regardless of whether you had put $10,000 down, or had made absolutely no down payment at all. The .00330 money factor that the F&I manager at the dealership that you are working with is right in line with MErcedes-Benz Credit's buy rate lease money factor for this truck. This is not a very attractive money factor because Mercedes-Benz is not currently providing any sort of lease support on the M-Class, but the dealer that you are working with is being very straightforward with you in not trying to mark this truck's base money factor up to add additional hidden profit to your deal. You never mentioned the selling price of the exact truck that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the M-Class that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what this truck's selling price is. Car_man Host Smart Shopper / Prices Paid Forums |
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Hello smith18. Mercedes Benz Credit's money factors for the 2006 M-Class are indeed very high. this is because Mercedes is not currently providing any sort of lease support on the '06 ML350. As a result, if you were to lease one through its captive finance company, Mercedes-Benz Credit, you would have to use its standard lease program. Its current buy rate standard lease money factor for a 39 month lease for consumers who qualify for its top credit tier and pay a security deposit is around .00330. As I said, it's high but this is the rate that you have to pay to lease this truck right now. I'm surprised how high this model's money factor is given the price of gas right now and the attractive lease programs that are available on some of its competitors like the BMW X5, Acura MDX, and Volkswagen Touareg. Car_man Host Smart Shopper / Prices Paid Forums |
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| Just as an fyi...we just bought a 2006 E350 4Matic, sticker of 57k for $699 a month including NJ state tax, 39 months, 12k a year, no cap reduction, fees of 2k at signing...when he quoted me on a ML350 to replace my current Infiniti SUV, for a 52k car, the price was way into the 700's per month, same terms as above. The salesperson told me to wait until November, possibly December and the money rate from MB Financial will drop on the ML's and they will be able to offer much better pricing. So if anyone is looking to lease a ML, unless you need it now - wait a few more weeks. | |
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I have an '02 ML320 ending in December. Started shopping now and can concur with other peoples experiences on the '06's Here was the old deal: Total CT upfront $1298. onthly $517 incl CT Tax and 12k /yr on 39mo. lease. with roof, xenons etc. Currently, there is nothing out there |
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Replying to: linodis (Oct 10, 2005 10:06 am) |
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