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You are in the Prices Paid - Buying & Leasing Experiences
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Mercedes-Benz M-Class, Car Leasing, SUV
#741 of 1546 Re: 2010 MB ML Lease [s9r9d4]
Apr 26, 2010 (5:57 pm)
It's impossible to know what will happen in May in financial World. If I knew what will happen on the stock market tomorrow - I would be a millionaire the day after tomorrow...
However, logically, Mercedes-Benz will lower their residuals the next month, because 2010 models are getting older - which is bad news for leasing, because your monthly payment will be higher. But if MB decides that they need to push the sale of ML class for some reason (like they are overstocked or want to get rid of 2010 models, so they can replace them with 2011 etc...), then they would need to come up with some kind of incentives or dealer cash - to suppress the difference in monthly payment. Personally, I would rather lease a car with the lower than higher residual for many reasons. One of them is the lower purchase price if you decide to keep this car at the end of the lease, so I would gamble and wait till May.
On another hand, there is a possibility, that MB wouldn't want to come up with any incentives if business is good anyway. Then it will be impossible to make as good deal as in April.
My advice: if you can make a good deal in April - then take it now. If you can't - then you have nothing to loose by waiting till May.
Hope it helps.
#742 of 1546 Re: 2010 MB ML Lease [storm10]
Apr 26, 2010 (6:17 pm)
Thanks for getting back to me. My salesman told me that if the lease payments were to increase in the month of May, he would work out a deal. He believed that the prices were going to go down. So i'm trusting him.
#743 of 1546 newbie on leases
Apr 27, 2010 (2:14 pm)
Hi All. I have a quick question on leases and would like some feed back.
currently the ML is advertising at 569/month for 39month lease. The car comes with P1 and heated seats and pre wiring in back. The car my dealer has in stock has a few other add ons. As oppose to him reworking the deal to include the add on prices, can I just buy the add on outright at invoice or negotiated price and still get the car advertises at 569/month? has anyone have any experience with this?
Does anyone know their current money factor and residual %? Can money factor be negotiated if you fall within the higher tier credit ratings?
Thanks in advance for your comments?
#744 of 1546 Re: newbie on leases [newbie38]
Apr 27, 2010 (5:17 pm)
can I just buy the add on outright at invoice or negotiated price and still get the car advertises at 569/month?
Don't make this mistake. Do not pay separately for add-ons, because you are not buying this car - you are leasing. Which means you are not paying the full amount for the car (or add-ons), you pay only partially for what you use. Basically: the full price of the car minus residual value at the end, plus sales tax and plus interest.
Here is what I suggest to do:
The special is advertised based on MSRP of $53,765. Take the car you want MSRP and deduct $53,765. For example the difference will be $3,000. Then deduct Residual value percentage. For example if Residual is 66% it will be aprox. $1,000. Then take $1,000 and divide by term of the lease - 39 month. It will be aprox. $26/mo plus add a few bucks for bank interest - your total monthly difference will be aprox. $28. Add it to advertised mo payment $569- and your payment should be around $597. Or you can keep your payment at $569 and give them $1,000 more down.
I don't remember exact residual for ML350 4WD, but you can ask HOST of this thread or check previous posts in this thread during April, I think somebody already posted it.
Apr 27, 2010 (6:10 pm)
Storm, thansk for the quick reponse. your point makes a lot of sense, but before i go back to the dealer, can you please let me know how you arrived at the 1000?
. For example the difference will be $3,000. Then deduct Residual value percentage. For example if Residual is 66% it will be aprox. $1,000.
The difference of my MSRPs is 1790.
Please show me how to calculate if its not too troublesome.
#746 of 1546 Re: Thanks [newbie38]
Apr 27, 2010 (11:39 pm)
If you refer to post #733, HOST gave Residual value 53% for 15,000 miles per year. If you take 12,000 miles you need to add 2%, 10,000 miles-3%, 7,500 miles -add 5%. If you want to take advertised special - $569/mo - this is for 12k/year, so lets add 2%.
Your Residual value is 55%. It means that you'll pay only 45% of vehicle cost.
We take your difference $1,790 and deduct 55% = $805.50
Now we take $805.50 divide by 39 month payments = $20.65
Plus lets add a little bank interest - since it's special rate it should not be more than $2-3 per month. =$23 - $24 per month is the difference.
Now lets add it to special payment $569 + $24 = $593.
I recommend to pay $593 instead of putting more money down. It's better to put less money down. Try to research this thread.
#747 of 1546 Re: Thanks [storm10]
Apr 28, 2010 (5:09 am)
Storm, thanks A LOT. I will talk to the dealer today and keep you posted.
i dont see any reason why they wouldnt honor it...
#748 of 1546 My Final Deal Price on a 2010 ML350 4Matic
Apr 28, 2010 (9:30 am)
I finally closed the deal on Sunday for a new lease on 2010 ML350 4Matic (no options):
$49,075 (includes $875 Destination/Delivery Charge) MSRP
$43,526.96 Gross Cap Cost
$1006.00 Drive Off
$589 (including 8.75% sales tax)
10K per year
In the past 3 days I had multiple dealers contacting me as they seemed a little more willing to come down to try to make their end of month #'s better. Definitely wait till end of month to sign.
If you're in SoCal. Here's a list of the places I visited and dealt with in person by favorite rank order:
BEST OF THE BEST
1) South Bay (best for my money & they were honest/upfront w/ no frills)
2) FootHill (ask for "Eddie H." the finance guy, extremely honest and grt business manners) This dealer was my runner-up. I would go back here in a heartbeat, but they were just a few bucks higher than what I wanted to pay.
3) West Covina (grt sales person named "George M" - unfortunately not cheap enough, his finance guys are tight with their money, but George is very good)
4) L.A (grt sales person named "Chris J." - unfortunately too high)
5) Long Beach (very honest and didn't waste my time letting me know their #'s)
WORST OF THE WORST
1) Fletcher Jones - this is where I originally had my 1st lease...their sudden desperation to sell has led them to become serious arm twisters and rude/obnoxious harassers to say the least. Glad I'll never need to go in there ever again.
2) Laguna Niguel - "Victor" quoted me #'s that he never intended to do, just to keep me coming back. "Alex" supposedly tried to rectify the mess and never called back, "Duke" was a nice sales guy unfortunately stuck w/out much integrity from his finance guys who were no help. NEVER go to this dealer. I read a # of reviews that they will lie, cheat, do whatever to get your money. In my case, it was very true.
3) Annaheim - Told me I had their lowest #s and next move was up to me, so I moved on to another dealer...then they called back to tell me they would match anything lower...I really didn't have time to play games. They like to play games...
#749 of 1546 Lease questions
Apr 29, 2010 (5:57 am)
I was at the dealer inquiring about the ML.
MSRP is 55,935 and factory invoice is 52,681. I got a qoute of 930 below invoice.
is this a solid deal?
as for leasing terms, he is using 56% residual and 3.19% APR.
Can the leasing APR be negotiated if I fall withing the top tier credit score?
Please let me know. Do you think it will be risky if i wait until May to get better leasing options?
Thanks in advance!!
#750 of 1546 Re: Lease questions [newbie38]
Apr 29, 2010 (9:24 am)
It depends where you live. If you read one post above yours #748 - you'll see that dslee1 just made an incredible deal $2,774 below invoice, pointing out that it's better to make a deal at the end of the month rather than in beginning. But this kind of deal you can get only in So Cal. On the downside - you pay highest sales tax and DMV fees in the country if you live in So Cal.
The good thing, that they gave correct Invoice amount - means they are not liars. You can always double check Invoice amount here: Mercedes-Benz Invoice Calculator.
There is no APR on leases - there is a money factor and it can not be negotiated below "buy rate".
I recommend to grind them a little more and make a deal before April ends. Don't negotiate any rates, residuals, cap reduction or bank fees etc. - try to focus on the monthly payment itself, because that's the bottom line...although there is no 100% guarantee that you can make a little better or worse deal in May.