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You are in the Prices Paid - Buying & Leasing Experiences
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Mercedes-Benz M-Class, Car Leasing, SUV
#94 of 1616 Re: Mercedes-Benz M-Class: Lease Questions [bonch2004]
Sep 08, 2006 (9:41 am)
It's my personal opinion that a good buissness deal occurs when both parties are happy. I think a profit of $2k for the dealer on a $50k car is fair and proper (I'm sure the dealer would have liked more..) The bottom line is (in my opinion) is that you got a good deal (getting the car you wanted near invoice) and the dealer got a reasonable profit for there services. One thought though... the 2007 are being delivered and if you waited one more month you could probably get a 2006
below invice. But who knows... if your happy with the car and don't care for a rear-view camera (2007 new product) go for it.
#95 of 1616 Current MF and Residual on ML-350
Sep 18, 2006 (7:09 am)
could you please post the current MF and residual for the ML-350 at 15K miles/year and 36 or 39 months whichever MB is using.
#96 of 1616 Re: Current MF and Residual on ML-350 [cfopv]
Sep 18, 2006 (5:23 pm)
I'm not certain what the current money factor is (and it of course depends on your credit) but I have tracked pass postings and here is a sample of MF (for credit scores above 730 Top tier):1)durring special summer lease program ml 350
36mo/15k mi Residual 57% of MSRP - .00285 money factor. .00285 really is'nt that great (it works out to 2400x .00285= 6.84%) I've see people talk about .0022= 5.28% and as high as .00333= 8%. If you have great credit many dealers work with Chase also to lease their cars and I have gotten very good rates through them when the manufacturs rate was much highier. Good luck.
P.S. BMW's new X5 comming out around the first of the year looks to have greatly redone thier interior and the fit and finish looks far richer than MB . The pricing may seem a bit highier but when you figure in BMW takes care of ALL maintenance for 4 years they become much more competivly priced to the ML. I'm strongly considerilg an ML500 around then, but I'm going to test drive the X5. The only problem appears that BMW will intially come out with only a 3.0 liter (around $43k) and a $70k+ 4.8liter version at launch. I feel the 3.0 liter will be a little underpowered when you stuff 7 people (yes they will have a 3rd row seat in the much bigger X5) and the 4.8 liter at $70k+ is a little too much for my blood. But the interior is really looking nice.... just like a 7 serise. Good luck SUV shopping (it's a good time to be a buyer with so many luxury SUVs competeing, M-class, Lexus RX, BMW X5, Audi's Q7, and Cadilacs new SRX).
#97 of 1616 Odd ML350 Lease
Sep 22, 2006 (5:38 pm)
I was quoted the following odd combination today (high MF and enormous residual %):
Term & Disp~~~~~~1190
Tax (MA)~~~~~~~~~5 %
Residual~~~~~~~~~68 % (huh?)
total outofpocket~~~~7065 (incl first payment)
I just really don't understand this combination, esp. with a "purchase option" of 31680 (I think this means post lease, but this doesnt seem to synch with the residual in the lease calculations.)
Is this a good deal ? Do the numbers add up ? I have tried two different lease calculators and I can't duplicate the payment with these numbers.
#98 of 1616 Re: Odd ML350 Lease [scottlma]
Sep 23, 2006 (7:53 am)
Dear Scottlma...the reason why you can't make the figures add up are because they don't. In fact this "deal" is bordering on criminal. It's the most outrageous offer I've seen. Where do I start? 1) Only $2k break on MSRP? You should get at least $3k-$4k. 2) Money factor .00415= 10%? unless your credit is subpar this is criminal. 3) $5000 cap reduction? There's nothing wrong with a cap reduction if you want to lower your payments ... but it dos'nt seem to be helping this deal. My advise... don't walk...run from this "deal" and drop a grenade on the way.
But again if your credit score is say less than 600, this might make sence. It appears that a person with such a score would be paying about $6k-$8k more to lease this car as opposed to someone with top-tier credit rating (above 730). Good luck.....
#99 of 1616 Re: Odd ML350 Lease [kris17]
Sep 23, 2006 (6:49 pm)
I agree that the money factor is way high, but, does the high residual make up for it ? I found a posting with all of MB's lease options:(http://forums.mbworld.org/forums/showthread.php?t=161916)
- ran it both ways and got similar (but never quite exact) numbers. I went back to the dealer and got him down to 1000 over invoice on a similar ML350 - still mulling it over...
#100 of 1616 Re: Odd ML350 Lease [scottlma]
Sep 24, 2006 (6:58 am)
Value at the end of lease $51690*.68=$35149
Sale price $49700 plus tax $1757 plus misc fees $1100 total $52557
So you effectively finance $52557-$5000(cap reduc)-$35149= $12408 for 38 months (.00415*2400) = 10%
Using a conventional loan calculator $12408 38 months 10% = $382/month
From what you have said they want to charge you $699/month for this “deal” ..not the true $382/month to finance it. So although they may have said 68% residual … something is not adding up. Your dealer is pocketing 699-382=$317 * 38 months=$12046 WOW…. If you can get them to sit down and do the simple type of analysis I just did (and have everything written down … not just punched into a calculator in front of your eyes) you should get to around the same point (to within plus minus $20-$30). But I’ll bet you a beer this won’t happen….. Good luck
#101 of 1616 2006 ML350 Lease gone bad!
Oct 02, 2006 (8:37 am)
I need advice. I leased a 2006 Mercedes ML 350 1 year ago for 4 years for $1023 a month under my company name. The total lease amount is $54,000 in which I put $8000 down and have paid easily $21000 already for this stupid SUV. Now I have this SUV for another 3 years what in the heck do I do? My credit score is 615 which in today's world means bad credit. Any advice would be great. I'm only paying this much because of my credit score. Can I trade down or trade it in on a lesser value car at mercedes or another auto maker?
Thanks ahead of time. My credit is what got me in trouble. I don't want to refinance like the salesman said to do when my credit score improves which it has since I leased the ML I think my score was 570 then now it is different in all reporting agencies. 640 650 610 which I think my average when I bought my partner's mini cooper 2 months ago was 615. I'm just sick of paying this ML note every month?? What to do. I have 3 years left. Do they let you down size your car to a cheaper car to lower your note?
#102 of 1616 Re: 2006 ML350 Lease gone bad! [kandc]
Oct 02, 2006 (3:34 pm)
Wholly Mackerel !!!!! Your paying over $1000/month for a ML350 after putting down (probably 3k for taxes and stuff and 5k for capital reduction). Even with bad credit your payments shouldn’t have been much over $800/month (in my option), but dealers will do anything people are willing to “sign” to do.
I’m going to suggest 3 things… none of them are that great and because I don’t know what our pay off is I’m kind of shooting in the dark. All of them are going to require you to take “a hit” and loose some $$$ … but your paying over $1000/month so even if you have to loose $8-10k (and that’s probably close to what it will be), you can recoup that kind of loss in less than a year.
1) If you need another car to replace it…. Consider going to a desperate American manufacture like Ford or GM, pick out a new model that you can live with (preferably a model that they are having trouble selling…. Like a Humvee) and they will more than likely give you a trade in price close to what you might get by selling it your self. People are reporting good deals on both sides of the purchase (trade and price for the new car) from dealers who “have” to move slowly moving inventory. Not the Toyotas or Hondas of the world though. The blue book values for your ML350 (and I made some assumptions that it was pretty loaded) is currently $38-40k. Your payoff can’t be more than $45k. If you can get $36-$39k from a dealer as a trade in I would do it just to get out of this crazy lease that seems to be at 20% interest (I am interested in what money factor they gave you).
2) Best option…. Sell it yourself …hopefully get $40k plus… payoff the lease and take the inevitable loss. If you keep it for another 3 years your losses will be HUGE.
3) I don’t know what your company is… but many intervals use company credentials to shelter liabilities. If you don’t care about your company name any longer… just walk away… let them repossess the white elephant … and the company will take the credit hit.. not you. I would usually never suggests such a path, but because the dealer ripped you off (IMHO)… I wouldn’t loose to much sleep worrying about the poor dealer.
But one thing appears pretty obvious to me… you’ve got to get rid of the truck. DO NOT KEEP PAYING OVER $1000/mo FOR THAT TRUCK. For that kind of payment you should be driving something a lot nicer. After 4 years you will have more than paid for it (roughly $54k or more) and you won’t even own it. I don’t think I was much real help, but your in a tough situation. Good luck….
#103 of 1616 thanks Kris 17
Oct 02, 2006 (5:00 pm)
I am a co signer on the lease under my company. Yeah I fiqured I got screwed. I put $8000 down with some left over from the previous lease. What manufacturer do you think I can trade it in with? I was told you can't get out of a lease unless you trade it in with the same manufacturer? Help again please. I really appreciate your help.