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Mercedes-Benz S-Class Lease Questions

196 messages,  Last post on May 23, 2013 at 7:07 PM

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What is this discussion about? Mercedes-Benz S-Class, Car Leasing, Sedan

Messages Page 2 of 21

#2 of 196 Re: Mercedes-Benz S-Class: Lease Questions [Car_man] by theloungeboy

Sep 12, 2005 (4:16 pm)

Replying to: Car_man (Aug 31, 2005 4:58 pm)
The MBUSA site has the following lease info for the 2006 S350 with cd changer:
$64900 MSRP
$61627.05 cap cost (incl. destination charge)
$39663 Residual value
39 months
due at signing:
$699 first month
$3999 Cap Cost Reduction
$795 acq fee
$699 monthly
 
This is intriguing to me and as I am not too familiar with the money factors (etc) involved with leasing, I was wondering if it a good deal? Edmunds incentives shows that $2000 is available to the consumer if financed thru MB but it isn't clear whether these figures include that or not.
According to my one and only MB dealer, they currently have 6 or 7 S350's to pick from so I am hoping this deal may be negotiated even further.
Any insights would be appreciated!

#3 of 196 Re: Re: Mercedes-Benz S-Class: Lease Questions by Car_man HOST

Sep 13, 2005 (3:51 am)

Greetings theloungeboy. I am not sure what the selling price that you were quoted on this car is like in relation to its invoice price, but given the $2,000 bonus on leases of the 2005 S350 Sedan through Mercedes-Benz Credit right now I would not be surprised if you were able to lease one for less than dealer invoice.
 
The first thing that jumps out at me about this deal is the huge down payment. 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 S-Class would be exactly the same, regardless of whether you had put $4,000 down, or had made absolutely no down payment at all.
 
I just calculated a sample lease payment using Mercedes-Benz Credit's actual lease program and the information that you provided in your post and I came up with a 39 month, 12,000 miles per year zero down, pre-tax monthly payment of around $844. With a $3,999 cap cost reduction, the payment for an otherwise identical lease would drop to around $731. As long as the selling price is below invoice, the payment that you were quoted looks good to me.
 
Car_man
Host
Smart Shopper / Prices Paid Forums

#4 of 196 Re: Re: Mercedes-Benz S-Class: Lease Questions [Car_man] by theloungeboy

Sep 13, 2005 (10:40 am)

Replying to: Car_man (Sep 13, 2005 3:51 am)
Thanks Car_man!
The cap cost reduction bothered me too. I always thought one of the reasons to lease was low out of pocket costs.
Thanks for your input, you've given me something to ponder.

#5 of 196 Cap cost reduction by nvbanker

Sep 13, 2005 (5:23 pm)

I NEVER put money down on a lease - if it's required, it's no deal. I agree with the host entirely on this matter. Besides, it flies in the face of leasing to begin with! The reason I'm leasing, is to keep my cash in my wallet, and amortize the depreciation of the car over a period of time with monthly payments. If I'm going to decap the lease, I should buy, then at least, my down would count as equity in the car.

#6 of 196 Re: Re: Re: Mercedes-Benz S-Class: Lease Questions by Car_man HOST

Sep 21, 2005 (2:58 am)

You're very welcome theloungeboy.
 
Car_man
Host
Smart Shopper / Prices Paid Forums

#7 of 196 Re: Mercedes-Benz S-Class: Lease Questions [Car_man] by ferrast

Nov 28, 2005 (11:32 pm)

Replying to: Car_man (Aug 31, 2005 4:58 pm)
If you could afford to purchase a MB S500 and you would be willing to keep the vehicle 4+ years, does make sense to lease the vehicle. I have heard that you shouldn't purchase any vehicle that costs more than $50,000 (you should lease it instead). I am not sure whether that is accurate. Does anyone know of a rule of thumb for this query?
 
Thank you!

#8 of 196 Re: Re: Re: Mercedes-Benz S-Class: Lease Questions [Car_man] by ferrast

Nov 29, 2005 (10:24 pm)

Replying to: Car_man (Sep 21, 2005 2:58 am)
Do you have any money factors and residuals for an '06 S 500? Thank you.

#9 of 196 Re: Mercedes-Benz S-Class: Lease Questions [ferrast] by Car_man HOST

Dec 19, 2005 (4:51 am)

Replying to: ferrast (Nov 28, 2005 11:32 pm)
Hi ferrast. Regardless of how expensive a car is, I would never personally lease it if it had a terrible lease program. Mercedes-Benz is not currently providing any lease money factor support on the 2006 S-Class. As a result, if you were to lease one through Mercedes-Benz Credit, you would have to use its standard lease money factors. Its current buy rate lease money factor for a 36 month lease by an individual who qualifies for its top credit tier and pays a security deposit is .00320. This is equivalent to an interest rate of around 7.7%, which is not very good. I personally would probably decide to finance rather than lease this car. Whatever you decide to do, make sure to take the dealer cash that is currently available on the 2006 S-Class into account when negotiating its selling price. There is currently a whopping $7,000 on the '06 S350W, S430V, and S430V4 and $10,000 on the S500, S600, and S65!
 
Car_man
Host
Smart Shopper / Prices Paid Forums

#10 of 196 Re: Re: Re: Mercedes-Benz S-Class: Lease Questions [ferrast] by Car_man HOST

Dec 19, 2005 (4:54 am)

Replying to: ferrast (Nov 29, 2005 10:24 pm)
Hello ferrast. I have seen the lease program for the car that you are interested in. Its specific money factor and residual value depend upon how long you lease it for and how many miles per year you need to be able to drive it. For now I will assume that you are interested in a 39 month lease with 15,000 miles per year. Let me know if you want something different. If you were to lease a 2006 Mercedes-Benz S500 through Mercedes-Benz Credit right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00320 and 49%, respectively. When negotiating the capitalized cost for your lease, don't forget to take the dealer cash that I mentioned in my previous post into account.
 
Car_man
Host
Smart Shopper / Prices Paid Forums

#11 of 196 Re: Re: Re: Mercedes-Benz S-Class: Lease Questions [Car_man] by ferrast

Jan 03, 2006 (9:49 pm)

Replying to: Car_man (Dec 19, 2005 4:54 am)
Thank you for the information. My local MB dealership offered me an $18k discount to the MSRP. I would have purchased one; however, I am currently leasing an '03 E320 until the end of August of '06. I mistakenly thought that MB Credit would allow me to get out of that lease since I would be getting into a more expensive MB - they didn't care.
 
How could I research the money factor, residual value and the conversion of the money factor into an interest rate?
 
Thanks again and Happy New Year!!

Messages Page 2 of 21

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