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Prices Paid: Buying & Leasing Experiences Mercedes-Benz S-Class Lease Questions
134 messages, Last post on Sep 30, 2009 at 8:43 AM
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I normally purchase my cars but have been offered an interesting proposal from a large leasing company that gets fleet pricing at a 6.7% discount with a 10K rebate which is 2.7% better discount than what I can do for a cash price. Their trade in offer is $3K better than the dealer. I plan on purchasing the car at the end of the lease so they have proposed a 48 month lease at the same cash outlay as a 60-63 month finance payment totaling $92,000. I plan on taking title to the car. I am concerned that the dealer will not honor service entitlements such as loan cars if it is sold to the leasing company first. Sales tax in TX (6.25%) is paid on the full value of the car at lease commencement, not your monthly payment, and then again on the residual should you purchase at the end of lease. Leasing company says they will offset these with tax credits and thus the value of my trade in becomes $22,500. Hmm? Here is the deal: If I lease with an option to purchase: MSRP $92,720 Less discount & rebate $16,212 Less trade in $16,000 ($6K to be applied to upfront costs, $10K rebate to me) Total Car Price $60,508 Cash back $10,000 6.25% Sales tax to be wavied by offseting tax credits (this is new to me and a concern) 48 months $1200 per month Residual $28,000 Money factor 0.00219 Finance purchase from dealer: 60 month $1330 per month
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Replying to: skrontz (Sep 13, 2008 9:50 pm)
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Replying to: decissions08 (Sep 22, 2008 6:52 pm) |
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Replying to: shawn757 (Sep 28, 2008 12:44 am) I work for a dealer in the northeast. I am presently at BMW and worked for Mercedes before working here. Both Benz and BMW did announce that. BMW also announced that they will be shipping 40,000 less cars to the US for the next model year. Considering 230,000 sold in the US last year that is a pretty big number. I went through this with someone else a few weeks ago, if you read a few pages back you can see the whole thing. Unfortunately, I am a dealer and no one wants to believe me. We will see next year how things pan out. Just to give some advice, I recommend that if you are in the market for a new car, do the deal sooner than later, just in case the germans decide to raise all prices, and lower production like they plan. The rest I leave up to you.
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Replying to: shawn757 (Sep 28, 2008 12:44 am) Yes, of course, since two dealers said something, it gotta be true! Did they also mention, by any chance, that the Earth is flat? MB cannot afford to increase US prices right now; not during one of the worst downturns. Their worldwide sales will be down the drain this and next year anyways. |
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Replying to: juice1220 (Sep 29, 2008 7:07 am) "The USA remained the largest single market for BMW and MINI cars in 2007. With a sales volume of 335,840 units (2006: 313,603 units /+7.1%), the BMW Group sold more vehicles there than ever before." Where did you get the 230k figure from? Where did you get the information about the production cut? While I wouldn't be surprised that it's the case considering the fragile market conditions, I'd prefer to see a link to the source. Yes, of course, why don't I go and dump $100k of cash into a rapidly depreciating asset right about now. Cause there're lines forming at every dealer, you know. Please look at what GM is going through right now (employee pricing for everyone, huge rebates, etc). Very soon, MB and BMW will be forced to do the same just to survive. That's my prediction; the time will tell who was right.
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Replying to: skrontz (Sep 30, 2008 7:05 pm) I must say, you are one of the most positive people I have ever had the pleasure of knowing. Everything will be much better as the years pass. Why would you even bring GM into this discussion? They are doing EP because they want you to buy the car, and not lease it. Go there and see what a lease number is on any product they have. It will knock you off your feet. OK, I did mistype the 230,000 number it is actually 290,000, we are not counting Mini in this discussion. 40,000 less BMW's is a big drop. This was said on August 1st and thats is BMW's stance now. If it will change in the future, no one knows. But for you to be as positive and upbeat about how cheap cars will get in amazing to me. Everything around you in life is getting more and more expensive, and harder and harder to buy, yet you think cars will get cheaper. Why? How do you come up with this conclusion? Like I said in the previous page, we should not argue about this, because only time will tell. I just think that the next year will be very interesting for the car business.
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Replying to: juice1220 (Oct 01, 2008 5:49 am) (It won't let me put a link here, but google "2nd UPDATE: US Auto Sales Slump Again; GM Outperforms") Notice how GM is the only one staying ahead because of their deeply discounted pricing? Here's another piece of information for you: what we had unrolling in the US for the past 12 months is just starting to hit Europe. And it may be way uglier there than here with 13 countries pulling on the single currency and the consumer being squeezed beyond belief. And you bet your boots the luxury automakers will suffer most as people struggle to make the ends meet. What is getting more expensive? Aside from commodities, nothing really. When was the last time you saw this great 60" plasma TV go up in price? Prices are determined by supply and demand, not how much of a margin you want to make. Yes, it became very expensive to eat. And it will likely get worse. When you're hungry, you don't exactly go out there and buy this great imported vehicle that just went up 5% in price. In times like this, people buy affordable Ford instead of a flashy BMW. I wish luxury cars were in high demand, but with those poor investment bankers literally out on the streets it'll be awhile before we see lines at the dealers. I just noticed that MB indeed increased all MSRPs for 2009 US models by about 2.3%.My guess is that the change was planned sometime back in August when things weren't looking so bad. Right now, the euro is plunging and the credit crunch is spreading. I give them 3 to 5 months before they cave and do what GM is doing now to stay afloat. Unfortunaly, 50k+ gas guzzlers with no good financing available is not exactly what the consumer is craving for today. |
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Replying to: shawn757 (Sep 28, 2008 12:44 am) |
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| Does anyone know of Mercedes forums that have discussion of current pricing like Bimmerfest.com has for BMWs? Basically somewhere to see what people are paying that is more active than here. Thanks. | |
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