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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
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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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
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Replying to: Car_man (Sep 13, 2005 2:51 am) 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. 
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| 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. | |
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You're very welcome theloungeboy. Car_man Host Smart Shopper / Prices Paid Forums
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Replying to: Car_man (Aug 31, 2005 3:58 pm) Thank you!
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Replying to: Car_man (Sep 21, 2005 1:58 am)
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Replying to: ferrast (Nov 28, 2005 10:32 pm) Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: ferrast (Nov 29, 2005 9:24 pm) Car_man Host Smart Shopper / Prices Paid Forums
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Replying to: Car_man (Dec 19, 2005 3:54 am) 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!!
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Replying to: Car_man (Aug 31, 2005 3:58 pm) My wife's pregnant with our first child and we have two sports cars, so one has to go to make room for a 4-door. We has almost decided to buy an E500 used until I saw an eBay ad from a company called Dick Dyer MB in SC that was selling S500's for about $16,500 off the sticker. That was yesterday. Today, the $10,000 MB money seems to be gone. Since you are an expert on leasing and seem to know a lot about MB USA programs, do you think they will introduce a new lease program or offer more cash to help dealers unload the 2006 S-Classes before the new S550's start to hit the lots? Yesterday a $90,300 car was $73,800. Today its $83,800. I wish one of the MANY MB dealers we were talking with over the past two weeks would have told us about the $10,000. Not a single dealer tried to move us up from a $66,000 E500 to an S500. I did a spread sheet on buying the S500 and it looks like my net cost to own the car would be something like the following. I'm trying to figure out if leasing is better than buying. If I look at keeping the car for 3 years, it would cost me about $1,350 a month is a dealer would sell the car for $1,500 over invoice. But with the extra $10,000 my cost goes down to under a $1,000 a month. What would a lease run? http://www.ffcobra.com/images/mbs500ver1.xls Thanks, Bill
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