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Mercedes-Benz S-Class, Car Leasing, Sedan
#21 of 214 Re: 2007 S550 Residual / Money Factor [domain123]
Jun 21, 2006 (1:56 am)
Hi domain123. Mercedes-Benz's lease program on the 2007 S550 is pretty bad right now. It is not currently providing any sort of money factor support on this car. As a result, if you were to lease one through Mercedes-Benz Credit right now, you would have to use its standard lease program. The last time that I saw it, MBC's buy rate standard lease money factor for a 36 month lease was .00380. As you mentioned, this is equivalent to an interest rate of around 9.12%! You might be able to do a little better than this by leasing through an independent bank, but I personally would not lease this car right now.
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#22 of 214 Re: 2007 S550 Residual / Money Factor [Car_man]
Jun 24, 2006 (9:05 am)
You are actually a little off on the money factor. But your close. And dont forget an independant bank may give you a better money factor, but a worse residual, and the 2 go hand in hand to the final number that the customer will pay.
#23 of 214 S-class pricing
Jun 24, 2006 (9:25 am)
There is also one key subject that everyone forgets to keep in mind. The basic rule of retail. Supply and demand. With the new 4 matic s class coming out, dealers are going to make as much as they can on the vehicle and the reserve, becuase if you want to be the first have one, that is the price. If you want a deal, you will have to wait until the vehicle is no longer "hot", and get one when it is just average. This rule not only applies to vehicles, but everything in the retail industry, from video games, to home appliances, and even in the clothing industy. Thank you and enjoy.
#24 of 214 Mercedes Balloon Financing
Aug 08, 2006 (12:12 am)
Car man can you tell me a little about the balloon financing option from MB Credit. I can't seem to find any answers, and it looks to me like an open ended lease. I'm considering this for a CL600 certified preowned which has already taken massive depreciation, and for which the Balloon option costs a lot less than the lease option in their calculator online. I don't really understand balloons from mercedes at all and would like to know if you can give me some of the pros and cons or point me at any descriptive info online?
asking price (not negotiated) 42370 monthly payment 524 balloon payment 32340 at 7.5% interest over 24 months. Car is an 02, can buy an extra year of warranty for a total of 2 (and probably at the same price), can't imagine the car being worth much less than 32K in two years (it was like 140K new after all and is already insanely depreciated).
the equivalent 24 month lease would be 790 a month (they obviously are betting on a much poorer residual)
#25 of 214 Re: Mercedes Balloon Financing [tristanhunt]
Aug 08, 2006 (5:08 am)
in a nutshell, balloons are the combination of lease and finance. You are restricted to miles wear and tear, etc... At the end of the term you have the option to buy the car at the balloon payment or turn the car back in. I have been with Mercedes for a while, and have yet to do a balloon. Balloon is also registered to the buyer and not the bank, so the bank has no real responsibility to the vehicle. So Gap insurance is not included, in a balloon. That is something you definitely need to buy, to be on the safe side. Also find out what is the disposition fee on a balloon, if you decide not to buy the car, or if you are stuck with buying the car at the end.
#26 of 214 Re: Mercedes Balloon Financing [juice1220]
Aug 08, 2006 (3:41 pm)
Thanks so much for your response. I know you haven't done one of these balloons at benz yourself, but I did have two more questions, as my last 3 mercs I did cash buys and the only car i've ever financed is my mother's audi, 0% financing, but I really like the idea of pre-tax dollars from my business paying for this:
Do I assume downside risk, say the car is worth less than the balloon payment and I want to turn it in, do I have any obligation to pay the difference between the balloon payment and the determined market value? (Aside from any disposition fees)
Because the car is titled in my name (or ostensibly in the name of my business), do I get to write down the whole monthly payment less inclusions or do i have to write down depreciation? Since I'm only financing and paying for the amount used, is it still a lease as far as the IRS is concerned?
#27 of 214 S550 Pricing
Sep 22, 2006 (10:02 am)
My dealership is suddenly offering $1,000 over invoice and buy rate (currently 00375)for a lease. This seems to be a good deal...? Dealer claims it's just because times are tough, but does anyone know if something different is planned for the 08 model years? Does this sound like a good deal?
#28 of 214 Leasing a used S500
Feb 07, 2007 (7:51 pm)
Does MB offer leases on used S500s? Does MB extend original warranty for the duration of the lease?
How much should i expect to pay for 2004 S500 on a 0 down 36 months 10K miles lease?
#29 of 214 2007 S550 Lease Question
Feb 23, 2007 (9:15 am)
I want to lease a 2007 S550 and understand that a number of leasing companies offer prices that are lower than MB leasing. Has anyone had any experience with these companies?
Jun 28, 2007 (11:26 am)
I was looking at 05-06 cpo S classes and trying to make the math work out. Some help please? I usually lease but CPOs don't lease out well. So, if one were comparing a 60 K 5 series or E Class, the lease would be around 900 per month tax in the payment for 36 months and 15,000 miles per year. You'd have to finance the 55-60 K CPO car, pay all of the tax (not just on your payments) and probably put in some service money (new tires? brakes- not a certainty but should be budgeted). So let's est monthly payments at about 1700 per month with interest. At the end of the 3 years (without service) you paid in about 29 K more than for the lease and you have a 5 year old car that's probably worth maybe 30K? So if my numbers are close and please correct if not, you would wash
out but you would have the risk that the car could be worth less and you would most likely have had to put in 1-2K for repairs of wear items not covered by the cpo warranty. So I'm guessing that to buy the 60K cpo S class is a more expensive prop than to lease a new 60K E class. I would welcome and clarification and correction. If so, then, cpo selling and leasing needs to change a bit for me to take part.