Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
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
|
|
|---|---|
|
Replying to: blackmamba24 (Feb 15, 2008 3:02 pm) So, assume an MSRP of $96,000 and you want to lease for 36 months. You take the residual (50%) and multiply it by the MSRP. In this case, the residual value (estimated price of the vehicle at lease-end) is $48,0000. Now, say you negotiate a cap cost (hypothetically, a selling price) of say, $91,000. There is a spread of $43,000 (the depreciation), so you simply divide $43,000 by 36 (the number of months in the lease term). You get a base payment of ~$1195/mo. But, now you have to add in the rent charge (finance charge). With MBC's current buy rate  .00330 (7.92%), you will multiply that number by the sum of the residual and cap cost. $48,000 + $91,000 = $139,000 x .00330 = $458.70. This is your monthly finance charge. So now, take your base monthly payment of $1195 and add the finance charge of $458.70 and you get a pretax monthly payment of $1653.70. Then, depending on your state, you can have the sales tax broken down into your monthly payments. So, assuming a 6% sales tax, that adds another $99.22/mo to your payments giving you ultimately a payment of ~$1753/mo The bottom line: you simply paid the $43,000 in depreciation + interest. Obviously, this vehicle has a crummy money factor through MBC currently and thus why you paid $20k total in finance charges. Any cap cost reduction (down payment) simply lessens the spread, ultimately giving you lower monthly payments. Large cap reductions are not a good idea when leasing. Hope this makes sense? |
|
|
S550 4matic 2008 PII package Ipod Integration Wood/Leather Steering Total Cost = 97,665 Markup = -10,268.34 Total Selling Price= 87,396.66 Cap Red = 5825.92 Total Cap Red = 81,570.74 Capped Taxes = 3,761.30 Total Capital Cost = 85,332.04 Monthly payment = 1,310/mo (with tax) Total out of pocket = 8,800.01 (includes 1st monthly payment, taxes, fees, etc.) Residual = 47,160 Money factor = 0.0025 Not much haggle with the sales person. Just told him what i was expecting to pay and he worked the numbers (this is in NJ btw). Good deal or Bad deal? |
|
|
|
|
Replying to: moet (Apr 23, 2008 11:06 am) Looks to me like a 36mo/15k lease, correct?
|
|
|
Replying to: ocautoseeker (Apr 23, 2008 1:55 pm) Made the deal!  Just out of curiosity, what difference would it have made if i paid cap reduction now or have it rolled to my monthly payment? Either way i end up paying the same $$ (Unless he'd bring down price of the vehicle by an additional 5k)?
|
|
|
|
|
Replying to: moet (Apr 24, 2008 9:58 am) Only reason I do not recommend cap cost reductions on leases is because if your vehicle gets wrecked (totaled) or stolen, you may not be able to recover the upfront down payment you made. You may already know this, but I'll reitterate... The GAP insurance included in your lease through, in this case MBC, would cover the payoff of the vehicle, but most likely you'd be out the $5k. By making a cap cost reduction, you're essentially prepaying a portion of the deprecaition and not paying down any principle like on a purchase. In other words, there is no equity being built in a lease, therefore it's advisable not to throw any money at it. However, many people are very pyschological when it comes to payments, so if the payment suits you and you had no problem laying out the $5k, and you're happy, then that's all that really matters. Again, congrats - beautiful vehicle!
|
|
|
Replying to: ocautoseeker (Apr 24, 2008 5:32 pm) Thanks again!
|
|
|
Replying to: moet (Apr 26, 2008 6:26 pm) |
|
In terms of good deals out there. The deals right now on high line vehicles are very good. The germans have announced that they will be changing the way they do buisness in the near future. Our economy and dollar is so very bad right now. They are going to raise the prices of the vehicles, and cut production. So now is the time to buy before dealers are not going to want to discount vehicles at all. The car industry is going to go through some major changes in the next year or so. So grab the deals while you can, because who know what the future brings.
|
|
|
I am in the process of negotiating a lease assumption on a 2008 Mercedes S550 4Matic in Long Island, NY. The car has the Premium II Package, iPod Integration, and Wood/Leather Steering Wheel. There are only 400 miles on the car and 38,600 miles to be driven over 34 months. The payments are $1585 per month (includes 8.625% sales tax) and there is $0 due at signing (current owner is willing to pay $595 transfer fee). What do you think? Can I do better? |
|
|
Replying to: juice1220 (Aug 25, 2008 11:14 am)
|
|
You are here:
Forums
Prices Paid: Buying & Leasing Experiences Mercedes-Benz S-Class Lease Questions
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
2010 Mercedes-Benz S-Class
Browse by Board
Browse by Topic
Today's Chats
