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Mercedes-Benz R-Class Lease Questions

803 messages,  Last post on Sep 03, 2012 at 12:17 PM

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What is this discussion about? Mercedes-Benz R-Class, Mercedes-Benz R63 AMG, Car Leasing, Wagon, SUV

Messages Page 4 of 81

#25 of 803 Re: money factor [jccssc888] by Car_man HOST

Mar 21, 2006 (3:40 am)

Replying to: jccssc888 (Feb 22, 2006 10:29 am)
HI jccssc888. Dealers are having a hard time giving the R-Class away right now. This works to your advantage as a consumer because Mercedes-Benz has been forced to provide quite a bit of support on it and dealers aren't making much on them. If you were to lease a 2006 R350 through Mercedes-Benz Credit right now for 39 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00285 and 60%, respectively. The best part about the incentives that are currently available on this model is that Mercedes has $5,000 dealer cash on it. Make sure to use this month to reduce the capitalized cost of the model that you are interested in.
 
Car_man
Host
Smart Shopper / Prices Paid Forums

#26 of 803 Re: Mercedes-Benz R-Class: Lease Questions [lprice] by Car_man HOST

Mar 21, 2006 (3:45 am)

Replying to: lprice (Mar 11, 2006 8:34 am)
Hey L Price. The most important thing to keep in mind when negotiating a lease on the R350 is that Mercedes-Benz is currently providing $5,000 dealer cash on it. Make sure to take this cash into account when negotiating the capitalized cost of the model that you want. As far as its lease program goes, if you were to lease one through Mercedes-Benz Credit right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00310 and 72%, respectively.
 
The impression that you got about this being a slow selling model is absolutely correct. You can use this to your advantage by negotiating a low selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. I suspect that you should be able to get an R350 right now for a little over invoice minus the $5,000 dealer cash.
 
Car_man
Host
Smart Shopper / Prices Paid Forums

#27 of 803 Re: $499....that's great!! wait....too good to be true? [raj904] by Car_man HOST

Mar 21, 2006 (3:48 am)

Replying to: raj904 (Mar 14, 2006 8:38 pm)
Hi Raj904. It definitely is not a good idea to make a $9,000 down payment on the lease that you are considering. 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 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 R350 would be exactly the same, regardless of whether you had put $9,000 down, or had made absolutely no down payment at all.
 
Car_man
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Smart Shopper / Prices Paid Forums

#28 of 803 Re: money factor [Car_man] by chucky380

Mar 21, 2006 (8:11 pm)

Replying to: Car_man (Mar 21, 2006 3:40 am)
Hi,
 
thoughts on the R-class 500. dealer would give 4% back on top of 5000 rebate from MB. Looking at 39 months with 15,000. what should i use for money factor and residual factor. Initially they offered me $608 a month.. thoughts on 1.9% financing? Thanks

#29 of 803 My final deal by aau007

Mar 22, 2006 (12:42 am)

I read the postings here for a while before getting my r350 lease today. I learned so much information here and guess I will share mine with others for reference:
 
R350 with MSRP of 58415
36 months, 12k miles per year
$659 including tax per month (8.25% sales tax)
1st month only as total drive off

#30 of 803 Re: My final deal [aau007] by zaheer

Mar 22, 2006 (9:59 pm)

Replying to: aau007 (Mar 22, 2006 12:42 am)
I have been looking at the R350 as well since the $499 deal came out. I assume that you did not have a trade-in and included the DMV fees in the Gross Cap Cost. I don't have all the information so I am making some assumptions, but by plugging in your numbers in the Lease Formula, I came up with the following:
 
Assumed Gross Cap Cost (including DMV) - $52,065
Your Residual Should Be - $36,217.30 (62% for 12k miles per year)
Money Factor - 0.00191
Depreciation - $440.21 per month
Rental Charge - $168.62
Total - $608.83
With Tax - $659.06
 
If your total drive-off was $659, this is quite a good deal since the dealer does not seem to have bumped up the Money Factor from the Ad car. Most of the dealers that I have spoken to in the Bay Area want a Money Factor of .00285 which adds an additional $75 per month to the payment. This violates the terms of the Ad. The Ad car (on www.mbusa.com)has a Residual of 63% (10k miles per year) and a Money Factor of 0.00191. Note that this is a National Ad and does not state that a limited number of cars are available at this price. Theoretically, Mercedes must honor the terms of the Ad even if the car has a few more options. Be careful with dealers that bump up the Money Factor on cars that have more options. I have not been able to find a car with just the Premium Package. I'd like to hear what others experiences are regarding this deal.
 
                      Zaheer

#31 of 803 Re: money factor [Car_man] by zaheer

Mar 22, 2006 (10:12 pm)

Replying to: Car_man (Mar 21, 2006 3:40 am)
According to my calculations, the Money Factor is 0.00191 on the Offer through mbusa.com. The residuals on this car based on mileage per year are the following:
 
10k miles - 63%
12k miles - 62%
15k miles - 60%
 
Dealers may try to lower the residuals so that they can get a better return from MB Credit.
 
I would use the 0.00191 MF and the $5,000 Cash-to-Dealer when making a deal. This is what Mercedes is advertising until March 31st.
 
                      Zaheer

#32 of 803 Re: money factor [zaheer] by aau007

Mar 23, 2006 (7:43 pm)

Replying to: zaheer (Mar 22, 2006 10:12 pm)
My MF is 285 which comes right off the ad special. Another dealer wanted to mark it up to 310 and I did not go for it. The dealer gave me an awesome price on the vehicle to bring the monthly payment down to 659. msrp is 58415, MF is 285, term is 36 months 12k mi. per year, sale price of vehicle is roughly 48115. Yes, residual is 62%.

#33 of 803 Re: My final deal [zaheer] by aau007

Mar 23, 2006 (7:47 pm)

Replying to: zaheer (Mar 22, 2006 9:59 pm)
BTW, when I did a reverse calculation from the AD, the MF is 285, which correspond to what the dealer gave me.

#34 of 803 Re: money factor [aau007] by zaheer

Mar 24, 2006 (12:57 am)

Replying to: aau007 (Mar 23, 2006 7:43 pm)
I stand corrected. The Money Factor in the ad is 285. I assumed incorrectly that the Gross Cap Cost provided by Mercedes included the $2,700 Cap Reduction. Apparently, they are offering the car at a much lower price than I thought! You can reduce the MF, increase the Residual, or reduce the Gross Cap Cost to get a lower monthly payment.
 
I finally found a dealer who was willing to apply the same terms as the ad. I am picking up my R350 tomorrow. Will let you know what kind of deal I get.

Messages Page 4 of 81

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