Last post on Sep 03, 2012 at 11:17 AM
You are in the Prices Paid - Buying & Leasing Experiences
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Mercedes-Benz R-Class, Mercedes-Benz R63 AMG, Car Leasing, Wagon, SUV
#246 of 803 Re: offer/counteroffer [zorogris]
Sep 26, 2006 (3:00 pm)
5.5% of holdback is from MSRP and giving away to the customer 4.5% is very real. I just received an email from Santa Monica W.I. Simonson Mercedes in So Cal, and they are discounting (advertised) $13,500 off MSRP of $60,630 (2 available) on 2006 R500 with options: 18in Wheels, Comfort Pkg,Trim Pkg, Entertainment Pkg, Sunroof Pkg. Not the greatest in options but very decent deal. Base on the invoice of $56,441 (Edmunds) with $7K incentive and $3,334.65 holdback, the dealer is making $1023.65 on paper.
The dealer is giving away 4% of their holdback without even negotiation. This is the perfect storm that MartinF mentioned. Get the R before MB put the brakes on production.
#247 of 803 Re: offer/counteroffer [pureautomobile]
Sep 26, 2006 (5:30 pm)
Well, I wish the dealers in Seattle area were willing to play ball. I spoke with 3 dealers today and none of them are willing to go into their holdback! Greedy bast*rds! I may drive one up from NorCal since I am down there occasionally on business but an unnecessary pain in the rear if you ask me. If someone in the NW gets a dealer to play ball please post it!
#248 of 803 Re: offer/counteroffer [zorogris]
Sep 26, 2006 (10:36 pm)
It's end of the month again, and once again, I am getting emails and phone calls even though I've told the dealers that I've got my car.
So Cal dealers will make every effort to get you buy here. They may even ship the R to you at their cost, or negotiate into the lease. North Cal will do the same.
#249 of 803 Re: Need Your Experts' Advise! [eugez]
Sep 26, 2006 (11:24 pm)
First, the "perfect storm" lease situation that we have applies largely to the 2006 models. What I mean is that because of the huge discounts from MSRP, the "selling" price of your vehicle will be about 22% to 23% less than MSRP. That is to say that your original "selling" price is already a "residual value" of 77%. In 27 months, Mercedes would like to delude themselves into believing the vehicle will still be worth 67%. Therefore, your true depreciation costs on the vehicle will be only 10% for 27 months. Take the lease to 39 months (by the way, a generally cheaper way to go), your residual drops another 10%, but this time for only 12 months more of lease. In this case (very strange case indeed and like nothing I have ever seen in the car leasing arena), the shorter lease actually is more economical. The problem with the 2007's is that MSRP's have been adjusted downward to market conditions, and you will not be able to start off with the vehicle at 77% residual value like you do with the 2006's.
The 2400 is the way to convert the money factor (lease speak) into interest rate (normal speak). e.g., Money Factor of .00185 equals 4.44% interest rate. Swapalease.com does a very good job of walking you through the entire lease business, and it does it in just a few pages of easy reading. I would recommend it to any new or even experienced potential lessee. I found the information helpful, too. Your equation for the depreciation is exactly correct, but your equation for the "loan interest" may be off a little. That's where the swapalease site will help. Good luck and my thanks to pureautomobile for a lot of helpful information on this forum!!
I am still trying to find other "perfect storms" out there, but I have yet to find anything close on vehicles we would really want. Maybe a Lincoln TownCar or Navigator or Cadillac Escalade (previous bodystyle). The new BMW X5 is due in November, and we may see similar deals on the 2006 BMW X5 leftovers. I will keep you posted.
#250 of 803 Re: Need Your Experts' Advise! [martinf]
Sep 27, 2006 (1:08 pm)
Thanks for your help and explanation.
Finally, found ok offer on the 2006:
MSRP $56K 3K drive-off 12K/year for 27 Mo - $480(includes all)...
Definitely not the best on the forum, but...
#251 of 803 Re: Need Your Experts' Advise! [eugez]
Sep 27, 2006 (9:25 pm)
You did fine! I am glad that you passed on the previous $609/month deal. Good luck with the vehicle. I am sure you will be happy. I don't think we will be able to get such great deals on 2009's when our leases are up in 27 months, but understand that your lease end options are more extensive than your contract suggests. I was unaware until recently that you could re-negotiate your monthly payment to extend your lease or re-negotiate the lease end buyout price. Be sure to check on this forum or benzworld.org or mbworld.org before you turn the car back in. I know I will be!!
Sep 28, 2006 (7:08 pm)
Ok here is my deal
R350 w/ a few options, comfort, park, entertainment, MSRP $54,745
Selling price: $44745 ($10K discount w/o even trying)
Payment: $538 27months/12K does not include sales tax
Fees down: $2600(seems a little steep, must include acquisition fee)
How am I doing here? How much more room do I have to get them down?
I'm in the phoenix metro area...
#253 of 803 Re: How close am I? [not_2_shabby]
Sep 28, 2006 (7:53 pm)
The best deals in California have the discount from MSRP in the range of $12,000 to $13,000 off. This is basically the $7000 factory to dealer (to you) cash, and invoice less about 3.5 to 4.5% into the dealer holdback of 5.5%. Mercedes of Walnut Creek advertises $12,000 off MSRP as a starting point on their website. Fletcher Jones is generally going 11% off MSRP and the $7000 factory to dealer cash (your deal would be about $13,000 off). If you can live with the difference in gas mileage, you should at least drive the R500. You might be very surprised with the additional performance for about $2000 to $2500 more on the 27 month lease.
#254 of 803 Re: How close am I? [not_2_shabby]
Sep 28, 2006 (7:57 pm)
I forgot to add that your money factor should be .00295. This deal sounds like it is even more than what is the nationally advertised, Mercedes subsidized lease. Definitely too high! A fellow Vegas did his deal with Fletcher Jones in Newport Beach and they shipped the vehicle for $399. Check them out.
#255 of 803 Re: How close am I? [martinf]
Sep 29, 2006 (5:11 am)
Thanks guys, I'll keep pushing. Thanks for the info on the MF especially, that will help the payment quite a bit.