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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
#301 of 803 Re: 2006 R-Class MF & Residuals for 10/2006 [pureautomobile]
Oct 12, 2006 (2:15 pm)
Don't feel bad about acting prior to now on your R class.
I have run the numbers, and the changes in factory to dealer cash have been just about entirely offset by changes in the Money Factor and the residuals.
As a brief recap, through 7/31/06, factory to dealer cash was $5000, residual was 71% (27month/12,000miles - the sweet spot), and money factor was .00285 (.00175 single pay).
After 8/03/06, factory to dealer cash went to $7000, but residual dropped to 67% (an additional real cost to the lessee of about $2400 to $2700), and money factor went to .00295 (small change).
After 10/03/06, factory to dealer cash went to $10,000, residual stayed the same 67%, but money factor soared to .0040 (an additional cost of about $2800 to $3000).
There you have it. Don't regret not procrastinating. You did fine. Procrastinators will still do fine, but really only reap significant benefit if they don't lease and simply purchase the vehicle. I think Mercedes is seeing the writing on the wall with these vehicles (even the '07's are not flying off the dealers' lots), and they are trying to get people to buy rather than lease so Mercedes can avoid the nightmare of having to unload thousands of 27 month leased R class vehicles.
On a personal note, I wanted to thank you for being such a helpful source of information for me and other Southern California lessees/buyers. People like you have saved me thousands on the last 3 vehicles I have purchased personally this past year, as well as 4 other vehicles I have helped friends purchase. I hope to hear from you again in about 24 to 27 months when our leases are up and we are again in the market for those "perfect storm" deals. Best regards, and, above all, don't aggravate yourself about the changes in the factory to dealer cash. I will repeat: YOU DID FINE!!
#302 of 803 Re: Lease-end Re-negotiation - Lease extension or buyout [zaheer]
Oct 12, 2006 (10:54 pm)
You indicated that you have been able to negotiate extensions on your Mercedes lease for as little as the depreciation component of the monthly payment. With whom at MB Financial Services do you actually negotiate? Do you call the toll-free number and just speak with the customer service rep or do you need to speak with a supervisor or even another department.
I have leased 7 cars (3 MB's, 3 BMW's, and 1 Land Rover) in the last 13 years, and the dealers have never even hinted at the possibility of re-negotiating the lease terms or the potential buy-out price at lease end. Of course, looking back, it makes sense that the dealer would be more interested in leasing me another new vehicle than have me simply keep my old one for a reduced price - nothing in it for them!
I have read all of your posts and your information has been most valuable. I hope you have the opportunity to respond to this inquiry. Best regards!
#303 of 803 About to pull the trigger...
Oct 13, 2006 (9:38 pm)
...on an 06 R350. I think I've found a couple of good deals and I wanted to get some reaction from this board. They're from two different dealers in different cities, but the residuals and MFs are the same.
Selling price: $46,189
cap reduction: $0
Monthly payment with taxes: $530.00
Selling price: $52,555
cap reduction: $1500
Monthly payment with taxes: $595
This car would need to be shipped which would cost an extra $1200.
The second car is more tricked out with options, but the first has all the options I really want.
Both dealers have said this is as low as they can go.
#304 of 803 Re: About to pull the trigger... [philly04]
Oct 13, 2006 (10:13 pm)
Your deals sound pretty good. W.I. Simonson in Santa Monica is now offering $16,500 off R500's in stock (e.g., MSRP $59,430 - Sunroof, entertainment, comfort, upgraded 18" wheels, for $42,930). Drive an R500 after the R350 to make sure you can't appreciate the difference. Beshoff Motors in Northern California (San Jose?) is offering $15,500 off MSRP on their R500's and is shipping cars across the country. Residual is 67%, MF is .00400, but with the additional discount on these cars, you should stay close to your figures. Good luck! These are both nice vehicles.
#305 of 803 Re: About to pull the trigger... [martinf]
Oct 14, 2006 (12:28 pm)
I can lease a $58,000 R350 for $0 down and $530/month with taxes?
how can MB do this? I have been shopping the XC90 V8 and was quoted $2000 down and $489/month + tax..which would put the monthly about $525-530...so basically...the same deal. only on the MB I put down NOTHING. $2000 saved, for a car that costs more...
are these on 06 models they are blowing out or on new 07s?
#306 of 803 About to pull the trigger/how can they do this?
Oct 15, 2006 (12:26 am)
Welcome to the peculiar world of leasing! Because MB is offering such significant discounts from MSRP on the 2006 R class vehicles, a large proportion of your depreciation cost is taken away. You are most likely getting about $12,000 from MSRP on the R350 (about 20%), so MB is already absorbing about 20% of your "residual" cost. At a residual of 68%, you are only paying about 12% of the MSRP of the car in depreciation and, combined with a subsidized Money Factor of .00295 (about 7.08% in real terms), you have the makings of a great deal for a potential lessee. Go with the 2006 R class Mercedes! Drive the R500 just to make sure it is not the right vehicle for you. Again, because of the peculiar circumstances, you can get an R500 for not that much more than the R350. Ask about the savings on a single payment lease, if you can afford the approximate $10,000 to $12,000 upfront payment.
#307 of 803 Re: About to pull the trigger/how can they do this? [martinf]
Oct 15, 2006 (10:19 am)
sounds like a good deal. about two months ago, my wife and I were shopping for an XC90 V8 - we had read reviews / lease offers discussed online where people were getting cars with MSRP of $50k-53k for little to nothing down ($1500 max) and about $389/month. these would normally have been over 500/month.... Volvo had big discouns on the money factor to blow out th eleft over 2006 V8s.... by the time we looked into it seriously, volvo stopped the program.
i haven't seriously looked at MB, but both the XC90 V8 and an R500 would be large, heavy, safe, V8 family hauler.s the MB i'm sure is nicer an dmore luxurious, but the volvo is a pretty nice vehicle and known for safety.
if i were considering a long term purchase i'd skip the volvo as i don't think they have the same track record for reliability, and resale is much worse..but if i'm only going to keep the car for a couple of years....it basically comes down to which car i like, and who is willing to give me the best deal. both cars will probably be relatively trouble/maintenance free for the first two years.
Oct 15, 2006 (1:51 pm)
Does MB have a balloon program (loan + guaranteed repurchase price after 3 years or 4 years)? Leasing isn't a great option in Illinois, which charges sales tax on the full capitalized cost at lease signing. (It's actually charged to the finance company that is purchasing the vehicle, but is always reimbursed by the lessor.)
#309 of 803 finally got a deal done
Oct 16, 2006 (4:44 pm)
well i finally got a deal done on an 06 R500. i didnt get the car i wanted, but we should always settle when buying a $60k car.....(at least that is what i keep telling myself). i cant believe i just spent that much money and i dont even have leather interior....how do they even sell a $60k car without fancy vinyl...uhh....naugahyde....errr i mean mb tex????
anyway here it is -
317 Comfort Package
326 Premium Package
MSRP = $62,740
Cap Cost = $46,240
Drive-off amt = $1,372.56
- Ca State Title Transfer fee = $15.00
- 1st month payment = $508.81
- MBF Bank Fee = $795.00
- Ca dealer documentation fee = $45.00
12k miles per year
27 months = $508.81 + tax
Residual = 67%
sigh....options aside, i got a great deal. it sure as heck was not painless though. while the sales manager and dealer i ended up buying from was good, the overall experience sucked.
the guys at walnut creek are a bunch of hacks. the salesman is twit. the manager started out great and then pulled the classic bait and switch as we got close to signing paperwork. and then just blamed not doing a deal on someone higher up....nice waste of my time.
the new guy at beshoff is a straight shooter. if only he could have found some more money over $15k for me, i would have preferred to buy from him. he never changed his tune and was honest that he couldnt go lower. fair enough.
ill post the name of my dealer/sales manager after i sign the fedexed lease docs....
thanks for everyone's help AND MORE IMPORTANTLY THE CONSTANTLY UPDATED INFO. this site was invaluable in allowing me to know which dealers were dealing, had large inventories. without it, i would neve have gotten $16500 off msrp. this board is fantastic!
#310 of 803 Re: finally got a deal done [irishrogue1]
by kyfdx@Edmunds HOST
Oct 16, 2006 (4:50 pm)
"ill post the name of my dealer/sales manager after i sign the fedexed lease docs.... "
Please don't... as that violates forum rules.. Please see the message printed in red on every page...