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Prices Paid: Buying & Leasing Experiences Mercedes-Benz CLS-Class Lease Questions
43 messages, Last post on Feb 20, 2009 at 8:54 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
| This will be my next car.. Good luck with it.. I leased my last MB from David Michael in Freehold.. Great service.... | |
I would like to know which is better. Leasing an expensive car? Or buying. Is it wise to put down 30k on this car and pay 1000.00 amount if purchased? Or is it better to pocket that money by putting less down, with a smaller payment? If it is lease, do you end up paying more in the long run if you want to buy later?
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Replying to: Car_man (Oct 20, 2005 11:26 am) I am new to lease  so please help me out. Thanks!
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Replying to: toshsk8 (Jan 12, 2006 3:25 pm) Whether you will pay more to lease this car and buy it versus just financing it to begin with depends upon two main factors. The interest rate that you will have to pay to finance it versus lease it and whether you believe its residual value is accurate. Mercedes-Benz Credit's current lease money factor for the '06 CLS500 is .00300. When one converts this to an interest rate is is equivalent to around 7.2%. Even with the new lease support, there is no advantage to leasing interest rate wise because you should be able to get a rate that is at least this low to finance this car if your credit is in good shape. The other factor that I mentioned is this car's residual value. Mercedes-Benz Credit's current 36 month, 15,000 mile per year residual value for the '06 CLS500 is 62%, which is pretty solid. If you lease and this car ends up being worth less than this after three years, you come out ahead because you miss having to pay for all that depreciation. Of course, this assumes that you walk away from your car at the end of your lease and do not pay its inflated purchase price. After all this, I am fairly neutral on this car's lease program. It's not great, but it's not horrible either. You can't really go wrong with either leasing or financing. Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: nc2 (Jan 27, 2006 11:16 am) Car_man Host Smart Shopper / Prices Paid Forums |
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Is the mf .0030 and residual still 62 percent for 36/15k I was at the dealership today. and he was saying the residual for 39 months was 62 percent. can you tell me the residaul for 39 compared to 36 months. Also how does the taxes work on lease in New york. I have leased a bmw and is going to finish this may. I always thought the 8.625 % tax was multiplied on the lease payment. However this dealer says that when calculated it is with a tax adjusted cap cost. Here are the numbers hope you can help with all my questions. thank you 39 month/ 15k a year msrp $76784 Purchase option 46,950.08 (doesn't make sense with the residual)........capcost 72,809 . he states out of pocket $1421.54 and $1159.04 a month. can you calculate the numbers. thanks
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Replying to: namja007 (Mar 09, 2006 4:20 pm) I am not personally all that familiar with how sales tax is calculated on leased vehicles in your area, but you may be able to find out more information on this subject by visiting one of the following sites: New York State Department of Motor Vehicles Internet Office or New York State Department of Taxation and Finance. Car_man Host Smart Shopper / Prices Paid Forums |
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In NY, sales tax on leases are calculated: (Pretax lease payment) X (tax rate) X (number of months). A $1,000 lease payment on a 36 month lease, in an area with 8% sales tax, would have a total tax of $2,880. This amount is payable up front. Most people "roll" the tax into the payment, which just means the dealer will add that $2,880 to the amount being financed. Interest will be charged at the same money factor as the rest of the lease. If you have a favorable money factor (which you probably do, otherwise the lease itself would be a bad deal), then it makes sense to roll the tax into the payment and keep that money in your pocket. For one thing, if you get out of that lease early (including involuntary reasons like theft or total loss), then you will have wasted money by paying the tax upfront. My rule of leasing is to roll everything into the payment and pay as little as possible upfront, usually just security deposit and DMV fees. Never put money down on a lease, and don't pay taxes upfront.
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Replying to: rbirns1 (Mar 22, 2006 10:34 am) Car_man Host Smart Shopper / Prices Paid Forums |
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Hi Car Man, Thanks for taking the time to help me out. I have been shopping a CLS 500 lease at a few dealers in Miami-Dade County. I have a quote from one dealer. MSRP including destination ($775) and gas guzzler tax ($1300) is $74,675, selling price is $71,593. I have a 758 FICO. Can you work up a lease payment for me for 36-39 months, 12,000 miles and 15,000 miles? with $2000 down? This dealer gave me an estimated payments worksheet that looks like the payments are padded; $7500 down, $1039/mo for 39 months. I'm assuming the residual is set in stone by MB at 62%? I've read in earlier posts that the money factor is .0030. Another dealer worked up payments for me and used a .0045 money factor. Is the money factor negotiable? They also included a dealer fee of $600. Is this standard or padding? When calculating the lease is the gas guzzler tax and destination charge included in the MSRP? Thanks a lot!! Take care, John
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