mrhdream

Hey all!
Been very busy reading, comparing, and just admiring all there is about the coupe.
After some negotiations, I will be heading to my dealer tomorrow to place an order for a c63 AMG coupe.
Now, I have heard countless times that they "can run the numbers" but it won't mean much as lease options change.
I am a bit hesitant on ordering a lease car without knowing how much they may charge!

I was able to negotiate at LEAST a guarantee of the cap cost (lease) for the vehicle at invoice. This of course took time and effort to acquire.

What other things should I ask for simple when ordering this vehicle? They would require a deposit so of course I will make that refundable.

Anything else I should ask for? I am again quite nervous about leasing a vehicle that I do not have a set price on and would appreciate any, and all advice!

Will let you know the outcome tomorrow!
thanks
H

gthal

Leases are really 5 things... capitalized cost (purchase price), residual, rate, term and downpayment/deposit. The residual and rate are fixed by MB and likely no negotiation or movement. Term is personal preference to you... I like short leases (36 months) so I can get in and out of cars. The lower the term the higher the residual and also the payment. However, rates will decline usually so the monthly payment might be higher but the financing costs are lower. I hate putting anything down on a lease so I would negotiate that piece out but in some cases multiple security deposits will lower the financing rate. You have to decide whether it is worth it to you given your other debt/investments to tie up cash on multiple deposits.

For me the convenience of leasing is nice. Also, if you have an accident in a car, the value plummets for later resale. If the car is leased it is MB's issue and not yours.

I like short leases with high residuals and low financing rates. Payment is higher but that is just a cash flow issue. On negotiation, get the lowest purchase price and highest trade in value. Everything else is math or fixed by MB.

mrhdream

thanks for the advice!
I am pleased with negotiating a guarantee for the purchase price (cap cost), and I thought in the back of my mind rv, MF, would not be negotiable as probably will be the case.
I will work to make sure deposits and such are refundable, and when lease time comes I will have those fees to "deal" with, and hopefully negotiate fair price.

Also, your car will be near identical to mine, but will be going for the regular black, and am yet contemplating whether or not to get performance package... Tough call! I only have until tomorrow to decide!

thanks
H

Pit-Pony

What bugs me about a lease is the low millage (km in Canada) and the high cost of extra driving beyond the limit. MB usually has a relatively low limits. That sometimes gets in the way of taking the car on long road trips in the final lease period to keep the odometer low.

Another is the liability for any minor damage on the car when it's returned. That can amount to a large sum if you happen to have lots of bumps and bruises or dents for some reason that were not fixed well. The "Dent Wizard " service is your friend here.

Personally I like to own the car and use Balloon Financing as a means of keeping the payments reasonable. At the end of the period, you have a choice to buy out the car at the Balloon residual or trade it as you most likely will not be too upside down at the time. Only down side is that you have to finance the tax on the entire amount while on a lease you only pay tax on what you use. Upside is you can drive as much as you like.

sisyphus

I placed an order that I will lease on the sedan a few weeks back. I did get them to guarantee
me the "buy rate" on the mf. That way at least I know they won't be trying to pad the interest when the car comes in.

rory breaker

What kind of lease deals are you guys getting? I saw the one that the guy posted - $67k +TTT and the payment is ~1050 or so.

I racked my brain hard on the whole balloon payment vs lease thing and found it more convenient/hands off to just lease.

604 C63

I think you are getting screwed by your dealership. They are using the newness and rarity (right now) of the coupe to work you over. gthal is right about the 5 things. 2 of those are for you to choose - length of term & deposit. But the other 3 are already set by MB Financial and if your dealer says they aren't well move on to another dealer. They know the interest rate on the day you commit, they know the residual percentage rate for the term you select and they know pricing. Anyone that tells you they don't is bull$****ting you. Tell them "if you want me to commit, then you need to as well. I am doing this car today. With or without you. Come up with solid numbers that you'll commit to or I am going over to....(insert dealer name here) and you guys can go circle jerk in the parts room". The car is rare TODAY. Wait a bit and they'll be in stock everywhere. I lease a new vehicle every 3 years and I have been down this EXACT road several times. Dealers will try to tell you about "limited availability" and "allotments" and all of that, and it may even be true but there is no reason that they cant commit to numbers.



Whether to buy or lease is a personal thing, and there are many factors that can affect that so I'm not touching that.

604 C63

Oh, and I hope you are NOT really a Dr. of any kind cos if you are and you feel the need to sign yourself like that on an internet forum you need to seek treatment for a case of highfallutin'godcomplex.

I'm going to give you the benefit of the doubt and hope you're just a guy with a sense of humor and a nickname.

604 C63

You know thats a variable, right? MB has all the the same milage options as every other manufacturer ie 16000 km, 20000km, 24000km etc (yes Pit Pony and I are Canadian) and you can pick when you lease. Yes, it does effect your residual rate and hence your payment but putting more mileage on a car should effect what its worth at the end.


Dr. Lease <<<<see that? Get it? Dr. Lease. I'm not a Doctor and I don't play one on TV.

mrhdream

LOL,
Yeah I always liked that as my nickname.
You went on quite a posting rampage there lol.

Appreciate the advice though, will be my first time leasing, so hopefully it works out in the end.
Mr.H <------- that better? LOL

604 C63

They call me MISTER Tibbs. j/k. Its a Sidney Poitier film. ANd yes, Much better.


I've leased several times (altho Canada can be different from US even with the same manufacturer) so feel free to PM if you have questions or want to discuss specifics.

mrhdream

Thanks bro. I will do that.

Once my car gets delivered, I will see what I can do about lowering the residual in case I'd like to purchase at the end. (as my lease rate is guaranteed now)

This car they had listed at 59% of MSRP for RV, wondering what other people have had as their RV for this vehicle?

gthal

Why would you ever want to lower the residual? That means you will be paying more now for the car just "in case" you buy it out later. Keep the residual as high as possible and your costs lower today. If you don't buy it out, you paid WAY less over the lease. If you do buy it, then you will still pay the same amount in total by the time the car is paid off.

Example 1...

$70,000 with residual of $40,000. You pay $30,000 in principal payments over the lease, buy it out for $40,000 and pay that off. You paid $70,000.

Example 2...

$70,000 with residual of $30,000. You pay $40,000 in principal payments over the lease. If you don't buy it out, you paid $10,000 more over the lease than Example 1. If you do buy it out, you still pay $70,000 in total which is the same under either scenario.

Lower residuals just guarantee more cash outflow during the lease. All the residual determines is what portion of the car you pay off while under the lease. Now, this doesn't factor in financing costs, etc, which make it more complicated. If it were me, keep the payments low with a high residual and low finance rate. If, at lease end, the car is worth more than the residual then buy it out if you want (you win). If it is worth less, give it back to MB and they lose and you lease a new car. The benefit of a low residual is that you get to decide and if you DON'T take the car, you won over the term of the lease by paying much less due to the higher residual. If the car is worth more, you can win by buying it out. If it is less than the residual, you can walk away. If the residual is lowered now, all you are doing is guaranteeing higher payments now without really benefiting much at lease end (i.e. if you buy out the car, you will pay the full price one way or the other regardless as to how much is allocated to the residual).

mrhdream

Thanks for the comment.

I understand what you are saying, but I think my situation is somewhat unique.
I placed an order for a lease vehicle, and I ALREADY have a guaranteed price for the monthly lease rate. This price is guaranteed, thus when the car comes in March for delivery, numbers(mf,rv,etc..) will be adjusted so that I will have this guaranteed lease rate.

Because I have this rate already guaranteed, I think it would make more sense to shoot for a lower RV? Means car is most likely to be worth more at lease end than RV, and also better price for buyout. At least that's my logic, lemmee know whatcha think...

This is also why I was interested in what people's RV are for this vehicle.
thanks!

gthal

Aaahhh... that makes more sense then. You are essentially working the other numbers around the dealer commitment on part of the lease. Sorry, didn't get that part.

604 C63

I think its the use of the word rate that is confusing here. Are you really meaning to say payment? Cos in that case its understandable, in any other situation I can think of you should be looking for as high a residual as possible. At any rate, I'm sorry I can't help on this one as I bought my car this time as I couldn't resist the 0.9 rate MB Canada was offering.

mrhdream

Yes, I did mean Lease payment. Sorry for confusion!
H

604 C63

Wow. You've gone from Dr. H to Mr. H to H in one thread. I really feel like we're getting to know each other!!!

Seriously tho, in that case you do want to get the residual as low possible but I think you'll find that is set by MB and so already carved in stone. Let us know how that works out for you. Not sure if you have a cousin Sal who can come and sit beside you and look terrifying but that cant hurt.

Vic55

I do know right now that the 7500 mile per year residual for 24 months is 70%- couple that with the .00195 money factor and the coupe can be a cheap(er) short term lease. But thats right now.

aj20102009

I'm trying to lease a 2012 C63 Sedan or Coupe (whichever is cheaper ) please give me some numbers that you guys are getting on the 2012. Thnx

Merc63

IF you are ORDERING a car brand new, the deposit (In Canada) is 10% and that is NON Refundable.

To the best of my knowledge residual values are not negotiable.

gthal

I ordered a brand new car (Canada) and put no deposit down. I think it has to do with the relationship you have with the dealer. Also, if the dealer wanted a 10% non-refundable deposit, I would walk but that's just me. A refundable one... fine... but non-refundable would be a deal breaker for me. What if the car comes in wrong (wrong colour, seats, whatever)? I would NOT be prepared to re-order and wait and would NOT be prepared to lose the deposit.

Pit-Pony

The way I understand it, if your lease rate may be "Guaranteed", but it's tied to a fixed residual set out by MB Financial. You can't change the residual without changing the monthly lease payment unless you change the interest rate. The math sets that out and they are not in the business of loosing money. Hard enough that they have to predict what the car will be worth in the future in today's economical situations.

Besides, someone said it, the residual is fixed by MB, not negotiable at the dealership. The only thing you can play with is the "selling price" on which value the lease is costed, or by adding some up front cash to reduce the payment as the capital amount being financed is proportionally reduced.

Just remember that when you return the car, any wear and tear on the car that MB concludes is beyond normal will be charged to you at rates they determine. Many people are shocked by that final bill if the car has too many dings, damage or interior wear.

mrhdream

Thank for comments.
Yeah residual value does seem like something that "may" be fixed, but then again it may just be dealers telling us such.
I suppose I could negotiate a buying price, separate front the residual when time comes to pick up, I wonder how many people have a "buying" price separate from the Residual value, would be curious to know...
thanks!

jarjoug

The law is on your side, they can't keep your money if you don't want the car.

George