Lease Numbers on 2005 E55
03-02-2005, 08:24 PM
#1
Member
Thread Starter
Join Date: Nov 2004
Location: NC
Posts: 249
Likes: 0
Received 0 Likes
on
0 Posts
'05 E55
Lease Numbers on 2005 E55
Here's the situation:
My 2005 E55 has arrived at the dealership and will be ready for pickup on Friday, March 4. It has a sale price of $89,830. The sticker price (MSRP) is $91,230. I live in LA County, where the tax is 8.25%. The dealer has a $2,000 deposit from when I ordered the car in November 2004.
I've seen money factors recently between .00167 and .0031. I have a FICO score (775+) that should qualify me for the most advantageous rates, no matter who the lender.
I'm interested in leasing the car for either:
(1) 36 months;
(2) 39 months; or
(3) 48 months.
I plan on paying the minimum to drive off (1st month's payment, plus license, registration and fees). I will probably choose a 12,000 mile lease, but currently average about 10,000 miles a year.
What are the residuals/buy back amounts for this car after 36, 39 and 48 months?
How much should I expect to pay per month for a lease based on these terms?
Has anyone leased an E55 recently (with these parameters) and what types of rates were you quoted?
Any information is greatly appreciated.
My 2005 E55 has arrived at the dealership and will be ready for pickup on Friday, March 4. It has a sale price of $89,830. The sticker price (MSRP) is $91,230. I live in LA County, where the tax is 8.25%. The dealer has a $2,000 deposit from when I ordered the car in November 2004.
I've seen money factors recently between .00167 and .0031. I have a FICO score (775+) that should qualify me for the most advantageous rates, no matter who the lender.
I'm interested in leasing the car for either:
(1) 36 months;
(2) 39 months; or
(3) 48 months.
I plan on paying the minimum to drive off (1st month's payment, plus license, registration and fees). I will probably choose a 12,000 mile lease, but currently average about 10,000 miles a year.
What are the residuals/buy back amounts for this car after 36, 39 and 48 months?
How much should I expect to pay per month for a lease based on these terms?
Has anyone leased an E55 recently (with these parameters) and what types of rates were you quoted?
Any information is greatly appreciated.
03-02-2005, 10:55 PM
#2
MBWorld Fanatic!
Join Date: Mar 2002
Location: South Florida
Posts: 1,662
Likes: 0
Received 1 Like
on
1 Post
STS,FGT,12C,P85D,M4
the issue you'll run into is that the banks that will give you the .167 money factor will give you a terrible residual... MB Credit will give you a decent residual, but then screw you on the money factor, I was quoted .003x from MB on a few different cars.... that's like 8%! and I have 800+ beacon....
36months, 55% residual and .003 money factor will put you at around $1500/month with inceptions due at signing....
36months, 55% residual and .003 money factor will put you at around $1500/month with inceptions due at signing....
Last edited by Fikse; 03-02-2005 at 10:58 PM.
03-03-2005, 11:58 AM
#3
Former Vendor of MBWorld
Join Date: Jan 2005
Location: Cincinnati, OH
Posts: 583
Likes: 0
Received 0 Likes
on
0 Posts
MBC Lease Programs – Effective 3/3/2005
2005 Mercedes Benz E55
24 mo/15k mi - 61% residual – Money Factor .00370 Base Rate
36 mo/15k mi - 53% residual – Money Factor .00310 Base Rate
48 mo/15k mi - 47% residual – Money Factor .00310 Base Rate
60 mo/15k mi - 40% residual – Money Factor .00310 Base Rate
Add 2% to residual for 12k mi/yr and 3% for 10k mi/yr
Remember, the dealer does not have to give you the base rate. It is always best to compare other sources. You can do this through LeaseCompare.com.
Note: Regional rates may vary.
We always tell our clients that the best overall lease deal is a low money factor and a realistic residual value. This gives you the best options during and at the end of a lease. Going with a subsidized captive program will financially limit your options to turning it in at the end. It will also be more expensive to get out early if that need arises.
2005 Mercedes Benz E55
24 mo/15k mi - 61% residual – Money Factor .00370 Base Rate
36 mo/15k mi - 53% residual – Money Factor .00310 Base Rate
48 mo/15k mi - 47% residual – Money Factor .00310 Base Rate
60 mo/15k mi - 40% residual – Money Factor .00310 Base Rate
Add 2% to residual for 12k mi/yr and 3% for 10k mi/yr
Remember, the dealer does not have to give you the base rate. It is always best to compare other sources. You can do this through LeaseCompare.com.
Note: Regional rates may vary.
We always tell our clients that the best overall lease deal is a low money factor and a realistic residual value. This gives you the best options during and at the end of a lease. Going with a subsidized captive program will financially limit your options to turning it in at the end. It will also be more expensive to get out early if that need arises.
03-03-2005, 01:13 PM
#4
Member
Thread Starter
Join Date: Nov 2004
Location: NC
Posts: 249
Likes: 0
Received 0 Likes
on
0 Posts
'05 E55
Tarry,
Thanks for your response. I'd like to go through the calculations with you, that way if I make any errors, we can correct. I'm still grappling with the benefits of this lease.
A. There are three components to a monthly lease payment: (1) portion of depreciation paid monthly; (2) state sales tax; and (3) rental of the vehicle from the lessor. If you add (1) and (3) together and add the sales tax to the total, that gives you the monthly lease payment.
B. Depreciation: Let's go with the 36 month figures. With a residual of 53%, depreciation on the vehicle amounts to 47% of the capitalized cost of the car. Let's say (for the sake of argument) that the cap cost on my car is 92K. Total depreciation of the vehicle is $43,240. Divided into 36 monthly payments, it's $1,201.
C. Rental of the vehicle: I understand it's the cap cost plus the residual times the money factor. (92,000 + 48,760) = 140,760 x .00310 = 436.35
D. Add the rental and depreciation together (~$1,637) and add the tax (8.25%) and I get $1,772/month. The effective interest rate with that money factor is 7.44%.
My question is that I could put finance for 60 months and have a lower monthly payment. Why would anyone lease on these terms?
Thanks for your response. I'd like to go through the calculations with you, that way if I make any errors, we can correct. I'm still grappling with the benefits of this lease.
A. There are three components to a monthly lease payment: (1) portion of depreciation paid monthly; (2) state sales tax; and (3) rental of the vehicle from the lessor. If you add (1) and (3) together and add the sales tax to the total, that gives you the monthly lease payment.
B. Depreciation: Let's go with the 36 month figures. With a residual of 53%, depreciation on the vehicle amounts to 47% of the capitalized cost of the car. Let's say (for the sake of argument) that the cap cost on my car is 92K. Total depreciation of the vehicle is $43,240. Divided into 36 monthly payments, it's $1,201.
C. Rental of the vehicle: I understand it's the cap cost plus the residual times the money factor. (92,000 + 48,760) = 140,760 x .00310 = 436.35
D. Add the rental and depreciation together (~$1,637) and add the tax (8.25%) and I get $1,772/month. The effective interest rate with that money factor is 7.44%.
My question is that I could put finance for 60 months and have a lower monthly payment. Why would anyone lease on these terms?
03-03-2005, 01:35 PM
#5
MBWorld Fanatic!
Join Date: Mar 2002
Location: South Florida
Posts: 1,662
Likes: 0
Received 1 Like
on
1 Post
STS,FGT,12C,P85D,M4
use a lease calculator.... much easier...
your payment under those terms would be $1579/month + tax with just inceptions due at signing...
you're right, the lease is just terrible right now on most MB's..... buy it
your payment under those terms would be $1579/month + tax with just inceptions due at signing...
you're right, the lease is just terrible right now on most MB's..... buy it
03-03-2005, 02:12 PM
#6
Former Vendor of MBWorld
Join Date: Jan 2005
Location: Cincinnati, OH
Posts: 583
Likes: 0
Received 0 Likes
on
0 Posts
Just some thoughts ....
Using your pricing on LeaseCompare.com I come up with a payment of $1407 for 39 months and $1453 for 36 months. This does not include tax but it's at least $200 less per month than going through MBC and that's if they give you the base rate.
If you are going to keep the car for 60 months or more then go ahead and buy/finance it. If you plan to sell it before the loan is paid off then lease it unless you like the idea of negotiating the trade-in and a possible negative equity situation.
Using your pricing on LeaseCompare.com I come up with a payment of $1407 for 39 months and $1453 for 36 months. This does not include tax but it's at least $200 less per month than going through MBC and that's if they give you the base rate.
If you are going to keep the car for 60 months or more then go ahead and buy/finance it. If you plan to sell it before the loan is paid off then lease it unless you like the idea of negotiating the trade-in and a possible negative equity situation.
