Current Lease Money Factors, etc.
Thread Starter
Super Member
Joined: Jul 2019
Posts: 677
Likes: 126
From: South Carolina
2020 MB E450 Estate, 2019 Kia Niro Touring
Current Lease Money Factors, etc.
I'm trying to plan for the pickup and leasing of my newly-ordered 2020 E450 wagon, due early December. And I'm trying to calculate lease vs buy vs whatever, so I'm not surprised in December.
I have good credit (over 800); what are the current Money Factors for MB leases for this car?
Any idea what the Residual % will be for the E450 wagon, for say 2, 3 and 4 years? And is that a % of the MSRP, or of what I am paying for the car (I'm getting a 12% discount)?
I've read I can make up to 10 Multiple Security Deposits, reducing the MF by 0.00007 for each. Is this still true?
I've read many posts here on how to calculate the amount of each MSD, and they seem a bit conflicting. I /think/ that the lease monthly payment is calculated from the full MF and other information, then each MSD is that amount rounded to $50, and then, after reducing the money factor by 10 x 0.00007 = 0.0007, a new lease monthly payment is calculated, based on the 10 MSDs. Is that right? One example seemed to first reduce the MF, calculate the new, reduced payment, then calculate the MSD from that. Which would result in the same payment, but lower amount paid in MSDs.
I have heard that Mercedes offers/requires gap insurance, in case the car is totaled, to pay for the difference between the car's worth and the amount left to pay in the lease (plus the residual cost?). Any idea how much that costs? Or is it included in the MF?
Finally, if MB's lease offer is poor (higher MF or % than market), are there other alternatives to leasing with them? Most of the leasing companies I've seen expect you to buy the car through them too, and I will be buying from my dealer.
I have good credit (over 800); what are the current Money Factors for MB leases for this car?
Any idea what the Residual % will be for the E450 wagon, for say 2, 3 and 4 years? And is that a % of the MSRP, or of what I am paying for the car (I'm getting a 12% discount)?
I've read I can make up to 10 Multiple Security Deposits, reducing the MF by 0.00007 for each. Is this still true?
I've read many posts here on how to calculate the amount of each MSD, and they seem a bit conflicting. I /think/ that the lease monthly payment is calculated from the full MF and other information, then each MSD is that amount rounded to $50, and then, after reducing the money factor by 10 x 0.00007 = 0.0007, a new lease monthly payment is calculated, based on the 10 MSDs. Is that right? One example seemed to first reduce the MF, calculate the new, reduced payment, then calculate the MSD from that. Which would result in the same payment, but lower amount paid in MSDs.
I have heard that Mercedes offers/requires gap insurance, in case the car is totaled, to pay for the difference between the car's worth and the amount left to pay in the lease (plus the residual cost?). Any idea how much that costs? Or is it included in the MF?
Finally, if MB's lease offer is poor (higher MF or % than market), are there other alternatives to leasing with them? Most of the leasing companies I've seen expect you to buy the car through them too, and I will be buying from my dealer.
Senior Member
Joined: Feb 2011
Posts: 380
Likes: 59
From: Illinois
2019 Audi Q8, 2015 GL63, & 2005 E500W4
I'm trying to plan for the pickup and leasing of my newly-ordered 2020 E450 wagon, due early December. And I'm trying to calculate lease vs buy vs whatever, so I'm not surprised in December.
I have good credit (over 800); what are the current Money Factors for MB leases for this car?
Any idea what the Residual % will be for the E450 wagon, for say 2, 3 and 4 years? And is that a % of the MSRP, or of what I am paying for the car (I'm getting a 12% discount)?
I've read I can make up to 10 Multiple Security Deposits, reducing the MF by 0.00007 for each. Is this still true?
I've read many posts here on how to calculate the amount of each MSD, and they seem a bit conflicting. I /think/ that the lease monthly payment is calculated from the full MF and other information, then each MSD is that amount rounded to $50, and then, after reducing the money factor by 10 x 0.00007 = 0.0007, a new lease monthly payment is calculated, based on the 10 MSDs. Is that right? One example seemed to first reduce the MF, calculate the new, reduced payment, then calculate the MSD from that. Which would result in the same payment, but lower amount paid in MSDs.
I have heard that Mercedes offers/requires gap insurance, in case the car is totaled, to pay for the difference between the car's worth and the amount left to pay in the lease (plus the residual cost?). Any idea how much that costs? Or is it included in the MF?
Finally, if MB's lease offer is poor (higher MF or % than market), are there other alternatives to leasing with them? Most of the leasing companies I've seen expect you to buy the car through them too, and I will be buying from my dealer.
I have good credit (over 800); what are the current Money Factors for MB leases for this car?
Any idea what the Residual % will be for the E450 wagon, for say 2, 3 and 4 years? And is that a % of the MSRP, or of what I am paying for the car (I'm getting a 12% discount)?
I've read I can make up to 10 Multiple Security Deposits, reducing the MF by 0.00007 for each. Is this still true?
I've read many posts here on how to calculate the amount of each MSD, and they seem a bit conflicting. I /think/ that the lease monthly payment is calculated from the full MF and other information, then each MSD is that amount rounded to $50, and then, after reducing the money factor by 10 x 0.00007 = 0.0007, a new lease monthly payment is calculated, based on the 10 MSDs. Is that right? One example seemed to first reduce the MF, calculate the new, reduced payment, then calculate the MSD from that. Which would result in the same payment, but lower amount paid in MSDs.
I have heard that Mercedes offers/requires gap insurance, in case the car is totaled, to pay for the difference between the car's worth and the amount left to pay in the lease (plus the residual cost?). Any idea how much that costs? Or is it included in the MF?
Finally, if MB's lease offer is poor (higher MF or % than market), are there other alternatives to leasing with them? Most of the leasing companies I've seen expect you to buy the car through them too, and I will be buying from my dealer.
Thread Starter
Super Member
Joined: Jul 2019
Posts: 677
Likes: 126
From: South Carolina
2020 MB E450 Estate, 2019 Kia Niro Touring
I agree with that source, but when I mentioned it here, I got a new one ripped for me, so I'll keep that information to myself. I did post there, and was told about the "standard money factor", but no one could say what the heck the "standard money factor" is. ;-)
Senior Member
Joined: Feb 2011
Posts: 380
Likes: 59
From: Illinois
2019 Audi Q8, 2015 GL63, & 2005 E500W4
The standard money factor varies for MBFS, unfortunately. That's too bad. I hope the same doesn't happen to me.
Thread Starter
Super Member
Joined: Jul 2019
Posts: 677
Likes: 126
From: South Carolina
2020 MB E450 Estate, 2019 Kia Niro Touring
Senior Member
Joined: Feb 2011
Posts: 380
Likes: 59
From: Illinois
2019 Audi Q8, 2015 GL63, & 2005 E500W4
Member
Joined: Dec 2008
Posts: 166
Likes: 69
From: California
'23 S580 Manufaktur and '21 GLE 53 Coupe (Past MBZ: 2020 GT63, S65, S63, E55, CL65, S550, C32)
For my 2020 AMG GT 63 for 15K miles per year I was just given a "standard money factor" of .00365! Does that sound astronomical?
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Thread Starter
Super Member
Joined: Jul 2019
Posts: 677
Likes: 126
From: South Carolina
2020 MB E450 Estate, 2019 Kia Niro Touring
It does to me! Sounds anything but "standard". Since that is equivalent to 8.76% interest, while when purchasing a car interest is under 4%. And it is, after all, just another way of purchasing.
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Thread Starter
Super Member
Joined: Jul 2019
Posts: 677
Likes: 126
From: South Carolina
2020 MB E450 Estate, 2019 Kia Niro Touring
Just finalized my deal on my ordered 2020 E450 Luxury Wagon, which arrived in Baltimore 2 days ago. The original lease quote from their sales guy ended up being a 0.00361 factor with a 46% residual for 48 months and 7500 miles per year, $1,095 acquisition fee. I felt that was very high, so contacted the manager who I'd dealt with to get the 12% discount on the car. He came back with a 0.00212 money factor for the same lease, and lowered the acquisition fee to $795. I then asked about putting up 10 MSDs to get a lower rate, and he reduced the money factor to 0.00151. While from what I thought I knew, the factor should have been a bit lower (reduction of 0.00007 x MSD should have given a 0.00142 money factor), but it's close enough to satisfy me, so I'm going with it. This gets me a $940.70 monthly payment with only $1,000 down (+MSDs which I get back) on a car with an MSRP of $83,250, so I'm good with it. Now getting advance quotes and info on all extra warranty and maintenance contracts to decide which if any of these I will get from them, or from 3rd parties (or other dealers advertising here).
Senior Member
Joined: Feb 2011
Posts: 380
Likes: 59
From: Illinois
2019 Audi Q8, 2015 GL63, & 2005 E500W4
Just finalized my deal on my ordered 2020 E450 Luxury Wagon, which arrived in Baltimore 2 days ago. The original lease quote from their sales guy ended up being a 0.00361 factor with a 46% residual for 48 months and 7500 miles per year, $1,095 acquisition fee. I felt that was very high, so contacted the manager who I'd dealt with to get the 12% discount on the car. He came back with a 0.00212 money factor for the same lease, and lowered the acquisition fee to $795. I then asked about putting up 10 MSDs to get a lower rate, and he reduced the money factor to 0.00151. While from what I thought I knew, the factor should have been a bit lower (reduction of 0.00007 x MSD should have given a 0.00142 money factor), but it's close enough to satisfy me, so I'm going with it. This gets me a $940.70 monthly payment with only $1,000 down (+MSDs which I get back) on a car with an MSRP of $83,250, so I'm good with it. Now getting advance quotes and info on all extra warranty and maintenance contracts to decide which if any of these I will get from them, or from 3rd parties (or other dealers advertising here).
Thread Starter
Super Member
Joined: Jul 2019
Posts: 677
Likes: 126
From: South Carolina
2020 MB E450 Estate, 2019 Kia Niro Touring
First, there aren't a lot of them. The only wagons I saw were black, the last color I'd want. Second to maybe 7th, I want a car the way I want it. Ventilated seats, soundproofing package, HUD, etc. etc. I'm willing to pay extra for a new car, driven & owned only by me, and designed for me. That is definitely worth the difference. To me.
