Until recently, I had always figured leasing made more sense for me because I would likely want to get a new car every three years. After shopping around and getting quotes from MBCC and others, I've decided to buy. Here's why.....

For a $45K C 320, leasing for 36 months with 12K miles per year and $8K down was going to be in the $575/month range, as quoted by my MB dealer based on current money rates and a 62% residual. The balloon option was going to be around the same amount. See my calculation at http://briefcase.yahoo.com/bc/jasonh...e+Calculators. "Lease"

With 72 month financing at Peoplefirst.com, you can get a 5.75% interest rate loan for a new dealer purchase. With the same $8K down, the payment would be in the $650/month range. Yeah, it's $75 more per month, but after three years in this scenario, you have $5,400 equity in the car. In the lease after three years, you have nothing. See my calculation and graph at http://briefcase.yahoo.com/bc/jasonh...e+Calculators. "Finance 2"

If you can swing it, financing makes much more sense, even if you only want to hold onto the car for three years!!

 

Does C320 really cost $45k???? Damn even fully loaded that sounds like alot! I'd get a 330i if i were you. I'm doing lease on my 02 230 coupe for $3k down under $450 amonth 39mnth/15k miles (see specs below). I coulda got 03 for same price but i wanted the 2.3L. And they had to transport the car in b/c black/charcoal is rare esp 02 now aday.

 

My car is actually $46K MSRP. That price EXcludes Tele Aid, split/fold-down rear seats and full leather. (I got everything else.) The loaded price is actually $48,786!!!

I considered the 330i and it actually is a cheaper, but I much prefer the C320 Personal preference. 330i is a great car.

 

that seems really high...

I just leased, well back in May, a C320 wagon, sticker $41,005 + CD, for $460+tax, 48 months, 12K year. First month payment was $600.

Granted, your getting the sedan and extras, but still...market has changed, or you need to renegotiate


MBNewbii

PS. We also thought about a 530, which would have been about $650+tax a month, O driveoff, for three years/12K. List was about $46,000.

 

Yes, it does seem high. We got the C320 Wagon in July. $42K+ list for $480 (39mos, 10K) with no cap cost, only fees.

 

Generally, the advantage of leasing is you get a low monthly payment and low down payment. That's it. It doesn't put ANY money in your pocket. It just gets you in a more expensive car without having to save up more cash. If you have cash for a down payment and can swing the higher monthly bill, financing costs less. I've seen a few articles and calculators that compare the two and proove this point.

I have friends that have leased for years. Every three years they shell out a down payment plus make higher monthly payments then me and at the end of the 3 years: they still own NOTHING.

 

I am leasing my 2001 C240 - and never again. I will not lease a primary car again - if it is a secondary car, maybe. I thought it would be cost effective to lease, but in the long run, it will cost me more money. RE: I put way too miles miles on the car. I got the lease with 20K miles per year - after a year, I had 30K. I guess it is my fault anyways - since I agreed to it. I thought I calculated my mileage correctly, but really was way off. I am going to buy the car outright here soon.

 

The way Wall Street has been, I should have paid cash for an SL. Really.
My original calculations considered the cost of the lost opportunity to be 30k earning 10%. As it is, the car is depreciating at a rate less than the market's tanking.

 

This is true but not the whole story. First, and reasonably, it assumes that the interest rates are the same but there are, often promotional rates for one or the other which shift the advantage. Second, leasing eliminates the hassle involved in selling a car every three years. Convenience is worth something.

 

Eww

I bought my '02 put down 8,000 and on a 48Mo loan and paying under $500 / pmonth at 4.25% When you are shelling out money for your next lease and paying for excessive wear or miles on your car I'll have a 15,000 minimum trade or resale from my current vehicle.

 

Umm no thanks. And good luck with the car being still worth $15k after 4 years.

*I really didnt want to buy another car (hassle of selling)....also if i picked something off the lot it woulda been a better deal but I specifically wanted the option/color that I have now which was shipped in outta state(minus the power seats...no luck in whole country as of this point).

 

Usually people who finance put more miles on, but when they run the figures they don't assume this. people who lease know they are limited, and thus usually keep the mileage lower to prevent penalties.

I've seen the financing versus leasing comparisons, and the end value of the vehicle financing is always IMHO over inflated, and thus the real difference between leasing and financing is misrepresented.

Although, leasing will always cost you more, but I still feel the benefits are worth the extra money.

How much do most of us make yearly here? Enough I imagine (we're driving Benzs, they are not cheap, despite what SoCal may say), therefore do a time versus money comparison and see how much your time is really worth to you. My free time is precisious and definitely worth the extra expense.

 

you can't modify a leased car. sure you can take some of the modifications off, but not all of them.

that's what made my decision for me.

 

My 2 year old VW Golf TDI which I bought for 17K was sold for 12K with 60,000 miles on it. I expect that my MB will be worth around 22K after 2-3 years and the historical values bear thisout.

 

Referenced in the my earlier post, I have fixed the following links

See "Lease" and "Finance 2"
http://briefcase.yahoo.com/bc/jasonh...ce+Calculators

I'd be interested to get you guys' thoughts or questions on these calculations.


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