Leases
Thread Starter
Newbie
Joined: Nov 2001
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From: Omaha, NE
Leases
Just a caution for any of you who are thinking of leasing a C Coupe. The lease rates increased substantially on November 1 because MB decreased the car's residual. For example, my estimated lease payment went up $25 per month on my C230K/black/oyster/6sp/C1/C4/C5/C7/CD. So far I have managed to talk the dealer into basically splitting the difference ($13 increase). But I will keep on trying.
Anyone know where I can get a good lease on a C Coupe?
I was told that the rates will probably go up again on January 1. So if you are considering leasing, beware!
Anyone know where I can get a good lease on a C Coupe?
I was told that the rates will probably go up again on January 1. So if you are considering leasing, beware!
Super Member
Joined: Nov 2001
Posts: 644
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From: Orlando, FL
2002 Mercedes-Benz C230 Kompressor Sports Coupe
No carmaker sets their own residual. If they did, they would all claim something really high ("Our car never loses value!"). It is set by independent companies that the bank originating the loan subscribes to. Call you local banks for residual rates.
Rick
Rick
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From: THE Orange County, California
2024 C8 Z06- 2025 BMW CS- 2022 Porsche 992 GTS
Actually the banks set the residuals. They may hire outside sources to consult on the estimated values but the final approval comes from the executive boards of the specific banks. The banks are the owners of the cars after the lease matures and their ability to predict value will determine if they are to prevail after their fleet of cars sell at the auction.
Remember a little know leasing company name GECAL. A brilliant individual decided to run Toyota Camrys with an 80% residual at 24 months. People were getting these cars for payments in the mid 100's. Gee???? how many people bought their cars at the end of term- no one. I dont think this individual is with them anymore and GECAL no longer leases.
Remember a little know leasing company name GECAL. A brilliant individual decided to run Toyota Camrys with an 80% residual at 24 months. People were getting these cars for payments in the mid 100's. Gee???? how many people bought their cars at the end of term- no one. I dont think this individual is with them anymore and GECAL no longer leases.
Thread Starter
Newbie
Joined: Nov 2001
Posts: 22
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From: Omaha, NE
WOW Better proofread these posts better!
I admit that I mistated when talking about the residual. I guess I should have said the residual reported to the dealer by MB finance or something like that. I know that MB does not set the residual, and the dealer can't change it.
I guess the point of my post was not clear, namely, that I never expected the residual to change so dramatically in such a short period of time and that it may change dramatically again in January.
I guess the point of my post was not clear, namely, that I never expected the residual to change so dramatically in such a short period of time and that it may change dramatically again in January.
Super Member
Joined: Nov 2001
Posts: 644
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From: Orlando, FL
2002 Mercedes-Benz C230 Kompressor Sports Coupe
Residuals vary by lending institution. Check out http://www.leasecompare.com/ for some interesting results. You should compare their numbers to whatever MB Finance is giving you.
The C230 did drop substantially in residual on Nov 1st. I think this is because it is a 2002 model and before Nov 1st. you were buying a car of the "next year". After Nov 1st, the car enters a more normal range to be considered a "current car" and has therefore dropped in residual value.
So everyone who took delivery and closed a lease before then saved $50-$75 on their lease, depending on money factor and other details.
Rick
The C230 did drop substantially in residual on Nov 1st. I think this is because it is a 2002 model and before Nov 1st. you were buying a car of the "next year". After Nov 1st, the car enters a more normal range to be considered a "current car" and has therefore dropped in residual value.
So everyone who took delivery and closed a lease before then saved $50-$75 on their lease, depending on money factor and other details.
Rick
