chalkeater

Scenario 1: MSRP $34,050 (Sunroof Package, Automatic, CD Changer, Metallic Paint) - $2000.00 discount = $32,050.

To finance this vehicle, the dealer offered 5.25 % interest for 60 months. If I chose to lease this vehicle, the monthly lease amount was $510.00 @ .320 money factor for 39 months, with nothing down as a down payment.

Scenario 2: MSRP $33,496 (Same package as before), but no discount except for $54.00. WOW!

To finance this vehicle, the dealer offered 5.25 % interest for 60 months. If I chose to lease this vehicle, the monthly lease amount was $464.62 (drive out price) @ .16 money factor for 39
months, with $2500.00 as a down payment.


Here's what I don't understand and I need some clarification ...

1. Mercedes Benz, according to Edmunds.com is offering 1.65 % interest for 60 months for qualified buyers (we are qualified). Why weren't we offered this rate? I even asked the salesperson if the 5.25 % interest rate was the best they could do as my credit union was offering 3.4 % interest for 60 months and he told me to take the offer from my credit union. Why weren't they forthcoming about the 1.65 % interest rate? It started in the month of April and today is April 10th. If the salesperson was not informed of this offer, certainly the finance person should have been, which our salesperson visited several times while we were in his office.

2. I negiotiated the price of the vehicle first, before I even mentioned financing or leasing. In scenario 1, the price of the vehicle was $2000.00 below MSRP. I then mentioned leasing and he said the dealership would NOT give me the .16 money factor if I leased the vehicle. He said I could ONLY get the .16 money factor for leasing if I paid almost full MSRP, reducing the vehicle price by only $54.00. Essentially, the deal I had worked out (the $2000.00 off MSRP was being wiped away because I wanted to lease). I told the sales person whether I lease or buy doesn't make a bit of difference. I am negiotiang the price of the vehicle first and whatever I do from there, albeit finance or lease, would then be reduced by whatever I have negiotiated off the MSRP. I shouldn't lose the $2000.00 discount because I decided to lease.

The point I am trying to make is this: the money factor should be the same regardless of what I am trying to do. I negotiated the price of the vehicle first, and whatever I do afterwards is secondary. Am I completely wrong here? I've never leased before, but I have read up as much as I possibly can and I haven't ran across the scenario.

If someone has some experience in dealing with these types of situations, please advise me on what to do next.

Lastly, before I left, we did get an estimate on my wife's car that we MIGHT trade in. They rated in the car in excellent condition (which it is) and offered $13,150 (Kelly Blue Book). We managed to get them to go to $13,500, but not any higher. Selling it private party can get around $15,700, but we've had it listed for a while and it hasn't sold. I know they will turn around and sell it for $2000.00 more than what they gave us, but in this case, do you think it is worth it for us to continue to try to sell it privately or trade it in and get the tax break, providing we can work out the other scenarios mentioned above?

I appreciate many responses. My wife is on my back!

Thanks.

Chalk

chalkeater

Forgot to mention this ...

the dealer wants to also charge $225.00 for client services (loaner car for maintenance is mostly what I was told this is for) + $50.00 for documentary/notary fee.

I was not too pleased with the client fee, since it is a self-imposed fee from the dealer (more profit). I didn't negotiate this today, because I was very displeased with the money factor variations because I was receiving a $2000.00 discount off MSRP.

Any suggestions?

amdeutsch

Find another stealer.

Its the FI job at the dealer ships to make money. Therefore if they can get you to agree to a higher moneyfactor or APR they will because it'll mean more profit for them. If MB is offering the APR there might be stealer participation. Check out the web for rebates as well. Someone here recently posted links, etc for a similar scenario. Might do a . Plus, different parts of the country have more competition, therefore lower prices: CA being one.

HTH

4sfed4

I agree. Try another dealer. There is something fishy going on there.

Narcissus

I would suggest looking around for another stealer and asks for some extras, unless you're waiting for the facelifted c-class tell the dealer to take some $$ off or else you're gonna buy it from someone else later..

Also, you might wanna get one of these before :
http://cgi.ebay.com/ebaymotors/ws/eB...&category=6763

They are 1500$ tickets given away during a mercedes invitation and can be used on any c-class, they expire soon though...

Good luck!

ML MBZ

I saw a ad for Southern CA Mercedes dealers and they have having a special for $329 for 39 months.

chalkeater

amdeutsch,

After converting the money factor (.0016) to an interest rate of 3.84 % which is a very good interest rate. However, I would NOT receive the $2000.00 discount, which in my opinion, is a steal for the dealer.

The money factor (.0032) with the $2000.00 discount is an interest rate of 7.68 % which you can find pretty much anywhere today, but no where near what my credit union is offering 3.49 % interest and no where near what Mercedes is offering for a 60 month financing term (1.65 % interest).

I've visited with this dealership twice now, my wife has been there four times. We were just in the neighborhood yesterday, coming back from eating lunch. I guess they thought since we didn't have anything in hand (invoice price, rebates, incentives, comparisons) that maybe they thought they could get us to buy on impulse, because it just so happened the one C230 Kompressor they had on the lot was being looked at by another couple and they didn't want to lose out on the car. I'm glad they were concerned for us, but somewhere along the way, they must have forgot to look out for us on the money factor.

Chalk

chalkeater

Narcissus,

Thanks for the link. With the new addition of the 2005 models that are due out fairly soon, I would think the dealer would have taken more off the MSRP and would have worked a better lease agreement than the one he proposed to us.

The dealer knows we are looking elsewhere, not at another Mercedes dealership (although, it appears I will have to), but at other vehicles ... BMW 325, Acura TL, Infiniti G35, Jaguar X Type, Volvo S40 2004.5 edition ...

While I may catch some flack for this, I truly believe the Acura TL gives you more bang for your buck as far as standard features go. We have many options, but my wife really wants the C230 Kompressor, while all I want is a fair deal.

Take care.

FredS

Most likely, your $2000 discount was being compensated by profit from the lease factor you were being offered.

So, at MSRP, you were offered a low lease factor and the dealership was making profit on the price.

Different lease factors make different profits for a dealer.

Currently, (and this is my personal opinion) you should be looking to lease a C230 for 39 months, for no more than $400-450 per month, depending on the price of the vehicle. (with assumptions on good credit, etc.)

let me know if this helps.

I can look into this in more detail if you'd like.

Fred
MB Tucson

chalkeater

FredS,

Thanks for taking the time to reply. My wife's credit is excellent. Her middle FICO score is 762. I guess that's why I didn't appreciate being offered the .0036 money factor (almost an 8 % interest rate), because of the discount off the MSRP.

I made a mistake in saying the financing being offered (but not to me) by Mercedes Benz was 1.65 %. I just checked the Edmunds.com website again and the interest rate is .9 % APR for 60 months! That's a great rate, but again, it was not offered to me, even when I asked.

Can you explain to me the $2000.00 marketing support incentive being given to the dealers? I believe the original $2000.00 that was being deducted off the original MSRP price of the car was because of this incentive. I also believe, the dealer will still get this $2000.00 incentive and still try to charge me MSRP for the car (less $54.00), but try to make it seem like a good deal by giving me a lower money factor (.0016).

I appreciate your time and help.

Thanks.

DF

FredS

you have pm

shortbear

The dealer makes a large amount of commission from the higher interest rate. You might consider getting an autoloan from an outside agency that can give you a better rate. Your wife has a very good credit score and the APR is definitely negotiable.

When I bought my 2002 C240, I told the dealer my final offer. He said that was impossible so I walked out of the dealership telling him I was going to go buy a BMW. Guess what? 5 minutes later I get a frantic call on my cell phone to come back to the dealership.

Very unprofessional but Mercedes dealers are slimeballs anyways.

FredS

"Very unprofessional but Mercedes dealers are slimeballs anyways."





i suppose i'm not a 'dealer', but as a 'liason' between the customer and the manager, I can say that there are honest and dishonest people on all sides of the equation.

i do know what you mean though..

TNblkc230wz

Find another dealer

silberrosa

I would recommend, like many others, to find another dealer. However, the different levels of support are entirely possible. Car companines support different types of deals in different ways. For a finance deal, you might get one rate and for a lease deal another. This has a lot to do with whether they are trying to grow their lease prtfolio for a specific model at that time. So, this is entirely possible. Also, just because a website says someone has a specific deal, does not mean they do. Unles the deal is offered by the car company either through an ad or their web site, it is not 100%. That said, Edminds is usually accurate, but there is all probability that they do not have the latest info. All this being said, dealers are in the business to sell these cars and the MY05s appear to be coming soon. So shop around to another MB dealer and get your best deal on the car your wife seems to really want, the MB. The differene between a good sales expereince and a not so good one is tremendous and will go a long way in building your confidence in both your car and the brand. Good Luck.

jbcritch

Yesterday a full page ad in the Wall Street Journal offered 36 month leases of 2004 C230 K's for mid $300 (around $350 - $369) so find that ad and take it to the dealer!