extassy

Hi guys...

First of all.. I'd like to thank this forum and its members for being a resourceful site to help me make a decision in my plan to purchase a 2008 C300 4matic... Actually I have been lurking on this forum for a while and made a few friends with some E55 owners/members of this forum...

I have used the search button a few times...

... However... Before I pull the trigger on this purchase, I'd like a re-assurance from members here if this is a good deal...

I'm trading my leased VW GTi an MB dealership in PA... I have 5 more payments and the buy-out is $14,000... The dealer ship is willing to take the GTi for $12,000 and offer me the following:

Sale Price:$37,475

2008 C300 4MATIC LUXURY
Arctic White/Cashmere (MB-Tex)
P1: Premium 1
320: Multimedia Package

Lease:

$4,500 Down
39 months
12,000 Months
$22,700 Residual
.00270 Money Factor

Monthly (Out the Door): $567*

*incl PA sales+lease tax 9%,title, registration and VW buy-out balance: $2000


I told them that it was out of my budget... and they came back with a final offer...

$539/month Out the Door

Should I close the deal? Anyy suggestions will be much appreciated

TIA!!!

mac911

How did they make the payment lower?

I think the money down is a bit high. People always say you shouldn't pay a bunch down on a lease. Maybe lower that a $1000? I don't know.

Did you use the internet tools to see if $12,000 is fair on the VW?

Besides the VW part: the deal doesn't seem bad. On the VW part, I'm just unfamiliar with what it is worth.

extassy

Thanks Mac911!!!

I don't quite know how they lowered the payment... I guess they could have lowered the MF or the Sale price... or maybe increase the the residual value? (is that possible?)
I don't know... I have never leased a car before... the VW was a lease take-over to help-out my good-friend who was leaving the country.

Yes... I've been reading threads here where putting down to much money is not recommended during a few scenarios when insurance pay-out is involved.

As for the VW... here are the breakdown of value according to KBB:

Condition Value

Excellent $14,325

Good $13,510

Fair $12,035


The VW is in a good condition with only 19700 miles

VW dealership nearby offered $13,750 (I was looking at 2008 Passat Wagon 4motion VR6).
BMW dealership offered $13,300 (I was looking at BMW 328 xi).

The MB dealership has the lowest offer, but I like the C300 better than the other cars.

extassy

Bump... any other suggestions/comments?... TIA

Mr Purple

I'm not in the US so cant comment on lease costs. However, surely the MB dealer is gaining by offering a lower price on the VW? Shouldnt he match the 2nd lowest VW offer (13,300)? When i last brought a BMW, trading in an Audi i found that the BMW dealer sent the Audi straight to the Audi dealership. Hence, it could that MB will be 13-1500 better off than you think?

I understand the value is depedent on the price of a new car, but you could also take the VW back to VW and accept 500 less (i.e. 13200) as you're not buying a new car from them? you would still be better off that way?

just some thoughts...

-edit, forgot to say, here in Europe, dealers sometimes make more from trade-ins/ part-exchange than from new cars...

extassy

Thanks for the feedback Mr. Purple


VW will not buy the car unless it is in whole place price... they started offering $12,500 and I was negotiating it all the way up to $13,750 if I am buying the Passat VR6 from them as a trade...

extassy

I just got too excited and pulled the trigger anyways...

I'm picking up the car in an hour

Will post pics soon!!!

BTW the Final Sale Price os $36,808.68

Residual Value: $22,700.25

Money Factor: 0.00260

Mr Purple

nice one! now forget about all the costs! hope it goes well!

mac911

Yep. Your money factor was very close to what the dealer is paying .00255, so you got a good one (unlike myself in January mine was over .00300 despite my 800 credit rating).

You shouldn't have any worries about how you did. Just enjoy that beautiful car!

oblu

This site, http://www.leaseguide.com/calc.htm could've been your friend.

I put in all the #'s supplied and came up with $492 including tax ... but I'm just going off what you have listed.

Cap cost = 36,808
Cap cost reduction = $4500 - $2000 upside down on VW
Term = 39mo
Residual = 62%
MF = .00270
Tax = 9%
_____
$492

oblu

BTW, I'm paying early adopter/stupid tax of a .00300 MF, plus I didn't put any down. My lease is significantly higher than yours. But I was willing to pay it so that I didn't get stuck on another upside down loan ... tired of real world values being drastically lower than lease residual values.

extassy

Oblu... Thanks so much for the break down

That's about right... except that the upfront costs (Title, Registration, Acquisition fee etc.) was not factored in... the upfront cost is $1750 without gap insurance...

At any rate... I decided to purchase the car instead of leasing it... I got 6.12% for 63 months... So I thought it was pretty good... can always refinance if the rates ever go down again.... I'm paying a lot more monthly, but at least I have the flexibility to sell or trade the car with another one and not limited on the mileage...

This is going to be a blast driving this car...

Thank you for all your feedback I really appreciate it!!!