pepto

@Ryan9095 - They actually started calling me 6 months ago to "forgive" the lease payments. Truth be told, I believe that they were rolling the payments in some for into the new lease payment. I am ok waiting until September to roll out. Gives me more time to keep researching 2011 versus 2012.

Ryan9095

Oh wow! Yeah I'm sure they finagled recouping losses into your new car payments...they can be such scammers sometimes! The last post has validity if you are considering purchasing since they won't want to be stuck with a 2011 when your lease is up (but I thought you definitely wanted to lease). Keep us posted!

pepto

The $3,000 really bothered me, but they were quite adamant. Seemed like a stupid number that they threw out to push me in to a new lease. When I mentioned it to the service department, they seemed shocked, but remained silent. I want to keep my out of pocket to an absolute minimum and roll into a new lease. If I moved within the Mercedes Benz dealer network, would I ask to pay more out of pocket expenses?

I am little unclear when you say that they factoring in a huge hit when the 2012 comes out. Based on what I can see from the lease terms, it seems reasonable. I don't see the money factor though...

"MSRP of $38,350 less the suggested dealer contribution resulting in a total gross capitalized cost of $36,705".

However, thinking about it a little more and using your sister's example of $40K, I really got screwed when I leased my car in 2008. My sticker was around $40K and I ended up paying $540 a month.

You don't mention the cap cost associated with your sister's lease, but the current lease offer from MB seems a little high given a cap cost of $36,705.

Ahhh, decisions, decisions...

Thanks for taking the time to post.

jctevere

When you lease a car, the dealer determines what the resale value of the car will be when you come off the lease (known as the residual value or percentage). This is the hidden number in a lease that makes a deal good or bad. Yeah sure, the selling price of the car helps too, but it is the residual that can make or break a lease payment. Since the 2012's are right around the corner, you can be sure that the residual value projected by mercedes for the 2011 is very low. So they will factor this loss into your lease and make you pay for it.

But the reason why you don't pay for it (at least as much) when you buy the car, is because they know most people won't buy a 2011 left over, especially since the 2012 is so radically different, unless they get an awesome deal. So they discount the car much more to make up for the lower residual and eat some of the losses.

In my sister's lease it was 36 (or 39, don't remember) month lease, with 12k miles per year. Her out of pocket was $2,000 (this is including down payment, taxes and other fees). However, for other people it would need to be $3,000 to get the same numbers (I was able to get her a $1,000 voucher at the time through mercedes-benz headquarters). And this brought her payment to $351. But the main reason why her lease deal was so good is because the buyout quote is astronomical - $28,000. This is because when she first leased the 2011 the residual value was still very high, so she doesn't have to pay off a ton of depreciation during the lease.

The other reason why I am recommending to buy/lease (or at least shop around) at a different mercedes-benz dealership. Is because your dealer is simply trying to line their pockets and is not out for your best interest at all. My bet, that extra $3,000 to "re-certify" your car, is them not making it certified, but rather tacking on an extended warranty that is identical to what a certified pre-owned offers, but for a $3,000 price tag.

If I were you, look around online for dealership reviews around you, and try out the one that seems well-reviewed. Go in and DON'T mention anything about your current lease payments (because you are getting raped and they will think they can take advantage of you). Tell them how much your looking to put down, how many months, and how many miles. Then let them present you with the monthly payment number. Also, don't just stop at the first number, there is always room to work with. Even if they can't discount the payment, you can definitely have them eat up the damages on your current car and/or re-certify for free.

Also, it doesn't hurt to tell some white lies (like how you and your family has many mercedes-benz and you are changing dealerships because you don't like how they operate or the level of service you have been given) and that you are looking to form a new relationship. Haha.

If it turns out that the numbers are the same, well then at lease no one can tell you that you didn't try.

Nuru

No way, Don't do it.

Ben'sBenz

I'd wait until they have 2012's sitting on the lot. They will give you a hell of a deal to Purchase a 2011 that will probably be about the same monthly cost as a lease. Then you can drive it as much as you want and not constantly keep track of miles.

pepto

@jctevere - Awesome post. I read it and immediately followed your directions. Here is the latest offer I received:

2011, C300, No nav (P1 package)

Selling Price: $39,055
Cap reduction: $4,173
Adjusted Price: $34,882

Did not get residual or money factor (should have asked but I was running late)

33 month lease, 7,500, $0 down - $443/month
33 month lease, 7,500, $1,000 down - $408/month
33 month lease, 7,500, $2,000 down - $376/month

Dealer did mention the $3,000 certification fee... again. I don't plan on buying the car now.

Told me to counter if I needed lower payments.

I need residual and money factor, but that's the latest. I need to negotiate and counter...

Ryan9095

Pep,

They are scamming you on the miles. Only 7500? That's absurd... also those payments don't include tax so remember to factor that into your monthly cost.

It seems like you'd be better off to purchase. They will be desperate to get rid of their 2011 inventory when the 2012s hit the lot.

pepto

For $13 extra a month, I can get 10,000 miles. The numbers include tax.

I think you are right about the 2012's hitting the lot. Doesn't feel like a deal at all given the 2012 literally around the corner. When do they start delivering the 2012s?

Nuru

Unless you can write it off on your taxes, the lease is not a good option. The purchase of a new or low mile demo 2011 when the 2012s show-up, in next month sometime - or early September, is probably a much better deal for your money.

pepto

Hi Nuru,

I can write off the lease. Most years, I have written off at least 80%, sometimes 90%. I use the car almost exclusively for work.

I agree once the 2012s show up, I'll have more leverage, problem is that my lease rolls out on September 6. Not sure they'll "hold" my security deposit etc for me to pay them less money.

Pepto

Ryan9095

Pep,

If 7500 works for you then that's fine I was just saying that's pretty low for 1 year! It really doesn't seem like they are giving you a deal :/

Apparently (depending on your dealership's volume) the "high end" dealerships will start receiving 2012s in August and then everyone else in September. Although I'm sure they will wait to get rid of as many 2011s as they can prior to putting a 2012 on the floor. You will definitely have more leverage... I don't think it would be a bad thing to be honest and tell your sales rep you don't think it's a good deal knowing that they HAVE to get rid of the 11s in a short period of time. Keep us updated!

C300CA

I never leased a car and probably never will. Please correct me if my understanding is wrong:
Lease makes more economical sense if (1) someone owns a business or works as an independent contractor; (2) someone wants to have a new car every three years or so.

pepto

7,500 should be fine, but I will probably push for 10,000 at same price.

Dealer told me that they were screaming for inventory of all types and only had a limited number of 2011's left. Yip, sure.

I just sent out a bunch of other requests to dealers in the area. I'll keep everyone posted.

I have got to tell you, I really appreciate your help as well as everyone else in the thread. Hopefully, this post will really help many others in the same situation...

pepto

Correct on both counts. I own my a small business and serve as an independent contractor for others. That's my motivation - I deduct my expenses.

As for the new car thing, it is not really a motivator for me.

Nuru

Oh, that does change the math quite a bit then. Hmmm, it seems your lease will run out right at the start of the time the new models may be rolling into the lots.

pepto

Ideally yes. Come on 2012s!

Ryan9095

Pep,

I appreciate it :] We are all here to help each other and learn! I'd DEFINITELY push for them to add the 10k miles/yr for free that's such B.S. to limit you. And they are such liars you know they are probably scrambling to unload... most people will want the new face-lifted 12 and the other half will want to deal like yourself. My dealership is considered high profile and they still have 31 2011's so... they definitely should be willing to cut a deal.

The only problem is they know your 2011 (when your lease ends) will be "outdated" aka worth less. Put in some calls to other dealers and keep us posted. Good luck!

Ryan

pepto

Just heard from a dealer that I should wait until Monday when the new programs come out. Will they be that different from what is available today? Hope so. Surely they will give dealers some tools to work with re 2011 inventory.

Nuru

Good luck on the new programs out next week.

pepto

I felt that I owed everyone an explanation on how this eventually played out. I am no longer a member of the MB family.

Eventually, Mercedes came back to me with a lease offer of $398, $0 down on a base 2011 C300 with no navigation, no low profile tires. Essentially, it was a down grade from my current 2008 with nav and low profile tires. I appreciated the effort, but did not feel good about the car.

I ended up leasing a Volkswagen CC Lux edition. Is it a Mercedes? No. Does it carry the same prestige? No. But, it was $289, $0 down with all the toys. Plus it is easily passing 31MPG. It is plenty fast for me and the turbo is fun to experience. I also love the dual clutches. Note: talking to 5 dealers really helped me negotiate. I ended up being involved in a bidding war that knocker $70 off the monthly payment. Did I get a "screaming" deal, probably not, but boy am I happy!

I sincerely appreciate the help and assistance provided by everyone that took the time to post. If nothing else, I hope others learned from my journey. My advice to others is to be patient, read this thread. There are plenty of cars out there, no matter what the dealer may say to the contrary!

Again, thank you to all. Happy, safe motoring.

Pepto