mcbc220

Great to know, thank you. The differences are the wood trim (burl vs. linden) and wheel locks. May seem minor, but worth it to me at this money; plus I would rather do a build anyway. I'll hunt until I find a dealer who will do a build for a fair deal (8.5%+ incentives in my region).

Mike5215

Yeah, get exactly what you want. My dealer intercepted a car slated for production two weeks out. I had it in a little under eight weeks.

alc450

Ordered my C450 February 16th and took delivery on April 22nd. Did not load with lots of extras in order to keep sticker down. Did get panorama sunroof, linden wood, 19 inch multi spoke black, rear view camera, heated seats and premium package 2. Sticker 56,940. Was able to get just under 13% off on a purchase with MBZ financing.

iluvdaBenz

I am purchasing a 2016 C450. MSRP $68200, final negotiated price $61600. I was offered the following leasing options:

39 months / 15k miles with $4618 upfront and 60% residual for $792/month
39 months / 15k miles with upfront paid lease of $31411.

Am I being ripped off with these numbers?

sadpanda

Let's say that, conservatively, $2,000 from that upfront is startups - acquisition fee, tax, title, license, dealer fee. That means you're putting $2,618 down as a cap cost reduction. You then owe the difference between $58,982 and the residual, which $40,920, plus MF & tax. Base MF is 0.00129. No idea where you live - I'll guess your tax is 6%.

With all those numbers, I get $627.52/month. Total cost of $29,248.08 w/startups.

BUT, I wouldn't go straight to thinking that the dealer is ripping you off on the MF or hidden fees.

For starters, the 60% residual sounds way too high. From Edmunds' forums, it looks like the current 36/10 residual on a C450 is 59%. You'd subtract 3% for the extra 5k miles. A 39-month lease is unusual and I don't have any exact numbers, but I'll just guess that's another 1% off. So, your residual is actually 55% (or perhaps 1% lower, depending how much the extra 3 months take off).

That gives me $715.54/month, with a total cost of $32,682.08 incl. the upfront. Still lower than the dealer's quote.

Here's what you need to do:
1. Confirm the lease term/mileage vs. residual in writing with the dealer.
2. Confirm every precise fee involved in that $4,618 upfront.
3. Confirm their MF, again in writing.

If they're not willing to do that, then I'm sure some other dealer will.

twickk

Can I get an opinion this lease deal?

I managed to negotiate a C450 down to around 47k from the original 55k sticker.

It has premium package P02, heated seats, rear view camera, led lights, panorama. Everything else is standard.

Money factor: 0.00129
12k miles/36 months

Down payment: 2k

Incentives: 5 months of waived lease payments of my current MB lease(@350/month)... MB takes care of 3, dealer takes care of remaining 2.

Complimentary 10k,20k,30k service

Payment (including tax) : 584/month.

Now i realize this is lower than what many of you have/been quoted for a lease, but the deal is valid this weekend only since supposedly there will be new programs come Monday. Should i lock this down or wait for better programs or for the C43? I assume there aren't many changes...

Anything I should be wary of?

sadpanda

How much of the down payment is startups versus cap cost reduction?

iluvdaBenz

I will try to find out tomorrow when I go to the dealership. Documentation and registration fees = $375. Tax is 7.37%

iluvdaBenz

I have more details about the lease option. There are two values for the residual because the salesman told me it was 56% (seems too low). But he also printed a cost breakdown for me that contained an entry called “Purchase Option” under “Payment Details” which had a value of $36978.

MSRP: $68200
Final negotiated price: $61600
39 months / 15k miles standard lease: $792.36/month
39 months / 15k miles one-pay/single pay lease: $31411
MF: 0.00129.
Residual: 56% or $36978.
Down Payment: $4600. (1st month payment: $792, Acquisition Fee: $1095, Fees & Insurance: $347.5, Upfront Taxes: 2365.32)

I also have number for a $36 months lease:
36 months / 15k miles standard lease: $809/month
36 months / 15k miles one-pay/single pay lease: $29961
Down Payment: $4513. Breakdown similar to 39 month lease above.

I would appreciate any feedback on whether I am getting a good deal. Is the dealership padding the numbers somewhere?

I was all set to purchase the car outright but then thought perhaps I should lease instead and change cars after 3 years. But the fact that after spending ~$30000 I will not own the vehicle and have no equity makes me not sure about the leasing option.

Mike5215

I'll run it for you. What's your state sales tax rate? I ran it at 6%, change it as necessary. Residual is correct at 56% on the C450 for 36 months and 15k miles but that's 56% of MSRP, not the discounted price you're buying the car for. Upfront tax would only apply to a single pay lease, otherwise it gets built into the monthly payment. No MF on a single pay lease since they're not loaning you any money.

Presuming you're paying the first month's rent and tax, the acquisition and dealer fees up front and there are no other fees, on a straight 36/15k lease:


Monthly Lease Payment $778.95
Sales Tax on Lease Payment $46.74
Total Monthly Lease Payment $825.69


Due At Signing:
Dealer Fee $347.00
Acquisition Fee $1,095.00
1st Month's Rent & Tax $825.69
Total Due At Signing $2,267.69

If they're padding anything it's the amount due at signing. It's a backdoor way to get back a chunk of the discounted MSRP.

iluvdaBenz

Many thanks Mike! You have been a great help. The tax in my state is 7.375% (gotta love NY). I used the calculator to obtain the following results:

Monthly Lease Payment $728.94
Sales Tax on Lease Payment $53.76
Total Monthly Lease Payment $782.70

The monthly lease payment is $9.66 less than quoted by the dealership. So another padding right there. Is it correct to state that:

Total cost of the lease = Total Due at signing + Total Lease cost = $2224.70 + $30525.14 = $32749.84?
Total Cost to Own (if I want to purchase at end of lease) = Total cost of the lease + Residual value = $70941.84?

I am comparing the total cost of the lease ($32749.84) to the alternative single pay lease which the dealer quoted as $31411.65. How is this single pay lease calculated?

The potential problem with my situation is I ordered the vehicle with the intention to buy outright and it has already arrived at the dealership. I presume this eliminates any leverage I might have? How can I effectively make the case to the dealer that their lease calculations are padded?

Mike5215

First pin down how you want to structure the deal, then present it to the dealer as an offer. Nothing really changes. It's the same discount of MSRP. The rest is just financing.

With the 7.375 tax rate I get rent of $778.95, tax of $57.45 for a total of $836.40

Did you put money down when you ordered the car or no?

I've never done a single pay lease so not sure how that works...

iluvdaBenz

Sorry, I forgot to mention the numbers I stated in my last post were for a 39 month lease. I was surprised the dealership was offering a lease of that duration.

Yes, I put down $1000 when I ordered the car. I do not think the dealer included it in the calculation.

What are the options I can propose to structure the deal? Can I dispute why I am being charged an upfront tax of $2365?

Are credit checks required for car leases similarly to regular loans? If so, will your credit score affect the Money Factor?
Can I get a lease from my bank instead of the dealership?

Mike5215

I usually just email my completed spreadsheet to the F&I guy (thru the salesman) and ask him to confirm my numbers, and if we're not lining up, let me know where we're off. It just flips the dynamic and puts you in control, where control belongs.

I'm never interested in their monthly payment or upfront cost calculations. All I want from them is the discount off MSRP, the trade value (if there's a trade), the residual and MF, and their upfront fees. I can calculate my own payment with that info.

There's usually a dealer prep fee of around $800 that I didn't see in your numbers. I think that $2365 sales tax was intended for the single pay lease. Otherwise it's just collected with the monthly payments.

The residual on the 39 month lease will change, but not by much. Did they give you the residual for 39 months by any chance?

Put that $1,000 deposit into the spreadsheet and change the term/residual to the 39 numbers if that's the way you want to go. And verify the upfront fees, usually acquisition, dealer prep, and tag/title. Once everything is locked down shoot an email to your salesman and attach the spreadsheet. Ask him to forward it the F&I guy and get back to you with any discrepancies.

That's it. It takes away their ability to sneak stuff in, but they can make that up on the next guy. At the end of the day a sold unit is a sold unit is how they look at it.

Credit worthiness will affect the ability to lease but not the MF. As long as you're in the 700's it shouldn't be an issue. Only Mercedes Benz can lease. If you wanted to do a single pay lease I believe you could get the money from your bank or credit union.

iluvdaBenz

No dealer prep fee was included. Perhaps that's rolled into the MSRP? But I saw a "disposition fee" of $595. Is that what you are referring to? I thought the disposition fee will be paid on return of the vehicle at the end of the lease. Besides, the "Total Cash Required on Delivery" as quoted by the dealer includes 1st month payment, acquisition fee, dealer fee and insurance and the "upfront taxes". So I will have to ask the dealer why this upfront tax is being charged.

On the cost summary, the dealer included an entry called "Purchase Option". Could this be the residual?

Are credit checks required for car leases similarly to regular loans? If so, will my credit score affect the MF?
Can I get a lease from my bank instead of the dealership?

Mike5215

Yeah, credit check required just like a loan. Only the manufacturer can lease you the car typically. Disposition is due at lease end. Dealer fee would not be in the MSRP. Purchase option is the residual value (plus the lease payments.) If you paid off the whole lease than you could buy the car for the residual at lease end. Insurance is required (100/300 limits minimum) but it's not a part of the lease deal or handled by the dealership.

The acq fee, dealer fee and even the first months payment can be financed in (sign and drive) or paid at signing.

You need to decide how you want the car, lease or buy. Lease if you want the monthly payment lower than buying, and the mileage limit won't be an issue. Buy if you plan on keeping it beyond the finance and warranty period. I prefer to lease since after three years I'm ready for something else, and the mileage isn't an issue.

Once you've settled on that, build the deal on the spreadsheet and present it as an offer to the dealer.

twickk

Just signed the papers for my 16' C450.

My lease deal:

12k miles/36 months
0.00129 MF
Total due at signing including title, registration, doc fee etc : $1750
MSRP : $55675
Purchase price: $47500

Lease payment : 553/month including free 3 year maintenance plan(10k,20k,30k).

They also paid for the last two payments of my current lease.

iluvdaBenz

Cool. I'll build the spreadsheet and send it to the dealer tomorrow. I will probably go with leasing but I have to mentally get over the fact it is a little like renting a car not actual ownership.

The prepaid maintenance was not included in my negotiation when I ordered the car. Can I purchase the prepaid maintenance from any other dealer?

What are the some of the additional charges to be expected at the end of the lease apart from the disposition fee? I expect there will be some charges related to wear and tear but I wonder how much they will typically cost.

Your comments and advice are much appreciated! I owe you a beer or two!

iluvdaBenz

Congrats! Have you taken delivery of your car? You got a great deal off the MSRP and free maintenance. I have to pay extra for maintenance.

twickk

My polar white baby will be delivered sometime this week, I am very excited.

I was bummed I couldn't get one with a night package, so ill have to wrap the chrome lip/and trunk lid in black. I didn't like the non-night package look.

smiles201

Someone earlier mentioned the Truecar price. Read the website fine print. Truecar is funded by an auto manufacturers group.

Mike5215

Normal wear and tear is expected. You'd just owe the disposition fee and any mileage overages. Big stuff (large dents, interior tears etc) would not be considered normal wear and tear. That you'd pay for or have repaired.

iluvdaBenz

Thanks for the information. I have read that the OEM tires wear out very fast. Is it a good idea to purchase regular non-run flat tires and store the OEM tires until the end of the lease?
Are MB dealerships usually willing to install the aftermarket tires? How much does the installation usually cost? I would like to factor this cost into the total lease cost.

inhartwetrust

Pick up the phone and make some phone calls to ask, costs may differ depending on the place...and the dealer doesn't have to do the tire work.

sampelligrino

Hey guys,

Looking for all the advice and input I can get from you guys. Really appreciate all the help in advance. About to lease a 2016 C300 W4 (4matic) and wanted to see if I'm getting a good deal:

Lease Terms: 39 mo. & 10k mi/yr

MSRP: $50,155
Sales Price: $43,119
Residual: 64%
MF: 0.00154

Tax Rate: 9.8%
Cash down Tax: $274.22 Upfront
Monthly Tax: 33.71 Capped

Amount Due at Signing
1st Month Payment: $377.66
Documentation Fee: $150
Lic., Insp.,Title,Reg Fees: $400
Upfront Taxes: $274.22
Cap Reduction (Cash): $2,798.12

Total Drive Off: $4000
Monthly Payment: $377.66

This is the best that I've found up here in the Northwest, likely going to go with it but I've never leased with MB before and it's been awhile since my last lease, hopefully some of you guys can chime in. Thanks a ton!