Getting close to a lease deal on a 450. The lease payment on the 4 yr lease is about $40 less than the 3 yr lease. Other than the price difference , is there any other factor which I need to consider to decide between a 3 yr and 4 yr lease. (Obviously there would be up-front and disposition fees that would come up sooner). It seems most people opt for the 3 yr. Why?

 

Residual values drop between 36 and 48 months to the point that although the payment drops by spreading the lease over twelve more months, the lower residual raises your actual cost of leasing vs the 36 month term.

Leasing is all about the residual.

 

I took a 4 year on my car because on th lease it dropped the payment $100. Nothing down, tax in the payments went from $800 to $700.

 

lease it for 4 yrs and when u get bored of it list it on swapalease.com

 

What residuals did they quote you for 36 and 48?

 

Wear and tear items.

You less likely to need new tires on a 3 year instead of 4 year. Because there is a minimum tire depth obligation on return.

Same with brakes. You may get away with original brake pads (fronts) with 3 years.

But 4 years does spread the depreciation more, hence cheaper monthly payment.

I would do 4 and if you do get bored at 3, I'm pretty sure your dealer have no problem with ending it early and put you into a another MB with similar payments.

 

The residual is 59% for 36 mo., 54% for 48 mo.
I think I'm going to go for the 4 yr lease as monthly payment is $75 less. I suspect I'd need new tires by the end of 3 yrs anyway with the 18"run -flats. Got 11% off msrp so I'm satisfied with that.Most of the other dealers in norther NJ wouldn't give more than 6%.

 

I wouldn't do 48 with any expectation of being able to get out early. If you generally keep cars four years, plan on keeping the lease to term.

Because MB pads residuals, the market value of the car is going to be less than the payoff (remaining payments + residual), so trading out early without pushing negative equity onto the new car is unlikely.

 

ESPECIALLY with our car!!!!!

Keep the factory Conti's and you may be looking at 3 or 4 sets on a 48 month lease!!

 

Set the Contis aside in the garage for lease turn in and get a set of Michelin Pilot Super Sports and a Seal/Fill Kit. Much better ride and a 30k mile treadlife warranty on a square set up.

 

Exactly what I was thinking and am doing, Mike. Except I am going with the A/S instead of the Sports. Just feel like they'll be better for year round performance where I live.

 

Where do you live? Do you get a lot of snow?

 

I split between Central PA and North Jersey so it is hit or miss in both locations. One winter I may see 40+ inches (little more than a meter) and others very little. This past winter we had one storm that was 39" in one weekend.

 

You may want to look into all weather instead of all season.

Although, I have no idea if there are any performance tires for all weather.

 

Yeah, the SS are useless in snow and hard as rocks below 40.