nadz

These are the quotes I received and the MB dealer kept asking me why I wanted the MF.

Benz Dealer (non AutoNation)
$1200 down /$678 a month
Money Factor .00096 ( I don't have a break down)

Auto Nation Lease
$3256 down /$509
$5236 down /$449
$7500 down /$379
Money Factor .00040

AutoNation in fort Lauderdale (break down)
Price $44820
Auto nations price $36777
Payoff $3250
Tax $2458.89
Tire $6.50
Tag $149
Doc fee $7799
Tag $250
Balance due $43690

cphil19

storm10

When you negotiate the lease deal... don't negotiate bank rates. You need to negotiate the bottom line: Monthly payment amount and down payment amount. That's just as simple as that. Obviously when you compare the different deals -compare them with the same down payment, so you can compare apple to apple. Whoever gives you the lowest payment... regardless of the money factor, - wins your business.

If you start to negotiate the fees, taxes and rates - you will lose. Because the monthly payment is the combination of all of the above. If you look at your 3 offers: first 2 have different down payments and we don't even know MSRP of both if we are comparing the same cars, or maybe differently equipped. The 3rd offer doesn't make any sense, because the numbers don't add up. Especially Doc fee: $7,799 is completely insane...

nadz

I made a mistake on the doc fees, it is $779.
I read where the money factor was the biggest factor of the deal. I agree with you. That is what I thought; down payment and monthly are the most important. I am trying to learn this process because, I promise myself not to lose on my next car; like I did so many times in the past...

fabbrisd1

then there are three things to remember...

1. If dealer has a "retired service loaner" or etc with the colors and features you want - the added "demo discount" can help bring down the cost of your lease in lieu of added cash.

2. On new/new - in the colors/features you want - three #'s - MSRP - cash dwon incl 1st payment - monthly payment - that it's

3. Buy ppd 20k/ppd maintenance on a 30K mile lease - buy 30K ppd maintenance on a 36K mile lease - when added into the lease the ppd mainteancen can be residualised item - meaning you pay like 65%-70% expense - now that's saving money

flycaster

When leasing, also consider using Multiple Security Deposits (MSDs) to lower your MF. Each MSD is equal to your monthly lease amount rounded to the nearest $50. MB allows for 10 MSDs. Each MSD will lower your MF by 0.000007. For example, by giving 10 MSDs at signing, I was able to lower my APR (APR=MF x 2400) from 2.9% to 1.2%, saving me almost $3000 over the course of my 3-year lease. Oh yeah, forgot to mention that the total MSD is returned when the car's lease is up. Google MSD to fill in on the details.

gocal73

This is timely as I am considering a lease for he first time in my life. It seems logical that getting the car you want, it's all about how much down and then monthly payment. Not really understanding the process, does it pay to negotiate the price of the car first, in my area there are significant discounts, then negotiate the lease terms. Does a lower sales price reduce the lease cost? Also, what happens if you like the car and want to keep it? I believe you pay a predetermined amount to purchase the car. How is that amount determined? Also, I notice most leases are for 10K miles a year. I drive more than that since this I own only one car. Does it payoff to negotiate more miles into the lease or just pay for excess mileage at the end of the lease? Like I said I know nothing about leases. Any enlightenment is appreciated.

storm10

Actually you placed too many zero's. It's 0.00007 discount per each security deposit. So if you go this route, it would make sense to go all in - with the max of 10 sec. deposits, which are refundable at the end of the lease. So 0.00007 x 10 = 0.0007. That would be a significant discount and will save you more money than you can save by investing elsewhere.

You can actually save even more! The total of 0.0008 discount if you do a Single Pay Lease. Pay the whole amount upfront and therefore you have NO monthly payments for 2 - 3 years, depending how long you want to lease. And also this way you don't freeze any money in the security deposit.

storm10

1. Do not negotiate any sales price .. or anything else besides: What's my total drive-offs and how much is my monthly payment. Obviously for the dealership to win your business and give you the lowest monthly payment, they would need to discount the car significantly.

2. You can take as many miles per year as you need. But keep in mind, the more miles you take, the higher monthly payment will be. I don't recommend to negotiate mileage. Just tell upfront how many miles per year you need before you even start negotiating.

3. If you decide to buy after the lease, you would need to buy/finance the Residual Value, which amount you will know exactly at the time of purchasing the new car. It cannot be negotiated but it can be lowered or raised based on the mileage you are asking upfront. The lower Residual will result in higher monthly payments, but more mileage allowed and less money to pay after the lease, if you decide to keep the car.

4. My advice: don't buy car after the lease.