Leasing questions
08-01-2018, 11:02 PM
#1
Leasing questions
Is there a way to know base money factor rates if your leasing a new mercedes? If you have great credit can the dealers still inflate the rates?
Also does leasing from MB comes with 3 year maintenance or is that something we have to haggle with too?
Also does leasing from MB comes with 3 year maintenance or is that something we have to haggle with too?
08-01-2018, 11:41 PM
#2
08-02-2018, 09:55 PM
#3
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2015 W205 C300 4-Matic
Dealers can inflate the money factor but I believe there is a cap. That said if you have excellent credit don’t accept an inflated rate. I typically start my negotiations with base money factor and acquisition fee ($795 but they can inflate this up to $1095).
You can also but but the rate down with multiple security deposits - up to 10 msds.
You can also but but the rate down with multiple security deposits - up to 10 msds.
Last edited by RonA13; 08-04-2018 at 08:29 AM.
08-03-2018, 08:08 AM
#4
Go to the Edmunds forums for the base money factor. Just post and ask for base money factor and residual for the miles you need. The lower the MF and higher the residual, the lower the cost of lease is.
Dealers can and will inflate. I believe they can inflate as much as .004 over or something like that. I might be a whole decimal off it could be .0004.
After you have those Edmunds numbers, then you start investigating what a reasonable discount on the car is from MSRP. Truecar is good for that. Let’s say you determine it is not impossible to get 10% off MSRP.
Go to the merc website and configure the car you want and get the MSRP price.
Then you go to Leasehakr.com and pull up the mecedes calculator. Plug in the MSRP Plug in the residual and money factor. Plug in your county’s tax rate. Then plug in the discount that you want—the sale price you want. This should give you a drive off and monthly payment.
Then calculate the total cost of lease. This will be total monthly payments plus whatever is due upfront.
Depending on who you deal with, they may achieve your deal by manipulating money factor or sale price. The residual is fixed. The base factor is fixed, so they can’t go less, but they could stick to base. They could also mark money factor up and take more money off the MSRP to compensate. It really doesn’t matter as long as at the end of the day your total cost of lease is near enough to the deal you want.
But you have to know going in what that deal you are looking for is, because if you leave it up to the dealers you’ll never get there.
Dealers can and will inflate. I believe they can inflate as much as .004 over or something like that. I might be a whole decimal off it could be .0004.
After you have those Edmunds numbers, then you start investigating what a reasonable discount on the car is from MSRP. Truecar is good for that. Let’s say you determine it is not impossible to get 10% off MSRP.
Go to the merc website and configure the car you want and get the MSRP price.
Then you go to Leasehakr.com and pull up the mecedes calculator. Plug in the MSRP Plug in the residual and money factor. Plug in your county’s tax rate. Then plug in the discount that you want—the sale price you want. This should give you a drive off and monthly payment.
Then calculate the total cost of lease. This will be total monthly payments plus whatever is due upfront.
Depending on who you deal with, they may achieve your deal by manipulating money factor or sale price. The residual is fixed. The base factor is fixed, so they can’t go less, but they could stick to base. They could also mark money factor up and take more money off the MSRP to compensate. It really doesn’t matter as long as at the end of the day your total cost of lease is near enough to the deal you want.
But you have to know going in what that deal you are looking for is, because if you leave it up to the dealers you’ll never get there.
Last edited by Snarfalus; 08-03-2018 at 08:26 AM.
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08-03-2018, 10:08 AM
#5
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2018 C43 AMG Brilliant Blue Metallic
Go to the Edmunds forums for the base money factor. Just post and ask for base money factor and residual for the miles you need. The lower the MF and higher the residual, the lower the cost of lease is.
Dealers can and will inflate. I believe they can inflate as much as .004 over or something like that. I might be a whole decimal off it could be .0004.
After you have those Edmunds numbers, then you start investigating what a reasonable discount on the car is from MSRP. Truecar is good for that. Let’s say you determine it is not impossible to get 10% off MSRP.
Go to the merc website and configure the car you want and get the MSRP price.
Then you go to Leasehakr.com and pull up the mecedes calculator. Plug in the MSRP Plug in the residual and money factor. Plug in your county’s tax rate. Then plug in the discount that you want—the sale price you want. This should give you a drive off and monthly payment.
Then calculate the total cost of lease. This will be total monthly payments plus whatever is due upfront.
Depending on who you deal with, they may achieve your deal by manipulating money factor or sale price. The residual is fixed. The base factor is fixed, so they can’t go less, but they could stick to base. They could also mark money factor up and take more money off the MSRP to compensate. It really doesn’t matter as long as at the end of the day your total cost of lease is near enough to the deal you want.
But you have to know going in what that deal you are looking for is, because if you leave it up to the dealers you’ll never get there.
Dealers can and will inflate. I believe they can inflate as much as .004 over or something like that. I might be a whole decimal off it could be .0004.
After you have those Edmunds numbers, then you start investigating what a reasonable discount on the car is from MSRP. Truecar is good for that. Let’s say you determine it is not impossible to get 10% off MSRP.
Go to the merc website and configure the car you want and get the MSRP price.
Then you go to Leasehakr.com and pull up the mecedes calculator. Plug in the MSRP Plug in the residual and money factor. Plug in your county’s tax rate. Then plug in the discount that you want—the sale price you want. This should give you a drive off and monthly payment.
Then calculate the total cost of lease. This will be total monthly payments plus whatever is due upfront.
Depending on who you deal with, they may achieve your deal by manipulating money factor or sale price. The residual is fixed. The base factor is fixed, so they can’t go less, but they could stick to base. They could also mark money factor up and take more money off the MSRP to compensate. It really doesn’t matter as long as at the end of the day your total cost of lease is near enough to the deal you want.
But you have to know going in what that deal you are looking for is, because if you leave it up to the dealers you’ll never get there.
08-08-2018, 02:50 PM
#6
If you have a credit score of 740 or better you shouldn't be paying more than the base MF.. If I had a dealer try to bump me on the MF I'd walk TF Out! All the info you need is available on Edmunds.com in the research/car forums section..
08-08-2018, 03:34 PM
#7
I disagree. They can write up a deal in such a way where money factor is marked up but MSRP is discounted such that you net a good deal. I think Edmunds would concur with that. Let dealer figure out how to make the deal. I don't think marked up factor is an indicator you are getting a bad deal. It just has to be taken into consideration in evaluating the deal. Also, the only way to be sure is to call other dealers to see if they will beat the payment. Otherwise, you are just walking away from the car. The market decides.
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08-08-2018, 10:23 PM
#8
I guess I disagree. I spent 20 years selling Porsche, Audi, BMW... Ive done more lease and finance deals, Hundreds and Hundreds. But please go ahead and let the dealer just give you numbers, I’m sure they won’t smeak you. :-)
08-09-2018, 03:03 PM
#9
Senior Member
Use Edmunds or leasehackr forums.
08-09-2018, 03:35 PM
#10
Well I am not in the industry, so you probably know better. Maybe there is more leverage when you buy off the lot. I ordered. I am not saying to just let dealers give you numbers. You should know about what the monthly SHOULD be before you even start by doing your diligence is what I am saying. Are you saying if dealer offers you a monthly payment and the total cost of lease is equivalent to 10% off MSRP at base money factor you should walk from that deal if base money is marked up at all? On an AMG where allocation is limited, isn't there a point where dealer will just let you walk because they know the car is going to sell to someone else and they only get so many?
08-09-2018, 04:11 PM
#11
Super Member
There are two numbers that matter in my opinion. Monthly payment and residual. If you're not keeping the car post-lease, only monthly payment matters. Who gives a **** how they get there.
