Merc63

I only keep a vehicle for 2years or so max. I applied on a lease for a C63.

Just wondering what everyone else is doing Lease or Finance?

taylorcoleman

: :search:

AMGTTV8

lease - if you can afford the pmt, you have a fixed depreciation and no downside risk on the back end.

if you finance, god knows what the market will be like in two years and you might end up losing your shirt getting rid of it...

my 2cents

GBlansten

Business lease

Merc63

Im leasing. Have a 07 Escalade and lost so much on it in 9 months and its the hugest pain in the *** to sell it privately! Id rather just have the security of giving it back and getting something else brand new again in 3 years.

GBlansten

As soon as the world economies recover (2 years maybe) oil will be back to 120+ dollars a barrel. People in the used market for C63 cars might go for something with better gas mileage. It's a concern. I could see the C63 taking a hit on resale down the road if the above happens.

c32AMG-DTM

C63's really won't be any different than other AMG's, C's in particular, with eye-wateringly-steep depreciation. 2-3 year old, fully-loaded C63s with low mileage will exchange hands for 60% (or less) of original sticker. I for one am looking forward to those days with anticipation

PatSC23

leasing at 11% and $1300 just doesnt make sense to me, BUT if your max is 2 years , then yes, lease it.

I for one refuse to pay that high a rate, but I also plan to keep it for 3.5 years.

My thinking is that a 39 month lease will run over $51,000...all I need is for the C63 to be worth more than $20k in 39 months to break even at least. To me that is worth the risk of ownership.

Eurosport

cash money yo


thing is M3's are leasing for about $700 a month, is C63 lease worth it? compared to M3 of course ;p

reelgr

a 24 month lease on the c63 with MB will be over $1300 per month...

I also prefer to have short term leases, but as someone else mentioned the MF/Int Rate is about 11%... CRAZY

The flip side is to do a Balloon Loan on this .. get your payments in the 750 range on a 5 year and sell it whenver you'd like. Hopefully after 36 months you can breakeven on the sale/amount you owe.

Lots of people use penfed.org here...

Shellbmb

It was a tough decision for me, but I ended up using traditional financing for my recent purchase. Got a 60mo loan at 4.3% through Bank of America. US Bank was offering the best lease rates out there.

Do a search and you'll find a great comparison by a fellow member, "taylorcoleman". He really helped me make my decision as I convinced myself I will keep this car at least 4 years. If not, I think my wife might trade me in!!

Busta Riles

Lease rate from MB Canada on a C63 is 6.9% = $1464.28 for 3 yrs with every option possible

Finance rate is 3.9% = $1579.50 for 5 yrs with every option possible

taylorcoleman

Thanks for the laud. And congrats on making what I believe to be the better financial decision. I can't tell the future, so I can't be certain how much our C63's will be worth in 4ish years, but for the differential in finance rate versus lease rate, there is a lot of room for error in favor of financing.

rory breaker

If youre keeping the car for no more than 3 yrs, lease it, without a doubt, no question, hands down. If more than 3 years youve got a decision to make. We went through this in detail in another thread.

Easy to find relative values...look at the rate of depreciation of the last model. Will be 99% on target.

taylorcoleman

IMHO

reelgr

ya.. BS... the interest rate on the lease as STATED in this thread is just way too high.. way make $1300 payments

now if you were to say you were looking at a BMW m3 or m5 .. i'd say LEASE That bad boy and run it into the ground

taylorcoleman

A great place to find lease rates from MB, BMW and Audi is in another section on the MBWorld forums here:

https://mbworld.org/forums/automotiv...-financing-73/

Just take the money factor and multiply by 2400 to get the percent rate.

GBlansten

Yep. That's a great thread. Good idea to post it. I looked at it last fall before I leased.

rory breaker

Or you can lose $30k in depreciation in 2 years, your call.

Childish///AMG

Some very "Good" information

Busta Riles

Not sure which rates you are talking about, but the ones i stated above are FACT. 6.9% lease or 3.9% finance

Blk04cobra1

Im curious where you found 3.9% on finance?

reelgr

I was calling BS on:


Since, this doesn't apply when the lease rates are just pure stupid.

rory breaker

Buying a car for $70k and turning around and selling it for $35k in 2 years is just pure stupid.

But thats just me.

Agreed the lease rates right now are atrocious, but when this car came out guys were getting ~$1k payments on leases...even still at the rates they are now if you know you want to sell the car in 2 years anyway, lease it. We did the whole breakdown in another thread.

taylorcoleman

Here are the Mercedes Benz Financial lease rates for Jan '09 on the 2009 C63:

2009 Mercedes C63 AMG
24 Month – Residual 58% of MSRP – .00430 Base Rate
36 Month – Residual 49% of MSRP – .00395 Base Rate
48 Month – Residual 46% of MSRP – .00395 Base Rate
60 Month – Residual 40% of MSRP – .00395 Base Rate

A 2-year lease is at a 10.32% rate!! The residual is calculated to be 58% after 2 years, which means $24,350 in depreciation that you pay (whether you lease or buy it). Then you pay $10,593 in "rent charges". So to lease this thing for 2 years you'll pay $34,943. See ya later $$$. No more car, no more $34,943. (My calculations are assumed based on a $67,500 sticker with a $63,500 selling price with no tax included).

Financing the car with the same assumptions as above but taking a loan at 4.5% will save you $$ over the lease. Since I've already outlined this exercise in the other thread, I won't bore anyone with repetition -- more than I already have anyways.

The bottom line is that one cannot just flatly say that leasing is always better than financing or vice versa unless all of the leasing and financing inputs are considered. So I'm challenging your statement above that leasing is better on this car if you're planning to move on to another car after 2 years.

I leased a 2008 E90 M3. The money factor (or lease rate) that BMW Financial Services was offering on that car during September 2008 was incredible (relative to lease rates on prior M3 models and even on the same model, but earlier in the year). On the other hand, financing from them at that time was 0.9% (almost free money). Since the lease rate and the finance rate were both low, and low relative to each other, the leasing versus buying decision was closer to a toss up. Although I was spending a little more, I chose to lease to lock in the residual & not have to worry about selling private party or back to the dealer.

But with lease rates at over 10% and finance rates so low at 4.5% (or possibly lower) on the C63, you'd have to be insane, ignorant, or both to lease this thing.