InTheBenz0

10k miles a year

Premium 2 package

48 month lease

ZERO DOWN


$864 a month + tax..


good, ok, bad?

Morro

Pretty good. Although I'm in Canada my numbers are 15k down, PP2, 36 months for $900 mth CDN @ 6.4%. Includes taxes, prep and Gas Guzzler tax ($2000). So that's about $720US per mth taxes in. Sounds good to me.

Autoscope

I don't think that's bad.....I say buy it!

SolidGranite

Don't lease a car for 48mos!

864x48 = $41472

Get a 5 year loan and have something left after you give the bank all your money!

Think about it...

Mercedes ALSO charges you to turn the car in at the end of the lease.

Lease rates are also higher than loan rates.

You will also have the freedom to dump the car whenever you want. If you decide you don't want the car after 2 years or cannot afford it for some reason you're stuck. You can walk away from a car you buy. Not the case in a lease.

InTheBenz0

thats the only thing keepin me.. 48 months sucks.. if i want 36 month its like 920 a month =\

and i won't buy the car new.. too much depriciation

SolidGranite

Buy a used one for 55k, get a 5 year loan and be done with it.

You will get so much more for your money.

InTheBenz0

Anyone project how much a C63 will be worth in mid 2011 with 25-30k miles?


Would I be smart to say around $35k ?

PatSC23

buy it - im guessing lease rates are still around 9-10%? u can borrow at 3.99% @ PenFed

taylorcoleman

In a lease, you pay the depreciation (plus interest on the bank's money). The bank takes the risk of what the car is worth at the end of the lease (residual value). These days (and for this car), the residual is likely conservative (in the bank's favor).

Any way you look at it, the car is a depreciating asset. Leasing exists because leasing companies make a profit. You, the leasee pay the profit.

As another member indicated, buy used and take a loan if you must. That way, someone else paid the steeper part of the depreciation curve.

As a point of reference I purchased a used, three-year-old Porsche C2S Cab for $64K. Three year prior, that car sold new for $102,900. Buying used is a great way to go.

On the other hand, I recently sold that car to buy a brand new 2009 Porsche Twin Turbo. Although I got a tremendous deal on the 2009, I'm still going to take the brunt of the depreciation.

It all just depends on the circumstance, your goals for the use of the car, and your financial situation.

Good luck.

Sheep

I do agree that buying it used and getting a decent loan makes more sense in your case. Heck, I was going to use the money for my 2010 C63 on a decently used Maserati, but I can't find a decent dealer in my area. And if you must lease, then try to get a 36 to 40 months and not a 48 months.

Sheep

Nimbus

This is not true. You can buy or sell the car off anytime during a lease just like if you financed it. There is a payoff balance on a lease just like on a finance.

SolidGranite

Forgot about that. However, that will cost much more to do under a lease vs a loan.

1st amg

Warren Buffett states, never buy a depreciating assett, I chose to believe him and agree with him, put your good money elsewhere (real estate) and lease a new car every few years, my opinion only is what counts to me, so to each their own.

SolidGranite

That is exactly right if you want a new car every 3 years. Cheapest way to do so.

PatSC23

tough time to go with what is historically true though - if you put your money elsewhere 18 months ago you would hav paid for your car already based on the losses you would hav had....

invest in real estate or in Reit's and you'd have taken a bath -

i for one wont ever lease again, i prefer to own what is mine -

i dont take the stance that the $37k i put down is guaranteed to make money elsewhere, you can lose it too...

also, if you dont have enough savings already invested somewhere trying to make you money, you probably shouldnt be buying a $70k car to begin with

not flaming on guys that lease, just saying that taking the stance your money can always make you more somewhere else isnt always true -

heck I leased the current rover I have and thats because I knew being an SUV, id probably grow tired of it, adn I have....unloading that thing right now would be a pain, but then again so is scheduling 2 inspections and paying a lease termination fee on the lease.

taylorcoleman

Actually, the most prudent financial decision is to buy a reliable, used brand, and drive it into the ground. By buy, I mean pay cash.

Leasing a car every 36 months is financially worse than the above, unless you have a favorable business tax write-off for it.

A rule of thumb is that if you cannot pay cash for a car, you really can't afford it. Sometimes people mix "affording the payments" with "affording the car".

I believe what Mr. Buffett meant was: do not "invest" in a depreciating asset, rather than: do not "buy" a depreciating asset. Mr. Buffett owned a Lincoln Town Car for quite a long time, and I believe he now owns a new Caddy. Though I'm not certain, I'm pretty sure he did not lease those, and paid cash for them.

I bought my C63 new, and plan to drive it into the ground. I valued being the 1st owner, and the only owner, so I paid a premium for that. History tells us that these cars depreciate about 50% of their value in about 40 months. Is that a bad "investment"--absolutely. Is that a bad "buy" -- well, that depends on what the buyer values.

c32AMG-DTM

+1, Excellent post.

Only thing I'd mention, is that your 40 month / 50% depreciation can vary widely over AMG models. 36+ month old E55s are currently selling for about 30-40% of original sticker. Some of the 65s have historically depreciated roughly 50% in the first 24 months. Many other examples as well.

IMHO, C63 *should* hold up relatively well until a C-AMG replacement is around the corner... likely 2011-12ish. It'll take a big hit when that happens, but it's a fair estimate that used examples with average miles will be at 50% of original sticker at the three-year mark, perhaps a bit +/- depending on macroeconomic circumstances.

bigben320e

+2. You are correct, I buy used and call it a day.

At the end of the day, leasing every 2-3 years and paying the down payments, penalties (which do occur), over the course of let's say, 10 years. How much money has been sunk into leasing vs buying a car and keeping it 10 years? That's the research I would like to see. (I may end up doing it myself)

E63ory

It is late and I am very tired but I can't resist not writing something. If WB is correct, then we wouldn't own anything with the exception of homes or properties, and even those depreciate. We wouldn't own a fridge, an oven, clothes, furniture etc. Have you checked out the depreciation on furniture? Terrible. WB is a very spartan man who could afford buying SL black series for all of us. What is he going to do with all of his money? I heard you can't take it with you when you die, in fact, you can't take anything with you at all. So, enjoy your cars, my fellow AMG owners, it's only money.

dmyrick

good post. I could die rich or live a rich life, i choose the ladder. thats why i always buy.
the great Warren Buffett is going to die with the same amount of money in his pocket as everyone else "Zero"

propain

Better off with a 84 month loan with zero down buying the car for 54K. Thats about $820 a month and you can sell it anytime. Also cheaper every month. You also "own" it.

The way the lease works is you are paying for the depreciation only. So if you try to bail out of it early you will for sure owe money on it.

dmyrick

+1

rory breaker

The major downside to this, and its the ultimate reason one chooses to lease vs buy these cars...what happens in 2 years when you want to sell the car, and you owe 46k on it and can only sell it for $34k? Youre stuck with the car.

This is the one downside to these cars...buying them new is ALWAYS a bad idea unless youre keeping it for 5+ years. Unless you get a smoking deal on a lease, youre better off buying them 2 years old at 50% of the sticker.

E55AMGGG04

I think buying and leasing both have benefits and depends on the what the buyer is looking for. I bought my 04 E55 19kmiles 2 yrs ago for $52, 2 years later I feel the car is worth every penny and will drive the car to its grave.

Now I have leased vehicles from Infiniti also and thats only because I would never buy a Infiniti for $40k. My current 2yr lease on my G35x is going to cost me $12k and it's going back in december. If I would have bought the car it would have cost me $37k and if I owned this car and wanted to sell it after 2 years I don't think I would get $25k for it with the max mileage allowed.

I believe it depends on HOW LONG your going to keep a car. If your going to keep a car for 2-3 years then leasing is a more hassle free way to go because you know the car is going back to the dealership and will not be your concern afterwards. If you buy the car and want to sell it after 2 years I think it will be hard to sell it.

bigben320e

+100

Very good post, but the statement was corrected earlier. It was don't invest in depreciating assets, not buy. That changes the meaning of the statement altogether.