Is dealer lying to me?
08-17-2010, 02:28 PM
#26
Having little money down or a lot of money down will vary on the persons perspective and money situation.
The more you put down the less interest you pay on the remaining amount and currently unless you are a good investor a basic checking or money market is not making your money grow much if any. Mine as well put the money towards the lease or finance.
The more you put down the less interest you pay on the remaining amount and currently unless you are a good investor a basic checking or money market is not making your money grow much if any. Mine as well put the money towards the lease or finance.
08-17-2010, 02:39 PM
#27
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Having little money down or a lot of money down will vary on the persons perspective and money situation.
The more you put down the less interest you pay on the remaining amount and currently unless you are a great investor a basic checking or money market is not making your money grow much if any.
The more you put down the less interest you pay on the remaining amount and currently unless you are a great investor a basic checking or money market is not making your money grow much if any.
The less interest overall on the loan amount. If you finance the bubble at the end you will need to start the payments all over again and the interest is greatest at the begining of the loan.
To be honest im really not sure how it would work on a lease... For example..
The car is 55K. The residual is 54%. You need to finance 54% over the life of the lease. So your leasing around 30K in car. Plus tax and fees. 33K in with tax in NY plus whatever other fees. Lets say 34K total.
34K lease and you put down 20K. Are you making payments on 14K only for the life of the lease?
Ya know what im saying?
Or do they say.. ok 55K car minus 20K = 35K... and then residuals? How do you calculate residuals with a big DP like that?
In the first example you would finance 34K on the lease... lose 20K plus still owe 25K at the end.
Anyone shed any light??
08-17-2010, 02:43 PM
#28
MBWorld Fanatic!
Leasing is almost always fleecing. Notice I said almost. Buy the car at the right price and at the right interest rate and you will be better off. Dealers push the leases because they make more money that way. Simple as that. And, leases cause you to return to the dealer when they're over and the dealers like that as well.
Last edited by HBC350; 08-18-2010 at 12:31 PM.
08-17-2010, 02:52 PM
#29
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I agree with most here. The price is outrageous, and so is the idea of $20K down on a lease.
icecube, have you considered getting a C63 2010 used? That is another alternative, and less money involved. If you really wanted to put $20K down, you could easily get one, and have less than a $40K balance. I saw three from just a quick search with less than 9K miles on them loaded in ranges of $59-$64K.
I am not sure if you want to keep the car for over 2-3 years, or your circumstances, but that is an option. Lower payments, and lower price.
icecube, have you considered getting a C63 2010 used? That is another alternative, and less money involved. If you really wanted to put $20K down, you could easily get one, and have less than a $40K balance. I saw three from just a quick search with less than 9K miles on them loaded in ranges of $59-$64K.
I am not sure if you want to keep the car for over 2-3 years, or your circumstances, but that is an option. Lower payments, and lower price.
08-17-2010, 03:09 PM
#30
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The less interest overall on the loan amount. If you finance the bubble at the end you will need to start the payments all over again and the interest is greatest at the begining of the loan.
To be honest im really not sure how it would work on a lease... For example..
The car is 55K. The residual is 54%. You need to finance 54% over the life of the lease. So your leasing around 30K in car. Plus tax and fees. 33K in with tax in NY plus whatever other fees. Lets say 34K total.
34K lease and you put down 20K. Are you making payments on 14K only for the life of the lease?
Ya know what im saying?
Or do they say.. ok 55K car minus 20K = 35K... and then residuals? How do you calculate residuals with a big DP like that?
In the first example you would finance 34K on the lease... lose 20K plus still owe 25K at the end.
Anyone shed any light??
To be honest im really not sure how it would work on a lease... For example..
The car is 55K. The residual is 54%. You need to finance 54% over the life of the lease. So your leasing around 30K in car. Plus tax and fees. 33K in with tax in NY plus whatever other fees. Lets say 34K total.
34K lease and you put down 20K. Are you making payments on 14K only for the life of the lease?
Ya know what im saying?
Or do they say.. ok 55K car minus 20K = 35K... and then residuals? How do you calculate residuals with a big DP like that?
In the first example you would finance 34K on the lease... lose 20K plus still owe 25K at the end.
Anyone shed any light??
A lot of people think of leases as scams without understanding them, but they really are fair as long as the residuals, finance charges (called money factor), and fees are in check. You are driving and depreciating the car while you own it, and that's what you are paying for. When the deal is done you turn the car in without the hassle of selling it or getting shafted on your trade. If you use your vehicle for business leases are easier to write off on your taxes. They really aren't all that bad.
08-17-2010, 03:20 PM
#31
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Close. First, you pay the difference between the residual (estimated value at end of term) and negotiated price - that is called the capitalized cost. So in your example the capitalized cost (depreciation) is 46%, or 25,300. Now add the taxes and fees, you said 4k, so $29,300. This is the amount you must finance over the term of the lease. If you were to put down $20,000 you would have $9,300 that you would need to finance. If this example were a 48 month lease then your payments would be around $200/month.
A lot of people think of leases as scams without understanding them, but they really are fair as long as the residuals, finance charges (called money factor), and fees are in check. You are driving and depreciating the car while you own it, and that's what you are paying for. When the deal is done you turn the car in without the hassle of selling it or getting shafted on your trade. If you use your vehicle for business leases are easier to write off on your taxes. They really aren't all that bad.
A lot of people think of leases as scams without understanding them, but they really are fair as long as the residuals, finance charges (called money factor), and fees are in check. You are driving and depreciating the car while you own it, and that's what you are paying for. When the deal is done you turn the car in without the hassle of selling it or getting shafted on your trade. If you use your vehicle for business leases are easier to write off on your taxes. They really aren't all that bad.
08-17-2010, 03:56 PM
#32
MBWorld Fanatic!
Thanks for the lessons, good to know. So it really doesn't matter how much you put down if your able to afford more bc your paying for the capitalized cost, which doesn't change. Especially in this economy where there is nothing else to invest in might as well enjoy an AMG.
08-17-2010, 04:03 PM
#33
MBWorld Fanatic!
Close. First, you pay the difference between the residual (estimated value at end of term) and negotiated price - that is called the capitalized cost. So in your example the capitalized cost (depreciation) is 46%, or 25,300. Now add the taxes and fees, you said 4k, so $29,300. This is the amount you must finance over the term of the lease. If you were to put down $20,000 you would have $9,300 that you would need to finance. If this example were a 48 month lease then your payments would be around $200/month.
A lot of people think of leases as scams without understanding them, but they really are fair as long as the residuals, finance charges (called money factor), and fees are in check. You are driving and depreciating the car while you own it, and that's what you are paying for. When the deal is done you turn the car in without the hassle of selling it or getting shafted on your trade. If you use your vehicle for business leases are easier to write off on your taxes. They really aren't all that bad.
A lot of people think of leases as scams without understanding them, but they really are fair as long as the residuals, finance charges (called money factor), and fees are in check. You are driving and depreciating the car while you own it, and that's what you are paying for. When the deal is done you turn the car in without the hassle of selling it or getting shafted on your trade. If you use your vehicle for business leases are easier to write off on your taxes. They really aren't all that bad.
Leases are not scams. I agree.
A lease with a big DP would be the same as taking all the payments you need to make and putting it down in one lump sum. I guess thats kinda cool. You gave me a new way to think about it.
You pretty much pay for 1/2 the car and give all the payments up front.
The downside though is in the end you have nothing to show for it. But in that case with the amount paid for 36 months you wouldnt have anything to show for it in a finance either. You need to make all the payments on the car to finally see some for the money you put down otherwise in most cases you are upside down on the loan to value anyhow.
Last edited by propain; 08-17-2010 at 04:05 PM.
08-17-2010, 05:09 PM
#34
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2010 C63, 2002 Corvette Z06
Given the lease rate of probably 4.9% - there aren't a lot of non-depreciating assets providing that kind of return these days. Yes there are some dividend paying common shares with good yield, but you'd have to be comfortable putting your capital as risk. The interest savings over the life of the lease in this case probably rival any return you would get from an investment that guarantees principle (money market, t-bills, bonds, etc)
08-17-2010, 06:00 PM
#36
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Gs 300, Rx 330
2010 C63 $68,000 with $0 down on a 36 month lease your payment would be $1239, with a residual of $30,600
same car with $20,000 down your payment would be $1025 with a residual of $25,443
Hope this help
same car with $20,000 down your payment would be $1025 with a residual of $25,443
Hope this help
08-17-2010, 07:23 PM
#37
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C350 4Matic
Close. First, you pay the difference between the residual (estimated value at end of term) and negotiated price - that is called the capitalized cost. So in your example the capitalized cost (depreciation) is 46%, or 25,300. Now add the taxes and fees, you said 4k, so $29,300. This is the amount you must finance over the term of the lease. If you were to put down $20,000 you would have $9,300 that you would need to finance. If this example were a 48 month lease then your payments would be around $200/month.
A lot of people think of leases as scams without understanding them, but they really are fair as long as the residuals, finance charges (called money factor), and fees are in check. You are driving and depreciating the car while you own it, and that's what you are paying for. When the deal is done you turn the car in without the hassle of selling it or getting shafted on your trade. If you use your vehicle for business leases are easier to write off on your taxes. They really aren't all that bad.
A lot of people think of leases as scams without understanding them, but they really are fair as long as the residuals, finance charges (called money factor), and fees are in check. You are driving and depreciating the car while you own it, and that's what you are paying for. When the deal is done you turn the car in without the hassle of selling it or getting shafted on your trade. If you use your vehicle for business leases are easier to write off on your taxes. They really aren't all that bad.
Just when I was thinking no one was gona get it. Oh there is another added bonus. If the car is involved in an accident in the lease term (you still have to fix it), you simply return the car to the dealer at the end of the lease with no loss on added depreciation due to the hit. Leasing is just another way of buying a car. Im 451/443=EW and I lease my car
08-17-2010, 07:50 PM
#38
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2011 C63, 1999 C280
Your dealer is telling you that the 2011s aren't available? I live in the USA, and own a 2011. So he's lying to you or telling you that you can't lease a 2011 yet. Not sure what's going on.
08-17-2010, 07:50 PM
#39
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'14 911S (garage queen) '13 X3 (family hauler)
And a dealer up here in MA brought in a 2011 for me a few weeks ago, but I passed on it--it is loaded with P31, etc. the MSRP is around $78K+
The point is if you're serious and want a 2011 there are some available!
Attached is a pic of the window sticker I took a picture of:
08-17-2010, 10:11 PM
#42
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2010 Irridium Silver MB C63 AMG Sedan
Thats SOOOO wierd how some window stickers have the heated seats worded in with the AMG seating description to the left and this sticker has it seperately as if to emphasize it.
Some cars come with black wood trim (with out notation) and its not identified on the sticker and some clearly identify it as if its some option...?
Other sticker have Premium PII package with Bi-Xenon and doesn't Specifically state "Active Curve Illumination" yet has it and this calls it 319 "Lighting Package".
I don't get it and don't understand if its a given that you have all those things or not, and if it's not clearly spelled out but still lists the package, is it there??
What gives with all the different wording?
Some cars come with black wood trim (with out notation) and its not identified on the sticker and some clearly identify it as if its some option...?
Other sticker have Premium PII package with Bi-Xenon and doesn't Specifically state "Active Curve Illumination" yet has it and this calls it 319 "Lighting Package".
I don't get it and don't understand if its a given that you have all those things or not, and if it's not clearly spelled out but still lists the package, is it there??
What gives with all the different wording?
08-18-2010, 12:01 AM
#43
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'10 C63 AMG | '10 Lexus RX350 | '10 E550C |'98 Lexus ES300 (Love this car)
Why would the residual change when the down payment is different? If that's how MB calculates it, then $0 down is the way to go.
Total outlay of $0 down:
1239*36= $44604
Total outlay of $20,000 down:
$1025 * 36 + 20000 = $56900
Doesn't make sense to me unless MB Finance is trying to scam buyers.
It usually makes little difference between $0 down or $20k. With $20k down, you lose the opportunity cost of that $20k which can be used for other more *useful* things. On the other hand, if you have $20k free cash, then use it as down payment because it saves you interest charge.
It's the matter of cash flow and opportunity cost.
08-18-2010, 09:52 AM
#45
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2010 C63, 2002 Corvette Z06
08-18-2010, 01:33 PM
#47
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Gs 300, Rx 330
There is no way the quoted figures are right.
Why would the residual change when the down payment is different? If that's how MB calculates it, then $0 down is the way to go.
Total outlay of $0 down:
1239*36= $44604
Total outlay of $20,000 down:
$1025 * 36 + 20000 = $56900
Doesn't make sense to me unless MB Finance is trying to scam buyers.
It usually makes little difference between $0 down or $20k. With $20k down, you lose the opportunity cost of that $20k which can be used for other more *useful* things. On the other hand, if you have $20k free cash, then use it as down payment because it saves you interest charge.
It's the matter of cash flow and opportunity cost.
Why would the residual change when the down payment is different? If that's how MB calculates it, then $0 down is the way to go.
Total outlay of $0 down:
1239*36= $44604
Total outlay of $20,000 down:
$1025 * 36 + 20000 = $56900
Doesn't make sense to me unless MB Finance is trying to scam buyers.
It usually makes little difference between $0 down or $20k. With $20k down, you lose the opportunity cost of that $20k which can be used for other more *useful* things. On the other hand, if you have $20k free cash, then use it as down payment because it saves you interest charge.
It's the matter of cash flow and opportunity cost.
www.leasecompare.com I must have written it down incorrectly. I apologize for that.
08-19-2010, 12:51 PM
#48
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C63
Hi guys,
I'm trying to buy c63amg within a week. I contacted a dealer here at New Jersey, Bergen county; the MSRP he gave me is $68000 with options including:
P2, AMG leather package, multimedia package.
The car is 2010. I tried to buy 2011, but he told me the 2011 is not available yet. Considering the car 2010, I asked him for discount and he offered me $700 discounts and free 3-year maintenance.
I'm trying to lease the car, and I don't this this is a good deal as it is 2010!!!!
How is this dealer? is he trying to ripp me off?
I checked edmunds, and people are paying about $59000 for the same option. This number seems like Fxxkxxx crazy. Is it true that 2011 C63amg is not available yet? and would I be stupid to buy 2010 for that price?
Thanks in advance!
I'm trying to buy c63amg within a week. I contacted a dealer here at New Jersey, Bergen county; the MSRP he gave me is $68000 with options including:
P2, AMG leather package, multimedia package.
The car is 2010. I tried to buy 2011, but he told me the 2011 is not available yet. Considering the car 2010, I asked him for discount and he offered me $700 discounts and free 3-year maintenance.
I'm trying to lease the car, and I don't this this is a good deal as it is 2010!!!!
How is this dealer? is he trying to ripp me off? I checked edmunds, and people are paying about $59000 for the same option. This number seems like Fxxkxxx crazy. Is it true that 2011 C63amg is not available yet? and would I be stupid to buy 2010 for that price?
Thanks in advance!
08-19-2010, 07:54 PM
#49
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'10 C63 AMG | '10 Lexus RX350 | '10 E550C |'98 Lexus ES300 (Love this car)
