2020 CLS450 (us) Lease with euro Delivery
12-06-2019, 10:17 AM
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'20 CLS450; '14 CLA250; '14 Honda GX Natural Gas Powered
2020 CLS450 (us) Lease with euro Delivery
I'm told that on a USA Mercedes Lease with European delivery everything is set by Mercedes finance. Selling price is MSRP minus the 7% euro delivery discount, the Interest rate (Money factor times 2,400 now 3.5%) and even a $595 turn-in fee if you DON"T buy the car at the end of the lease. All non-negotiable and fixed. Anyone have experience with this? Thanks
12-18-2019, 02:58 AM
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I got my '18 GLC43 Coupe via European Delivery, and getting a 2020 CLS450 4Matic again via Euro Delivery this June, so I'm reasonably familiar with the logistics by now ...
Sales price:
It's true that, generally, the discount structure is predetermined, and will be 7% off MSRP for your specific model (CLS450).
Euro delivery orders yield a flat commission to the dealer, and there have been sporadic reports of dealers kicking back a small amount (<2-3%?) to the buyer, but your experience can and almost certainly will vary.
My own dealer extended some other accommodations to me in conjunction with the deal, that I would probably value similarly, but I wouldn't count on too much of a discount (if any) in general.
Note that you also don't pay the destination fee, which would be $995 for a typical showroom retail transaction (a non-Euro Delivery order).
Lease terms:
The current (non European Delivery) money factor is 0.00127 (or 3.05% as an interest rate if you prefer). Note that these typically go down through the year, sometimes matched by a decrease in residual %.
If you're getting the vehicle as a European Delivery lease, however, the money factor is marked up by 0.0002 (i.e. it would currently be at 0.00147, or 3.5% interest rate). To my understanding, this is also beyond the dealer's control (haven't read any reports to the contrary)
Note that there will be a slightly unusual lease payment pattern: The first lease payment will be due upon signing the papers, which needs to be at least 30 days prior to the delivery date.
The *next* payment from that (which would normally roughly coincide with your delivery) will be suspended - to partially compensate for the time the vehicle is in transit - and resumed one month later. That is, a 36-month lease will effectively become a 37-month lease, with the 2nd payment skipped.
Usual discounts apply, e.g multiple security deposits, that can reduce your payment by a max of 0.0007.
Other small things:
You'll be given a $100 credit for transportation, and charged $40 for "customer training fee" (I know ...). Mercedes used to put you up at a nice hotel for 1 night up until this year, but they have just discontinued this benefit.
If you are taking delivery of the vehicle in Sindelfingen (as opposed to Bremen), I highly recommend asking your dealer to request a delivery for you at the "Center for Excellence" (the CLS *is* qualified for CoE delivery, as are S-class and most AMG models). We did that last year and it was a fantastic experience.
Sales price:
It's true that, generally, the discount structure is predetermined, and will be 7% off MSRP for your specific model (CLS450).
Euro delivery orders yield a flat commission to the dealer, and there have been sporadic reports of dealers kicking back a small amount (<2-3%?) to the buyer, but your experience can and almost certainly will vary.
My own dealer extended some other accommodations to me in conjunction with the deal, that I would probably value similarly, but I wouldn't count on too much of a discount (if any) in general.
Note that you also don't pay the destination fee, which would be $995 for a typical showroom retail transaction (a non-Euro Delivery order).
Lease terms:
The current (non European Delivery) money factor is 0.00127 (or 3.05% as an interest rate if you prefer). Note that these typically go down through the year, sometimes matched by a decrease in residual %.
If you're getting the vehicle as a European Delivery lease, however, the money factor is marked up by 0.0002 (i.e. it would currently be at 0.00147, or 3.5% interest rate). To my understanding, this is also beyond the dealer's control (haven't read any reports to the contrary)
Note that there will be a slightly unusual lease payment pattern: The first lease payment will be due upon signing the papers, which needs to be at least 30 days prior to the delivery date.
The *next* payment from that (which would normally roughly coincide with your delivery) will be suspended - to partially compensate for the time the vehicle is in transit - and resumed one month later. That is, a 36-month lease will effectively become a 37-month lease, with the 2nd payment skipped.
Usual discounts apply, e.g multiple security deposits, that can reduce your payment by a max of 0.0007.
Other small things:
You'll be given a $100 credit for transportation, and charged $40 for "customer training fee" (I know ...). Mercedes used to put you up at a nice hotel for 1 night up until this year, but they have just discontinued this benefit.
If you are taking delivery of the vehicle in Sindelfingen (as opposed to Bremen), I highly recommend asking your dealer to request a delivery for you at the "Center for Excellence" (the CLS *is* qualified for CoE delivery, as are S-class and most AMG models). We did that last year and it was a fantastic experience.
02-28-2020, 07:39 PM
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'20 CLS450; '14 CLA250; '14 Honda GX Natural Gas Powered
Thanks for the confirming information. The European Delivery experience sure has been dumbed down...I remember the two hotel nights and the two taxi chit days. At least we still get the Lunch chit. We also miss the mezzanine level coffee machine and sandwiches watching the cars come in. My Feb 2020 interest rate came in at 2.2% with a $12,500 refundable security deposit (my choice).
