$2,000 marketing support on 2007 E550s Nov 06-Jan 07
#26
Junior Member
Consider a lease
While I am typically against leasing, as I believe if you can't pay cash - don't buy it, this was just too good to pass up. So in the mean time I have my cash getting 4.99% in a mmkt (interest in lease is only 5.15%) and I know my depreciation is limited to $11K over 39 months. Unless MB Credit wants to significantly negotiate the residual it is highly unlikely that I would buy this car at the end of my lease.
#27
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SL550
I don't think the depreciation on these cars is out of line. However, I think that DCX is unrealistic about what the cars will be worth several years out. This creates a great chance to lease. The residual quoted by DCX is a % of MSRP, but you should never pay MSRP. So, on my '06 that I bought a year ago with a sticker of $57K DCX thinks it will be worth $37K in 39 months (i.e. 65% of MSRP), in fact the negotiated purchase price in my deal was $48,000 thanks to trunk money and dealer concession. Thus, in my lease I am really paying interest (rate was pretty good at the time) and $11,000 in depreceiation. I would be willing to be that almost every $48,000 car will experience $11K in depreciation over a 3 year period.
I agree...artificially high residuals and low money factors can make leasing a really great deal. I always lease since I'm self-employed and the tax benefits are far greater if I lease...buying would be foolish for me, plus I only keep cars 2 years (if even that) and have found some good 24-27 month lease deals on past cars. Plus there's no way my car will be worth the residual when the lease is up. A friend of mine just bought a very clean and loaded 2003 E320 w/40K for $25K, so I like knowing that I can turn my car in at the end of the lease and not worry what the private-party market will bear at that time or how badly a dealer will try to hose me on trade-in.
Last edited by bm75204; 11-21-2006 at 11:06 AM.
#28
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SL550
So in the mean time I have my cash getting 4.99% in a mmkt (interest in lease is only 5.15%) and I know my depreciation is limited to $11K over 39 months. Unless MB Credit wants to significantly negotiate the residual it is highly unlikely that I would buy this car at the end of my lease.
Just a side note for everyone considering a lease who doesn't need a brand-new vehicle, check out www.swapalease.com and www.leasetrader.com. You'll often find deals on cars where people put down a lot of money to get a lower payment, then have to get out of their leases for various reasons and often allow you to take it over without giving anything down. Sometimes people won't do a takeover without a down payment...it depends on the situation. But I got a BMW X5 for $287/month for 12 months (NO down payment, just a $450 BMWFS transfer fee) from a guy who put down $7000 on his lease to get the payment that low, so there are some real steals out there if you look hard enough and luck is on your side.
Last edited by bm75204; 11-21-2006 at 11:13 AM.
#29
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E 63S Wagon Renntech, E55 Renntech, SL65, SL 55 030, ML, bunch of old ones--they come, they go...
Regarding the resale issue--it isn't electronics or...
any other particular system in the car that has killed resale. It is very simple--DCX/MBUSA has put TOO MUCH PRODUCT in the US system. There are too many cars, not enough demand, and very little profit left in the process. Oh, except for....Yeah, MBUSA! So while they force product down the dealer's throat, their profit continues to build, while customer's resale and perceived satisfaction falls. No, this isn't going to fix itself at the end of these leases, nor anytime soon, unless they are smart enough to limit production and increase perceived value and desirability. And if you think ANY current Benz is put together like an old one, you haven't owned very many late model ones. I know this thread is old, but just saw this and couldn't pass....
#30
The problem could also be much complex: Excessive prices to accomodate (more)
any other particular system in the car that has killed resale. It is very simple--DCX/MBUSA has put TOO MUCH PRODUCT in the US system. There are too many cars, not enough demand, and very little profit left in the process. Oh, except for....Yeah, MBUSA! So while they force product down the dealer's throat, their profit continues to build, while customer's resale and perceived satisfaction falls. No, this isn't going to fix itself at the end of these leases, nor anytime soon, unless they are smart enough to limit production and increase perceived value and desirability. And if you think ANY current Benz is put together like an old one, you haven't owned very many late model ones. I know this thread is old, but just saw this and couldn't pass....
One more important factor; reliability and cost of service. Fewer people are willing to pay big $$ for a car that will invariably require even more budget breaking $$ to repair & maintain. Yes, I said the word "budget". Even MB owners have a limit. Besides, who wants to buy a used E at full price when it'll likely need many thousands of $$ to keepp running when the myriad of toys invariably start to fail. The parts, etc are horrifically overpriced.
The cars are selling a what the
#32
I Really Don't see the point of these REBATE ..
THe e-class sales are already through the Roof, kicking all the 5 series butt... up 26 % in November goto fred melons website for current sales...5 series only up 13-14% percent, i m sure the 07 increase WILL be higher..
With sales this strong, IT doesn't need rebates..
THe e-class sales are already through the Roof, kicking all the 5 series butt... up 26 % in November goto fred melons website for current sales...5 series only up 13-14% percent, i m sure the 07 increase WILL be higher..
With sales this strong, IT doesn't need rebates..
#33
I Really Don't see the point of these REBATE ..
THe e-class sales are already through the Roof, kicking all the 5 series butt... up 26 % in November goto fred melons website for current sales...5 series only up 13-14% percent, i m sure the 07 increase WILL be higher..
With sales this strong, IT doesn't need rebates..
THe e-class sales are already through the Roof, kicking all the 5 series butt... up 26 % in November goto fred melons website for current sales...5 series only up 13-14% percent, i m sure the 07 increase WILL be higher..
With sales this strong, IT doesn't need rebates..
#34
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1992 500E, 2006 E500, 2007 GL 450
Having seen my 2006 E500 (loaded, 7000mi) depreciate $20-25k in retail/trade-in value and a friends Acura RL depreciate over 20% in the first year because of big manufacturer incentives, I will make a real effort to not buy another MB without money in the trunk. The MSRP on a new Mercedes is about as valid as the MSRP on domestic cars. I am car nut but I hate feeling like a fool. I will have a hard time paying above so called dealer cost on any new Mercedes.
#36
over the past few years has not fully indicated this. I tend to think MB/BMW got caught up in exactly what you mentioned--building cars for a price point rather than let the engineering determine the price. Much of the blame for this lies with the pampered and over indulged German labor unions.
Still-- nothing else "feels" like a German car, which is why I keep coming back. I see an E550 as a very good possibility. Just need to hang back for a bit, that's all.
You've got great taste, btw- Pewter/tan is my favorite combo and what I'll likely go for!
Still-- nothing else "feels" like a German car, which is why I keep coming back. I see an E550 as a very good possibility. Just need to hang back for a bit, that's all.
You've got great taste, btw- Pewter/tan is my favorite combo and what I'll likely go for!