mdxc90

Looking to lease an 07 E350 4Matic with P1 and sports pkg. I am interested in a 24-27 mth lease with 12-15K miles/yr. No money down.

Can someone help me and give me an idea of what kind of payments I am looking at? I am in RI. Also any nearby dealers who are willing to deal? I am willing to drive to neighbouring states for discounts.

Any help would be much appreciated. Thank you.

JRAMGV8

With no Down $0 and with 27 Month Lease you are looking at $800-$850 depending on package and option/accessories.

Alexbenz

i used to get letters from mercedes about paying under 500 for a e350 with some down but not that much, maybe 2 grand........

55fanatic

you interested in taking over my 06 lease? its a WELL EQUIPPED E500 sport/ pano, want $1400 down and $526 a month... for 12k miles and just over 15months of lease term...

2K6E55

You're looking at ~$655/month + TAX. Good luck!

mdxc90

Can you please explain that? What kind of discount off MSRP should I expect. Can I get the car at invoice??

jimm

I assume you have excellent credit. You didn’t say. I wasn’t aware that
MB would lease cars with no money down, but I never inquired. (Not that
you’re not an honest guy but, that does seem like a high risk.)

However, speaking of leases, a MB salesman told me that there won’t be any
good leasing deals on 08’s until after they’ve been out for a couple of months.

While this may make sense - in the past - have you guys actually seen any
difference in MB leases in the beginning .. compared to two months later?

jimm

mdxc90

My credit score is around 750. I am OK with an '07 as long as I get a really good deal. In fact I am hoping that the arrival of the 08 will push the price of the remaining 07s even more.

BTW there is no risk for the car company if you decide not to put any money down. Not sure if you fully understand the lease process.

chairman

Otherwise you are putting money in their pockets on a depreciating asset.

I have a question for the group:

I am still negotiating with "my" salesman, he wants 5 grand down and $750/month (39 months) at which point I have decided to go elsewhere. Credit is not the issue.

The car I want is a Black/Black 4-matic w/ P 2, leather, sport and Pano if possible. He tells me that an E-350 configured that way does not exist.

The question is, is he correct? Are inventories so low that the remaining cars are truly left over? Frankly, I think he is only looking at his inventory.

Thoughts?

New E350W4

That configuration may not exist in your region or, at all. We ordered a very similar car with black/cognac because there was nothing close or, even on a boat, in late January. Inventory then was sold out in the northeast.
Price with 5K upfront seems high, too

jimm

You’re probably right. I’ve never leased before; always paid cash and was
done with it. But, now I’m considering it. However, even with my trusty
HP12C, I’ve always had a hard time analyzing lease benefits which
incorporate the residual, etc. I do, however, have a pretty fair background
in analyzing present cash values of future cash flows, in general.

But, you’ve caught me on my ineptitude at lease evaluation. I’m not being
coy with you. I am indeed interested in learning more about car leases.
I know many wealthy people who have leased for years, under advice. I’m
just starting to consider it because I AM a worldclass cheapskate, and if
leasing is financially beneficial, I want to do it!

I did read (someplace on here) where a car lease expert agreed with you,
saying: “you should put down as little down payment as you can - or NO
down payment - because your repurchase price at the end will be the same
no matter how much down payment you made.” I guess the only difference
would be that if you made a large down payment, your monthly payments
would have been smaller.

Soo .. lease guys .. please further enlighten me.

jimm

P.S. If Sheryl Crow ever drives your car, be sure
to wipe off the steering wheel afterward.

mdxc90

no problem jimm. It definitely pays to understand the lease process completely before you enter the negotiations with the dealer. Basically the lease payment is determined by:

1. Sale Price of the car or Cap Cost (MSRP - negotiated discount - downpayment plus dealer fees etc.)
2. The residual (the value of the car at the end of the lease term). This is set by the bank/leasing company and is usually not negotiable.
3. The money factor - essentially the interest rate. Multiply the MF by 2400 to get the interest rate in %.
4. The length of the lease term.
5. Sales tax in the state where you reside.
6. The acquisituin fee ($795 for MB) and sometimes a security deposit along with the first month lease payment are usually collected up-front.

Out of the first 3, #1 is where all the wheeling and dealing goes on. The dealer can also screw you on the money factor i.e add a markup to the MF set by the bank. So you should know the current MF and residual that is set by the bank. All of these numbers are plugged in to a simple mathematical formula:

(Cap Cost – Residual Value) / Term = Depreciation
(Cap Cost + Residual Value) X Money Factor = Interest
Depreciation + Interest = Base Monthly Payment

sales tax is then calculated on the lease payments. the leasing forum at this web-site has current resuduals and MFs set by MB financing posted by leasecompare.com every month.

A great lease payment calculator along with other useful info can be found at www dot leaseguide dot com

hope this helps. remember knowledge is power - specially when it comes to dealing with sleazy dishonest car dealers!!

mdxc90

Now that I have filled you in on the lease process you need to explain the Sheryl Crow joke to me.

eddietr

I heard the sushi which she rolls by hand and her steak tartare which she prepares herself are, just, well, delectable.

Back to the subject, I've leased a few cars over the years. (BMW and Audi) I've always put $0 down. Anything more than that really doesn't make sense, assuming you get a decent money factor. And if you aren't getting a good MF, you might want to just buy the car anyway.

With BMW, they sometimes have good deals on multiple security deposits, and I have done that twice. They give you a discount on the MF with multiple security deposits, and I've maxed out on that a couple of time and gotten a good deal that way. Of course the deposits are returned at the end of the lease.

eddietr

that part depends on the state, actually. In virginia, the sales tax is lump sum based on the sale price, just like a purchase. Assuming you fold that into the lease, it just increases the cap cost by that much.

jimm

Sheryl Crow (who is on the far left of things) is currently on a big rant that
we should use no more than one square of toilet paper!

When she leaves the restroom, would you want to shake hands with her?

jimm

P.S. Thank you for the very well explained lease info.

chairman

I have used this to estimate, successfully, several leases. I added it to my favorites a few years ago. http://www.leaseguide.com/calc.htm

Thanks for the input. I am increasingly frustrated by the games some dealers play regarding leasing. I still have not heard from the salesman, I guess he made his monthly quota.

Sheesh

jimm

Probably no way of ever knowing, but it would
be kind of interesting to know what percent of
lessees buy their cars, at the end of the lease.

jimm

cyclerider

Don't most people lease their cars to AVOID buying them?