Lease Question
Thread Starter
Senior Member
Joined: Apr 2007
Posts: 343
Likes: 0
From: Palm Beach Gardens, Fl
‘08 E-350 Sport, C6 Vette & Harley Davidson
Lease Question
Using MB “Build Your Own” calculations, it shows the following:
57,646 - My car with accessories
5765 - Lease down payment
10,000 - Miles
611 - pmt for 27 months
683 - pmt for 36 months
I don’t want a 36 month lease .. as I won’t keep the car that long.
But, why on earth would anyone take the 36 month term and pay
72 a month more? Some place I had heard that the MB 27 month
term was a good deal! But, this calculation is hard to understand.
(Not complaining. Just don’t understand.)
jimm
==========
In days - ‘08 E350 Sport, P2, Black/black,
Parktronic, Voice, Bluetooth, Burl Walnut,
Split rear seat, Rear mud flaps, nose star
57,646 - My car with accessories
5765 - Lease down payment
10,000 - Miles
611 - pmt for 27 months
683 - pmt for 36 months
I don’t want a 36 month lease .. as I won’t keep the car that long.
But, why on earth would anyone take the 36 month term and pay
72 a month more? Some place I had heard that the MB 27 month
term was a good deal! But, this calculation is hard to understand.
(Not complaining. Just don’t understand.)
jimm
==========
In days - ‘08 E350 Sport, P2, Black/black,
Parktronic, Voice, Bluetooth, Burl Walnut,
Split rear seat, Rear mud flaps, nose star
Last edited by jimm; Jul 1, 2007 at 08:32 PM.
Senior Member
Joined: Apr 2006
Posts: 378
Likes: 15
From: Boston and SWFlorida
2025 GLC300 white, 2023 Taycan RWD black
A 39 month lease would give you an additional three months in which to amortize the depreciation and would lower the three year lease cost.
The numbers between the 27 and 36 month leases indicate the value of the down payment on a 27 month lease. $5765/ 27 or $5765/ 36 months. In other words, the monthly value of the cap reduction means less with the longer term lease. The advantage of the three year is that it locks in your cost for an additional year.
The numbers between the 27 and 36 month leases indicate the value of the down payment on a 27 month lease. $5765/ 27 or $5765/ 36 months. In other words, the monthly value of the cap reduction means less with the longer term lease. The advantage of the three year is that it locks in your cost for an additional year.
Senior Member
Joined: Apr 2006
Posts: 378
Likes: 15
From: Boston and SWFlorida
2025 GLC300 white, 2023 Taycan RWD black
Another note, the "Build Your Own" site doesn't reflect promotions and your dealer will quote you a better rate because of available incentives.
Thread Starter
Senior Member
Joined: Apr 2007
Posts: 343
Likes: 0
From: Palm Beach Gardens, Fl
‘08 E-350 Sport, C6 Vette & Harley Davidson
Another question:
Don’t most of you estimate a lower mileage than you’re
actually going to drive, to get a lower payment?
What is the penalty for exceeding your estimate? Or - if
you drive less than estimated, are you credited back an
amount on turn-in?
jimm
Don’t most of you estimate a lower mileage than you’re
actually going to drive, to get a lower payment?
What is the penalty for exceeding your estimate? Or - if
you drive less than estimated, are you credited back an
amount on turn-in?
jimm
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MBWorld Fanatic!
Joined: Jun 2007
Posts: 1,936
Likes: 349
From: Huntington NY
S560
Never go by the website for costs. I have found them to be very different (usually much higher) than what is quoted at a dealership. When I bought my car in June the special was on a 33 month lease. Two very important variables are the money rates and residuals. The residuals could be very different from a 33 month lease to a 39 month lease, one example is on a 33 month lease 2010 vehicles will still be current (lease would end in 4/2010), on a 39 month lease it would end in Oct of 2010, when the 2011 vehicles would be out.
Find out how many miles you will need and then ask the dealer for the residuals for 33,36, and 39 months. Ask them the money factor for your credit, find out the MSRP and what you would be paying for the car, and then you can get an accurate estimate of your payment and whether it is a good deal.
Buy the miles up front, they are a lot cheaper that way.
Put as little out of pocket as possible, if your car is stolen tommorrow, that money is gone...
Find out how many miles you will need and then ask the dealer for the residuals for 33,36, and 39 months. Ask them the money factor for your credit, find out the MSRP and what you would be paying for the car, and then you can get an accurate estimate of your payment and whether it is a good deal.
Buy the miles up front, they are a lot cheaper that way.
Put as little out of pocket as possible, if your car is stolen tommorrow, that money is gone...
Super Member
Joined: Sep 2005
Posts: 723
Likes: 32
From: Central Jersey
2003 E500, 2004 G35X
Don't put ANY down payment when you lease a car! It's one of the basic principles in leasing a car. Even though you are not buying it but you should negotiate the selling price AS IF you are buying it. After all, the cost of lease, ie monthly payment plus interest, is based on the selling price!
The easiest way to understand the lease is that you are paying for the depreciation of the term of the lease, plus the interest on that depreciation. It is really that simple
The easiest way to understand the lease is that you are paying for the depreciation of the term of the lease, plus the interest on that depreciation. It is really that simple
Member
Joined: Jun 2007
Posts: 93
Likes: 0
From: Los Angeles, CA
Using MB “Build Your Own” calculations, it shows the following:
57,646 - My car with accessories
5765 - Lease down payment
10,000 - Miles
611 - pmt for 27 months
683 - pmt for 36 months
I don’t want a 36 month lease .. as I won’t keep the car that long.
But, why on earth would anyone take the 36 month term and pay
72 a month more? Some place I had heard that the MB 27 month
term was a good deal! But, this calculation is hard to understand.
(Not complaining. Just don’t understand.)
jimm
==========
In days - ‘08 E350 Sport, P2, Black/black,
Parktronic, Voice, Bluetooth, Burl Walnut,
Split rear seat, Rear mud flaps, nose star
57,646 - My car with accessories
5765 - Lease down payment
10,000 - Miles
611 - pmt for 27 months
683 - pmt for 36 months
I don’t want a 36 month lease .. as I won’t keep the car that long.
But, why on earth would anyone take the 36 month term and pay
72 a month more? Some place I had heard that the MB 27 month
term was a good deal! But, this calculation is hard to understand.
(Not complaining. Just don’t understand.)
jimm
==========
In days - ‘08 E350 Sport, P2, Black/black,
Parktronic, Voice, Bluetooth, Burl Walnut,
Split rear seat, Rear mud flaps, nose star
You and I have been back and forth a few times now.
First of all, as Derek said, looking forward to seeing pic's and hearing your review of you new E.
Second, I hope you haven't signed anything yet. I know you really are looking forward to this car but the deal I have been offered is significantly lower than yours.
I am getting about $10,000 off of MSRP with a money factor of .0018. I know this is higher than the national average but with just drive off (about 1,200) which includes first month I am looking at about $420-$470.
Call a few other dealers in Florida and price shop a little.
Thread Starter
Senior Member
Joined: Apr 2007
Posts: 343
Likes: 0
From: Palm Beach Gardens, Fl
‘08 E-350 Sport, C6 Vette & Harley Davidson
Member
Joined: Jun 2007
Posts: 93
Likes: 0
From: Los Angeles, CA
Yes, Mercedes Benz corporate may feel less inclined to sell the car at $10k off of MSRP, but I bet some aggressive, high volume dealership (looking at their annual-long term goals) may just push the deals through. Then small ones will soon follow. Large Dealerships are usually owned by parent companies such as Autonation who pay their managers according to volume sold per month. Not per car.
So my guess...
it all depends on what region your located in, what the demand is for the type of car you are desiring and etc. I still have not yet gotten numbers from my sales guy, who called earlier to inform me that he will be calling with July rates and that he hasn't forgotten about me.
Which I thought was pretty considerate. 
As a matter of fact, he says there are plenty of E350 with the P02 I want. Perhaps not a lot in the color combos I want.
So I pose my original question... If nothing has changed (in terms of appearance/ packages/ but only terms) what are the advantageous of leasing (mind you, I said leasing not purchasing) a 2008 over 2007.
Perhaps the 2008 will have upgraded software (nothing the average driver will notice), and bragging rights... "I have an 08!"
On the other hand you pay about $690-$700 (including tax) for the 2008. This is especially troubling to me considering (I don't know this yet) the residual may be lower and you may have a higher MF.
If, when I go in to get my car, they don't have the car I want
, with the packages I want 
, then I'll consider the 2008 and perhaps wait. I can do a little while without a car if I have to but I doubt I'd have to. Curious to hear your thoughts
MBWorld Fanatic!
Joined: Jun 2007
Posts: 1,936
Likes: 349
From: Huntington NY
S560
Usually the new models have better residuals which mean the dealers have to cut the price further on any leftovers to keep the old models competitive with the new ones. If you are leasing this makes an '08 potentially competitive with an '07.
Administrator
Joined: Sep 2002
Posts: 15,762
Likes: 36
From: www.Traben-Trarbach.de
MPG+ ROLFCOPTER
Originally Posted by gotoschoolhere
......I am getting about $10,000 off of MSRP with a money factor of .0018.....
Originally Posted by gotoschoolhere
Actually I was talking about the 2007 E350.....
.....
.....
You might be surprised how fast you will get schooled by posting misinformation.
Member
Joined: Jun 2007
Posts: 93
Likes: 0
From: Los Angeles, CA
... That is all I have to say. 
First of all, Jimm and I are aware of each others car situation. He is aware that I am in the market for the 2007 E350 and I know he is in the market for the 2008.
Second, I am a newbie
so no one is "schooling" anyone.Third, I was simply offering the "deal" I was offered in an effort to aid a fellow consumer. I still stand by my original statement and will say that dealers (even though the 07 are just rolling in) will heavily discount them in SoCal because of the market here. The demand is NOT the same as it might be where Jimm is located.
Super Member
Joined: Aug 2005
Posts: 822
Likes: 0
From: Oregon
Harley-Davidson
Originally Posted by gotoschoolhere
. . .I am getting about $10,000 off of MSRP with a money factor of .0018. . .
Originally Posted by gotoschoolhere
. . . Jimm . . . is aware that I am in the market for the 2007 E350 . . .
Originally Posted by jimm
Sorry goto, but I will BET that you’re not getting 10,000 off
on an 08 E-350.
jimm
on an 08 E-350.
jimm
Last edited by cyclerider; Jul 6, 2007 at 08:36 AM.
Thread Starter
Senior Member
Joined: Apr 2007
Posts: 343
Likes: 0
From: Palm Beach Gardens, Fl
‘08 E-350 Sport, C6 Vette & Harley Davidson
for example only. It is ‘not‘ what I’m paying.
jimm
==========
In days - ‘08 E350 Sport, P2, Black/black,
Parktronic, Voice, Bluetooth, Burl Walnut,
Split rear seat, Rear mud flaps, nose star
Thread Starter
Senior Member
Joined: Apr 2007
Posts: 343
Likes: 0
From: Palm Beach Gardens, Fl
‘08 E-350 Sport, C6 Vette & Harley Davidson
Manufacturers Discounts aren’t what they used to be!
According to Edmunds - there’s only about a 7% mark-up on MB.
I know ... this is without volume discount, the dealer’s ridiculous
prep fee, hold backs, trunk and other special incentives. So on a
$58,000 car, the Dealer’s Commission would be around $4060. It
therefore seems a stretch to get a $10,000 discount on an E-350.
MANY years ago, up in Ohio, I was a Ford Tractor and Implement
dealer. Our profit was about 25%. Similar I think for car dealers.
But, little by little, Manufacturers started shrinking the discounts
on “suggested retail” pricing. With cars ... the discount shrinkage
started with the “little” cars. Then it spread to the full sized cars.
My only point being - that sometimes we “overly” fantasize as to
how much commission the dealer really has to work with.
jimm
According to Edmunds - there’s only about a 7% mark-up on MB.
I know ... this is without volume discount, the dealer’s ridiculous
prep fee, hold backs, trunk and other special incentives. So on a
$58,000 car, the Dealer’s Commission would be around $4060. It
therefore seems a stretch to get a $10,000 discount on an E-350.
MANY years ago, up in Ohio, I was a Ford Tractor and Implement
dealer. Our profit was about 25%. Similar I think for car dealers.
But, little by little, Manufacturers started shrinking the discounts
on “suggested retail” pricing. With cars ... the discount shrinkage
started with the “little” cars. Then it spread to the full sized cars.
My only point being - that sometimes we “overly” fantasize as to
how much commission the dealer really has to work with.
jimm
Last edited by jimm; Jul 8, 2007 at 08:23 AM.
Newbie
Joined: Jun 2007
Posts: 13
Likes: 0
Let's not forget there is a $3000 marketing support on 07 models from MBUSA to dealers. Add that to the MSRP and invoice spread, holdback and prep fee, etc. You can possibly get a 10k discount if the dealer is desperate.
