androza

As of now, I do not have enough money free (a lot is in long term/high interest bank accounts) to buy an E500. I will not take out a loan for this car. However, I am considering leasing, then buying the car at the end. If I leased, and bought it at the end of my lease, would I be losing a lot of money? Also, is it better to put down a large downpayment and have smaller monthly payments, or vice versa? I intended on putting down about 10-15K, but I don't know how leases work really at all. Any help would be appreciated.

jhb

If writing off the lease as a business car, then as little down as possible may be the best. If personal, more money down as the effective financing rates are still pretty high, say 7-8%. Residual is lower with JP Morgan Chase Automotive Finance leases thus payments a little higher. But your buy out is lower at the end. With MB Finance the residual is higher and thus payments a little lower but costs more to buy out at the end. Some say the buy out is negotiable with MBUSA at the end, but I have not found that to be true in 3 deals so far. One friend says they did negotiate.

Another difference between MB Finance and Chase is the MB Finance has an early termination fee of 4% of the remaining "principal" balance and Chase does not. Most MB dealers offer both MB and Chase financing and leasing.

Also, ask your accountant for advice on the overall use of your money. Good luck and enjoy whatever you do.

androza

Well, the main question is, will I get raped when I buy it back? Will I lose a huge amount of money (5000 or more) or will it be not so bad?

drb

Have you thought about reading a book on leasing? There are many unpredictable factors. For example, if you drive above a preset limit of miles you pay, if you have excess dings and damage, you pay, if you modify the car you pay. Key is to analyze the lease terms before you sign, each one can be tricky. If the car is worth well below residual, and you do not want to lease another from the same company, do not expect to be cut any slack...been there and done that.

Another option is the baloon payment program offered by MBCC. It can be better than a lease.

saintvir

http://www.edmunds.com/advice/?id=lin9009

The above link answers your questions about how leasing works (click on links in middle of page).

androza

Much thanks, that'll help a lot.