MiamiMBdriver

When Jan 1 hit, all the leasing companies (including Chase and MBUSA) lowered residuals and raised lease interest rates.

Rumor has it that as we move into January all will improve.

Has anyone seen an improvement in residuals and rates since Jan 1?

Vic55

Most large leasing banks adjust their residuals quarterly so the next change would be around April of this year. In regards to money factors, those can change as the "wind blows". I have seen some banks change their money factors 5 times in 2002 and others only twice. I think US Bank is offering the best money factors which are around .00170 for A1 credit. Of course factory lenders may offer better rates to move certain high volume units but usually MBCC is higher.

feo2

Just signed a 39 month lease on a E320 Sport today. 69% residual and .00285 MF through MBCC. Can't comment on how that compares to late '02 as I didn't start shopping hard until after the 1st. Overall, not a bad deal.

Lower MFs were available but didn't come close on the residual.

MiamiMBdriver

feo2:

That's awesome! What's your mileage allowance...1000 per month?

MiamiMBdriver

feo2:

That's awesome! What's your mileage allowance...1000 per month?

feo2

Yeah, 1k miles per month. Obviously, MB is offering the strong residuals to move some cars. I was more than happy to take it off their hands at these rates.

Vic55

I look for the lower residual matched with the lowest money factor. My E55 with Chase had a residual 5k higher than that of US Bank but the payment was only 20 dollars per month less since US Bank's money factors are dirt cheap right now. This way if I ever want to get out of the lease early I am 5k better in the payoff with US Bank than with Chase. If you are keeping your lease for the entire term then Chase is probably a better way to go.

JQP-MB

How can I get in touch with US Bank? Do they have a website?

cappy

FEO2 --

They're identical. MB Financial hasn't announced new rates yet. By waiting till the new year, you saved on luxury tax. Well done.

briar

I have used the following web site to obtain competitive lease rates;
www.leasecompare.com
They typically have lowest cost of money (effective interest) but along with that is lower residual.
Good Luck.

cappy

Until it changes, the buy rate offered by MBCC is a 69% residual and a 2.85 money factor. Is this good? Actually, it's average at best. The 69 percent residual's swell.

A Tier One money factor of 2.85 works out to 6.84%. That's not swell. If you were to finance a new car, you could do a lot better than that.

My expectation is that the Tier One residual will go down a few points when MBCC changes it's rates, but MBCC might compensate by lowering the money factor.

The proof will be in the pudding.

Joseesq

Today I visited a MB dealer in Southern California. I am looking to turn in my BMW 528i by March so I have 2 payments left totaling $870. The dealer offered me the following lease payments for a 2003 E320 with Jade Black exterior/charcoal leather seats, E2 package, and CD changer: $5,000 drive-off (which includes the $870 payment to BMW), 39 month lease, 10K miles a year, $549+tax. What do you guys think? Good, bad or average deal? Or should I wait for a couple of months when my payments to BMW are over and then reevaluate the MB lease? Any feedback is greatly appreciated.

bmwbmw

Joseeq, I'm in exactly the same condition as you - have a 528i lease exping in march. I can't for the life of me make up my mind as to extend my lease for 6 months and get the new 5 or get the new E. If you read other forum threads, it seems there's deals to be head on the new E, although there's amazing deals to be had on the expiring 5 too.

The deal you mentioned - what's included in that $5000 drive-off? Does it include the bank fee, security deposit, 1st month payment etc? If it does, it does seem like a pretty good deal. If it doesn't, it might be a lousy deal. Let me know - I can run it through my complex leasing calculator.

Joseesq

bmwbmw,

Sorry for not getting back to you sooner but I just arrived from a trip to London. The $5,000 included everything--that is the total drive-off. Since then I got an even better offer. I went to Carsdirect.com and they were able to locate a 2003 E320 with brilliant silver exterior/ash interior, E2 package and CD changer for a total drive-off of $5,000 with payments of $500/month including tax for 48 months. That price also includes a mileage allowance of 15,000/year. Unfortunately, I declined the offer only because they couldn't "wash" my last two payments on the 528. I'm anticipating that within the next month or two, I can get the E320 with the E2 package, CD and 12k-15k mileage allowance for $4,000 drive-off and $500/month including tax for 39-48 months. BTW, I would not get the 2003 5 series since, as you know, the new model will be out for 2004. Why get stuck in a multi-year lease for a car that will have a different body/interior before year's end?

bmwbmw

Joseeq,

I agree with you.....I'm not going to get the 2003 5 although I did put down a refundable deposit towards the new 2004 5, supposedly coming in Sep 03. I figure I'll wait and see what the new 5 looks like, drives, prices etc and based on that will decide between the 5 and the MB E-class. Since the E350 will probably be released about the same time, I figure the best option might be to closely monitor prices on the E class in the interim.

Joseesq

bmwbmw,

Someone attached a picture of the 2004 5 series and I personally don't like the looks. No pictures of the interior but the exterior was enough to persuade me to get the MB. You are right though, I may consider waiting for the E350. We'll see.

george777

I have started 'shopping around' (NY/NJ/CT) for a lease on a 2003 E320 as the lease on my Jag S-Type ends in early June.

Joseesq, did carsdirect.com provide any further details as to which dealer offered the lease that you declined?

bmwbmw, I am also hoping that around May or June I might be able to get a good price on a 320 lease, especially if the 350 rolls in later this year.

Any info/advice that either of you can share would be greatly appreciated.

Joseesq

George777,

Unfortunately, Carsdirect.com never gave me the dealer name nor did I ask. I do, however, remember that the dealer was giving a great deal because it was a special order and the buyer wanted to back-out for some reason and the dealer didn't want to take the hit. Coincidentally, there was an ad in the LA Times on January 25, 2003 (when I was out in London) that advertised a black 2003 E320 (totally base) for only $2600 total drive-off and $499 plus tax month for 39 months. The dealer for that special was in Calabasas, California. Good luck and let us know if you find any good deals.