E lease with low residual.
Thread Starter
Member
Joined: Oct 2002
Posts: 113
Likes: 0
From: Northern California
E 320
E lease with low residual.
36 month lease on 320.
10000 down
1141 installments
13000 residual value (15K annual miles)
purchase price was 49700.
Will be paying total of over 64000.
Is this appropriate ?
(wanted to keep residual as low as possible as intend to purchase)
10000 down
1141 installments
13000 residual value (15K annual miles)
purchase price was 49700.
Will be paying total of over 64000.
Is this appropriate ?
(wanted to keep residual as low as possible as intend to purchase)
MBWorld Fanatic!
Joined: Dec 2002
Posts: 2,399
Likes: 1
From: Irvine, CA
07 M6, 05 Noble, 01 S4, Smart ForTwo
IMO, not very smart. Provided you have good credit (700+), this is what you could do: ad 10% to your purch price for tax title lic etc, that = 54,670. -10,000 for your down, that = 44,670. Financed over 5 years at 4.5% ( avail from US Bank and Fifth Thrid Bankon new autos) and your payment is 832.78. And you own it. Over 48 mos your payment would be 1,018. 36 mos it would be 1,328. Hope this helps.
MBWorld Fanatic!
Joined: Dec 2002
Posts: 2,399
Likes: 1
From: Irvine, CA
07 M6, 05 Noble, 01 S4, Smart ForTwo
Ask him/her/them about the new "rapid/accelerated depreciation law" regarding autos. Works out to be the same advantage from what I gather. If you do lease it, make sure the residual and the proposed "buy price" are the same - they are represented as different numbers, and they might try and slip on on you.
Thread Starter
Member
Joined: Oct 2002
Posts: 113
Likes: 0
From: Northern California
E 320
I don't know?
Have always purchased in life.
Never leased before.
Thought the main negotiation was selling price.
Decided on 50000 with options (pre tax 7.25%)
When went for delivery they asked
Down =? I said 10K.
miles = ? I said Will drive less than 5K but want less price as residual to buy at the end of the lease.
I was told we will make numbers perfect for you.
10K down, 1141 X 36 months = 41K, 13K residual
Totals 64K on a car worth 50K selling price.
Something does not seem perfect but did it.
(82 miles on the car,,,but did not want to spoil the happy event)
Wonder if got taken for a ride though.
Love the car. Pano, full leather, H-K all are good.
Tele aid not activated yet. Says 48 hours later.
Never leased before.
Thought the main negotiation was selling price.
Decided on 50000 with options (pre tax 7.25%)
When went for delivery they asked
Down =? I said 10K.
miles = ? I said Will drive less than 5K but want less price as residual to buy at the end of the lease.
I was told we will make numbers perfect for you.
10K down, 1141 X 36 months = 41K, 13K residual
Totals 64K on a car worth 50K selling price.
Something does not seem perfect but did it.
(82 miles on the car,,,but did not want to spoil the happy event)
Wonder if got taken for a ride though.
Love the car. Pano, full leather, H-K all are good.
Tele aid not activated yet. Says 48 hours later.
Trending Topics
MB World Stories
The Best of Mercedes & AMG
Manual Mercedes? 6 Times Sindelfingen Let Drivers Have All The Fun
Verdad Gallardo
Mercedes SLR McLaren 722 S Is Extremely Rare Example Modified by McLaren
Verdad Gallardo
8 Classic Boxy Mercedes Designs That Have Aged Like Fine Wine
Verdad Gallardo
Flawlessly Restored Mercedes 190E Evo II Heads to Auction
Verdad Gallardo
Electric Mercedes C-Class Unveiled: 11 Things You Need to Know
Verdad Gallardo
Mercedes EQS Gets A Major Update: Everything You Need to Know
Verdad Gallardo
5 Underrated Mercedes-Benz Models That Don't Get the Love They Deserve
Verdad Gallardo
Mercedes 300D Has Pushed Well Past 1 Million Miles and It Ain't Stopping
Verdad Gallardo
10 Most Reliable Mercedes-Benz Models You Can Buy Used
Verdad Gallardo
Member
Joined: Jul 2002
Posts: 134
Likes: 0
From: New Jersey
2004 Audi S4, 2003 CLK 500
Sounds like alot of money for your lease. I am paying 999 a month for a loaded CLK500, no money down, sticker was just over $64,000, 39 months.
Last edited by rocky; Feb 11, 2003 at 08:12 AM.
Almost a Member!
Joined: Feb 2003
Posts: 26
Likes: 0
Low residual
I do not know the residual but will adivse. I am sure it is more than 13K. Are you sure buying the car via a lease with a high dp is the most economical? Mine is a company car so I do not worry about residual.
Thread Starter
Member
Joined: Oct 2002
Posts: 113
Likes: 0
From: Northern California
E 320
Either I got taken for a ride or ???
I 'feel' the key is the residual value. I understand that if I wanted a high residual value I could have paid less on the lease. But here the key is : If you want to purchase the car at the end of the lease you desire the low residual. (as this money will be your personal and not corporation etc.)
(By the way have never leased a car in my life. All homework I had done was about selling price. Rest I assumed would be all based on computer calculation of tables) may be a mistake assumption.
(By the way have never leased a car in my life. All homework I had done was about selling price. Rest I assumed would be all based on computer calculation of tables) may be a mistake assumption.
Almost a Member!
Joined: Feb 2003
Posts: 26
Likes: 0
Bottom Line
You are just looking at two ways to purchase. you should ultimately pick the cheapest total cost, with the exception of the cash flow. You are putting up 10K on day one and lose the use of the money for three years. With interest rates so low it may does not make a difference. Once I get my residual value I will give you the total cost of my vehicle if purchased.
Ed Todd
'03 E500
Black Opal
Ed Todd
'03 E500
Black Opal
Almost a Member!
Joined: Feb 2003
Posts: 26
Likes: 0
E500 Numbers
As promised here is my entire deal.
MSRP 62,415 E500 Voice phone Moon Roof, HK, CD Player and Heated Seats, 22,000 miles a year
No Money Down, $950, total payments 37,050
Residual 35294
Total Cost 72,344
10,000 cost over MSRP
IQguy you paid close to 15,000 over cost you have a 320 and 15K miles a year...do not know your options. Hope this helps
MSRP 62,415 E500 Voice phone Moon Roof, HK, CD Player and Heated Seats, 22,000 miles a year
No Money Down, $950, total payments 37,050
Residual 35294
Total Cost 72,344
10,000 cost over MSRP
IQguy you paid close to 15,000 over cost you have a 320 and 15K miles a year...do not know your options. Hope this helps
Banned
Joined: Mar 2002
Posts: 1,384
Likes: 1
From: House of Imports, MBZ (So. Cali.)
'06 ML500 w/Apperance pkg & '07 SL550 w/AMG pkg
I know that you are looking to write off the car as quickly as possible, but I think the dealer made some money in the rate. You may have negotiated a very good selling price, but as with all leases and on financing, you must consider the rate or money factor into the equation. I do not want to rain on your parade, but I think your dealer may have pulled a fast one one you!
Banned
Joined: Mar 2002
Posts: 1,384
Likes: 1
From: House of Imports, MBZ (So. Cali.)
'06 ML500 w/Apperance pkg & '07 SL550 w/AMG pkg
frenkeleft,
You must consider that IQguy will be able to depreciate his car very rapidly and save a substanial amount in the tax write off as well as the tax write off on the $10000 he put down initially. If your accountant did not let you know that you can write off a certain protion of the cap reduction each year, ask!!
You must consider that IQguy will be able to depreciate his car very rapidly and save a substanial amount in the tax write off as well as the tax write off on the $10000 he put down initially. If your accountant did not let you know that you can write off a certain protion of the cap reduction each year, ask!!
Thread Starter
Member
Joined: Oct 2002
Posts: 113
Likes: 0
From: Northern California
E 320
Inexperienced.... confess...
I learnt from this forum about the good selling price.
My 320 with full leather, CD changer, HK sound, pano roof.
We agreed on selling price of $500 over invoice = 49400.
At the time of deliver dealer added $500 IRG making it 49900.
(has been a month and 1000 miles in it I am beginning to forget)
I was to buy cash.
Accountant suggested lease via company.
Since I did no homework I just demanded low residual.
With payments 1141 for 36 months and 10 K down.
I pay total of 64K with residual of 13 K (I am told)
The car would have costed about 53K,
instead I am paying 64K.
Similar to frankeleft I think.
But, you are right, did not have any idea of the money factor etc.
My 320 with full leather, CD changer, HK sound, pano roof.
We agreed on selling price of $500 over invoice = 49400.
At the time of deliver dealer added $500 IRG making it 49900.
(has been a month and 1000 miles in it I am beginning to forget)
I was to buy cash.
Accountant suggested lease via company.
Since I did no homework I just demanded low residual.
With payments 1141 for 36 months and 10 K down.
I pay total of 64K with residual of 13 K (I am told)
The car would have costed about 53K,
instead I am paying 64K.
Similar to frankeleft I think.
But, you are right, did not have any idea of the money factor etc.
Thread Starter
Member
Joined: Oct 2002
Posts: 113
Likes: 0
From: Northern California
E 320
Please educate! ! !
What should it really be to be called reasonable?
1. Money factor and
2. rate applied
Can one change the lease terms, or terminate sooner or do anything different if the money factor and rate are unreasonable?
1. Money factor and
2. rate applied
Can one change the lease terms, or terminate sooner or do anything different if the money factor and rate are unreasonable?
Last edited by IQguy; Mar 10, 2003 at 02:04 PM.
Almost a Member!
Joined: Feb 2003
Posts: 57
Likes: 0
From: San Jose / Gilroy, CA
'03-E320 and "02 Porsche C4S
IQguy;
MBenz std MF, I was told, was around 0.00345.
My MF rate is .001800, corresponding interest rate = about 4.3% (based on an Auto FICO score of 740).
I have heard of rates a bit lower, but when I was looking a month or so ago, that was the best I found (although I did not look too hard, as I only checked three places - MBenz, Leasecompare.com and WF...WF won out).
Usually once you have signed the lease it is a done deal. I understand that there is legislation in the works to require MF rates and the corresponding interest rate to be disclosed. The dealers and lease companies can really F with people because unless you know all these little bits (and also have the means to calculate the numbers yourself to verify everything) people get taken advantage of.
Most important is that you got a great car that you should really enjoy. For what it is worth, it sounds like you got a better selling price than I did, by almost a grand.
Doug
MBenz std MF, I was told, was around 0.00345.
My MF rate is .001800, corresponding interest rate = about 4.3% (based on an Auto FICO score of 740).
I have heard of rates a bit lower, but when I was looking a month or so ago, that was the best I found (although I did not look too hard, as I only checked three places - MBenz, Leasecompare.com and WF...WF won out).
Usually once you have signed the lease it is a done deal. I understand that there is legislation in the works to require MF rates and the corresponding interest rate to be disclosed. The dealers and lease companies can really F with people because unless you know all these little bits (and also have the means to calculate the numbers yourself to verify everything) people get taken advantage of.
Most important is that you got a great car that you should really enjoy. For what it is worth, it sounds like you got a better selling price than I did, by almost a grand.
Doug
Thread Starter
Member
Joined: Oct 2002
Posts: 113
Likes: 0
From: Northern California
E 320
Valid point
DPblessing you make a good point. I plan to continue enjoying the car.
One thing of importance is that how the car sales people trick people into paying more. No wonder they get the reputation they deserve. You would not expect the same from MB type of a dealership I thought. (My first MB)
Oh well. people are always the same. No matter race, religion, car dealership......
Agree, life is too short to complaint about few thousand overpayment.
One thing of importance is that how the car sales people trick people into paying more. No wonder they get the reputation they deserve. You would not expect the same from MB type of a dealership I thought. (My first MB)
Oh well. people are always the same. No matter race, religion, car dealership......
Agree, life is too short to complaint about few thousand overpayment.
