E500 Lease Good or Bad?
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From: SoCal
E500 Lease Good or Bad?
I'm helping a friend out on leasing an E500. So far a dealer has offered to lease him a 2004 E500 with appearance and premium packages for about $780 plus tax a month for 39 months with a 12,000 year mileage allowance. The drive-off is about $1,350 (first month and dmv/registration). Not concerned about residual or money factor, per se since he knows he will not be buying at the end. Is this a good deal? Can you share your lease deal? Thanks in advance.
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From: Socal
E500
What is your friend's fico score? Does he have a comparable auto lease before? What is his income? How old is he? How long does his credit shows in report? ....... those are all the import factor to determint lease payment.
Beside that. A E500 with appearance and premium is about $63500 MSRP. For $780 a month + tax is consider a good deal since he has no money down and roll over the bank fee into payment.
Banks have different residual vs. money factor. What is better better orange and apple?
I will say that is a reasonable deal. If you want real good deal, then get a standard car which will be cheaper. Perhaps try for E320, you will get better residual value.
How about $515 + tax?
The conclusion:
If you want a good deal on lease.
1. Need strong credit.
2. Multiple security deposite (usually 10 payments with or without tax, depends on bank) The security deposites buy down the money factor.
With approximately $8000 + drive off, your friend's payment should be like $740 +tax
Beside that. A E500 with appearance and premium is about $63500 MSRP. For $780 a month + tax is consider a good deal since he has no money down and roll over the bank fee into payment.
Banks have different residual vs. money factor. What is better better orange and apple?
I will say that is a reasonable deal. If you want real good deal, then get a standard car which will be cheaper. Perhaps try for E320, you will get better residual value.
How about $515 + tax?
The conclusion:
If you want a good deal on lease.
1. Need strong credit.
2. Multiple security deposite (usually 10 payments with or without tax, depends on bank) The security deposites buy down the money factor.
With approximately $8000 + drive off, your friend's payment should be like $740 +tax
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From: SoCal
Thanks for the response. My friend has excellent credit and I understand how his credit rating affects the MF. What I don't understand is why pay $8,000 on a lease up-front and pay $740/month versus $1,350 drive-off and $780/month. Even if you multiply $40 (the lower monthly payment) times 39 months, you still only save $1,560 then you offset that with the $8,000 you put in and you are now over $6,500. I'm not accountant by any means so maybe I just don't get it. 
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From: House of Imports, MBZ (So. Cali.)
'06 ML500 w/Apperance pkg & '07 SL550 w/AMG pkg
In a Multiple Security Deposit Lease, the money you put down in deposits will be given back to you at the end of the term. In the equation above, you friend will tie up $8000 dollars at the bank to save $1,560 over the term of 39mos. I only recommend this type of lease to a client that was originally going to pay cash. This would be a way for him to get a slightly better rate and can still get the tax advantages of the lease! Then at the end, they will buy the car from the lender.
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Joined: Nov 2003
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From: Socal
E500
Originally posted by wml350
rusnakmb:
2004 ML 350 ($37,500) lease for $665 including tax. I have excellence credit but have never leased a car before.
Is this a bargain deal or did I get ripped off.
Thanks
rusnakmb:
2004 ML 350 ($37,500) lease for $665 including tax. I have excellence credit but have never leased a car before.
Is this a bargain deal or did I get ripped off.
Thanks
The deal seems really high in payment, but there are few exceptions...
1. What is your lease term?
2. What is your annual mileage?
3. Which I have seem that you are first time lease, then how long have you been on credit report and have you finance a auto before??
4. Most important... When did you lease the vehicle? Currently MB is offering $2k incentive.
If you need more information, feel free to ask.
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From: GA
E350---2007
rusnakmb -------
1. $0 down payment
2. The lease term is 39months
3. I have about 7 years on credit report with excellent credit and yes I have financed an auto before.
4. I leased the vehicle in 12-30-03
Oh by the way got $500 towards my first payment. I bargained the ML down to $37,500. I hope I didn't get ripped off.
Thanks for your help.
1. $0 down payment
2. The lease term is 39months
3. I have about 7 years on credit report with excellent credit and yes I have financed an auto before.
4. I leased the vehicle in 12-30-03
Oh by the way got $500 towards my first payment. I bargained the ML down to $37,500. I hope I didn't get ripped off.
Thanks for your help.
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Senior Member
Joined: Nov 2003
Posts: 398
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From: Socal
E500
Originally posted by wml350
rusnakmb -------
1. $0 down payment
2. The lease term is 39months
3. I have about 7 years on credit report with excellent credit and yes I have financed an auto before.
4. I leased the vehicle in 12-30-03
Oh by the way got $500 towards my first payment. I bargained the ML down to $37,500. I hope I didn't get ripped off.
Thanks for your help.
rusnakmb -------
1. $0 down payment
2. The lease term is 39months
3. I have about 7 years on credit report with excellent credit and yes I have financed an auto before.
4. I leased the vehicle in 12-30-03
Oh by the way got $500 towards my first payment. I bargained the ML down to $37,500. I hope I didn't get ripped off.
Thanks for your help.
What is the MSRP of the vehicle you getting? 12-30 so still the old price. I need to know the MSRP.
Base on $37k, your lease for 39 months with 12k should be around $530+ tax if you are tier 1 credit. That was to MBCC. If you are qualify for US Bank, then your lease is way low as $485+tax. I am using $MSRP of $43k with bank's buy rate.
Anyway, if you already take the vehicle, then why bother to ask? It wont do you any good...... I have sold a customer with 42 mos 12k for $499 included tax with minimum Drive-Off base on a $44k MSRP car. BUT..... I don't think any dealership like to do that kind of deal.... Dealership need to mke "little" money too....
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Joined: Dec 2002
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From: Irvine, CA
07 M6, 05 Noble, 01 S4, Smart ForTwo
If you understand leases, I have a great lease calculater in excel format. You need to know money factor, residual, etc. PM me if you want it. Great tool. However, you must take into consideration weather or not you are paying gas guzzler tax upfront or residualized in lease, etc.
MBWorld Fanatic!
Joined: Dec 2002
Posts: 2,399
Likes: 1
From: Irvine, CA
07 M6, 05 Noble, 01 S4, Smart ForTwo
Originally posted by wml350
Thanks Brav. Meant to say this a while ago. How did you come up with the formula? And how accurate is it?
Thanks Brav. Meant to say this a while ago. How did you come up with the formula? And how accurate is it?
