NY Lease terms
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Joined: Jan 2002
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From: New York Area
'14 E350 wagon; BMW G12 (2020) G01 (2019)
NY Lease terms
Dealer just told me that for E500 36 mo/15000/yr lease that residual is 57% and money factor is .0031 -- for Tier 1. The money factor works out to more than 7%. For purchase through MBCredit, the interest rate is 5.65%. All of this sounds not so terrific to me. Are the NY lease rates high because of the NY nutty libaility law that can attach liability to the lessor? Or is the dealer just playing games? Anyone have recent experience leasing in NY that can shed some light here? Thanks.
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From: House of Imports, MBZ (So. Cali.)
'06 ML500 w/Apperance pkg & '07 SL550 w/AMG pkg
Leasing in NY is expensive compared to out here in Cali. I know that the acquision fee in NY is $1800 and here it is only $1095! Are you buying '04 or '05?
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Joined: Jan 2002
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From: New York Area
'14 E350 wagon; BMW G12 (2020) G01 (2019)
Originally Posted by MarcusBenz
Leasing in NY is expensive compared to out here in Cali. I know that the acquision fee in NY is $1800 and here it is only $1095! Are you buying '04 or '05?
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From: NJ
'05 e320 cdi, '05 lexus rx330
Originally Posted by weinschela
Are the NY lease rates high because of the NY nutty libaility law that can attach liability to the lessor?
Bingo!
NY's law is the ONLY reason the cars cost more in NY
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From: Warren, NJ
'05 E320 CDI;'04 S2k;'94 Supra TT;'10 QX56;'38 Buick;98 Port City Offset Late Model
In NJ, MF is .00310 also. Fee is $795. I thought residual was 61% on 36/39 mo '05 CDI.
In any event, at those costs we will take the risk and buy.
If borrowing, I would do it from a home equity line for the lower, deductible interest costs.
In any event, at those costs we will take the risk and buy.
If borrowing, I would do it from a home equity line for the lower, deductible interest costs.
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From: NJ
'05 e320 cdi, '05 lexus rx330
Originally Posted by DavidNJ
In NJ, MF is .00310 also. Fee is $795. I thought residual was 61% on 36/39 mo '05 CDI.
In any event, at those costs we will take the risk and buy.
If borrowing, I would do it from a home equity line for the lower, deductible interest costs.
In any event, at those costs we will take the risk and buy.
If borrowing, I would do it from a home equity line for the lower, deductible interest costs.
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Thread Starter
Senior Member
Joined: Jan 2002
Posts: 429
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From: New York Area
'14 E350 wagon; BMW G12 (2020) G01 (2019)
Originally Posted by DavidNJ
In NJ, MF is .00310 also. Fee is $795. I thought residual was 61% on 36/39 mo '05 CDI.
In any event, at those costs we will take the risk and buy.
If borrowing, I would do it from a home equity line for the lower, deductible interest costs.
In any event, at those costs we will take the risk and buy.
If borrowing, I would do it from a home equity line for the lower, deductible interest costs.
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From: Warren, NJ
'05 E320 CDI;'04 S2k;'94 Supra TT;'10 QX56;'38 Buick;98 Port City Offset Late Model
There was a period when the MF on an MY04 E320 was .00230. At that rate it was a closer decision. Leasing has its own advantages and disadvantages.
Advantages include cheap miles (.15 in advance, .20 after vs. .30+ on trade-in), protection from principal loss due to collisions (repaired accidents can take $5-10k off the value of a car on trade-in), guarantteed residual value (no trade-in negotiation), and in some states reduced sales tax (in NJ on the depreciated amount only, a 60% reduction).
Disadvantages include fixed end date (new model may be just arount the corner), additional fees (one of the main topics on this thread), high interest rates (another topic), no residualization of dealer installed options, and some direct charges for minor defects on turn-in (a real potential problem in NYC, the home of the parking lot ding and bumper scrapes.)
Loans are sometimes subvented by the manufactuer, and then can be attractive. Otherwise, home equity loans usually have lower interest rates and always are deductable, which auto loans are not. The advantage of the tax deductability varies in the income range of many E-class buyers.
Advantages include cheap miles (.15 in advance, .20 after vs. .30+ on trade-in), protection from principal loss due to collisions (repaired accidents can take $5-10k off the value of a car on trade-in), guarantteed residual value (no trade-in negotiation), and in some states reduced sales tax (in NJ on the depreciated amount only, a 60% reduction).
Disadvantages include fixed end date (new model may be just arount the corner), additional fees (one of the main topics on this thread), high interest rates (another topic), no residualization of dealer installed options, and some direct charges for minor defects on turn-in (a real potential problem in NYC, the home of the parking lot ding and bumper scrapes.)
Loans are sometimes subvented by the manufactuer, and then can be attractive. Otherwise, home equity loans usually have lower interest rates and always are deductable, which auto loans are not. The advantage of the tax deductability varies in the income range of many E-class buyers.
