jumper4000

You gave me a heart attach for a sec, but that's correct, hehe. I don't have the exact numbers with me right now, but this is what the $61,480 includes (roughly) -

$50,902 (Selling price of the car)
$875 (Destination charges)
$5,048 (Sales tax. That's a killer in LA - 9.75%)
$3,855 (2.9% interest charge)
$800 (Title, registration, document fee, tire fees, and whatever other pennies they can squeeze out of you)

Pretty much, the only thing that's typically negotiable is the price of the car, which I got over $8,000 off on. HOWEVER, until January 4th, the interest rate is negotiable too. Mercedes, is running a special for 3.9% (which is still good), BUT what they don't tell you is that, 1% of that rate is a dealer incentive, so if u bargain enough, u can get it for as little as 2.9%, which is exactly what I did.

ALSO, as a little bonus, if you purchase the car before the end of THIS year, the entire sales tax is deductible, so I'll be getting about 2k back.

To me, it didn't make sense to lease this year, because the residual is lower than the previous years, and the money factor is pretty high right now. The same car would have cost me $725/month to lease for 36 months, plus 4k down. And then, at the end, I would've had to give it back...

Minuteman

Oh since it encompasses the 2.9% APR, sales tax, destination, and title that's a pretty good deal. Oh nice job on getting the extra $2,000 back.
Ya leasing it should of cost you around $30,000, would of that included title/destination/sales tax? If not it could of been around $35,000 to lease for 3 years. Smart buy and once again nice deal.

Rowrbazzle

Technically, one can only deduct sales tax for the first $49,500 of the sales price. That'd be about $200 you can't deduct. Still, it's a nice deal for those who don't itemize (I think you normally have to itemize in order to deduct sales tax). It was one of the reasons I bought the car this year instead of waiting.

K-A

Wait, what's this talk about being able to deduct now but not after the new year?

I've been thinking of getting a new DD, just haven't had the time to go to any Dealers and go through the whole process. Would suck if I missed the opportunity.

Rowrbazzle

I think you've always been able to deduct sales tax on big purchases if you itemize. I've never itemized, though, so I can't say for certain. But the tax code change this year allows for you to deduct sales tax on a car even if you take the standard deduction. That change expires at the end of the year, though.

I suppose they might extend it, like they did with the home-buyer credit (that one now runs through April). Otherwise you might want to take off from work tomorrow and go car shopping.

220S

It was for 2009 purchases only. Hey, you still have another day

K-A

LOL, might have to make that a plan for tomorrow.

With us in Cali, that's a pretty solid deduction, with our ridiculous Tax percentage.

Minuteman

Hey, this may sound dumb (first time buying by myself), I'm from California where the statewide sales tax is 8.25% and around here I believe is 9.25%. Would it be smart if I purchased my car in Arizona where I believe the sales tax is 5.6%? This is assuming I can get the same deal at the dealership in Arizona.

California sales tax total @ 9.25% = $4,825
Arizona sales tax total @ 5.6% = $2,800
Total Saving: $2,025

(I just punched in $50,000 for the value of the car)

220S

No. You'll have to pay the difference when you register it. Otherwise we'd all be buying cars out of state.

p.s., plus you can't legally register it new here. You'd have to register it there and put at least 5k or own it for a year in AZ.

Minuteman

What I figured, damn you California and your insanely high sales tax.

K-A

Haha, I can't help but laugh at CA's stupid high Sales Tax. If you buy a $50K car, you're paying about $5K in JUST taxes. Stupid stupid high.

emilner

Be careful before you guys get all excited about deducting sales taxes. As we all know those in the higher income brackets are evil and therefor do not qualify for the deduction. Actually from what I see it seems prosperity is SO evil that not only do we get nailed for higher taxes and none of these stimulus packages or special deals but now they are going to raise the top tax brackets roughly 35% in the next two years. AHHH its good to be the devil, isn't it?

Rowrbazzle

However, if you can find a better price in Arizona then it might be worth it. I saved a good chunk by buying out-of-state. And it was no hassle at all (other than the distance); the dealership just incorporated my local sales tax and handled all the registration for me. Internet pricing makes it a lot easier to get a good deal, especially if you live in a place with only one MB dealership (like I do).

And California has state income tax and high overall cost of living. I can't imagine living out there. Sales tax where I live is 9.25%, but housing is cheap and there's no state income tax. Of course I don't have ocean views, but the mountains aren't bad.

K-A

Wow you guys are 9.25 too huh.

Yeah, c.o.l out here is very high, I imagine TN gives you some stress relief there.

Aside from the c.o.l, don't forget about L.A's ability to ****** a ticket out of you. My bro just got in from out of town, already 2 Parking Tickets and 1 Red Light Camera Ticket, no joke.

Saving on State Tax is huge!

K-A

Pretty soon you're gonna have to hide that Escalade and Benz business. They'll be out for ya in full force!

Rowrbazzle

Gah, that's a lot of tickets.

Yes, TN is nice, but it's still not as good as Texas. In Texas, COL is the same, sales tax is lower and still no state income tax. Plus, there's no tax on food groceries in Texas like there are here. Paying almost 10% tax on a loaf of bread just seems crazy to me. I think property taxes are higher, but that's okay. I live in small houses anyway.

Still, nothing is better than knowing that if the Federal government gets too out of control, my fellow Texans will have no problem supporting themselves again as a Republic.

Minuteman

Well in my situation, there are 4 Mercedes-Benz dealerships within a 30 minute drive (two within a 15 minute drive) and probably another 4 within an hours drive. Makes it easy to negotiate.

220S

Not all of us are here for the California mythos. Some of us are from here originally and some of us are here for the higher wages and opportunities. People are still moving into CA.

Yes, the cost of living is high here. But so are the wages. It's one of the highest paying regions in the country. That does level things out.

Plus the 9.25% is LA County. Go to Fresno, or up north in Humboldt County and the taxes and cost of living are a lot less. But the wages are less, too. Or Oregon where there is no sales tax. But wages are lower there, too.

LA is like NYC. Or London, or Paris, or Rome. High cost of living but high wages. And if you don't like the cost and housing issues of NYC, then you can live upstate where it's much cheaper. Same here, live in Riverside County instead where it's cheaper.

Sure, the sunshine and beaches here are nice amenities. And you pay for them. Just like you pay to drive a MB. We all could easily drive Honda Civics for transportation, but we pay the higher costs and depreciation of the MB because we want those amenities. We're in a heavily capitalist country where even fresh air has a price.

We choose where we live whether it's TX, TN, NY or CA. And each place has its downsides. It's all just a question of one's priorities.

p.s., the budget crisis that CA finds itself in is due primarily to the balanced budget law and Prop 13. These crazy propositions are attempts to reduce taxes without raising revenue. And so you have a budget deficit. Remember that the CA budget is bigger than most developed country's budgets of the world.

ghostrdr

you should check, but I think if your year end income is more than a certain amount ($260,000 for joint filers, I think), then I don't think you qualify for the sales tax deduction car stimulus.

bugatti

Here is the link regarding the tax deduction
http://www.irs.gov/newsroom/article/...217256,00.html

got simliar deal as Jumper on mine.

jumper4000

I actually tried to do that, and when I was negotiating they told me it would work out, however when I went to the finance guy to close the deal, he said it wouldn't happen... I was gonna use my work zip code where tax is 8.25%, but I live in LA where tax is 9.75% (only a few miles away). At the end, they wouldn't let me do it because my work address was no where on my credit report so they wanted proof of residency. I would have saved a thousand bucks, but oh well...

jumper4000

I'm pretty sure it's only a 2009 thing. It's part of the stimulus package, http://www.savingtoinvest.com/2009/0...-economic.html

mvpjeffmvp

Ok, you asked for the whole package so here you go:
2010 E350 Sport 4 Matic P2 package, AMG Wheel Package

MSRP- $59,075
Gross Capitalized Cost: $51,472
Capitalized Cost Reduction: $814.55
Registration Fee: $399.00
Documentary Fee: $249.00
Title Fee: $6.50
Tire Management Fee: $7.50

Total Out of Pocket: $2,300.00
Lease Terms: 39 Months, $749/month 15k miles/year

All Taxes and Fee's are incorporated into monthly payment. This better?

DoubleA

I got mine in NY MB of Manhattan

2010 E350 P1, sport package and rear spoiler.

List Price was 55985.00

I got loyalty cash and EAB cash total cost now 49585.00

10K miles/year 39months.

1985.00 total out of pocket cash due at signing.

599.00 per month taxes included.

Free scheduled maintenance for the length of the lease.


I think I got a pretty good deal. I love this car.

OceanView

That's a great deal.
One of the best I've heard so far.