mjsongin

2011 Mercedes Benz E550 4matic sedan, outstanding condition, palladium silver w/almond leather, burl walnut trim, $1,200 remote starter, panoramic roof, P2 option package, AMG sport package, drive dynamic drivers seat, parktronic, LED, BiXenon headlamps w active curve illumination, heated and ventilated front seats, Keyless Go, all options. All services up to date. Inspected July 2014. Tires and brakes have been replaced. E550 needs absolutely nothing. Full service history, all books, records and original window sticker available. Dealer Scotchgard paint & fabric protection. You must qualify thru MB Financial Services. 12,000 miles available thru 7/26/2015. Current miles is 35,600 on 48,000mi lease. Lease may be able to extended beyond July 2015 by MBFS. Original payment is $800/month. I am offering a $3,000 incentive. Pics available (I can't seem to get them uploaded).

CEB

What is the residual?

mjsongin

35556

CEB

Ouch. The Edmunds current value with 36k miles is between $29k and $33k.

KEY08

Why ouch? Isn't the lease more advantageous with a high residual that numbers are based upon?

CEB

Yes it is - unless you are intending to buy the car at the end of the lease.

In determining what a lease will cost, you should always figure:

Up front and turn in costs plus
Monthly payments plus
Residual

That will determine what you've actually paid for the car.

In this case, a lease assumption would only make sense for somebody who wants a sort term (under 1 year) lease and then turn the car in.

ddeliber

I think that you might have looked at the top line numbers (without options and adjustments). I ran the car with "clean condition" and the listed options and I saw between $33.5k and $38.5k. I did see between $29 and $33 without options.

mjsongin

I am surprised at the amount of attention given to auction numbers, which 99.8% of car buyers have zero access to. All they know is what the car is listed for on the lot. In my experience, most customers buy at "retail" from a authorized dealer, because they want a reputable party standing between they and the car that they purchased. I personally believe in relationships with an authorized dealer and am totally fine with a dealer making a profit on every transaction, since I expect to do the same. That relationship has value to both parties. Dealers have access to auctions because they have risk in a financial overhead commitment and need that profit margin to stay in business. I might be one of those weird individuals that believes the relationship has more value than the car deal itself, because if some goes wrong with the car, it no longer matters what you paid for it.

75gasgas

PM Sent about car.

Thanks,

BS