jhpmbusa

I would think you can get your buyout price on online through mb financial services.

jaketuff

I am likely getting my ordered vehicle in this weekend - GLE 450. Couple of questions... THANK YOU in advance for your consideration.

The salesman has reiterated that my employer (A Bank btw) grants me a discount to MSRP. This comes to $4,000 off. I am wondering what tactics they will leverage to add profit back onto the MSRP? (The demand for this vehicle seems high... and the salesman has reiterated the MSRP discount this week.) At closing I will skip the prepaid maintenance and extended warranty. They have affirmed this will not complicate the discount.

Also I have top tier credit... can I expect a rate around 3.5% for a Loan?

Thanks again!!!

Elvisfan0108

why aren’t you going through your employer? You should get a better rate. I just a rate of 2.54 for 72 months.

jaketuff

Loan incentive through the dealer qualifies the discount. It is N/A directly through my employer - applying at the bank.

I suppose they get a commission for the loan as a dealer and the rate will be slightly higher.

I will know tomorrow.

Twin814

• hello can you please message me I would like to ask you a few questions

TugboatBill

You may be waiting a while. He hasn't been on this forum since 2017.

Twin814

Damn! I didn’t notice that thank you

Fortunatos

"Down payment" – or the first payment. The more you give at the very beginning of Lisa– the less your monthly payment will be throughout it. If you have good credit of more than 720 points, you will be able to pick up the car in leasing only after paying the first month and registration fees. By the way, you can even sell an old car here using the trade-in process. At this stage, "manufacturer rebates" (benefits from the manufacturer) and "incentives" (discounts of the car dealership or the state where you live) come into play. Usually, the value of discounts does not exceed 3-5 thousand dollars. In any case, you will find out the amount in paystubs.

DESAL

Just read a comment on leasehackr form and it seems that BMFS is now allowing the Third-Party Buyouts. Any truth to it?

freiwill01

I bought 4 years of PPM when I first bought my GLE350 new back in 2017. The PPM ran out last year and I paid my first service B. The tech found an some engine leak and the total bill including the service was $2100. He also told me at the next service, I would have to do brake system fluid flush, replace air filter element, and replace spark plugs which would be around $1400. He told me these items would be in addition to the regular service. He mentioned PPM would cover them.... does anyone know if this is true?

JTK44

Spark plugs are replaced at 50,000 miles.

Transmission fluid at 60,000 miles.

Brake fluid every two years or 20,000 miles whichever comes first.

PPM can be bought to cover these items: If the PPM is for service at 50,000 miles, which includes the replacement of the spark plugs, this will be reflected in the higher cost of the PPM.

My car was leased and I put the PPM in the lease and it was residualized: the residual on my car was 61%, so the actual cost of the PPM was 39%, plus interest plus tax. Most people have found that dealers have specials for the "A" service so the cost is about $200 and coupons for the "B" service, about $700, which makes the cost for the first "A" and "B" service under $1,000 which I believe is less than the two year, 20,000 mile PPM.

Very few have found that buying the PPM has saved them money.

Hope this helps.

DESAL

I will be ordering a GLC300 when they finally arrive in the states. Assuming that leasing stays as is I am thinking of leasing for more than 36 mts. Say 42 or more which will bring the payment down to an affordable amount. My question is with a new lease what happens if I decide at the 36mt mark and I want to get the latest and greatest GLC300? How do the dealers handle the various fees? Turning the car in early? Not sure if the mileage gets adjusted? Any input will be appreciated.

JTK44

A couple of things:

• The general rule in leasing is that when you extend the lease you must save substantial money: As the lease term is extended and mileage builds up wear and tear items, tires and brakes for instance need to be replaced. Any monthly savings by extending the lease may be more than offset by the cost of new tires, about $1500 and brakes.
• There are different money factors for different terms of a lease. Usually the most efficient is the 36/39 month lease. When you to out further the increase in the money factor may eliminate any savings.
• Residual: the lower residual on 48 vs. 36 month lease may negate any savings.

If you have a 48 month lease and want to end early you can do it: However, prior to the pandemic where almost every lease was upside down - the car was worth less than the residual, you were required to pay the remaining months on the lease: this was the same whether you kept the car and drove it, kept the car and put in a garage or returned the car. There is no mileage adjust.

With the pandemic, where the residual is less than the value of the car, in which case you have equity in the car, you might be able to get out of the lease by just returning the car or even a small profit.

But frankly I would not count on it: I believe in "reversion to the mean": In leasing that means you will be upside down and if you want to get out of your lease early, it will cost you.

Hope this helps.

DESAL

Thank you, it does help.

cetialpha5

I guess this is turning into a finance thread as the OP left a long time ago. In the past, the dealers used to let you turn in a lease up to 6 months early without penalty if you got into a new lease. Now with all the covid changes, not sure if that's true anymore. Might be true in 3 years when/if things get back to normal. And yes, usually the 3 year lease is the best deal which is typically why most leases are just 3 years. Going longer you should run the numbers and see if buying makings more sense. You should also consider rolling in the pre-paid maintenance package in with the lease, that gets rolled into the MSRP so if the residual is 50%, you only end up paying for 50% of the maintenance package even though you use up the entire maintenance package at the end of the lease.

JTK44

The 6 month without penalty you are referring to is called the "pull out" - Mercedes will "pull" you out of the lease.. From time to time Mercedes offers this program and it can be 3 months or 6 months. As you correctly posted it is to encourage the lessee to get into a new Mercedes.

Do not know if the program is presently available.

PPM: you are correct. If you do a 36 month/30K miles, most common, which I have done many times, the residual is about 60%: I took the 2 year PPM to cover the maintenance at 10K and 20K miles. My cost was 60%of the MSRP of the PPM plus interest plus tax and it was worth it. If you are not leasing with the coupons for both the "A" and "B: service that dealers regularly offer it is much cheaper to do that then buy the PPM or use an indy shop.

places

Anything over 36 months typically should go finance/purchase. If you need to spread a lease more than that you can't afford the car.

places

Right now it's 3 months. If the market softens more, expect to see 6 months sooner than later.

DESAL

I'm looking at 3-4 months before the GLC300 is in the showrooms. Running numbers is very hard with all the numbers up in the air and then some.

I like the idea of having a fixed value at the end of the lease. I have done pre-paid maintenance for 2 years on a 3 yr lease, since at the 3yr mark you turn the car back and the last maintenance is on MB.

One other wrinkle. Mercedes will extend the lease for 3 months. You need to give them a PO number. But at least for the 300 this is impossible at this point . The dealers can't order cars so no PO number.

THANKS for the input.

JTK44

This makes absolutely no sense where you intend to get a new car in 36 or 48 months:

When you finance you are paying for 100% of the depreciation. When you lease only a portion of the depreciation, the residual, plus there is a big tax savings.

For example: You only intend to drive 7,500 miles per year. You decide to take a 48 month lease. Assume the residual to be 54%. You have fixed your depreciation expense at 54% and your month payments reflect that. At 4.5% money factor on a $72,000 MSPR your monthly payments will be $879.90 plus tax at the rate of 8%, $71.83 total $951.72. In most states, on a lease the sales tax is on the total of the monthly payments not of the purchase price. In most states., The total of the monthly payments will always be less than the purchase price so there will always be a tax savings.

Now if you finance the car at 4.5% for 48 months, you will finance $72,000 + tax at the rate of 8%, (unlike a lease when you finance you pay the tax on the full purchase price) $5,760, total $77,760 your monthly payment will be $1774.

Your monthly payments will be nearly double financing vs. leasing.

At the end of 4 years your total lease payments will be $45,682. If you purchase, $85,152 a difference of $39,469.

So at the end of 4 years for financing to be cheaper, your Mercedes must be worth more than $39,469, which is 55% of MSRP.

Historically, nearly 99% of a leases are "upside down": the value of the car at the end of the lease is less than the residual and why most cars at lease end are returned.

For financing to be better financially, the value at 4 years must be greater than the residual, 52%, which is highly unlikely.

However, in the event the value is actually higher than the residual than the lessee with have equity in the car to be applied to the next lease.

This is a case of a win/win in leasing vs. financing and a case where you "can have your cake and eat it".

imprezkid

If anyone is still around I have a question about buying a used Mercedes that is financed through mbfs via a loan. The car is a 2019 e class. Private party seller. I would be financing the car as well. My question is how would I go about buying the car when mbfs isn’t a bank we can go into with a check and walk out with a title? Is this something a mb dealer would offer as a service?

JTK44

I suggest you get the details of the car, call MBFS and see if they will:

• Let you take over the loan
• Refinance the car

When my lease ran out in December 2021 I decided to buy my car. Initially MBFS told me that to finance the purchase I had to go through a dealer. The dealer's wanted a "finance fee" of $2,000. I then called MBFS and they told me that whoever at MBFS told me I had to go through the dealer was incorrect, that I could deal directly with MBFS and their fee was $150. I did and was able to obtain financing for the full buy back in my lease. I elected 36 months, basically the same monthly payment as a 36 month lease on a new 2022 E450.. The interest rate on the loan was 2.6%. I found that only Bank of America would finance a used car. I am a preferred customer at BOA. By way of comparison, with all discounts, the best interest rate was 3.9% I also put the state sales tax into my loan. I then took an extended warranty for 36 months, 75,000 miles, $2200.

Hope this helps.