704set

Tell the dealer you will lease the car based on the 12% discount.

I leased an E-300 about a year ago. The factor and the residual value are set by MB Finance. The only negotiable part of the lease with the dealer is the MSRP. So I was concerned only with the MSRP. The monthly lease will be whatever are the 3 numbers. . I was going to order the car so I knew exactly the MSRP. So what I did was contact by email about 6 dealers in a 100 mile radius,. I told them to give me their best shot at the price. I wasn't going to negotiate, but the dealer with the lowest price got the business. Five dealers responded and one came in with an 11% discount off the MSRP. The following week I went to the dealer, figured out the lease and closed the deal.

My point is only worry about the price, The 12% discount sounds like a good deal.

JTK44

+1

MSRP: fixed non negotiable
Residual: varies by mileage and length of term, non negotiable. Percentage of MSRP.
MF: fixed, but can vary depending on credit score
Cap Cost: entirely variable. This is the agreed on selling price.

Put this into a mix and you get the monthly payment.

teksurv

Hate to be a stick in the mud in this thread, however the base MF is set by MB but almost every dealer applies a markup to this. Ask/research the buy rate and determine what, if any markup is applied.

JTK44

First I ever heard of a mark up.

Can you please verify.

Each dealer I went to quoted the exact same money factor for my 2019 E450: .00194.

Each dealer assumed I had top credit score, which I do.

Thanks.

teksurv

I would point you to leasehackr.com <-- misspelling is correct for the URL. I also have tier 1 credit and was offered a MF of .00350 on a C Class, so heavily marked up I couldn't help but laugh at the salesperson. I've learned a lot since then. Dealers almost always pad the MF to give you better incentives such as cap cost reduction (MSRP).

ua549

I helped friends negotiate MB purchase and lease deals. Cap cost and MF were negotiable. Residual was not.

JTK44

Here is the link: https://leasehackr.com/

Can you indicate where you found Mercedes Benz dealer mark up of MF.

Cap Cost is the same as negotiated price and it is of course negotiable.

All of the dealers I went to, including out of state gave me the same MF for a 2019 E450. That would indicate to me either that they:

1. are all working in collusion (highly unlikely as soon were hundred of miles apart) so as to give me same the MF down to the fifth decimal place, or;
2. they are all using the same MF given to them by MBFS

teksurv

If you prefer this forum may be helpful for you: https://forums.edmunds.com/discussio...als-and-prices BASE MF is set my MB, it is nearly always padded unless the deal is a long time customer, etc.

JTK44

Are you saying that all 9 dealers I dealt with over a 30 day period, hundreds of miles apart, padded the money factor given to them by MBFS, so to arrive at the same MF down to the fifth decimal place?

That really seems incredible actually unbelievable.

I think the better answer is that all 9 were using the MF given to them by MBFS.

JTK44

Went to Edmunds link: https://forums.edmunds.com/discussio

Here is what is posted:

Sedan?
.00194 MF and 59% residual
No incentives

Exact numbers I posted several weeks ago:

MF. .00194
Residual: 59%

I think this topic is now fully covered.

teksurv

Correct, in that they are quoting base factors, which is the point of that forum. I needn't convince you, just want folks to consider that MF CAN be padded, as has happened to me UA 549 (associates) and many others,

teksurv

Deleted

JTK44

Sorry to learn that a dealer tried to take advantage of you by padding the MF.

Fortunately this have not happened to me - at least not yet! Again I have 25 MB dealers within a 100 mile radius so pricing is very competitive. If a dealer ever did that to me, tried to pad a MF, I would never deal with them again and would spread the word around.

Another reason to shop several dealers to keep things honest.