KrakenRustam

I was crunching the numbers for this E class that a family member is willing to sell me and it seems to make little sense vs leasing.

Assumptions

• Drive the car 12k miles a year
• Keep it for 5 years
• 2018 or newer

Buying

The car in question: 2018 E Class

• 17,000 miles
• Luxury Package and some other options
• one owner, dealership maintained etc.
• Cost is $33,000 (seems almost $8000 below kbb value)

So as per NYC taxes, the car would come close to $36,500.

A dealer is willing to sell me an extended 3 year MB warranty for $3500.

Maintenance / Non Warranty repairs: $6000 over 5 years minimum, given no warranty over last two years

Total: $46,000

The selling price of the cheapest 5 year older (2013) E class with up to 80k miles on Cargurus: $13,000.

So, assuming we keep the car for 5 years, we pay: $32,000 over 5 years. This comes out to $550 a month over 5 years.

Leasing

I negotiated a 2021 loaner for a 36 month, 12k a year lease at: $650 a month, including prepaid maintenance, all taxes and fees included.

Conclusion

So for just 100 bucks more a month, or $6000 over 5 years:

• I can drive a brand new model car with all the gizmos etc.
• I don't need to worry about anything breaking
• I don't need to baby the car, it's a lease that will be returned
• I don't need to think about any possible repairs, esp in years 4/5 when I won't have warranty for the purchased car (a single $5000 failure will knock out any savings)

I'm looking to hear the perspective of experienced MB owners, who can point out any flaws in my logic / corroborate that my conclusion is mostly correct.

Thank you so much in advance!

chassis

Sounds like you want the newer car, go for it.

Elvisfan0108

Why are you calculating $100 a month for 5 years when you will only have the lease for 3 years? I’d always go for the new car. Don’t know if you can calculate the value of your car based on what an 8 year old car is worth now. Used car prices are crazy. Also, there is a difference between selling price and trade in value.
if you can afford it, go for it.

The G Man

They are both used cars, one is a loaner and one is a personal car. Both are good deals but the 2021 with pre-paid maintenance is a steal for a $100 more a month, I would go for the 2021 which is 3 years newer.

ram0201

Without doing a lot of math, i can always say the initial 3 years of depreciation is always (ALWAYS) greater than the subsequent 3 years (or equivalent to 5-6 years subsequent). So, your costs are going to be approximately for 3 years if you go lease a new one, or 5-6 years if you go a used certified/warrantied one.

I like the certified ones better for many reasons - the fully loaded cars get to a value option. I can bet that the lease will be a better model year where more standard features are available, but a fully loaded car 2-3 years older can beat the sticker price. So, you need to compare the features.

All said, if you know the party who is selling, and you don't mind driving slightly outdated tech, you chose a used/valuable one.

Opposite with a lease! GL!

Mac Jones 55

Only reason I don't lease is that I don't like being locked into a mileage limit.

Otherwise I would lease, absolutely.

cetialpha5

I think you stacked the deck a little toward the lease. But do whatever you like, just be honest with yourself.

First, the extended Mercedes warranty can probably be had cheaper, just check the extended warranty subforum, probably more like in the 2-3k range than $3500. Also I'm not sure if 6k is a bit on the high side. Depends what kind of luck you have with the car I guess. While pre-paid maintenance covers things like spark plugs and transmission, they still won't cover things like brakes and tires which you could cover with that 6k figure but you haven't factored that in the lease. You might have to pay for a set of tires at the end of that lease and you didn't mention how many miles were on the lease candidate but that could also require brakes during the lease. Lease also includes acquisition costs and disposition cost which are usually separate from the taxes and other fees.

Also 2013 was the last year before the facelift, the face lift (2014+) is probably worth more than the preface lift. Whereas 2017 was the first year for the W213 and 2018 is just the second year so it won't take as much as a hit as the last year before a face lift. Standard is for MB to go 7 years on a platform.

Egonvdv

650 usd for a lease ? wow!

I pay 1.035 euros

ygmn

But after 3 years of leasing you own nothing with lease and and to go get another one.

With purchase you can just keep driving car you bought. Heck you can drive it until it costs you too much to keep and then scrap it or sell it as is.

With lease turn in it is not like you get anything for you money other then sometimes a LOYALTY reward but nothing for all that freaking money you gave them.

US buyers like you lease peeps as you pay MB all that cash for few years of driving and they get the car which they can sell for the cheap.

SO comes down to if you have to have a new car every 5 years or less then lease.
IF you can drive something for more then 5 years buy, heck drive it forever or until something dies inside and you cannot stand the smell.

Remember cars are just tools to move you and your stuff from A to B.

Now if a business everything above does not count due to our wonderful tax laws and consult your tax lawyer.

The G Man

Wow, I heard someone said that in the Hyundai forum. If cars are just a tool to move you around, I want to do it in a Mercedes, not in a Yugo.

JTK44

To compare apples to apples and not oranges, the time and mileage must be the same.

Without going any further, $650 a month for 36 months, 12K per year on a lease: in today's market that is a steal: By way of comparison for a 2022 E450 with the drivers assistance, exterior lighting package, premium package lite and heated steering wheel. color silver MSRP of just over $70,000 with NY state sales tax I have been quoted $1250 a month.

On the lease your additional expenses will be tires $1400, and possibly brakes 1000 and battery, max $3,000 plus lease payments of $23,400, total $26,500. Everything else is covered by the warranty and prepaid maintenance.

On the purchased car your cost will be $36,500. You will need a "B" service at 20,000 miles ($750), an "A" Service at 30,000 ($250) another "B" service at 40,000 and another "A" service at 50,000 total $2,000 plus tires $1400, brakes $1000 and possibly a new battery, $250. Total out of pocked $41,150.

As you laying out at purchase $36,500 the use of money at just 4% for three years is $4,300. The extended servicer warranty will be about $2200. Add this to the $41,150 and your total cost of ownership is $47,650.

When we subtract $26,500, the total cost of the lease from $47,650, the result is $21,150. If the 2018, which in three years 2025, will be 7 years old is worth more than $21,500 buying it will be cheaper than the lease. If the 2018 is worth less than $21,150 than the lease is cheaper.

If we assume a 7 year old car retains 25% of its value and the MSRP of the 2018 was $64,000, that would be $16,000.

As I said at the beginning, a $650 lease for 36 months 12K per month on a CPO 2021 is a steal: run do not walk to close that deal!

mobster600

I think it’s hard to rationalize high depreciate and high maintenance costs if you don’t make alot of money a year.

People who lease, do so to get the latest and greatest tech and love new cars. They don’t have time or want to deal with repairs. They just trade the thing in for another when their lease is up.

I think we’re comparing two completely different buyers.

There is also a 3rd option to consider, a CPO 5-10k mileage retired loaner. You’ll typically pay 15-25% of the original MSRP. Maybe a 1-2 year old vehicle.

If money is a factor, honestly don’t buy a Mercedes. These cars are very expensive for most people. Save your money until the time is right. Hope this helps!

Ivanerrol

I own my W213 outright.
My dealership service manager told me to get the extended warranty which will take the car out to 8 years.
After those warranties had run out - he told me to sell the car. Possible electronic component breakdowns might exceed the cost of the car.

Good case for leasing if it has tax advantages.

I also own a now ten year old W212 wagon with 40,000 miles. The extended warranty ran out to ten years. I had my rear air shocks replaced FOC under warranty just before the ten years were up.
Service manager is happy for me to keep that car.

cetialpha5

I think by the time the warranty runs out, you'll be able to find those electronic components used on eBay or in the junkyard. Or you'll be able to send them out to be rebuilt. I have a W211 and a W212 and they were both bought out of warranty. I have all the fun stuff too like parktronic, bixenons, pano roof, keyless go etc. In general, electronics tend to be pretty reliable. The odds of failure over time tend to be lower that pure mechanical stuff.