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Looking at this 2024 450+ SUV. This is what I received on lease options. The Sales person said the handwritten percentages on the document is the residual value (a percentage of MSRP). Given EQS market conditions, it seems like the residual values are way too high...but maybe that's why there is an upfront $18K (and $7.5K) discount...they get you later if you want to buy it. Again, I've never leased and am somewhat clueless.
The residual value is set by the bank, and the dealer has no control over it. It cannot be changed. They do have the ability to mark up the money factor, which is negotiable (and if so, that part is negotiable). Did they tell you what it is? It should be 0.00136. (multiply by 2400 to get an approx APR% equivalent)
So, they're giving you $31k on your trade. How much do you still owe on it? If I'm reading this right, it's already paid off, and they're applying the trade as a cap cost reduction. It's generally a good idea to NOT put cash down on a lease (including trade cash). If you get into an accident, and the car is totaled, you lose that money.
If you remove the trade, these lease numbers end up being quite terrible.
With this "deal", with $2k down at 36mo, you're paying (36*568)+31000+2000 = $53448, which works to be $1,485 effective monthly cost. I'd walk away from that.
I recommend checking out leasehackr.com to learn more about how leases are put together, how they work, what incentives are truly available, and what you should expect to pay (as well as what others are paying in comparison).
Leasing isn't for everyone, and that's OK. However, I would still recommend taking some time to learn more about it. Leasing offers some rebates that are not available to financed purchases. Instead of putting the trade value to the cap cost reduction, take the check, pop it in savings, and use that for monthly payments. (Side note - Do you have an AmEx card? That can get you additional rebates)
With a decent deal, you should be able to get a lease structured in a way where the only thing due at signing is first payment (or nothing at all). And for a lot less than what they were offering.
Leasing isn't for everyone, and that's OK. However, I would still recommend taking some time to learn more about it. Leasing offers some rebates that are not available to financed purchases. Instead of putting the trade value to the cap cost reduction, take the check, pop it in savings, and use that for monthly payments. (Side note - Do you have an AmEx card? That can get you additional rebates)
With a decent deal, you should be able to get a lease structured in a way where the only thing due at signing is first payment (or nothing at all). And for a lot less than what they were offering.
Unfortunately, Amex is ending their relationship with Mercedes Benz at the end of the year.
Looking at this 2024 450+ SUV. This is what I received on lease options. The Sales person said the handwritten percentages on the document is the residual value (a percentage of MSRP). Given EQS market conditions, it seems like the residual values are way too high...but maybe that's why there is an upfront $18K (and $7.5K) discount...they get you later if you want to buy it. Again, I've never leased and am somewhat clueless.
I hope you didn’t go through with this. You should sell the Lexus to a different dealer such as car max. I’m sure you’ll get a great deal as long as it’s less than 100k miles. Treat the EQS as a complete no money down deal. Goal is to get discount off MSRP prior to any rebates. You should also work with multiple dealers to get the best deal even if it’s out of state. Lastly, I sense 7500 might be going away in February.
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