Newbyloub

I’m in my early 90s, so, of course, have no idea as to how long I might be able to continue driving.

I have an active new Build Order for a 450V4, but am thinking about leasing than buying.

Money or its cost is not an issue.

Without having yet checked with dealers in several major markets: Cincinnati, Charlotte, Atlanta, Louisville, Knoxville, perhaps Nashville, which I plan to do, leasing would eliminate paying out a goodly sum of money up front, probably reduce state taxes, and projecting my driving life, make it easier to get rid of the car and reduce the impact of depreciation.

If at all possible, I would pay my lease payments from my cash rather than dealing on MB rates.

What kind of lease terms should I be looking for?

Suggestions?

Thanks!

nola504

Last month, MB’s website had lease offers for $7500 rebate (presumably the federal tax credit for fleets) and a dealer contribution that varied based on the model. Lease term was 36 mo.

The month, the 7500 is gone but dealer contribution is included and the lease term has dropped to 24 mos.

There are additional discounts with the MB car club or through various credit unions and professional organizations.

Newbyloub

Thanks - I had read all that.

But it’s not what I’m looking for, really.

I’ve never leased a car. I guess what I’m curious about first is the leasing process or procedure, not whether or not there are government or maker financial incentives.They will surface anyway.

Is a deposit typically required, or just a first lease payment?

Typically, how is insurance handled?

Is it required to get any MB funding or can I self fund? Make a direct deposit payment to the dealer or lessor?

If I get to where I can no longer drive, how does a lease get ended?

Can others drive the car, or me only?

nola504

Each manufacturer does things differently. Some want money down. Some want nothing more than the first month’s payment. Some will decrease costs with multiple security deposits. You can also prepay the lease but in the event of an accident where the vehicle is totaled, any excess equity would go to the finance company not to the leasee under most of the leases.

There is insurance available that will pay off the lease if the leasee dies. I’m not sure what benefit the coverage provides in case of disability.

Liability and collision Insurance is handled just like a vehicle that was purchased with financing or for cash.

leasing is generally through the financial arm of the manufacturer or an associated financial institution. Some private entities do also offer leasing, where they basically buy the vehicle and act as the lessor.

Newbyloub

Much appreciated.

Some helpful info there for guidance.

nath_h

Insurance is exactly the same as owning a car. Anyone can drive the car. You can pay for it monthly from your checking account, and pay as little or as much as you want down as agreed in your contract (with some money down required)--the payment will be much bigger if you don't put much money down. Others covered the other questions.

But, I've only found leasing to be a pain. There are new hoops to jump through, the DMV always wants one more document not provided to me, and you end up paying the same or more than you would have just buying it. And the lease end fees are such a scam. Not sure it is worth the trouble for you, especially as you don't seem to be sweating a few thousand here or there. BTW, I'm still not smart enough to figure out why you are getting your second EQS in a year.

Newbyloub

Thank you for your helpful information

The primary reason I'm considering a lease is to avoid borrowing and paying out a large purchase sum at the outset, It may turn out to be something I decide not to do,

So far as reasons for a car are concerned - the typical American thinking that one is entitled to know another's personal business raises its head again.

From instance to instance, there are at least three classes of reasons: Good, bad, and indifferent.. Just in case you had not seen my post earlier mentioning airbags, maybe that will give you a clue.

nath_h

You are welcome. I can't say I've followed your every post so I did not see that 'clue', but you are correct that an airbag deployment helps clarify things.

Regarding sharing, not sure I'm the typical American, but most people on a forum such as this are here to share information and experiences. We are all welcome to share or not share. You are in the later category, and that is fine. I can tell you don't give a f&*k what anyone else thinks, and that is fine too. It takes all types to make the world go around. I give you lots of credit for buying an EQS at age 90+....I doubt I would be so bold at that age, if I make it that far.

mercedesmax

Minimum due is usually 1st payment and first year plates. If you see a payment advertised it usually includes a downpayment. Some states require the total sales tax to be paid up front.
Insurance is your responsibility.
Leases are done through MBFS, I'm not aware of any viable 3rd party leasing for this car. You will pay MBFS just like a car loan.
Other family members can drive the car as long as covered by your insurance policy.
You can't just return the car anytime you like. You are on the hook for all payments due. You could see the car back to your local dealer, maybe you would have equity maybe not.

taphil

LOL you think anyone on the internet cares that a 90 yo with an EQS had airbags deploy due to an accident of some sort and who's fault it was.

If privacy was a concern, stop putting so much info out there and reduce your profile info.

Newbyloub

It is absolutely impossible to tell you how much I appreciate your well-intended and good advice!

Newbyloub

Back to leasing, after that interlude...

Have any of you leased on a fixed Miles per year basis where you prepare for the lease period?

icwhatudidthere

I have leased from MBFS in the past but I'm not sure what you mean by "where you prepare for the lease period?"

Also, there's a forum on edmunds.com where they post current lease numbers including residuals and money factor.

https://forums.edmunds.com/discussio...-and-prices/p5

Another forum, leasehackr.com, there's one deal of an EQS demo with 7900 miles that leased for $465/month!

Mods: Are we allowed to post links to other forums here?

Newbyloub

[QUOTE=icwhatudidthere;8734495]I have leased from MBFS in the past but I'm not sure what you mean by "where you prepare for the lease /QUOTE]

A typo on my part - sorry.

My understanding of a second-hand description of this type of lease is that I would have a two lease of, say, 5,000 annual miles and prepay the full amount of the 24 lease payments upfront at the time of signing documents.

icwhatudidthere

Ahh, that makes sense. Yes, there are prepaid leases, also known as one-pay leases or single pay lease. This should lower the money factor, thus lowering the total cost of the lease. The risk is if the car is totaled, that money is lost.

One other approach to lower the money factor is called Multiple Security Deposits. I believe MBFS allows you to put up to 10 security deposits on the lease and that lowers the money factor. A security deposit is equal to 1 month's payment so 10 security deposits would be 10 x monthly payment. For example, if your monthly payment would be $1500, 10 MSDs would equal $15,000. The security deposit is refunded at the end of the lease and earns some interest while they hold it.

As a concrete example, there's a calculator on leasehackr that shows 10 MSDs reduces interest rate from 5.47% to 3.79%:

https://leasehackr.com/calculator?ma...sult_mode=true

AppleFan1

I used the one payment 3 year lease and I love it. I can’t stand the thought of having to pay monthly payments.

mercedesmax

All leases are on a fixed miles per year basis. .25 cents per mile if you exceed the agreed miles.

SW20S

Narcissism is hilarious isnt it? All about attention for him

Newbyloub

Pushing one’s self to judge anyone, much less a stranger, is not an attractive characteristic.

SW20S

Narcissism isn't an attractive characteristic either.

nath_h

Well, you did judge me to be an "average American", despite knowing literally nothing about me. But I digress.

Yah the miles are just part of the lease contract, such as you agree the lease will cover like 10,000 miles per year. Ideally, you would take advantage of all of those miles to maximize the effectiveness of the lease structure. You get nothing (or almost nothing) back if you come in under on mileage, and still have to pay ridiculous end of lease fees that are nothing but pure profit for the dealer, and pay for whatever imperfections they find with the car, real or not. I just really doubt you would like the confines of a lease, trying it for the first time at 91. You seem quick to have grievance, and you will definitely have grievance with the Mercedes lease turn in process. I am about as chill of the customer as you can find, and even I am off put by the lease turn in process (granted, done at BMW, not MB) My dad tried it at 77 for the first time, and was not at all pleased with all the shenanigans that went along with the deal. And be ready to pay for 4 new tires at the end of the lease, to gift to Mercedes for their next buyer, on which their advert will boast "all new Continental tires" and pretend like they paid for them as part of reconditioning.

Newbyloub

Thanks very much for your pleasant and considered AND RELEVANT reply.. If I used the term "average American," I apologize, as, in my opinion, there's no such animal...definitely not amongst Mercedes buyers.

My sole interest in looking at what some have termed here "as one-pay leases or single pay leases", my goal was to minimize the amount of money I pay out up front to have the use of an EQS450V4. I'm informed that I can most likely get one for two years at 5,000 miles a year, maybe less, through a TN dealer. It's solely in the interest of paying out the least amount of money up front.

I'm sure there is much about this of which i'm ignorant - my apologies for that,as well.

nath_h

No worries about being ignorant about leases...they are complicated, and very different than what you've done before. Yup, single pay is possible (MB finance would like this because you'll be paying the interest and cost up front to them, rather than spreading it out over time). I've not heard of a lease w/ only 5000 miles, but that does not mean they don't exist. 10,000 is usually the floor. But, yes, single pay would be the easiest route to button up the whole process, and leave the dealer w/ the right to use the car for the next two years. Again, your only problem will likely be the DMV where there will be new and unexpected hoops to jump through, unless your dealer can take care of it for you on the spot. In Iowa (at least years ago when I leased), it was like they have never processed a leased car before, and it took literally 4 (or maybe 5) trips to the courthouse to finally get it done. Each state is different, and maybe things have gotten better, or your state is easy.

SW20S

I lease almost exclusively, I have never had any issue with the DMV...the dealership handles everything.

The issue with a one pay lease, and why I don't do them, is if you total the car. I don't trust that getting money back from MBFS (or any lender) in the event of a total loss would be an easy procedure, so I prefer to make monthly payments. The savings in interest in a one pay vs monthly is usually very small and not worth the opportunity cost on the money vs paying monthly. If you hate making payments, just put the money in an account and have the payments auto-pay out of that account. Then at least you have the money.

The issue with getting a refund for lease use also exists if you were to die. If you are the only person on the lease and you die, the lease is just over. Your family just takes the car back to MB and turns it in. Same issue exists with getting the unused lease payment back from MBFS in that situation. In my situation if I were to die, my wife would just take my S560 over to MB and say "here you go". For that same reason I make sure that her car has her name on it so she wouldn't lose her own car if something were to happen to me...

So, if you lease I would pay monthly. I think leasing the EQS makes a lot of sense because of the unknown ultimate resale value.

Sportstick

Isn't that unknown for EV in general and a new model in particular already factored in by ALG/the lessor into the residual, causing them to be conservative to protect their profitability, driving up the cost of the monthly payment?