I hear a lot people advice to lease an EV rather than owning one because the technology changes so quickly that it will be outdated in 3 years. I think that it is a broad and flawed generalization. I also suspect it is a tactic to get people to lease rather than buy.

Batteries and battery degradation is probably going to be the least of your concerns in 10 years time. The 4matic and 4matic+ tech is not going to be matched by companies like KIA and the likes on cars selling for 30K. It will likely take 10 years before the other EVs will incorporate the EQS techs into their cars. By that time, the EQS will be worth not more than $18K in today's money. So if you do own an EQS tens years from now, it's now different from owning a 10 years old S class. More techs and rides nicer than most most new Toyota, KIA, Ford, yet cheaper resale due to its age and repair cost.

 

Due to 7.5k credit on leases, leasing and then purchasing is cheaper actually. The way I see it, is that I get to keep the residiual amount and invest it to match the interest you pay on that amount while leasing. The rest is similar to loan anyway.

If at the end of my lease it turns out the depreciation was too high I will happily let Mercedes eat that cost. If car is worth more I will for sure buy it though and then consider either trading it in or keeping a bit longer. I would love if it ends up being the second scenario but it is not looking likely these days.

 

Heck I just bought a 2024 Jag SVR with CASH and the finance dillwads were still acting me like they owned my life. The deal almost fell through because they require a $500 deductible and mine is $1000. Even when I bought my Mercedes with CASH (again) they insisted on doing a credit check. I think I really hate these people.

They best reason not to finance is you're not helping pay the salaries of dillwads.

 

I own my ev because I drive 20000 miles a year.
Leases don't usually allow for that without significant penalties

 

Some of the people in the finance department are insults to people with financial intelligence. They try to cheat you by fudging the numbers. I had a Lexus finance guy try to charge me 6.5% tax in Texas (actual rate in Texas is 6.25%)! That was the only time I deviated from negotiating a drive out price. And not to outperform the sales department, they try to sell you a bunch of overpriced addons or things you don't want or need.

 

I heard some rebate only apply to leases?

 

One size does not always fit all, that’s why it’s nice to have options. In my case, for several years I paid cash for each car I owned. Then, I grew tired of having to deal with trade-in/private sale negotiations – on top of depreciation concerns – when buying the next car so I started to lease. I don’t like paying finance charges, but I see other benefits from leasing a car. Mainly, I do not have to worry about depreciation. At lease end, if the car is worth less than its residual value, I simply return it. If the car is worth more than its residual value, then I “trade the car in” and apply the equity to the new car. Simple. A leasing contract for my 2022 EQS 580 sedan was a no brainer: $7,500 lease rebate directly credited to my contract (on top of the other incentives and discounts!) and no value drop concerns (=priceless) were the deciding factors for me. By looking at the features between my 2022 EQS 580 sedan and the new 2024 EQS 580 sedan, I see big differences between these two cars: Heat Pump-Standard Nappa Leather Upholstery-Power Adjustable Rear Seats (pillows no needed)- All-new braking system/revised regenerative braking software-Power and Torque increase-Power Opening and Closing Charging Port Door etc., all improvements big enough to drop the value of my car even faster than regular depreciation. But… who cares?

 

Thanks for flagging the upgrades on the 2024's. Wasn't aware of them.

 

This is incredibly relevant. The credit only works on US-made cars, only if you buy, and you only see it when you file your taxes and IF your tax situation qualifies. The loophole is the leasing company of any non-US made car (MBFS in this case) can claim the credit on leases and passes it on to the lessee in the form of a lease credit applied at time of sale. What you end up seeing is lessees can just lease a EQS, IONIQ, or etc. to cash in on the credit and buy the lease out a few months later, or just buy it out at the end of the lease. You dont get penalized for damage or over-mileage if you buy out the lease.

The problem is residuals. Residuals on European brands tend to be more optimistic to the point it really reduces the lease payment, but ends up causing the lease buyout price being higher than market value of the car. Not a new problem.

 

If you don’t mind spending thousands of dollars a month on depreciation on top of the monthly payment, you’ll be happy to have purchased an EQS instead of leasing it.

 

You are welcome. For the US market, a complete list of 2024 upgrades/changes is in the “2024-eqs-sedan-order-guide-en” file in the Sticky 2024 Order Guides thread in this forum. In my mind, the most notable upgrades are the MBUX Hyperscreen standard on ALL EQS Sedan models, the 4MATIC Disconnect feature standard on 4MATIC models and the upgraded 5G Communication Module.

 

I see the issue with residual.

I got 20k discount on a lease, but the residual price is calculated 50% from the MSRP. And I always planned for a buy-out

 

With EQS values dropping faster than anticipated. There is a high chance MB will discount the set residual to the fair market value.
If not like you said return it and get one with CPO. I'm going back to gas though.

 

I don't like leasing but the EQS is an exception.
It is dumb to finance the thing given the crazy lease deals with the $7500 tax credit which only applies to leases since EQS is built in Germany.

 

I don't normally lease cars. I was skeptical about the EQS holding value. I am glad I leased. Shortly after leasing the value was OK but quickly dropped. Lease buyout today is $83,000 on my EQS 450+. Used car prices are around $70,000. This would have been a$15,000 loss minimum. I recently tried to trade and was only offered $67,000 for a car with no damage and low miles.

 

$67K was what CarMax offered me the week after I took my EQS home LOL. See my other post in another thread (below). Contracted residual is 67% or a tad under $77K:

 

what would likely happen to the EQS SUV?

Same depreciation or SUV would always do better?

 

@capt_slow Did you take it to Car max or did online assessment ? I think it does not provide online trade in for EQS SUV yet.

KBB gives a value for EQS SUV though.

 

As an experienced car lease investor, I have devised a strategy to maximize profits by selling cars before the end of their lease term. The key to success is timing and finding the right deal, which involves negotiating the MSRP down as much as possible. By selecting the lowest mileage allowance, wear and tear and exceeding mileage limits are of no concern. I always sell the car before it requires high-cost maintenance or new tires, even if the depreciation is high, such as with the EQS. My approach is transactional first and preference second, as I prioritize the best deal available at the time for the car that meets my criteria. This involves skill, research, forming strong relationships with dealership contacts, great timing, and a bit of luck. Over a span of ten years, I have put into effect leasing strategies that have allowed me to pay either the same amount or less than what most people pay in five years for a financed vehicle with an MSRP of $55,000 as an example.

Leasing can be a complex process, and some unscrupulous dealers may use various tactics to extract as much money as possible from you, all while assuring you they are striving to secure the best possible deal. Their goal is to maximize profits, while your aim is to minimize your expenses. Unfortunately, leasing and lease contracts can offer more opportunities for creative maneuvering, which can leave you vulnerable to these tactics. However, knowing your best deal and target selling price beforehand, and agreeing to those amounts before ever setting foot in the dealership, can put you in a better position to negotiate and avoid falling prey to these tactics. In essence, as long as the final selling price and payment match up with your target pricing, it ultimately won't matter how they creatively maneuver their numbers as long as you know you are paying exactly what you have agreed to.

I was able to negotiate the price of my 2023 EQS 450 4MATIC from an MSRP of $112,295 down to $77836 after incentives. This resulted in a savings of $34,459, a discount of over 20% with $12,000 in incentives. Overall, I received a reduction of 30.7% off the MSRP. The residual was slightly over 60%, setting the buyout at $67,900. The final selling price was $77,836. I opted for a one-pay lease, which is my preference unless the interest charge equals close to 0%. Since I completed a one-pay for 24 months, I negotiated a price of $17,984, which, spread out over 24 months, equals $747 a month. In short, I have positioned myself to have the best chance of coming out ahead closer to my lease end. For example, if I sold the car today and it had lost 20% of its value, I'd still generate positive equity of approximately $3952. That's $112,295 - 20% depreciation = $89836 - $67,900 residual = $21,936 - $17,984 one-pay = $3952 in positive equity.

I have no plans of selling my car anytime soon as I intend to keep it for the most part of the lease term. To give you some context, I typically sell my cars after two years of a three-year lease. Mercedes Benz has imposed stricter restrictions on third-party buyouts and lease-end terms, but I have prepared myself for the time when I'll have to part ways with the car. Although there's more information involved, the bottom line is that leasing is the only way that suits my needs for transportation. I tend to lose interest in cars soon, and with leasing, I never have to worry about warranty-related issues or the costs of upkeep. Essentially, it will be someone else's problem before I ever have to worry about associated costs.

This is a highly condensed explanation that provides a simplified overview of the topic. Due to the complexity involved, it is not possible to discuss or disclose every parameter in detail. However, it is important to note that there are nuances that should be taken into consideration to gain a comprehensive understanding of the subject matter. Leasing may not be the ideal option for everyone, but it certainly isn't as malevolent as it's sometimes portrayed. Detractors who speak out vehemently against it often do so because they misunderstand the process and the potential benefits it can offer. In fact, many of those who have had negative experiences with leasing may have fallen victim to common misconceptions.

***Just a quick note to clarify my stance on the topic of a one-pay lease. I understand that this can be a controversial topic with many preconceived notions and misunderstandings surrounding it. Therefore, I prefer not to engage in debates or discussions about it, unless someone is genuinely interested in having a constructive conversation. I believe that such discussions should be productive and positive, and I don't want to contribute to negative or misleading conversations. If you have any questions or would like to have a meaningful conversation about a one-pay lease I'm all ears, but if your intention is to engage in a negative debate about the validity of the one-pay lease, I kindly request that you refrain from doing so. Instead, I invite you to consider the benefits of this lease option and how it may be the best choice for your unique situation. Thank you for respecting my request.

 

Wow!! I have a one payment 3 year lease on my car but there’s no way I can duplicate the methods you use to come out ahead. I’m lost on what you do. Congratulations! You seem very intelligent on this topic.

My lease runs out in May, 2025. I love new technology and I will order the 2025 EQS580 with a new one payment lease several months prior to the expiration of the current lease.

 

A thread on one person's experience with a one pay lease:

https://mbworld.org/forums/eqs-suv/8...-deposits.html

 

Check your PM's

 

To clarify and avoid confusion, the thread being referenced is specifically addressing MSDs or Multiple Security Deposits, which are different from One-Pay or single-pay leases.

Although both Multiple Security Deposits (MSDs) and One Pay leases aim to decrease the overall cost of leasing by lowering the money factor/rent charge and taxes, they are not the same. Multiple Security Deposits (MSDs) are only relevant to standard-term, monthly-paid leases and do not apply to One-Pay leases; therefore, they cannot be used, as it does not serve any purpose in the latter.

I hope this helps to clear things up.

 

Lots of good information on leasing details so far, but I am sure this is probably the tip of the iceberg. Thanks for sharing. Keep them coming.

My car buying experience is a different approach since I tend to keep my cars long unless I deemed it is a lemon. When I buy new and interest rates are low, I look at the specific car's historical depreciation and compared it to financing. Then, I negotiate the best possible price and finance it with the intent of pay off as soon as possible. When I do have the cash (money not investing), I would negotiate the best price at the time, and pay cash. When the price of the car is higher than what I think it should be worth, I typically buy CPO/used typically not more than 10K miles. Additionally, the cars I look for are typically fully loaded or highly optioned. The greatest depreciation has already been absorbed by the first owner for 1 to 2 years. It's still a lot of homework do to, but I think it suits well for someone like me who leans more toward long term ownership or until the wheels fall off or someone I know wants to take it off my hands.

 

Why would I want to own something that has massive and unpredictable depreciation? I'd much rather rent that and have a set cost that I can depend on.

In fact, IMO purchasing one of these for six figures is insane. A boat would be a smarter buy.