Wanted to get everyone’s thoughts on this 2025 EQS 580 SUV lease deal? This includes all the available incentives. I usually buy 3 year old CPO’s but I wanted to test the waters of leasing something new!

VIN: 4JGDM4EB9SA037967

 

I am not that familiar with leasing so hopefully someone who knows something will reply. But if it were me I would insist that the residual percentage be based on my sale price, 107, arguing that is the true value, that most people pay about that, not the 131. That way if you decide to buy after the lease is up you are close to the price you would have paid had you bought outright today. For extra credit, they could also take the rebate savings off the 107 figure.

 

Welcome to the world of leasing—it's a different game than buying CPO, but it can be incredibly rewarding when you know how to structure the deal. First, I'd recommend checking out the "Unicorn Lease Playbook" thread ** I have pinned for a good foundation on the strategies involved. **At the end of this post

Now, let's do a deep dive into the quote you've posted.

To be clear, as I'm not currently in the market myself, I am not up-to-date on this month's specific programs, which are ending soon before the new July programs begin. However, based on the numbers you've provided, we can do a full analysis.

Part 1: An Analysis of the Quote - A Breakdown

This is a classic dealer worksheet designed to look strong on the surface while masking the real numbers. Here is an unimpeachable analysis of their tactics:

1. The "Padded" Discount vs. The Real Discount:

• The Dealer's Presentation: They are showing you a $24,745 "Discount Savings," which they want you to perceive as a massive 18.7% discount off the MSRP.
  
• The Reality: This number is almost certainly "padded" with manufacturer incentives that are not their money. The $7,500 rebate is clearly listed separately, but there are often other dealer marketing cash incentives available. If we assume even a conservative $5,000 in such incentives, their actual contribution to the discount is only ~$12,245, which is a pre-incentive discount of only 9.3%. This is the real number you need to focus on.
  

2. The Impact of Your Local Market:

• This is a critical point that many overlook. The strength of a dealer's discount is directly tied to local market dynamics. A dealership in a hot EV market like Southern California with low inventory has very little incentive to offer a large discount. Conversely, a dealer in a region where EVs are less prevalent may be under significant pressure to move units and will be far more open to an aggressive offer. Understanding your local market gives you a powerful piece of negotiating leverage.
  

3. The "Optional Items":

• The $1,495 for "Optional Items" is a classic red flag. This is a pre-installed package of high-margin dealer add-ons. Consider this pure dealer profit that should be non-negotiable for removal.
  

4. The Money Factor (MF) & Residual Value (RV):

• The quoted rate of 0.00018 is exceptionally strong and, on the surface, does not appear to be marked up. However, you must always verify. The gold standard for this is the Edmunds Forums. You can start a thread there asking for the "base buy rate MF and RV for a 2025 EQS 580 SUV with [term/miles] in ZIP code [your ZIP code]." The moderators there will provide you with the official numbers from MBFS. This gives you the unimpeachable data you need to confirm the dealer is using the correct base figures.
  

Part 2: Your Action Plan - How to Take Control

You are now in a position of power because you have the knowledge. Here are the exact steps to take.

Step 1: The Transparency Request

Send the following email to your dealer. It is direct, professional, and demonstrates your expertise.
"Thank you for the initial quote. To proceed, I need a revised worksheet that clearly breaks down the following:

1. The pre-incentive selling price of the vehicle, which will show me your true dealer discount off MSRP.
   
2. An itemized list of all rebates and incentives being applied to reach the final cap cost.
   
3. Please remove the $1,495 for Optional Items. I am not interested in any dealer-added packages.
   

Once I have the true pre-incentive discount, we can have a more productive conversation."
Step 2 (The Advanced Move): The Proactive Offer

Once you have the true pre-incentive selling price, you can deploy a more advanced, decisive strategy. Instead of asking them what they will do, you tell them what you are prepared to do. This approach shifts the dynamic, demonstrating that you are an expert who respects their time by not engaging in pointless haggling.

• How to Execute It: If their real discount is weak (like the 9.3% we calculated), you reply with this final, unimpeachable offer:
  

"Thank you for the transparent worksheet.

Based on my analysis of the current market and the incentives available, I am prepared to finalize this deal today with a pre-incentive discount of 15% off MSRP.

This is a firm, non-negotiable offer based on a fair market value for this vehicle. It is valid for the next 24 hours.

Please let me know if we have a deal."
This approach is powerful because it is confident, it creates urgency, and it forces a simple "yes" or "no" decision from their management. It is the final move of a savvy navigator who is in complete control of the process.

Hope this helps you structure a much better deal.

https://mbworld.org/forums/eqs/91352...y-secrets.html

 

@smiles201 ,You've stumbled upon the central paradox of leasing, where the logic is often the complete opposite of a traditional purchase. It's a different game entirely, one where the rules are set by the financial institutions, not the dealer or the buyer.

Let's dissect this, because your line of thinking is common, but it's a trap that can lead to a bad deal.

Part 1: The Residual Value (RV) - The Manufacturer's Game

The Unimpeachable Rule: Residual Value is Always Based on MSRP

This is the most critical, non-negotiable rule in leasing. The Residual Value (RV) is the bank's forecast of the vehicle's future worth, and it is always calculated as a percentage of the full, original MSRP. The negotiated selling price is irrelevant to this calculation.

The "Insider" Secret: The Artificially Inflated Residual

This brings us to the real "insider" secret of luxury car leasing. High-end German manufacturers like Mercedes-Benz and BMW will often intentionally set an artificially high residual value on their vehicles. This is a deliberate strategy to subsidize the lease and offer a more attractive monthly payment. By setting the RV high, the manufacturer's financial arm (MBFS) is reducing the amount of depreciation you have to pay for.

This is why trying to negotiate the residual down would actually be working against your own best interest—you'd be rejecting the subsidy.

Part 2: The Money Factor (MF) - The Dealer's Game

Now for the other side of the coin. If the RV is the manufacturer's game, the Money Factor is often the dealer's.

The "Insider" Secret: The Buy Rate vs. The Marked-Up Rate

Think of the Money Factor as the interest rate on the lease. The bank (MBFS) provides the dealership with a base "buy rate" for that month. However, dealers are often permitted to mark up that base rate for additional profit. This is a hidden profit center that many buyers are completely unaware of.

The Actionable Advice:

Just as you must verify the RV, you must also verify the MF. The only way to do this is to ask for the "base buy rate" from MBFS for the current month. This is information you can get from the Edmunds Forums. If the MF on your quote sheet is higher than the base buy rate, you are paying extra profit on the financing.

The Final Takeaway

It's a counterintuitive system. Understanding that the RV is a fixed (and often subsidized) variable allows you to focus your negotiation on the only two numbers that truly matter:

1. The pre-incentive selling price.
   
2. The money factor.
   

That's where the game is won.

 

J Boxer. Thanks for the education! I enjoy reading and learning from you!

 

J Boxer, thank you so much for the thorough explanation on the ins and outs of leasing and offering a personalized step by step plan to get me the best deal possible!