Financing my 2019 G550
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Senior Member
Joined: May 2018
Posts: 380
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2014 ML63 2015 G550 2016 G550 & (2) 2019 G550s
Financing my 2019 G550
Well, my G550 is at the dealership and we're working on leasing now. They are not charging me above MSRP, but I think they are trying to make some up on the leasing. They said:
Typically 36 month leases are the smartest option.
Money factor on the 36 and 48 month lease is .0038
And money factor on the 60 month lease is .0040
I thought the MB lease money factor rate was .0029?
Typically 36 month leases are the smartest option.
Money factor on the 36 and 48 month lease is .0038
And money factor on the 60 month lease is .0040
I thought the MB lease money factor rate was .0029?
Senior Member
Joined: Mar 2014
Posts: 319
Likes: 57
From: New York, New York
6x6 | 4x4
Well, my G550 is at the dealership and we're working on leasing now. They are not charging me above MSRP, but I think they are trying to make some up on the leasing. They said:
Typically 36 month leases are the smartest option.
Money factor on the 36 and 48 month lease is .0038
And money factor on the 60 month lease is .0040
I thought the MB lease money factor rate was .0029?
Typically 36 month leases are the smartest option.
Money factor on the 36 and 48 month lease is .0038
And money factor on the 60 month lease is .0040
I thought the MB lease money factor rate was .0029?
Never Lease a vehicle longer than the Warranty.
Money Factor (A1 Credit) used to be .00180, you get a lesser rate from the .00210 with good credit.
Dealer's tend to not pass this savings on to the customer.
They are destroying you on the rate, UNLESS MBUSA has drastically increased the "standard" Money Factor, which I highly doubt.
*SOURCE (my time being employed at MBUSA until 2016...so this could have changed, but not that much)
Senior Member
Joined: Mar 2014
Posts: 319
Likes: 57
From: New York, New York
6x6 | 4x4
Never Lease a vehicle longer than the Warranty.
Money Factor (A1 Credit) used to be .00180, you get a lesser rate from the .00210 with good credit.
Dealer's tend to not pass this savings on to the customer.
They are destroying you on the rate, UNLESS MBUSA has drastically increased the "standard" Money Factor, which I highly doubt.
*SOURCE (my time being employed at MBUSA until 2016...so this could have changed, but not that much)
Money Factor (A1 Credit) used to be .00180, you get a lesser rate from the .00210 with good credit.
Dealer's tend to not pass this savings on to the customer.
They are destroying you on the rate, UNLESS MBUSA has drastically increased the "standard" Money Factor, which I highly doubt.
*SOURCE (my time being employed at MBUSA until 2016...so this could have changed, but not that much)
FYI, .00210 is the "discounted" rate with PPM, so in reality it is .00220.
Senior Member
Joined: Mar 2014
Posts: 319
Likes: 57
From: New York, New York
6x6 | 4x4
Never Lease a vehicle longer than the Warranty.
Money Factor (A1 Credit) used to be .00180, you get a lesser rate from the .00210 with good credit.
Dealer's tend to not pass this savings on to the customer.
They are destroying you on the rate, UNLESS MBUSA has drastically increased the "standard" Money Factor, which I highly doubt.
*SOURCE (my time being employed at MBUSA until 2016...so this could have changed, but not that much)
Money Factor (A1 Credit) used to be .00180, you get a lesser rate from the .00210 with good credit.
Dealer's tend to not pass this savings on to the customer.
They are destroying you on the rate, UNLESS MBUSA has drastically increased the "standard" Money Factor, which I highly doubt.
*SOURCE (my time being employed at MBUSA until 2016...so this could have changed, but not that much)
NEW MONEY FACTOR 2019 G550:
.00300 (.00290 w/Autopay)
.00270 A1 (.00260 w/Autopay)
You can (and should) negotiate whatever rate they sell you.
Senior Member
Joined: Jul 2018
Posts: 264
Likes: 131
From: Calabasas, CA
2018 G63 AMG x2, 2017 BMW M6
For years and years and years 36 months was the best lease rate for BMW, whereas Mercedes was 48-60 months. I'd be shocked if the all new G has the best rate at 36 months. Wow!!
Also, if you are planning on leasing or purchasing ANY car past the manufacturers warranty, add the extended warranty into your payment. A single major repair, could cost much more than the extended warranty!
Also, if you are planning on leasing or purchasing ANY car past the manufacturers warranty, add the extended warranty into your payment. A single major repair, could cost much more than the extended warranty!
Member
Joined: Oct 2018
Posts: 165
Likes: 95
From: Birmingham, AL
G63 AMG, Lamborghini LP580-2
That money factor you could probably be revenue neutral on a 0.9% for 60 finance. My credit union just gave me that rate for my new G63. They were willing to go all the out to 84 months for 2.99% which blew mind. I took the .9% deal because it was a silly rate.
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Joined: May 2018
Posts: 380
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2014 ML63 2015 G550 2016 G550 & (2) 2019 G550s
Yeah, I use credit unions for personal vehicles. Since we buy a lot of Sprinter vans through my construction company, I'm purchasing this G550 through my construction company so I want to use MB Financial Services.
Thanks for all the input guys. Really helpful, not only to me, but the forum in general I'm sure, because next to "what do I get for my money" is "what do I have to pay"
Thanks for all the input guys. Really helpful, not only to me, but the forum in general I'm sure, because next to "what do I get for my money" is "what do I have to pay"
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19 X3, 24 Tacoma Trailhunter, 25 CLE53
Wow, I thought my 1.99 for 84 was good, but I would have jumped on 0.9 for 60.
Last edited by dunderhi; Nov 22, 2018 at 03:20 PM. Reason: 7x12=84
Senior Member
Joined: Mar 2014
Posts: 319
Likes: 57
From: New York, New York
6x6 | 4x4
For years and years and years 36 months was the best lease rate for BMW, whereas Mercedes was 48-60 months. I'd be shocked if the all new G has the best rate at 36 months. Wow!!
Also, if you are planning on leasing or purchasing ANY car past the manufacturers warranty, add the extended warranty into your payment. A single major repair, could cost much more than the extended warranty!
Also, if you are planning on leasing or purchasing ANY car past the manufacturers warranty, add the extended warranty into your payment. A single major repair, could cost much more than the extended warranty!
The flip side, leasing a G has NEVER been a good financial decision, as the residual was way off what the actual ACV was when the lease expired.
Thread Starter
Senior Member
Joined: May 2018
Posts: 380
Likes: 86
2014 ML63 2015 G550 2016 G550 & (2) 2019 G550s
Ok, my dealer quoted me the standard .0029 money factor for a lease. Below are the current residuals
2019 G550W4
Months: 24 30 36 42 48 54 60
Residual 60% 56% 53% 49% 46% 42% 39%
For ultra-low mileage leases at 7,500 miles per year, add 4% to standard residual percentages.
For low mileage leases at 10,000 miles per year, add 3% to standard residual percentages.
For low mileage leases at 12,000 miles per year, add 2% to standard residual percentages.
For high mileage leases at 20,000 miles per year, subtract 5% for 24 to 48 months from the standard residual percentages.
2019 G550W4
Months: 24 30 36 42 48 54 60
Residual 60% 56% 53% 49% 46% 42% 39%
For ultra-low mileage leases at 7,500 miles per year, add 4% to standard residual percentages.
For low mileage leases at 10,000 miles per year, add 3% to standard residual percentages.
For low mileage leases at 12,000 miles per year, add 2% to standard residual percentages.
For high mileage leases at 20,000 miles per year, subtract 5% for 24 to 48 months from the standard residual percentages.
Thread Starter
Senior Member
Joined: May 2018
Posts: 380
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2014 ML63 2015 G550 2016 G550 & (2) 2019 G550s
And to add to my adventure, I ran into a snag with the funding. My dealership is telling me that MB Commercial division will not finance passenger vehicles (i.e. G550), although I have done it with my 2015 G550, so I'm home without it. So annoying and frustrating. No one knows their jobs anymore.
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MB
And to add to my adventure, I ran into a snag with the funding. My dealership is telling me that MB Commercial division will not finance passenger vehicles (i.e. G550), although I have done it with my 2015 G550, so I'm home without it. So annoying and frustrating. No one knows their jobs anymore.
Thread Starter
Senior Member
Joined: May 2018
Posts: 380
Likes: 86
2014 ML63 2015 G550 2016 G550 & (2) 2019 G550s
Yes, it would sail through if it was me personally, but then:
1. I would have a credit pull and a credit line item on my personal credit (thus affecting my score and my debt to income ratios)
2. It would be harder to write it off as a business expense (and I'm in one of those tax brackets where the government tries to take 50% of the profit that I struggle and risk to make)
The frustrating part is I have already leased a G550 through my company without my personal involvement so these guys just don't know what they are doing. Annoying.
1. I would have a credit pull and a credit line item on my personal credit (thus affecting my score and my debt to income ratios)
2. It would be harder to write it off as a business expense (and I'm in one of those tax brackets where the government tries to take 50% of the profit that I struggle and risk to make)
The frustrating part is I have already leased a G550 through my company without my personal involvement so these guys just don't know what they are doing. Annoying.
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Joined: Nov 2018
Posts: 65
Likes: 9
MB
Yes, it would sail through if it was me personally, but then:
1. I would have a credit pull and a credit line item on my personal credit (thus affecting my score and my debt to income ratios)
2. It would be harder to write it off as a business expense (and I'm in one of those tax brackets where the government tries to take 50% of the profit that I struggle and risk to make)
The frustrating part is I have already leased a G550 through my company without my personal involvement so these guys just don't know what they are doing. Annoying.
1. I would have a credit pull and a credit line item on my personal credit (thus affecting my score and my debt to income ratios)
2. It would be harder to write it off as a business expense (and I'm in one of those tax brackets where the government tries to take 50% of the profit that I struggle and risk to make)
The frustrating part is I have already leased a G550 through my company without my personal involvement so these guys just don't know what they are doing. Annoying.
Thread Starter
Senior Member
Joined: May 2018
Posts: 380
Likes: 86
2014 ML63 2015 G550 2016 G550 & (2) 2019 G550s
That's what I need to confirm Jiggs1000. I would prefer not to have a credit pull personally, but I could probably live with it (and explain it away as I was looking at a personal vehicle I didn't buy), but I certainly don't want a vehicle loan line item on by personal credit report. When I'm buying commercial real estate (or any real estate for that matter) banks don't like to see vehicle loan, looks irresponsible (to them).
That's why Ferrari Financial is so great, they do not report. What a bunch of ballers!!!
That's why Ferrari Financial is so great, they do not report. What a bunch of ballers!!!
Thread Starter
Senior Member
Joined: May 2018
Posts: 380
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2014 ML63 2015 G550 2016 G550 & (2) 2019 G550s
And just plan on bull**** at the end. That's one way dealership make money, is on the spread on financing. My dealership first quoted me higher lease factor rates and when I questioned them, they said, oh sorry typo. Really? Typo? Once this deal is done, I'm done with the dealership. Better to say, "hey, we make money on the financing, but let me see what I can do", then I would at least respect them for their honesty and trying to make a buck.
They even tried to tell me that put security on all their vehicles (like a LOJACK system) and when I asked if it was mandatory, they said, "no it's not". I thought WTF?
Knowledge is power, which is why these forums are so great. I'm ok with paying MSRP since it's a newer model, just don't D I C K me on all the other stuff.
They even tried to tell me that put security on all their vehicles (like a LOJACK system) and when I asked if it was mandatory, they said, "no it's not". I thought WTF?
Knowledge is power, which is why these forums are so great. I'm ok with paying MSRP since it's a newer model, just don't D I C K me on all the other stuff.
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Joined: Nov 2018
Posts: 65
Likes: 9
MB
That's what I need to confirm Jiggs1000. I would prefer not to have a credit pull personally, but I could probably live with it (and explain it away as I was looking at a personal vehicle I didn't buy), but I certainly don't want a vehicle loan line item on by personal credit report. When I'm buying commercial real estate (or any real estate for that matter) banks don't like to see vehicle loan, looks irresponsible (to them).
That's why Ferrari Financial is so great, they do not report. What a bunch of ballers!!!
That's why Ferrari Financial is so great, they do not report. What a bunch of ballers!!!
Junior Member
Joined: Nov 2018
Posts: 65
Likes: 9
MB
And just plan on bull**** at the end. That's one way dealership make money, is on the spread on financing. My dealership first quoted me higher lease factor rates and when I questioned them, they said, oh sorry typo. Really? Typo? Once this deal is done, I'm done with the dealership. Better to say, "hey, we make money on the financing, but let me see what I can do", then I would at least respect them for their honesty and trying to make a buck.
They even tried to tell me that put security on all their vehicles (like a LOJACK system) and when I asked if it was mandatory, they said, "no it's not". I thought WTF?
Knowledge is power, which is why these forums are so great. I'm ok with paying MSRP since it's a newer model, just don't D I C K me on all the other stuff.
They even tried to tell me that put security on all their vehicles (like a LOJACK system) and when I asked if it was mandatory, they said, "no it's not". I thought WTF?
Knowledge is power, which is why these forums are so great. I'm ok with paying MSRP since it's a newer model, just don't D I C K me on all the other stuff.
Thread Starter
Senior Member
Joined: May 2018
Posts: 380
Likes: 86
2014 ML63 2015 G550 2016 G550 & (2) 2019 G550s
Ok, I got it all sorted out. I ended up doing a purchase through the commercial division of MB Financial. Fully in company name (no personal information, credit pull or credit reporting). I have purchased seven other vehicles through MB Financial in recent years so if you plan on buying a new Gwag through MB Financial, you may have to provide audit financial statements for a couple of years.
And the rates are not great, so prepare to pay between 6.95% and 7.54% (which was hard money rates a few years ago), but the Fed is hammering rates in anticipation of massive inflation worries.
And the rates are not great, so prepare to pay between 6.95% and 7.54% (which was hard money rates a few years ago), but the Fed is hammering rates in anticipation of massive inflation worries.
