My dealer emailed me this estimated lease payment today. $3396...see below. Where is the dealer adding the "bonus" profit...I see MBUSA website estimates my lease payment as $2463 plus taxes well----My credit is A1 (above 800)

Please share your thoughts....Cheers

 

What is the MSRP on the vehicle?

 

MSRP = $165,845 (incl $995 destination)

Cheers

 

The dealer has added an upcharge of approximately $11,000. The difference between agreed value and adjusted capital cost. You are also paying $10,365 in upfront sales tax. That wouldn't happen in my state but I don't know where you are located. Perhaps there are different regulations in your state. Those are the two principal items used in calculating total capitalized cost. If you can get an answer on those two items you will know where you stand. Good luck.

 

Dealer in my town has a 155k G63 they are selling with a +20k markup. Didn't get a full workup but they quickly flashed some lease calc that had a 25k initial payment, and a 3300/mo 66month term. Didn't spend much time looking at it. MB does not want you leasing these things and the leases are ridiculous. Couldn't tell if the 35k initial payment was the premium or some other number. Have never leased a car so can't provide much insight other than this random data point.

 

Car is being purchased in Texas...turns out they do collect sales tax up front in Texas leases....That is the up-charge of @ 11,000-----it appears nothing else was being added. I guess I am purchasing and not leasing since it will be driven in SoCal....

cheers

 

So this is CA or TX sales Tax? There should be no TX sales tax if the car is shipped to CA. Also the lease number is pretty high. If you want to lease, there is no problem writing a lease for CA at the Texas dealer (MBFS)

Anytime you have a lease, ask for the lease worksheet that shows the residual % and MF. If you have good credit, your MF should be at around .0028. Everything over that is a markup from the dealer. This is one way they are making money. In your case, a lot!

 

Use the leasehackr calculator.

Using msrp of 16500 and 56% residual I get 3146 with tx tax rolled in

Aren't you going to register in ca? You shouldn't have to pay tx tax.

If ca I got 3002 for california tax included

They added about 10k in there to get to your payment, 10k you are not seeing on the worksheet that's not the tax.

If it makes sense for you financially and tax wise go for the lease.

If you care more about getting your money's worth, if youre able to stretch to a 60 month term you get the same finance payment; I highly expect these cars to be worth much more than the 55% residual depicted in the worksheet in 3 years. G wagens don't lose that much value historically.

 

I would go with purchase, lease terms not favorable enough.

 

Thank You kombifan.....

They said they used MF= .00385....based upon earlier comments , it appears I should be getting @ .0028 (tier 1 with 800 plus score)?

What is lease payment using MF = .0028?

Many Thanks-

 

The payments I mentioned were based off .0028

.0028 is extremely high already. It’s close to 6 % Apr.

 

You will be paying close to $11k more based on the higher MF based on 36 months lease. This is based on a ballpark figure of roughly $300 for a month. You will be at 9.2% interest.

The lowest rate available to customers in A1 which currently sits .0026 (could be .00255). This is based on you as a customer with MB and many variables. There are others on the forum that know much more that me about this.
But lets say you are T1, T1Plus, the best possible rate you will get is .0028 (6.7%)
Mercedes has lots of heavily discounted rates for cars they want to move, like base C, E, GLC, GLE, S, SL etc. which are a fraction (can be as low as 1.3%) but the G_Wagon is a gravy train due to its high demand.

The rate quote you received is obscene and they simply get back in Financing what they give you in a discount. Mind you that they only get a portion of the MF markup, but its substantial...
You can tell them that you want the non-marked up base MF A1 rate of .0026. They will either laugh at you or offer something like .0031 (this is the best they can do...). They might also go lower but all is a supply/demand scenario. Under .0030 is fair for a high demand vehicle
MB has lost lots of money on leased vehicles due to lower selling prices, damages, etc. and have jacked up the rates. Last year A1 was still at .0020

Take comfort that Porsche's MF is even higher

 

Is this through MB financial? I believe they have to charge the tax based upon where the car is registered. If it's CA it's loaded into your monthly payment over the lease. MF is going to be high for AMG's .

 

yes-through mercedes financial...prefer to use mb finan so I don’t open another line of credit....looking like I will purchase at least I get a huge first year write off and drive a g63 for work...so not a bad deal....dealer said 2019 deliveries may be almost done and moving towards 2020 model year...he said MB is not saying anything yet but the off the record feedback is may June will be last months to order 2019—Cheers

 

JB is right. You pay state sales tax (if the state has a sales tax) for the state in which the vehicle is registered. Usually when you lease you only pay your state's sales tax on the monthly lease payment, not on the entire vehicle purchase amount (but some states might be different). I know it is that way for WA and ID.

I went through a real battle with MB Financial ("MBF") when we purchased our 2019 G550. I wanted to lease it through my construction company as we have several MB Sprinters and we always lease them. MBF has two divisions within MBF which are for consumers and commercial. MBF considers the Gwag a consumer vehicle (not commercial). MBF Commercial division would not do a lease without my personal guarantee, which I did not want to do. They would do a purchase which is what I did. The rate was still up there at 7.45% for a 6 year purchase. The payment is $2,855.72.(10K miles per year).

What Wolfman said is 100% correct. MB only offers discount financing (through MBF) on cars that are not selling. MB has to pay MBF to "buy down" the financing rates in order to do that. On models that are popular, they do not offer any deals, in fact, their financing rates are quite high. But don't get too hung up on the interest rate. The interest rate on this same amount of money doesn't affect the payment that much. For example my same G550 with 72 months at 4.45% (which I would consider a good rate in this interest rate environment) only lowers the monthly payment by about $230.00 per month. If you are wanting to get your monthly payment down, extending the term is your best bet. Length of payments has far more impact on your monthly payment amount then the interest rate or lease "money factor" rate.

Of course, paying any interest on a car is not smart, as you should only finance assets that appreciate in value. Depreciating assets (like cars and clothes as an example) should be purchased with cash. But in the real world with luxury autos getting so expensive, almost all cars are financed.