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I’ve seen plenty of people with 48 leases on the previous generation G63. Did something change?
The leasing numbers typically favor 36. That's the sweet spot. Once you go to 40 or more the overall numbers favor purchasing. For what 48 months will cost you, buying will make more sense at the end of the term. Lots of people do lease these longer to get the payment down but the residual will likely not be as favorable as owning after 4 years.
MF is higher than before. Paying for taxes and fees upfront, expect around 2800. But yes, above poster is correct, ideal lease term is 36 or 39 with promotion.
anyone knows the money factor for the 2019/2020 G63?
thats the key to calculate the monty payment
The money factor is one element in calculating the lease payment. Over the years I have found MBFS money factors to be market competitive. The money factor is also non negotiable in my experience. Other key factors in calculating the lease payment are the capitalized cost, the residual value assigned, annual mileage requested and of course the term and down payment. The capitalized cost is a negotiable figure. Or at least it has been until the frenzy for the new model took control of the market. The capitalized cost basically represents what you are being charged for the vehicle. The bottom line at the moment is that based on the demand for the new G nothing is negotiable in a sale or lease transaction. Be prepared for a payment of $2,800/month that can only be influenced downward by the amount of cash you want to throw at the deal. If you do the math you will find that every $1,000 you put down you can reduce the payment by about $10. Hardly seems worth the use of capital. Dealers love lease customers because most people are focused on the monthly payment and overlook the other elements contained in a lease transaction. Unfortunately lease contracts are not subject to the same consumer disclosures as a loan deal. Go figure??
MF is a very negotiable number with MBFS as well as other brands and should be key on any MB lease negotiation. If a car is very desirable, the leverage on discounts is with the dealer, but the base MF can be pushed on hard.
The G-Wagons already have a non sub-vented MF rate, but dealers are free to mark-up the rate on top of the buy rate. There is a profit sharing system in place for the marked-up MF and the dealer gets 70% of that difference up front as an additional payout.
MF is reviewed every 30 days, residual every 60 days. The residual is the only non negotiable number in the deal.
Please understand the MBUSA "calculator" does not account for license/fee's.... if the dealer is being straight up with you on the MF (rather than piggish) then the MF is the MF...
Yes - Mercedes programs change/reset at the beginning of the month - and with the higher-demand/fixed-production no added MB "funny money" on G's for the foreseeable future - you pay to play...
The money factor is one element in calculating the lease payment. Over the years I have found MBFS money factors to be market competitive. The money factor is also non negotiable in my experience. Other key factors in calculating the lease payment are the capitalized cost, the residual value assigned, annual mileage requested and of course the term and down payment. The capitalized cost is a negotiable figure. Or at least it has been until the frenzy for the new model took control of the market. The capitalized cost basically represents what you are being charged for the vehicle. The bottom line at the moment is that based on the demand for the new G nothing is negotiable in a sale or lease transaction. Be prepared for a payment of $2,800/month that can only be influenced downward by the amount of cash you want to throw at the deal. If you do the math you will find that every $1,000 you put down you can reduce the payment by about $10. Hardly seems worth the use of capital. Dealers love lease customers because most people are focused on the monthly payment and overlook the other elements contained in a lease transaction. Unfortunately lease contracts are not subject to the same consumer disclosures as a loan deal. Go figure??
Originally Posted by Wolfman
MF is a very negotiable number with MBFS as well as other brands and should be key on any MB lease negotiation. If a car is very desirable, the leverage on discounts is with the dealer, but the base MF can be pushed on hard.
The G-Wagons already have a non sub-vented MF rate, but dealers are free to mark-up the rate on top of the buy rate. There is a profit sharing system in place for the marked-up MF and the dealer gets 70% of that difference up front as an additional payout.
MF is reviewed every 30 days, residual every 60 days. The residual is the only non negotiable number in the deal.
Wolf is correct on MF. Always make sure you get the best rates on your MF for the lease. It will greatly affect your lease. Cap cost is cap cost, nothing much to it. Residuals will be determined by the bank, in this case, MBFS and the dealer cannot deviate from. Alot of the dealers will allow for MSRP order of the new gwagons but will markup the MF. I signed for MSRP and base MF at time of delivery. Currently, 0 downs will be easily in the 3k range. Bentaygas are leasing for cheaper, slightly longer term and half the miles.
Based on current incentives for the 2019 G63 (2020 programs are not out yet) - For a 165k msrp G63 (with no addendum): $0 down, 10k miles per year:
24 months - $3346 plus tax
30 months - $3117 plus tax
36 months - $2915 plus tax
42 months - $2765 plus tax
48 months - $2588 plus tax
These numbers will vary based on your dealers doc fee and the cost of registration in your state.
I really don’t understand why someone would lease this unless they are absolutely sure they’re going to keep it for a couple years at least. Don’t get me wrong I have leased vehicles. But not with this kind of “hot” market value. Using the numbers provided here, I will lose 50% of my G63’s value after leasing it for 24 months w/20k or less miles on it. I feel like the reality is that I could probably drive this vehicle for 1 year and 10k miles (almost) for free, after purchasing at MSRP. Maybe a little optimistic but you get my point. When mine arrives early Oct I’ll just do straight finance to create more flexibility to take advantage of a hot market, if I decide to. In this case, why lease? What am I missing here...
I really don’t understand why someone would lease this unless they are absolutely sure they’re going to keep it for a couple years at least. Don’t get me wrong I have leased vehicles. But not with this kind of “hot” market value. Using the numbers provided here, I will lose 50% of my G63’s value after leasing it for 24 months w/20k or less miles on it. I feel like the reality is that I could probably drive this vehicle for 1 year and 10k miles (almost) for free, after purchasing at MSRP. Maybe a little optimistic but you get my point. When mine arrives early Oct I’ll just do straight finance to create more flexibility to take advantage of a hot market, if I decide to. In this case, why lease? What am I missing here...
I don't disagree. The only reason I'd lease would be for the business write off, otherwise with the current market buying probably makes more sense. There are those however that prefer to lease with the idea of trading out every couple years and could care less about a free year.
I don't disagree. The only reason I'd lease would be for the business write off, otherwise with the current market buying probably makes more sense. There are those however that prefer to lease with the idea of trading out every couple years and could care less about a free year.
I’m that guy, it’s just rare for me to make it all the way to two years haha... I get itchy!
I’m that guy, it’s just rare for me to make it all the way to two years haha... I get itchy!
I totally get that! I think what they are saying is the lease isn't incentivized at all on this car so even if you traded it in after a couple years (or less) you would be better off than if you made a $3500 payment for 2 years on a lease.
Last edited by dwight047; 09-02-2019 at 10:51 AM.
Reason: spelling error
I don't disagree. The only reason I'd lease would be for the business write off, otherwise with the current market buying probably makes more sense. There are those however that prefer to lease with the idea of trading out every couple years and could care less about a free year.
The tax benefit of the lease and the “ hot commodity” resale value are not mutually exclusive. You can lease and optimize the tax benefits and then buy out at lease end to own. Or even buyout mid lease with positive equity gain then trade to capture value.
The tax benefit of the lease and the “ hot commodity” resale value are not mutually exclusive. You can lease and optimize the tax benefits and then buy out at lease end to own. Or even buyout mid lease with positive equity gain then trade to capture value.
The tax benefit of the lease and the “ hot commodity” resale value are not mutually exclusive. You can lease and optimize the tax benefits and then buy out at lease end to own. Or even buyout mid lease with positive equity gain then trade to capture value.
Putting tax benefit aside ( I cannot write off), isn’t this highly dependent on the set residual value of the lease? Let’s use a real life scenario highly specific to me :-) $170k ish sticker. Likely to keep 12-18 months then want something different. Probably put 10-15k miles max during that time. Unless there’s an incentive around a lump sum one payment lease of some sort, why would I lease?
I ran into this with a Range Rover when I signed a 30 month lease but was tired of it at 18 months. Yes there’s swapalease etc, but in terms of selling or trading in early, it became a very upside down scenario.
if keeping this vehicle for a few years for sure, or tax advantage as a write off, I get it. But on a vehicle that is selling significantly over sticker isn’t it better to purchase? Especially if keeping for short time
If you plan on keeping it 12-18 then yes,purchase is likely a better scenario. You would need to make sure you option it correctly since resale is around the corner.
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08-24-2019, 05:37 AM
