Leasing Question
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Joined: Jan 2012
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From: Maryland
2022 E450 Prior:2021 S580 2012 E350BT, 2013 GL350BT, 2009 ML320BT, 2006 E320CDI, 1987 260E
Leasing Question
I apologize if this is the wrong forum to post this as its a more universal question. However we are pretty set on ordering a GL350 and are now toying with the idea of Leasing Vs. Buying. I really don't have experience with leases so have been researching online.
My question is though, are all the Money Factors and residuals the dealers charge consistent (assuming through Mercedes Benz Finance)? I would assume so, but I have also read that people have been able to get a dealer to reduce the money factor as built into it is wiggle room for the dealer?
Thanks in advance for your input. I am hoping the factors are set so it would just come down to negotiating the best deal off MSRP and for my trade.
My question is though, are all the Money Factors and residuals the dealers charge consistent (assuming through Mercedes Benz Finance)? I would assume so, but I have also read that people have been able to get a dealer to reduce the money factor as built into it is wiggle room for the dealer?
Thanks in advance for your input. I am hoping the factors are set so it would just come down to negotiating the best deal off MSRP and for my trade.
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The larger issue is that finance interest rates are so dang low right now - if you qualify market financing rates can be as low as 1.9% to 2.49%, and on extended long term 72 month contracts under 3%.
The other major factor in leasing is how sales tax is treated in your state for purchase versus lease - some states charge sales tax on cap cost for the lease (which you will not recover back on turn in) where you recover sales tax on trade-in value if you had purchased.
Non-recoverable costs, like acquisition fee's and/or sales tax should be considered as part of the lease "cost" when comparing to purchase.
Keep the beat !
The other major factor in leasing is how sales tax is treated in your state for purchase versus lease - some states charge sales tax on cap cost for the lease (which you will not recover back on turn in) where you recover sales tax on trade-in value if you had purchased.
Non-recoverable costs, like acquisition fee's and/or sales tax should be considered as part of the lease "cost" when comparing to purchase.
Keep the beat !
Thread Starter
Super Member
Joined: Jan 2012
Posts: 599
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From: Maryland
2022 E450 Prior:2021 S580 2012 E350BT, 2013 GL350BT, 2009 ML320BT, 2006 E320CDI, 1987 260E
Thanks, I definitely know what you mean. I got 1.64% for 66 month on the E. Feel stupid paying it off at those terms but don't like the idea of 2 payments.
I am in a state where I do have to pay tax on the cap cost and don't believe I recover it. So I guess leasing will generally not make sense?
I am in a state where I do have to pay tax on the cap cost and don't believe I recover it. So I guess leasing will generally not make sense?
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Your question
With a lease you do not need to concern yourself with the future value of the vehicle after that "fixed" length of ownership - and with a lease all vehicle costs are identified.
A lease is a walkaway - what you have paid is what you have paid - for your choice of shorter term 2/3/4 yrs.
A purchase plan for most is longer term - 4/5/6 years - and if you are planing to tsell/trade earlier then it is important what the value will be 2/3/4 years out.
Keep the beat !
A lease is a walkaway - what you have paid is what you have paid - for your choice of shorter term 2/3/4 yrs.
A purchase plan for most is longer term - 4/5/6 years - and if you are planing to tsell/trade earlier then it is important what the value will be 2/3/4 years out.
Keep the beat !
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2025 Range Rover, 2022 BMW M850 , 2017 MB E400 Coupe
There is one issue when you talking about leasing GL350. MB does not provide any incentives for this model compared to GL450, so you actually will pay more when you lease compared to buy. I just spoke to 2 of my dealers today and they said for GL350 with MSRP about $75K - no less than $1K per months or even more. I was thinking to lease 350, but I see to buy is the only way to go (for now).
Last edited by aeggroup; Nov 14, 2012 at 07:41 AM.
Thread Starter
Super Member
Joined: Jan 2012
Posts: 599
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From: Maryland
2022 E450 Prior:2021 S580 2012 E350BT, 2013 GL350BT, 2009 ML320BT, 2006 E320CDI, 1987 260E
There is on issue when you talking about leasing GL350. MB does not provide any incentives for this model compared to GL450, so you actually will pay more when you lease compared to buy. I just spoke to 2 of my dealers today and they said for GL350 with MSRP about $75K - no less than $1K per months or even more. I was thinking to lease 350, but I see to buy is the only way to go (for now).
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When considering major long term purchase - best to shop/research competitive rates - for example check B of A and any Federal Credit Union (subject to their membership qualifications_ also good for military vet's to check qualifications/membership in USAA.
I have seen top tier rates for some Federal/Navy credit unions as low as 1.49% - BA and others on top tier at 1.99% - market rates thru dealers are not that mich more - but good to know your options then challenge the dealer to match/best or worst case small difference in rate thru negotitation.
At these LOW rates also good to pre-consider adding either Pre-Paid maintenance (take advantage point-of-sale lowest cost) but remember pre-paid maintenance is NOT refundable and/or consider Extended Limited Warranty which IS refundable and also transferable if resold to a private owner. Again, LOW rates makes these valid consideration to pack onto your purchase price and pay with over time with extremely low interest rates.
But hey - why discuss positives !
I have seen top tier rates for some Federal/Navy credit unions as low as 1.49% - BA and others on top tier at 1.99% - market rates thru dealers are not that mich more - but good to know your options then challenge the dealer to match/best or worst case small difference in rate thru negotitation.
At these LOW rates also good to pre-consider adding either Pre-Paid maintenance (take advantage point-of-sale lowest cost) but remember pre-paid maintenance is NOT refundable and/or consider Extended Limited Warranty which IS refundable and also transferable if resold to a private owner. Again, LOW rates makes these valid consideration to pack onto your purchase price and pay with over time with extremely low interest rates.
But hey - why discuss positives !
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Thread Starter
Super Member
Joined: Jan 2012
Posts: 599
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From: Maryland
2022 E450 Prior:2021 S580 2012 E350BT, 2013 GL350BT, 2009 ML320BT, 2006 E320CDI, 1987 260E
When considering major long term purchase - best to shop/research competitive rates - for example check B of A and any Federal Credit Union (subject to their membership qualifications_ also good for military vet's to check qualifications/membership in USAA.
I have seen top tier rates for some Federal/Navy credit unions as low as 1.49% - BA and others on top tier at 1.99% - market rates thru dealers are not that mich more - but good to know your options then challenge the dealer to match/best or worst case small difference in rate thru negotitation.
At these LOW rates also good to pre-consider adding either Pre-Paid maintenance (take advantage point-of-sale lowest cost) but remember pre-paid maintenance is NOT refundable and/or consider Extended Limited Warranty which IS refundable and also transferable if resold to a private owner. Again, LOW rates makes these valid consideration to pack onto your purchase price and pay with over time with extremely low interest rates.
But hey - why discuss positives !
I have seen top tier rates for some Federal/Navy credit unions as low as 1.49% - BA and others on top tier at 1.99% - market rates thru dealers are not that mich more - but good to know your options then challenge the dealer to match/best or worst case small difference in rate thru negotitation.
At these LOW rates also good to pre-consider adding either Pre-Paid maintenance (take advantage point-of-sale lowest cost) but remember pre-paid maintenance is NOT refundable and/or consider Extended Limited Warranty which IS refundable and also transferable if resold to a private owner. Again, LOW rates makes these valid consideration to pack onto your purchase price and pay with over time with extremely low interest rates.
But hey - why discuss positives !
So I have an extended warranty from MB on the ML I am trading in. Finance person just told me 2 days ago I wouldn't get 100% back even though I am still i regular warranty period. I smell BS reading the controls though from 2009. I'll find out in a week or so when I drop off the car, but I'd caution to make sure we read the terms when buying new extended warranties...
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ELW refund
I think there may be just a little mis-communication from my side -
1) You are entitled to 100% refund of the ELW once the ELW has been paid in full. If the ELW was paid from the cash down on the transaction, paid in full at the purchase of the vehicle, then you can cancel today before trade-in and start the process now by filing the claim form available only from the dealer. If the ELW was financed as part of the transaction, then the ELW refund claim needs to be made after proof of finance payoff and odometer mileage statement from the trade. Odo statement copy is easy at time of trade-in, financial payoff docs are generally available from the dealer within 30 days of the trade-in.
2) 100% refund assumes the new car warranty is still in effect. If new car warranty has expired - then you are entitled to pro-rated refund based on when the ELW went into effect - based on remaining time or mileage unexpired on the ELW (whichever factor is less refund) LESS any paid ELW claims, and paid ELW claims pretty much whack the refund down down quick.
So, in essence the Finance guy has to go in and see how the ELW was paid on the original transaction - if a customer is doing a large down smart finance guy will knock ELW cost off the down and pay in full - if small down then ELW gets financed.
Sounds more complex than it is - but at this stage understand a Finance guy gets paid on new business, so smooth admin followup is based on how professional the Finance guy is.
Most of my customers on ELW refunds money use it to whack down their sales tax and registration costs.
1) You are entitled to 100% refund of the ELW once the ELW has been paid in full. If the ELW was paid from the cash down on the transaction, paid in full at the purchase of the vehicle, then you can cancel today before trade-in and start the process now by filing the claim form available only from the dealer. If the ELW was financed as part of the transaction, then the ELW refund claim needs to be made after proof of finance payoff and odometer mileage statement from the trade. Odo statement copy is easy at time of trade-in, financial payoff docs are generally available from the dealer within 30 days of the trade-in.
2) 100% refund assumes the new car warranty is still in effect. If new car warranty has expired - then you are entitled to pro-rated refund based on when the ELW went into effect - based on remaining time or mileage unexpired on the ELW (whichever factor is less refund) LESS any paid ELW claims, and paid ELW claims pretty much whack the refund down down quick.
So, in essence the Finance guy has to go in and see how the ELW was paid on the original transaction - if a customer is doing a large down smart finance guy will knock ELW cost off the down and pay in full - if small down then ELW gets financed.
Sounds more complex than it is - but at this stage understand a Finance guy gets paid on new business, so smooth admin followup is based on how professional the Finance guy is.
Most of my customers on ELW refunds money use it to whack down their sales tax and registration costs.
Thread Starter
Super Member
Joined: Jan 2012
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From: Maryland
2022 E450 Prior:2021 S580 2012 E350BT, 2013 GL350BT, 2009 ML320BT, 2006 E320CDI, 1987 260E
Makes sense. I paid it in full (credit card) up front and am still in my new car warranty so expecting to get it all back. The finance person said I would get very close to 100% but not 100% because "I had the benefit of knowing I had it"??? I pretty sure she is confused though but we'll see. I would ideally put the refund into the down payment on the new one. However she told me once the dealer cancels they will only get money back the next 15th of the month and will cut me a check then. So timing may be against me but no big deal floating them $4600 a couple weeks after in essence doing it for 3.5yrs...
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You can cancel TODAY by going into any dealer with your proof of ownership and filling out the form. Refund is 15th of the month following, standard for all manufacturers by and large.
Thread Starter
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From: Maryland
2022 E450 Prior:2021 S580 2012 E350BT, 2013 GL350BT, 2009 ML320BT, 2006 E320CDI, 1987 260E
Thanks I'll plan to take care of it next week. Refund should coincide with my delivery then more or less...
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i'm planning on doing same with my trade at time of delivery- since my C is out of new car warranty- it'll be prorated for amount 5months from time of ELW purchase- looking at losing about 20% - 25% of the payment- but hey atleast I get a better part of it back..
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Thanks, I definitely know what you mean. I got 1.64% for 66 month on the E. Feel stupid paying it off at those terms but don't like the idea of 2 payments.
I am in a state where I do have to pay tax on the cap cost and don't believe I recover it. So I guess leasing will generally not make sense?
I am in a state where I do have to pay tax on the cap cost and don't believe I recover it. So I guess leasing will generally not make sense?
Last edited by vig168; Nov 19, 2012 at 10:06 PM.
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For business purposes you should address purchase/lease questions to your accountant as it pertains to Section 179 business depreciation and the cash flow status of your business.
GL's (and ML's for that matter) meet the current vehicle qualifications of Sections 179 for "bonus" depreciation - but you need to meet the business mileage/usage requirements as well and they can be some "gray" area as to whether or not office commute mileage from your home qualifies as business mileage.
That said - on your original question of 49 versus shorter term 36 month lease - longer term allows you to amortize other acquisition costs (including sales tax in most states) over 48 months versus 36 months - payments will be slightly lower 48 months.
Please understand for your next lease/purcahse - this time of year Mercedes Financial will often payoff 3-6 months of payments on the old note/lease if you are rolling over into a new note/lease.
Keep the beat !
GL's (and ML's for that matter) meet the current vehicle qualifications of Sections 179 for "bonus" depreciation - but you need to meet the business mileage/usage requirements as well and they can be some "gray" area as to whether or not office commute mileage from your home qualifies as business mileage.
That said - on your original question of 49 versus shorter term 36 month lease - longer term allows you to amortize other acquisition costs (including sales tax in most states) over 48 months versus 36 months - payments will be slightly lower 48 months.
Please understand for your next lease/purcahse - this time of year Mercedes Financial will often payoff 3-6 months of payments on the old note/lease if you are rolling over into a new note/lease.
Keep the beat !
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How does this rule work in case of purchase. I own the car, not leasing. Do I have to trade-in my car to get 3-6 months payments ? What if I don't want to trade it in ? I'm ready to order my car and it would be nice if they payoff at least 3 months of my current loan. Please explain.
Thread Starter
Super Member
Joined: Jan 2012
Posts: 599
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From: Maryland
2022 E450 Prior:2021 S580 2012 E350BT, 2013 GL350BT, 2009 ML320BT, 2006 E320CDI, 1987 260E
How does this rule work in case of purchase. I own the car, not leasing. Do I have to trade-in my car to get 3-6 months payments ? What if I don't want to trade it in ? I'm ready to order my car and it would be nice if they payoff at least 3 months of my current loan. Please explain.
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aeg - sorry I missed where I mentioned somehting about a "rule".
There is no payoff subsidy from any manufacturer that leaves your prior car in your garage - of course it's linked to early payoff/acquisition of lease return and/or trade-in as incentive to roll into another sales of a new car..
There is no payoff subsidy from any manufacturer that leaves your prior car in your garage - of course it's linked to early payoff/acquisition of lease return and/or trade-in as incentive to roll into another sales of a new car..
Thread Starter
Super Member
Joined: Jan 2012
Posts: 599
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From: Maryland
2022 E450 Prior:2021 S580 2012 E350BT, 2013 GL350BT, 2009 ML320BT, 2006 E320CDI, 1987 260E
aeg - sorry I missed where I mentioned somehting about a "rule".
There is no payoff subsidy from any manufacturer that leaves your prior car in your garage - of course it's linked to early payoff/acquisition of lease return and/or trade-in as incentive to roll into another sales of a new car..
There is no payoff subsidy from any manufacturer that leaves your prior car in your garage - of course it's linked to early payoff/acquisition of lease return and/or trade-in as incentive to roll into another sales of a new car..
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2025 Range Rover, 2022 BMW M850 , 2017 MB E400 Coupe
I spoke with my dealer and MB financial yesterday. They said loyalty accelerator program applies only to leased vehicles. You can return your car up to 5 months earlier depending on your model. No benefits for people who'd like to own. Sucks 
