boltsfan

I know this dealership has been discussed many times here (yes I did a search).

Been offered a too good to be true lease deal on a new 2011 GLK 350 (and we all know what that means). Sales guy will not give me any numbers over the phone or email so it makes me very skeptical. Claims he cannot reveal any numbers via email or phone due to agreement with MB and it must be done in person. I have no problem walking in and then walking away if they pull something shady but just do not want to waste driving 60 miles (one way) to find out.

I usually deal with local MB dealer but their stock (and all other local dealers) is very low and they have been very unresponsive as well.

He is claiming a ZERO down (zero cap cost and fees) and he claims monthly payment will in the $450 ballpark which seems way to low to me. Even at a fleet rate this seems way too low.

Anyone have any recent interaction with their Internet sales team?

rmfnla

Sounds fishy since the 2011s just came out.

I would tell him you are writing down his name and everything he says (record it?) and will come down, but the second he deviates from his offer you will walk and file a complaint with the BBB and MB USA.

If he still wants you to come in then go for it.

MilesBFree

I am not that familiar with leases, but almost all the lease deals I have seen in writing require some sort of initial upfront payment of around a few grand. This is probably to cover some of the depreciation, mileage, wear and tear, etc. for people that return the car before the lease term is up (e.g.- due to job loss).

The dealers almost always charge for taxes, paperwork, title, registration, and other fees, which would also be part of the down payment.

The first month lease payment is also often required in the down payment.

If he won't give you any numbers over the phone, how do you know it is a great deal? Just curious...

Also, have you been waiting for a good deal to get a GLK, or is your interest piqued by the good deal? If you have been dreaming of one for a while, it might be worth the 60 minute drive to find out. (How far is that in the LA area? 0.5 miles? )

I would be very skeptical. If he is willing to drop his shorts, find out why.

boltsfan

I never put $ down to lower cap cost. I usually roll all "fees" into lease as well including the first payment so I walk out with new car with literally ZERO out of pocket.

On my 2009 C300 Sport (18" AMG and iPod kit) I paid ZERO out of pocket for 48\15k lease and payment is $499 per month.

The drive is 60 miles... not 60 minutes.

rmfnla

FYI, a dealer can write a lease pretty much any way they want.

There are numerous "no drive-off" leases where all you do is sign the paperwork and away you go; no payment of any kind required.

You cannot just turn in a leased car early; the lease is a closed-end contract, just like a car loan, and you are liable for the full value of the contract.

As for depreciation, this is what the lease payment covers. The residual value when you turn the car in is what remains of the car's value after depreciation.

Wear and tear is included in depreciation, although you may be billed for excessive W&T at lease termination.

Taxes on a lease are charged for each payment, not the whole thing up front like a purchase. This is one of the biggest advantages of a lease; substantailly less sales tax.

Leases offer many advantages over a pourchase although they are not for everyone. More importantly, an unscrupulous dealer can screw you over if you are not careful, regardless of a lease or purchase.

MKenM

Once he gets you in the showroom it may be all over. Is there that much difference that you want a new one or is it more curiosity

3Stars

We've bought cars from different dealers. We always got the final quotes by internet sales department (somehow they always have lower quotes than walk-in showroom's offers) and came in just to pay off or sign papers.
Do not waste your time to drive to dealer after dealer hunting for deals. This is 21st century, they can do it over phone/internet. There are always other dealers to choose from. You may fair better with small town dealers (Riverside/West Covina/Long Beach ...ect.) who need more business.
If dealer can not be straight with you on the phone/email, would they be when you come in their showrooms?

boltsfan

I always negotiate all of my lease deals via email first to avoid haggling in person... who has time to spend 6 hours at a dealership anymore?

Again... too good to be true then it always is. Almost curious to go to FJ just to see what they have to say but I know he is lying when he claims he can get a 2011 GLK for $450 per month with ZERO out of pocket. He would have to sell me a GLK at $4-5k below invoice to get that payment on a 48\15k lease. Just not sure I want to waste time and drive 120 miles (round trip) to find out he is a liar.

Local dealer has offered GLK at invoice ($38800) and payment will be $630 (including tax) with only the first payment out of pocket. Another dealer in Orange County (not FJ) said they could not beat it.

Shak59

I'm in TX and I snagged my 2011 2WD with lighting package and step rails for $37k. 0 down, 60 months, 2.99%, 662 monthly payments with gap insurance. (I did have to put 500 down as a deposit to order the car, 37k was final price, 367xx was loan amount with GAP insurance).

Seemed like a good deal to me. I did have EAB (executive allowance bonus) discount. That is similar to a fleet discount.

MilesBFree

Pack a picnic lunch and make a day of it - drive up there this weekend and talk to them.

But I would tend to agree - if it sounds too good to be true... And it looks like you have done the math.

balticgreen

You never need to make a cap cost reduction (aka down payment). You can easily drive away with nothing more than the first month's payment paid out of pocket and sometimes you don't even need to pay that upfront. All a cap cost reduction (aka down payment) does is reduce your monthly payment. Manufacturers advertise lease deals on TV with large cap cost reductions because it pulls the monthly payment down to a number that generates interest. "I can drive a brand new Mercedes for $300/month??? I'm going to stop by the dealership tomorrow!" It's just a numbers game. You can drive a Mercedes for $1/month if you put enough money down.

However, you really should never make a cap cost reduction on a lease. If something happens to the car before the end of the lease term (i.e., it's totaled) waive goodbye to however much you put down.

Actually that varies by state. Some states do in fact charge sales tax upfront on the full purchase price of the car.

rmfnla

Well said.

Bottom line is the car has a certain amount of cost and it must be paid one way or another.

Leases have one more caveat: because the payments are lower than a purchase there is more room for the dealer to pad the payment without the customer realizing it.

Blk04cobra1

To my knowledge, MB does not offer a $0 down lease deal, you at least have to put down your 1st payment. As for the $450/mo on a 2011 GLK350, they are full of it. The lease special on the 2010 is still $459/mo with $4500 due at signing (and this doesnt include your taxes and fee's).

rmfnla

In CA the tax would be on the payment so it would be about $50, but the DMV would be another $500 or so easily.

I can't see any dealership eating that $4500 down, though, especially on a 2011.

451/443=EW

At 60 miles an hour its 60 minutes

rmfnla

That's true, but in SoCal one never assumes 60 mph unless one is driving at 3:00 am, and not always even then!