GLS 450 Lease or buy
11-22-2016, 08:22 PM
#1
Member
Thread Starter
GLS 450 Lease or buy
Hello, I can pay in full or lease. With this car's depreciation and 6% tax here which is the more cost effective route to take.
I worry that a used benz is hard to sell with redesign in 2019 and I plan on keeping 2-3 years and will upgrade when the new model is out. Thanks.
I worry that a used benz is hard to sell with redesign in 2019 and I plan on keeping 2-3 years and will upgrade when the new model is out. Thanks.
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gixxer (11-24-2016)
11-24-2016, 08:16 AM
#3
Member
Thread Starter
Can't be helped since this is what the wifey wants. Thanks for the tip.
11-25-2016, 09:54 AM
#4
One suggestion if you lease is to take advantage of the multiple security deposits. It will bring the MF down and save you from paying a lot of money in interest. You get the MSD back at the end of the lease. Dealers tend to mark up the MF so be mindful of that. second if you plan to turn the car in after 3 years it probably makes sense to do a lease. Goodluck.
11-25-2016, 02:21 PM
#6
Member
GLS 550 here. We bought with the intention of keeping it for a while. Turns out the reliability may not be all that great based on 5 months and 6k miles of ownership and the depreciation is a monster for this vehicle so... Lease does seem to make the most sense.
11-25-2016, 10:15 PM
#7
Member
Thread Starter
One suggestion if you lease is to take advantage of the multiple security deposits. It will bring the MF down and save you from paying a lot of money in interest. You get the MSD back at the end of the lease. Dealers tend to mark up the MF so be mindful of that. second if you plan to turn the car in after 3 years it probably makes sense to do a lease. Goodluck.
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11-26-2016, 07:44 AM
#8
Generally not a good idea to put money down (i.e. for cap cost reduction) as if the car gets totaled you don't get that money back. My rule of thumb is that i will not put any money down towards cap cost reduction.
Multiple security deposits are different where that money you will get back at the end of the lease or even if the car gets totaled. The downside is that if you plan to transfer the lease prior to lease end it may be tough to find someone who will be willing to give you back your MSD payments (as it is a large sum that you have to cut a check for). If you plan to keep the car for the entire lease, its a good idea to think about MSDs.
You are just giving that money to MBFS to buy down the points. For example, in my case, I saved over 3000 in interest payments by putting down the MSD. The downside you need to evaluate for yourself is that can you have made more money elsewhere by investing that. good luck.
Multiple security deposits are different where that money you will get back at the end of the lease or even if the car gets totaled. The downside is that if you plan to transfer the lease prior to lease end it may be tough to find someone who will be willing to give you back your MSD payments (as it is a large sum that you have to cut a check for). If you plan to keep the car for the entire lease, its a good idea to think about MSDs.
You are just giving that money to MBFS to buy down the points. For example, in my case, I saved over 3000 in interest payments by putting down the MSD. The downside you need to evaluate for yourself is that can you have made more money elsewhere by investing that. good luck.
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gixxer (11-26-2016)
11-26-2016, 07:49 AM
#9
The other thing also is do the direct deposit with MBFS. that will get you a further 0.25% reduction in MF. All you do is provide them with your account number and routing number to set up direct debit and it brings your MF down. this to me is a no-brainer!. happy hunting.
11-27-2016, 07:16 PM
#12
Member
Sad part is all the dealers are the same now. Used to be Mercedes held its value best, Autonation changed that. Last few Mercedes i tried to trade in, it came down to "auction value". Long term ownership=buy, short term=lease. Most vehicles you lose 40% value in first 3 years, 50% at 4 years and 60% at 5 years. The more the vehicle costs, the more that percentage means to you.
11-28-2016, 01:51 AM
#13
Member
Surprised nobody has asked about annual mileage. We put 15k+ per year on our SUVs so a lease is rarely worthwhile. Leases generally work best for low mileage users as that permits MBZ to lower the payments due to a higher residual.
Depreciate is generally based not on years but on mileage. Low mileage cars will hold their value well as there is large pool of consumers that look for them (not to mention dealers who can then certify them). Once you are 50k+ your vehicle moves into a different range particularly if you do not have an extended warranty. You take a major hit over 100k as many people simply will not look at a vehicle that has that many miles, particularly non-Japanese models which tend to have huge maintenance costs.
Depreciate is generally based not on years but on mileage. Low mileage cars will hold their value well as there is large pool of consumers that look for them (not to mention dealers who can then certify them). Once you are 50k+ your vehicle moves into a different range particularly if you do not have an extended warranty. You take a major hit over 100k as many people simply will not look at a vehicle that has that many miles, particularly non-Japanese models which tend to have huge maintenance costs.
