To lease a Demo or Not
Hi all - I'm in the market for a GLS. Ideally, wanted 24 or 30 months but those programs aren't that great. I was offered the following and wondering if it's worth entertaining:
Current miles: 5,000 MSRP: $76,000 Drive off (first month + fees): $2,500 Monthly payment: $757/mo plus tax Miles: 10k/year Term: 36 months Would love to hear your thoughts. Thanks |
ask for the cap cost, money factor, and residual. monthly 757 but 2500 drive off? that sounds more than just first month plus fees.
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Thank you for the reply. In my history of leasing, I've never paid attention to those numbers as I have always either returned my cars at the end of the term or found someone to take over my leases beforehand. Is there a reason I should know those numbers if I plan to do the same with this car?
The remainder of the $2500 goes towards a down payment. But I wasn't given the exact amounts as we were just going over first payment and monthly payments. Thanks! |
Well....
You're looking at a pretty "base" GLS if MSRP was $76K..
1. Make sure the features and options it has will make you happy 2. If retired Loaner - then it should be 8%-10% off MSRP going into the top of the lease... and that discount is giving you the same effect as "cash".. you should be getting quoted 1st payment only..no need to the $2500 or whatever.. 3. If your lease payment will include taxes - then you need to focus on total payment incl tax.. 4. It's 5-days count down to end-of-month/end-of-quarter - every dealer wants to sell most units into EOM/EOQ 5. Look at the National Program... your discount is same as adding cash it calls for.. eyeball the national deal w/details - and you will have a good perspective if your dealer is being straight up with you. Keep the beat ! |
Their response
Here's what their response is to the questions posed here:
Selling price is $67500 MF is 0.00071 $43708.85 |
sorry for late reply. 0.00071 means 1.7%, i think that's pretty decent. if you want you can go to edmunds forum under the GLS and read up what the current money factor is. but 1.7% seems pretty good
msrp 76k, so they are discounting about 10k, looks like it's a demo car so i say it's "ok" imho residual is 57%, this is probably fixed by mbfs but it's a good reference. i say overall the rate is good, but on the cap cost fabbrisd1 probably has some good advice |
Originally Posted by DoctorJeff
(Post 7272196)
Thank you for the reply. In my history of leasing, I've never paid attention to those numbers as I have always either returned my cars at the end of the term or found someone to take over my leases beforehand. Is there a reason I should know those numbers if I plan to do the same with this car?
The remainder of the $2500 goes towards a down payment. But I wasn't given the exact amounts as we were just going over first payment and monthly payments. Thanks! |
Well... all and all informative comment - however, often mixed with personal opinion.
What might be the best lease strategy/objective/choice for one buyer - might be a entirely different strategy/objective/choice for another buyer. 1. For some buyer's - cash into the front end of the lease can be their useful tool for them to bring down monthly payments to their desired monthly budget - that's their choice 2. For some buyer's - a One Pay single payment lease is their best choice The other thing on lease's - as compared to check-writing-cash-purchase - \a Lease Program it ALWAYS comes down to what-payment/what-term/what-mileage. The information that most customers don't ask for - when they should ALWAYS ask for is - What happens at the Lease End - what are my ending costs ? and the 2nd question - If I want to move forward to my next Mercedes earlier - what can I expect you can do ? Most customers - and almost ALL salesmen - brush over this too fast with too little factual information. Keep the beat ! Whether no-cash or cash-in - it a budgeting choice by the customer. |
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