vsamak

What's the typical pricing now for ML500s with full option set:
at MSRP, below (how much?), or above? What should I expect in NJ? I'm planning on a lease in the next 1-2 months (soon if deal shows up)

Also, on lease, I noticed that MB Finance and Chase both have very low residual factors on the ML's and pretty much most MB models at 36-39 mos. What's the deal with this? They are all under 60% for 36-39 mos. X5 goes at 65%, Acura at 63-65%, this is very disappointing. They must be forcibly depreciated to make up on the high lease payments. Sucks...

Any experiences for recent leases of ML500, residual factor and money factors? All feedback appreciated, Thanks,

VS

sosh

I believe this is due to MB dealers discounting the vehicles quite heavilly. When this happens the value down the road suffers. I see many people on this and other boards compaining that their dealer wanted more than invoice. I also believe that these are the same people that later complain about the dealer service they receive. You don't get anything for nothing..

vsamak

Discounts on price or premium over MSRP really don't matter too much for the low residuals. Regardless, you still have to pay the difference plus the finance charge on a lease. However, below 60% at 3 years is quite a heavy discount on the lease. Given that a same class car, X5, has 65% residual, it just makes for a bad deal from MB.

Personally, I wouldn't care if the price is at MSRP with no discount as long as the residual factor make sense. It just makes you feel screwed, kinda like the non-DVD Nav system, bad thinking.

I initially thought about buying an ML55 because of the flexibility to switch and the higher than average resale value, but I'm learning quickly that the high-end market is very fickle. People who can afford seem to buy new, people who can't get it from dealers at a much lower price than you'd expect after 3 years. I'll stick with a lease if I get over 60% on residual.

Can I get a sampling of the residuals for people that lease the ML500 at 36-39 mos? Thanks for the help.
Vele

sosh

My ML500, leased in Aug 01 for 36 months has a residual of 33,000. The vehicle listed before dealer discount for about 51,000.

vsamak

Thanks, sosh.

So if the final price of the vehicle was 51k or below, that puts the residual at 65% and above. That's very good. Are we talking about a 3 year lease? Also, is the 51k the price with all the options, or just the base. Thanks,
vele

sosh

51K price was with all options except the phone that I paid for. Its a 36 Mo lease. My belief is that the only time it pays to lease is if you have a business write off. Other than that, write a check for the purchase.

vsamak

sosh, that sounds like a good deal, 51k for ML500 with all options. That's quite a discount from the msrp, unless you didn't get all the options available.

I did a sampling around NJ and no luck, MB Finance has them at 61% residual plus high rates on the lease for some special at 39 mos. Chase's rates are better, but the residual is pretty low, more like 58%. Just can't win!

I'm surprised noone else responds to this...oh, well...

if you do write it off, then it's great, otherwise lease is really a preference and how much money you are willing to spend for the convenience of a new car. Buy may make sense, but remember, it's still a depreciating asset. New cars are very easy to buy these days, so you are really competing against the dealers. That makes your resale values difficult at best to establish and are usually lower than you expect. At the level we are here, the ML, used ones will be in the 30k's, that pretty much leaves out most people unless they can finance, and then they head for the dealer. Predictable resale value is quite valuable especially for a fickle high end market such as the MLs. That's why low price, high residual make up for a good payment which can rival a 5-year loan's payment. You may own something, but you own less and less, unlike a house, and you can't really deduct the interest payment (unless I'm wrong, someone correct).

The reason for the price and residual to be as close as possible is to reduce your monthlys since the difference/months lease is usually 2/3 of your monthly payment. Of course, that also make trade-ins before expiration difficult, but that's predictable payments for you.

vele

sosh

Its got most every option, Premium package, CD changer, phone, Sun roof, xenons, fender flares and metallic paint (black Opal) Basically I got 1000 off of MSRP and the options priced at 01 pricing as they did not have 02 pricing when I ordered. There is only 10% in the ML for the dealer including the 3% holdback.

vsamak

sosh, that's a sweet deal. You must be around $800 or less per month with 0 down. THat's a very good deal. Same package now costs around $55k, and they still hold the same residual value at around $33.5k. Sucks...

Seems like I won't be able to get around it. I might have to go with Chase because their interest rates are lower. Money factor has a bigger impact for 1% change than 1% change in residual.

sosh

Its about 800 per month plus tax for 15000 miles a year. Was it not for the business write off I would have written a check for the car but the write off is over 5 years and I don't keep a vehicle that long. Good thing about MBCC is that gap insurance is included and they are fairly liberal with vehicle condition at the end. Watch yourself with Chase. After several business dealings with them over the years don't think I would go there. In addition with MBCC all I had to do upfront was a check for first month payment at delivery.