QUESTION BUY VS LEASE 2013 ML350 4 MATIC
 

Hi Guys, I had a 2013 ML350 4matic built for May delivery and was able to negotiate invoice minus $2000 for the car, MSRP $61460 ( purchase price will be about $55,200 )

I was wondering if anyone can give me an estimate on what my lease payment should be, assuming 30 months, 10,000 miles per year with top tier credit. I'm just curious what would be most beneficial for me..
Lease payments based on the sales price of $55200. Also what would be the selling price at the end of the lease should I decide to buy it at the end of lease term.

I'm really confused with the buy rate lease money factor and residual value terms...

Thanks for the help..!

good places for lease info:

http://www.carbuyingtips.com/lease.htm

http://www.realcartips.com/guide/#chapter3

ok, thanks. I'll look into it

BTW seems like you got a good deal at 10% off MSRP.

Hi Does this lease sound ok or is it too high?

MSRP 61460
Sale price 55212

30 month lease/ 10k miles year

$1400 down

$818 per month

0r $5000 down / $698 per month ( same thing )

residual $37,382

I don't know if this is a good lease or just buy it out right for the 10% below MSRP...

I'm not too tuned into the details of leases, I mainly look at the bottom line.
My 350BTec I leased last Saturday had a very close MSRP to yours. I got just about 10% off sticker. Added on prepaid 3 year prepaid maint & tire/wheel insurance for about $2k.
Paid $1,100 & change up front for a 36 month/45,000 mile lease, and I'm closer to $900 per month. I understand the Blutecs have a higher residual.

Do you typically get a new vehicle every +/- 3 years?
Is this a company vehicle?
If yes and yes, I believe lease is the way to go.

If you do eventually lease , most auto sites and enthusiasts recommend putting as little down up front as possible.

Thanks guys for the examples. If anyone else has some lease examples and dos and don't s please advise.

Thanks

I looked up prices on 2009 and 2010 MLs with comparable milage and I think that residual is high for what you can buy one for. If you add your monthly payments and down payment up, you spent $25,940 to drive the car for 2 1/2 years. If you want to continue to own it, paying the residual would mean you paid $63,322. If you don't think you want this car for more than 2 1/2 years, lease. If you want to have it longer and no mileage restrictions then buy it, it sounds like a good price.

With MB financing at 1.99% for 48 months - and nothing comes out of your pocket or the dealer's pcoket to "support" that rate - lease rates equivalent 4.99/5.99 on "true" financing cost on the lease-paid balance - much-much lower finance rate on purchase balance versus much-much higher fiance rate on the partial value lease portion - math is math.

The advantage of a lease is the "ease" to move forward into your next vehicle - with a lease you walk away and with all your costs have been identified and paid.

The "lost money" in a lease is your financing cost + acquisition fee + disposal fee's + paid sales tax value on the vehicle that won't be recaptured/posted against the purchase/lease of the next vehicle.

Flexing down payment/cash-into the lease is a buyer's tool to adjust the lease payment.

Best strategies are determine by purchase price - proposed term to hold - cash position - and next-vehicle-roll-over strategy, etc...

It's your decision to lease or buy - but understand purchase financing rates are stupid low..

The problem with this financial gymnastics is that you miss the reality of getting rid of a high value luxury car after 3-4 years. Unless you are an ebay guru or have a knack for advertising a car, the true residual is lower than todays lease residuals. Any one on this forum can attest to the fact that if you attempt a trade to an MB dealer you will get bent over. So in 2013 with the market back up for leasing you may be better off if you keep a car less than 3 1/2 - 4 years. We have traded in an R500, S550 and an Gl450 in the past 5 years and what you get is ALWAYS way below what you, KBB and Edmunds think. Point is that a lease is not a bad idea today. If you are on the fence take the above into account

Thanks guys for all the inputs... I got some thinking to do the next few weeks before my car arrives...

So I guess it all comes down to if I want to a drive a different car after 2.5 years or not because deciding to purchase the vehicle after the lease is over will be more $$ spent than buying now..

I was about to lease my new ML350BT, as I have done with the last 6 cars I've owned, but with the 2014 diesel MLs being downgraded to a 4 cyl engine, decided to buy at the last minute. Need the 6 cyl for towing power and who knows if MLs with 350 diesel are coming back, so I may end up keeping this one longer than the lease cycle.

The only customers I have know to buy at the end of their lease - are specific retiree's because they choose to keep their car for "forever" - leaving the game so to speak.

I have a good number of customers at today's aggressive interest rates - trade-in, and/or add a decent down payment, pull a 5 yr note with no prepayment - hit the note hard over 3 yrs - and have "decent" equity for their next move forward.

Yes - depreciation is the major hit on all new cars - manufacturers do offer higher residuals than realistic future value to make leases more affordable - but you have higher "interest cost" + lease acquisition/disposition costs + most states no "reclaimed" sales tax credit forward into the next vehicle.

If you want a bit less of that d-hit - then 2012 CPO's are starting to bump - event/MB exec cars, a few select one owner - but those are of value if you plan higher mileage since 4yr 100K warranty coverage is of value $3K-$4K.

Good strong price on the ML - so you are starting off on the right footing to make the best choice for you.

Thanks guys for all the input!:)

My wife loves her 2012 ML350.

I just traded in my car,for a BMW 2013 328i convertible.
I also debated the buy vs lease, as I've always bought our cars over the past 30 yrs. This is my first lease ever, since it made more sense this time.

So I got $2500 equity down for the trade in,
$55,400 sticker price,
with no more money down,
paying $526/month for 36 months,
TT&L included ($19,000 trade in value)
$35,000 residual
10,000 miles/yr

Seems like we take a beating at trade in value time, so buying doesn't make sense for us anymore, most times.

So paying almost $21,500 for 36 months is pretty good for me...

I agree with your trade in comment. I got killed on my last two trades(A8& S550). My wife has a GL450 and expect a beating when we sell. Even though it is super low miles the TRUE residual vs the lease residual are so close that leasing is worth the convenience