Lease Residual - MBWorld.org Forums

New S-Class (W222) 2014-Present

Lease Residual

Reply

 
 
 
Old 05-13-2018, 09:44 PM
  #1  
MBWorld Fanatic!
Thread Starter
 
sam9187's Avatar
 
Join Date: Nov 2007
Location: Texas
Posts: 1,101
Thanks: 0
Thanked 14 Times in 14 Posts
2014 S550 - SOLD, 2014 GL550 - SOLD, 2014 GL63 AMG, 2015 S63 AMG Sedan, 2015 S63 AMG Coupe
Lease Residual

Does anyone know what the lease residual is for the S63 sedan or the coupe? I thought the lease residual was a fixed % set by MB. I have been quoted 47% for sedan or 41% for the coupe.
sam9187 is offline  
Reply With Quote
Old 05-13-2018, 11:35 PM
  #2  
Super Member
 
Join Date: Apr 2013
Location: Scottsdale, AZ
Posts: 592
Thanked 9 Times in 8 Posts
2014 SL 550, 2015 S 550V4, 2014 911 TTS Cab
it depends on the mileage allowance and term of lease, I was quoted a residual of 46% yesterday on an '18 S560 36 months/ 12K per year lease, lower mileage allowances have higher residuals
Steinhart is offline  
Reply With Quote
Old 05-14-2018, 07:13 AM
  #3  
MBWorld Fanatic!
Thread Starter
 
sam9187's Avatar
 
Join Date: Nov 2007
Location: Texas
Posts: 1,101
Thanks: 0
Thanked 14 Times in 14 Posts
2014 S550 - SOLD, 2014 GL550 - SOLD, 2014 GL63 AMG, 2015 S63 AMG Sedan, 2015 S63 AMG Coupe
10,000 miles with a 42 month lease.
sam9187 is offline  
Reply With Quote
Old 05-14-2018, 12:41 PM
  #4  
MBWorld Fanatic!
 
Join Date: May 2002
Location: Midwest.
Posts: 4,036
Thanked 238 Times in 204 Posts
'18 E63s ED1, '17 SL550, '14 ML350
AMG residuals on the S-class models are brutal (lowest of any MB).
Residuals on the sedan used to be at 46% for 3/15k. That would bring it to 49% at 10k.
Anything over 36 months gets worse.

The S560 has a sharp decline in residual (from 24-36 months - 59% at 24/10k), while the S63 already starts low. (52% at 24/10k).

My numbers maybe off by a little as residuals are updated every 60 days and my list is not the latest...
Wolfman is offline  
Reply With Quote
Old 05-14-2018, 12:48 PM
  #5  
Super Member
 
Join Date: Apr 2013
Location: Scottsdale, AZ
Posts: 592
Thanked 9 Times in 8 Posts
2014 SL 550, 2015 S 550V4, 2014 911 TTS Cab
Originally Posted by Wolfman View Post
AMG residuals on the S-class models are brutal (lowest of any MB).
Residuals on the sedan used to be at 46% for 3/15k. That would bring it to 49% at 10k.
Anything over 36 months gets worse.

The S560 has a sharp decline in residual (from 24-36 months - 59% at 24/10k), while the S63 already starts low. (52% at 24/10k).

My numbers maybe off by a little as residuals are updated every 60 days and my list is not the latest...
based on this, what would you say is the sweet spot for a 560 lease? 24 months?
Steinhart is offline  
Reply With Quote
Old 05-14-2018, 09:08 PM
  #6  
MBWorld Fanatic!
Thread Starter
 
sam9187's Avatar
 
Join Date: Nov 2007
Location: Texas
Posts: 1,101
Thanks: 0
Thanked 14 Times in 14 Posts
2014 S550 - SOLD, 2014 GL550 - SOLD, 2014 GL63 AMG, 2015 S63 AMG Sedan, 2015 S63 AMG Coupe
It makes no sense for me to lease with these numbers. I am almost paying for the car with interest included. I think either the dealer is pulling one over me or pushing me to purchase or both.
sam9187 is offline  
Reply With Quote
Old 05-14-2018, 09:38 PM
  #7  
MBWorld Fanatic!
 
Join Date: May 2002
Location: Midwest.
Posts: 4,036
Thanked 238 Times in 204 Posts
'18 E63s ED1, '17 SL550, '14 ML350
Originally Posted by sam9187 View Post
It makes no sense for me to lease with these numbers. I am almost paying for the car with interest included. I think either the dealer is pulling one over me or pushing me to purchase or both.
Sadly so. Worst yet, you are hit with a non-subsidized MF. Your best possible rate without MSD’s would .00230. But I have heard of dealers go over .003!

Wolfman is offline  
Reply With Quote
Old 05-14-2018, 10:20 PM
  #8  
MBWorld Fanatic!
Thread Starter
 
sam9187's Avatar
 
Join Date: Nov 2007
Location: Texas
Posts: 1,101
Thanks: 0
Thanked 14 Times in 14 Posts
2014 S550 - SOLD, 2014 GL550 - SOLD, 2014 GL63 AMG, 2015 S63 AMG Sedan, 2015 S63 AMG Coupe
Originally Posted by Wolfman
Sadly so. Worst yet, you are hit with a non-subsidized MF. Your best possible rate without MSD’s would .00230. But I have heard of dealers go over .003!


Lease is for 42 months and paying over $180k with 41% residual. S63 coupe It's horrible. At the end of the lease there is nothing to show for. At least in a purchase the car is almost paid for and there is equity built up in the car.
sam9187 is offline  
Reply With Quote
Old 05-14-2018, 10:48 PM
  #9  
Super Member
 
Join Date: Apr 2013
Location: Scottsdale, AZ
Posts: 592
Thanked 9 Times in 8 Posts
2014 SL 550, 2015 S 550V4, 2014 911 TTS Cab
Maybe you should consider MSD's?
Steinhart is offline  
Reply With Quote
Old 05-15-2018, 12:49 AM
  #10  
Member
 
stever500's Avatar
 
Join Date: Jun 2010
Location: Maryland
Posts: 244
Thanked 18 Times in 15 Posts
18 MB S63, 12 911 Turbo S
This is why I bought. The lease rates made no sense to me and I happened to have the cash. It wasn't my plan to buy a new car, I just "went for it". No regrets. I LOVE THIS CAR NOW.
stever500 is offline  
Reply With Quote
Old 05-15-2018, 05:19 AM
  #11  
Senior Member
 
Join Date: Jul 2006
Location: pittsburgh
Posts: 433
Thanks: 0
Thanked 5 Times in 5 Posts
‘16 g550; ‘18 s450 4matic
Originally Posted by Wolfman View Post

Sadly so. Worst yet, you are hit with a non-subsidized MF. Your best possible rate without MSD’s would .00230. But I have heard of dealers go over .003!


and just to amplify this point wolfman states, the may ‘18 s450 buy (retention) rate (12k/36m) is .00045 (1.08%) with 51% residual. that pretty much says it all - you wanna play; you gotta pay (those higher rates for the bigger engines and amgs).

Last edited by ajm0623; 05-15-2018 at 05:24 AM.
ajm0623 is offline  
Reply With Quote
Old 05-15-2018, 08:49 AM
  #12  
Senior Member
 
Join Date: Nov 2015
Location: Newcastle, WA
Posts: 433
Thanks: 0
Thanked 46 Times in 44 Posts
2015 S550 4Matic
It's all about depreciation. They are not in the business to make sure you have a favorable lease payment. The bean counters know that these cars drop like a hot rock after a year or two, they are hedging against this.
superpop is offline  
Reply With Quote
Old 05-15-2018, 09:11 AM
  #13  
MBWorld Fanatic!
Thread Starter
 
sam9187's Avatar
 
Join Date: Nov 2007
Location: Texas
Posts: 1,101
Thanks: 0
Thanked 14 Times in 14 Posts
2014 S550 - SOLD, 2014 GL550 - SOLD, 2014 GL63 AMG, 2015 S63 AMG Sedan, 2015 S63 AMG Coupe
Originally Posted by superpop
It's all about depreciation. They are not in the business to make sure you have a favorable lease payment. The bean counters know that these cars drop like a hot rock after a year or two, they are hedging against this.
Of course there is depreciation and they are not in a business to make our payment smaller. For me given the options purchasing would make more sense from a financial standpoint. These cars are worth roughly 50% on trade-in after 3 years. Leasing at these rates would be throwing money away with nothing to show for it. At least with purchasing you have 50% of MSRP as equity.
sam9187 is offline  
Reply With Quote
Old 05-15-2018, 10:04 AM
  #14  
MBWorld Fanatic!
 
Join Date: May 2002
Location: Midwest.
Posts: 4,036
Thanked 238 Times in 204 Posts
'18 E63s ED1, '17 SL550, '14 ML350
Originally Posted by ajm0623 View Post


and just to amplify this point wolfman states, the may ‘18 s450 buy (retention) rate (12k/36m) is .00045 (1.08%) with 51% residual. that pretty much says it all - you wanna play; you gotta pay (those higher rates for the bigger engines and amgs).
MB wants to push the S450's, hence they are dirt cheap to lease. With these numbers it makes zero sense to buy the car. Unfortunately the AMG is on the other end of the spectrum, partially because MB knows that the typical AMG demographic is willing to shell out more money to play.
Wolfman is offline  
Reply With Quote
Old 05-15-2018, 11:00 AM
  #15  
MBWorld Fanatic!
Thread Starter
 
sam9187's Avatar
 
Join Date: Nov 2007
Location: Texas
Posts: 1,101
Thanks: 0
Thanked 14 Times in 14 Posts
2014 S550 - SOLD, 2014 GL550 - SOLD, 2014 GL63 AMG, 2015 S63 AMG Sedan, 2015 S63 AMG Coupe
Originally Posted by Wolfman
MB wants to push the S450's, hence they are dirt cheap to lease. With these numbers it makes zero sense to buy the car. Unfortunately the AMG is on the other end of the spectrum, partially because MB knows that the typical AMG demographic is willing to shell out more money to play.
I agree with you 100%. Dealers are not willing to discount the AMGs and they make you feel they are doing you a favor by selling the car.

Last edited by sam9187; 05-15-2018 at 11:21 AM.
sam9187 is offline  
Reply With Quote
Old 05-15-2018, 11:06 AM
  #16  
MBWorld Fanatic!
 
Join Date: May 2002
Location: Midwest.
Posts: 4,036
Thanked 238 Times in 204 Posts
'18 E63s ED1, '17 SL550, '14 ML350
Originally Posted by superpop View Post
It's all about depreciation. They are not in the business to make sure you have a favorable lease payment. The bean counters know that these cars drop like a hot rock after a year or two, they are hedging against this.
MB and BMW are the kings of cheap leases so I think you are mistaken here.

If you check out Porsche, Range Rover, Jaguar, Audi you'll find less desirable rates. BMW and MB have their own financing companies and do not need to rely on banks which is a significant benefit. Again, AMG excluded, but AMG is still lower than Porsche

Last edited by Wolfman; 05-15-2018 at 11:11 AM.
Wolfman is offline  
Reply With Quote
Old 05-15-2018, 01:54 PM
  #17  
MBWorld Fanatic!
 
Join Date: May 2002
Location: Midwest.
Posts: 4,036
Thanked 238 Times in 204 Posts
'18 E63s ED1, '17 SL550, '14 ML350
Originally Posted by Steinhart View Post
based on this, what would you say is the sweet spot for a 560 lease? 24 months?
Residual has dropped by 4% since the MY18 launch so your 46% at 12k is correct. My sweet spot is always at 30 month/7500miles. This gives you the best residual and with a lease pull ahead you can switch at 24 months anyways...
There is a 4% higher residual and another 2% for miles so you would be at 52%. If you go over on the miles, you can always negotiate that on the next lease (forgiveness, not roll-in into next lease). Depends on the number of miles though.
MF is .00109 minus your negotiating skills
Wolfman is offline  
Reply With Quote
Old 05-15-2018, 03:51 PM
  #18  
Member
 
garygnu's Avatar
 
Join Date: Feb 2018
Location: Central New Jersey
Posts: 156
Thanked 5 Times in 5 Posts
2016 S550 4 Matic Sport, 2015 BMW 528xi, 2012 BMW 528xi (gone), 2011 BMW Z4 (Yellow - gone)
i found edmunds to be THE bible on lease rates - MF, incentives, residuals - they'll answer your questions with permutations - more or less miles, etc. - it's in the edmunds forums.
with BMW, they opine about 7% off sticker is "about right" - or thereabouts.
for Benz, they didn't have clarity.
either way, the theme is that different dealerships (at times) may try to hose you on the MF. i haven't heard of games with the residual - i thought it was set by the company.
good luck!
garygnu is offline  
Reply With Quote
Old 05-15-2018, 08:05 PM
  #19  
MBWorld Fanatic!
 
Join Date: May 2002
Location: Midwest.
Posts: 4,036
Thanked 238 Times in 204 Posts
'18 E63s ED1, '17 SL550, '14 ML350
Originally Posted by garygnu View Post
i found edmunds to be THE bible on lease rates - MF, incentives, residuals - they'll answer your questions with permutations - more or less miles, etc. - it's in the edmunds forums.
with BMW, they opine about 7% off sticker is "about right" - or thereabouts.
for Benz, they didn't have clarity.
either way, the theme is that different dealerships (at times) may try to hose you on the MF. i haven't heard of games with the residual - i thought it was set by the company.
good luck!
Edmunds is a very good starting point. The MF listed is the published, retail rate though...
Wolfman is offline  
Reply With Quote
 
 
 

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 

Thread Tools
Search this Thread
Rate This Thread
Rate This Thread:
You have already rated this thread Rating: Thread Rating: 0 votes,  average.

Quick Reply: Lease Residual


Contact Us Archive Advertising Cookie Policy Privacy Statement Terms of Service

We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.
 
  • Ask a Question
    Get answers from community experts
Question Title:
Description:
Your question will be posted in: