jkrutch

R500 with only 17 payments left @ $950/month. Alabaster White/Black Interior MSRP just under $69K so it is very well equipped. With 4 kids we are just too cramped. I need to get a full size Yukon or Escalade because I need 7 passenger seating with room left over for "stuff". I will work with anyone on reducing the net payment with some sort of incentive if someone is serious.

As you all know, it really is a great vehicle, but its just too small for my family. I also added 4 headrest displays and 2 separate DVD systems for another almost $4k in goodies.

Please PM if interested. I am in South Florida. Thanks!

jkrutch

OK, I picked up the Escalade today and I am ready to bite the bullet. I will kick in $4,000 as a cash incentive for someone to take this lease over. There are 16 payments remaining and the $4k reduces the net payment to $700. This truck has a MSRP of $68,895. The cost for almost a year and half of ownership is $11k. Additionally, there are 16,300 miles remaining on the lease.

PHYBENZ

Why not get a GL? The Escalade has been highly criticized for its lack of room inside.

jkrutch

I got the Escalade ESV....it dwarfs the GL.

mikeR500

You should look at the various posts on this site regarding the current marketplace for the R500 and leasing deals. At your original $950/month, you probably leased the vehicle at close to MSRP. The vehicles are routinely running $12,000 to $15,000 off MSRP, with $7000 from Mercedes to the dealers directly. You can get a 27 month lease/12,000 miles per year for a single payment of about $13,000 for a lighter equipped vehicle or about $16,000 for a loaded one. You should anticipate that anyone on this forum will be familiar with the current market, and you will need to price yours accordingly. Of course, you did get the benefit of being one of the first R500's on the road. I guess that is a risk you take with a brand new genre of vehicle.

gangrun

My uncle has an 07 escalade and it is anything but cramped in that behemoth!

jkrutch

I was nowhere close to MSRP when I got it. A lump sum lease will always be substantially less expensive since the interest becomes minimal. That said, I wonder what it would cost for a $69k MSRP lease (not lump sum) with 10k miles per year at this point. I mean MB is advertising 27 month leases on R350s with 48.7k MSRP with over $4k out of pocket for a $549 payment.

My R500 with a $69k MSRP with me paying the new lessee $4,000 with another nearly 4k in headrest DVD players (that they own at lease end) and essentially a year less than a 27 month lease is a steal.

There is no question the market is soft on the R class. Its really a shame as it is a great SUV. My only issue is its size since I have a larger than average family with 4 kids. I am sure someone will see the value and pull the trigger. It will be on swap-a-lease in the next day or so and anyone looking for a quick in and out on an R class will most likely jump on this. We'll see.

mikeR500

Running the numbers on the cars.com website, I estimate that your selling price on the vehicle was about $64,500 or $4500 off MSRP. That is about $10,000 more than what a brand new 2006 vehicle could be capitalized at today. The actual savings on the one pay versus the monthly pay is a money factor reduction of .00110 (2.64%), which drops the current rate from about 7.08% to about 4.44%. In actual dollars the savings is about $2500 over the term of the 27 month lease. Running the numbers on a new vehicle at $69,000and a discount of $14,500 (readily available in Southern California), you get a monthly payment of about $615 plus tax for the new one.

jkrutch

Great! That further substantiates that my $700 net payment is a GREAT DEAL for only 16 months. Since the vast majority of people will NOT opt for the one payment lease, I am offering a lower net payment than your number represents below for a MUCH shorter lease term. Furthermore, there are start up costs in the new lease that do not exist in my lease assumption. The net dollars are much less and the term is also much less.

Additionally, the new lessee gets the video system that is theirs to keep at lease end. That is worth at least a few grand on eBay. This is a no brainer for anyone looking for a loaded R500. There are a lot of people who like short term leases...16 months is a quick in and out.

mikeR500

GREAT?! Excuse me, how does $615/month plus tax for a BRAND NEW R500 for either 24 or 27 months substantiate that your $700 month for a 10 MONTH OLD, 10,000 MILE USED R500 is a GREAT DEAL? I am sorry, the net dollars are MUCH LESS for the new car and the term is 24 months vs. 16 months, not a big difference in commitment time frame.

What was your discount off of MSRP? I think that piece of fact will speak volumes about the lack of value in your deal.
PLEASE don't use this forum to try to pass your poor deal off to someone here. Put the vehicle on swap a lease and try to pawn it off on some stranger. I would like to consider the people on this forum to be friends, and trying to "sell" your overpriced, used R500 on this forum, and, further, to defend it in the fact of obviously contrary facts is not an appropriate use of this forum.

jkrutch

Mike,

You have some nerve with your post and you have totally attempted to twist what I am trying to accomplish here. Not every dealer in the country is offering this deal you claim is everywhere. You think every car dealer just gives their cars away without any profit whatsoever???? OK, that's how they all stay in business. The guy who leased my 500 to me just leased one to his son....his own kid only got 8k off. The dealership he works for requires that that they make a profit....that is how they keep their doors open for business. They have almost no R's in stock since they are selling well in our area.

When I called him today telling him about what I am doing and to see if he knew of someone who might have an interest, he was regretful that I didn't call him a week ago since his son would have jumped on this in a heartbeat. I guess he wants to screw his son, huh?

I never claimed I got the best deal in the world. I got what was considered a great deal at the time. For anyone who doesn't want to lease a car for 2 or more years, my deal is a great deal. The net dollars spent are far less than your 27 month deal. My R has 6k miles, not 10k like you claim. It is in perfect condition since I take impeccable care of all my cars. The 4k worth of video equipment stays with the new owner as well.

I have been on this forum for a few years and have sold things on here, bought things on here and made friends as well. You come along thinking you know everything and imply I am out to hurt somebody. You do the math Mikey boy...

615 * 27 = 16,605
700 * 16 = 11,200

Tack on another 1,000 for Mercedes' bank fee on the new lease as well.

My deal is almost $6,500 less over the length of the lease (bank fee inlcuded) against your best case scenario, zero profit for the dealer deal. A shorter term = a higher payment. You should know that, you know everything. Anyone on here who doesn't like my deal can simply pass on it.

I stated in a prior post I was putting this on swap-a-lease as well. Guess you missed that one too. All in all you did a poor job of trying to make it seem as if I had shady intentions. Anyone who reads this thread can clearly see that.

All of my posts refer to this as a great deal for someone who DOES NOT WANT A LONGER TERM LEASE. If someone wants a new car, then so be it. I stand by my statement....this is a great deal. Let's see how long it lasts on swap-a-lease. Have a nice life....

mikeR500

Relax, it's only money! But seriously, I did not intend to offend you, and I do realize I may have been a bit harsh. But let's be real, the R class market has been poor enough that Mercedes has had to offer $7000 factory to dealer cash to move the 2006's and has lowered the MSRP by $5000 on the 2007's. I have not seen that type of action in a long time. You and I both were impressed with the vehicle when it was first introduced, but only you stepped up to actually get one early on in the model year. You did get the benefit of driving a new car and having one of the first on the block.

Regarding the dealerships, I, for one, am not losing sleep over their profit margins. They make enough on the more popular vehicles that they can afford to dip into their 5.5% dealer holdback and "suffer" only making $1000 or so on these R class vehicles. Every car dealership owner that I know, including one current and one former neighbor, is a multi-millionaire many times over, so don't you lose any sleep about them either. And by the way, I would not believe everything a car salesperson says. $8k off MSRP is basically MSRP less $1000 considering the $7000 factory to dealer cash that Mercedes is giving away on these. I am certain that the guy would have done better than that for his own son, wouldn't you? What was he going to say to you, Mercedes and the marketplace have turned against you and the "great" deal he gave you 10 months ago now looks terrible? He would like to keep you as a customer, and talk is cheap.

A shorter lease on a NEW vehicle will always be higher than a longer lease because it takes into account the depreciation hit that every vehicle takes, leased or purchased, when it is driven off the lot. A shorter lease on a used vehicle should not be more than a slightly longer lease on a brand new vehicle. For example, Mercedes of Walnut Creek is offering a 2006 R500 demo with about 9000 miles on it, MSRP $71,000, for $23,000 off MSRP, but "only" $12,000 off for their new vehicles (check their website if you are a bit incredulous). I was going to help a friend to get the vehicle, but he decided he would rather go with a new one.

My $615/month figure would be good for 24 months as well, which would shrink the apples and oranges comparison that you were trying to make down to about $4500 for a 50% longer lease of a NEW car. If someone could live without a trim package or a second row console, etc., they could shrink that difference even more. The 27 month lease is better in that the residual stays the same, and the last 3 months are essentially at half price.

I did not miss your swapalease reference in your previous post, I was just reinforcing your decision to put it on that website and offer it to strangers.

Finally, I did not mean to imply you had shady intentions. You got a vehicle at a price that was commensurate with the marketplace at that time. Today, we both know that neither of us would consider it. $950/month for a 2006 R500 is about 50% higher than it should be. All I was trying to say in my original post on this thread was that you should familiarize yourself with the marketplace and really understand what a great deal means today. What got me going on this issue was your insistence that what you had was a great deal. We both know that is not the case. In any event, I would be happy to leave this thread with both of us agreeing to disagree. I have learned so much from websites like this (benzworld.org and edmunds.com forums), the last thing I would want to do is to create ill feelings. In fact, I have learned more about leasing during my transaction on an R500 than I have in all of my previous leasing experiences. I have saved thousands on the last three cars that I have personally bought or leased, and I have saved three friends similar sums of money. I would say "have a nice life," but I would not want you to take it sarcastically. I will say good luck, but be prepared for your potential lessees to be as informed as I am.

jkrutch

It may have taken a whole 3 days, but as they say...."Patience is a virtue"...Someone has already agreed to take over the lease on the R500. I guess I wasn't the only one who thought this was worth jumping on.

mikeR500

Thanks for teaching me and everyone else on this forum still another valuable lesson about car leasing! Swapalease.com works and there is a reasonable way out of a lease prior to lease end. I had to close a business about 5 years ago, and I had about 15 months into a lease on a 2001 CL500. As you might recall, these cars had been going for $20,000 to $30,000 over MSRP when they were new, but Hoehn Motors in San Diego was very honorable and leased me the car at MSRP. 15 months later, I was basically able to return the vehicle for about 1 month lease payment. However, that was a highly unusual set of circumstances. Swapalease.com sounds like a real good option for any of us.

I really do want to apologize for being a bit harsh in my earlier posting. As I have said, these forums have saved me, as well as several friends, thousands on several vehicles over the past 2 years that I have had the knowledge to access them. The last thing I would want would be to alienate anyone here. Good luck and, really, have a nice life, too (sincere - not sarcastic!!). You were right and I was wrong, and I learned something new!!

jkrutch

No problem, Mike and thanks for stepping up. These forums are a wealth of information and those of us on here tend to be somewhat fanatical about cars. I know I am. Sometimes the passion we have can get the best of us.

I worked my way through college selling cars and learned a ton about how things work. You have a very good understanding of how leasing works and that will definitely help you in the future. One thing I learned is that a good (or great) deal is really a state fo mind. If someone thinks they got a great deal, then they did. There will always be someone who did better, but as long as you're happy that's all that matters. Your CL story to me represents a phenomenal deal given the circumstances. I had a similar experience when I leased my old E55 (I think it was a 2000 model year). Paid $72k for it (well the bank did)...I sold it to a wholesaler 9 months later for $72k. I made 9 payments and walked away. I was thrilled. Back then, the E55 was a tough find.

On our Escalade, I "paid" $750 over invoice. The dealer still made the full holdback and a dealer service charge. The Escalade is loaded to the hilt. There were literally 2 others like it in the entire South Florida area. The Miami-Ft. Lauderdale market is huge and there were very few cars to choose from. The next best deal was $2k over. Apparently, there is a shortage on Navigation equipped Escalades. There is actually a $2000 incentive on non-nav equipped Escalades. Think about it....they are subsidizing an already lower priced vehicle (leave it to GM). It was pretty funny watching the look on the Finance Manager's face as I calculated the lease in under 60 seconds using a pen, paper and calculator. My number was within $3 of his lease system.

On a side note, the Escalade is a suprisingly wonderful truck. Very well put together with much better than expected materials, quality, fit and finish. The suppleness of the leather blows the R class out of the water (much to my surprise). Some of the features are really cool as well such as remote start, 2 drop down screens, and heated/cooled seats (that really work). The best surprise lies in the ultra hi-res touch screen that handles nav and radio functions. It is as sharp as any laptop LCD I have ever seen. When the truck is parked, the DVD plays on it as well. The back-up camera is a must on a full-size truck. The touch-screen system is extremely well thought out and the menus are simple, very fast and intuitive. The 22" chrome wheels actually look pretty hot. All I know is that my wife and kids love it...therefore, I am happy. There are a few annoyances, but they are minor enough to not spend time on. Ok, enough about the Escalade. I am just really impressed with it given my usual hatred of American cars.

This is the 3rd time I have had success in having someone assume a lease. My first was a 996TT, next was my wife's XLR (really a decent car, but not practical for a mother of 4...nor does it hold a candle to the BMW 650 that replaced it), and now the R500. I still have a ways to go on the R deal since we are awaiting credit approval, etc, but the person is local and based on my conversation with him, it should fly. Nonetheless, I will keep the the ad posted until it is done.

Take care....