Eraser-X

Looking for input here I have an 06 R350 with P1 plus comfort, pano, AMG, lighting and air suspension. From what I can tell auction prices for these cars is less then half my residual. Has anyone talked to Mercedes about buyout pricing will they negotiate on pricing or do I have to start searching for a new one?

Does anyone on the forums have access to black book pricing that they can PM to me?

Thanks

bzliteyear

i've gone thru this a few times so i'll try to predict(assuming this is MB Financial).

your residual is about $37k.
MB will offer car to you for $27k and think they're doing you favor w/ $10k off.
after you turn down MB, they will sell offer the car to the MB dealer you turned in the car for $16-17k.
the dealer decline and car goes to auction or,
the dealer keeps the car and gets it CPO'd, makes $2-3k in service repairs, and offers the car to $25-27k asking price - less than MB offered it to you.
they sit on car for 60 days and it sells for $21k and they make $1500 on the resale(on top of service).

MB's logic is that they don't want to undercut the local dealer and would prefer to give them the business. however, when all these MB dealers are full on used car inventories, and these R's end up on auction lines - ANY dealer holding the inventory gets shafted. this is a vicious cycle and after a few times, the floor on these cars drop like a rock...that's why we're in the situation today(for many nice MBs).

my gut feeling is that if MB were more realistic about selling price, and had a smaller gap between what they offered lessees vs. the dealers, all would benefit. that said, nobody said MB Financial and MB corporate knew what they were doing - or had the same goals.

would love to hear others' thoughts on this topic/process.
Patrick

PL

nobbe3728

My mother has been getting calls from the dealer, M-B themselves, and the bank that owns the lease... They're all trying to get her to keep the car another year..

This R was an employee lease so her payment is around $390.. The lease ends the 31st of March, and she's not sure whether to do it or not.

I'd say it depends on your experience w/ the R you have..

In my mother's case, hers has been VERY reliable. The front diff was replaced, but it's been a great vehicle... makes the decision that much harder as the warranty would expire during the next year.

The values of these cars have sunk.. An identical car to hers is $35,995 on the lot...

Eraser-X

Well our residual is $42K and MB credit will not talk to us till the middle of the month. So far I am seeing some deals but not as big as I was hoping for. MB has a deal that will cover my last 4 or 5 payments plus we have some fleet money through my wifes work but, still not enough for a car that is going to loos almost 2/3s its value in 3 years. Any big deals on the 09s yet?

Eraser-X

Talked to MB credit yesterday and was told 25K to buy my 06 but we already got an 07 R500 with less miles for 24K. So the R350 will take us to FL for spring break and then get turned in.

bzliteyear

congrats.
texas seems to have very good deals, and many w/ low miles.
what options were on the new R?
in CA, there are not that many 2007 R500's...and they're mostly asking in the $30k's.

p.s. i'm assuming it's not CPO'd, but can you just drive into any MB dealer and buy extended warranty?
Patrick

Eraser-X

The car is Silver and Black with P02. Was the voice system part of P02 in 07 becuase it has that too. I will be adding fog lights and probably the Bi Xenons to the car but it does not have the air suspension that my 06 has and you can really tell at low speeds on bumpy surfaces. The R500 also seems to get about 3 mpg less when I drive it then the R350.

The 07s seems to have lower levels of options then the 06s we looked at and I had only seen one 07 with air suspension. We would have held out for a R63 if could could have found one but there must have only been 8 or 10 of thoses things built for the USA!

We will be talking to the F&I guy at our local dealer about warrenty options the end of this week.