Leasing this week... question re: terms...
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Joined: Jul 2007
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Leasing this week... question re: terms...
After 3+ happy years in a 2008 E350, this week joining you folks with an S-class... very excited!! Leasing a 2011 S550 4Matic (Iridium silver, Black leather, P2, Panorama, Driver Assist, B&O sound, RSE)... Wallet feeling quite light... but life is short... Will post pictures after arrival!
Although I have leased before (for both current cars)... this is my first time turning in a leased car for another. I understand from others on MBWorld that the goal of this situation (and any lease) is to minimize upfront costs. Originally I was told my lease would be no money down... and now that I'm finally getting to the terms, I am being told that my upfront costs are the taxes & fees (around 7K)... does this sound right? I believe that one of the advantages of leasing is to minimize taxes?
Although I have leased before (for both current cars)... this is my first time turning in a leased car for another. I understand from others on MBWorld that the goal of this situation (and any lease) is to minimize upfront costs. Originally I was told my lease would be no money down... and now that I'm finally getting to the terms, I am being told that my upfront costs are the taxes & fees (around 7K)... does this sound right? I believe that one of the advantages of leasing is to minimize taxes?
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Joined: Jun 2007
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From: Huntington NY
S560
Correct, no money down refers to only the cap reduction. Taxes and fees are another story. You do save roughly 40-50% in taxes as you only pay taxes on the depreciation/interest. You can roll the taxes into the payment, which is what I normally do. I like to spend around $2k out of pocket when leasing. Remember, if the car is stolen or totaled tomorrow you lose all upfront money...
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Joined: Jun 2010
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From: Rancho Santa Margarita, CA
C250,GLK350
I believe in NY you have to pay all taxes upfront on leasing unlike here in CA where the tax is paid monthly. I would roll it into the payment personally as emilner has suggested as you can literally light the money on fire if you put it up front and the car is totalled/stolen.
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Thanks to you all for your advice. Yes, I'm in NY and it appears that the state laws do require upfront payment. Probably should have rolled into lease but it's all set up for pickup in an hour... so just too excited to delay (redo) deal. I did roll in the prepaid maintenance for $12 per month which is a small addition to a $1500 monthly payment.
I'm off...
I'm off...
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Joined: Jun 2007
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From: Huntington NY
S560
There is no such law that requires you to pay taxes upfront in NY. I have always rolled them into my payment. I have even walked away without even paying one cent!!
Taxes alone are $5kish depending on options/discount. Add bank fee etc and you are quickly at $7k. That does not mean you can't roll that into the payment....
Taxes alone are $5kish depending on options/discount. Add bank fee etc and you are quickly at $7k. That does not mean you can't roll that into the payment....
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MBWorld Fanatic!
Joined: Jun 2007
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From: Huntington NY
S560
Well, I don't know how to make it more clear, but I will try. In NY state you do not need to pay taxes upfront. Flat out true. Just check the long standing VW "just sign and drive" add. You sign paperwork, drive away and make your payments.
What a dealer 'might' be referring to is the fact that the manufacturer/dealer DOES need to forward the total taxes to the state at time of purchase. THAT DOES NOT MEAN YOU HAVE TO PAY THEM. You can roll them into the lease payment. It is an add on cost and you will be charged interest on them, but it is very wise as we all know that if your car is stolen/totaled the next day you are SOL....
What a dealer 'might' be referring to is the fact that the manufacturer/dealer DOES need to forward the total taxes to the state at time of purchase. THAT DOES NOT MEAN YOU HAVE TO PAY THEM. You can roll them into the lease payment. It is an add on cost and you will be charged interest on them, but it is very wise as we all know that if your car is stolen/totaled the next day you are SOL....
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From: Kenilworth, il usa
GT63S ePerformance 4dr, '25 Bentayga Black Ed.(wife), Wrangler and 250 MLB(kids)
You are all lucky you don't live in the worst,most corrupted state in the Nation,Illinois.
Regardless of the length of your lease,regardless of percentage of depreciation,you have to pay entire sales tax on the sale price of the car when you lease it.
To add insult to injury,when you decide to buy it out at the lease expiration,you have to pay the sales tax again.
Regardless of the length of your lease,regardless of percentage of depreciation,you have to pay entire sales tax on the sale price of the car when you lease it.
To add insult to injury,when you decide to buy it out at the lease expiration,you have to pay the sales tax again.
MBWorld Fanatic!
Joined: May 2009
Posts: 1,850
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From: New York
2025 Range Rover, 2022 BMW M850 , 2017 MB E400 Coupe
Do you know all 2010 S models have 10K off now ? May help you.
Here is the link :
http://autos.yahoo.com/articles/auto...end-car-deals/
Here is the link :
http://autos.yahoo.com/articles/auto...end-car-deals/
Super Member
Joined: Sep 2009
Posts: 550
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From: California USA
2004 S55 ///AMG, 2007 E350
You are all lucky you don't live in the worst,most corrupted state in the Nation,Illinois.
Regardless of the length of your lease,regardless of percentage of depreciation,you have to pay entire sales tax on the sale price of the car when you lease it.
To add insult to injury,when you decide to buy it out at the lease expiration,you have to pay the sales tax again.
Regardless of the length of your lease,regardless of percentage of depreciation,you have to pay entire sales tax on the sale price of the car when you lease it.
To add insult to injury,when you decide to buy it out at the lease expiration,you have to pay the sales tax again.
