schuk

When new W222 was announced I could lease 2013 W221 with no money down for $890/36 month vs $1,800 purchase /60 month.

schuk

You exactly right - it would`1t make sense. The whole purpose of leasing is getting much lower payments vs buying. You are paying for depreciation divided over term of lease plus interest. Why would you trying to buy a car if you never plan to paying it off ? That does`t make sense to me.

LETO

What does this have to do with lease v. buy on a W222?

The lease rates on a W221 are significantly low as dealers & MB have to get these cars off the lot. There are things like dealer incentives that bring the price of a 2013 W221 down quite a bit.

Just because both cars are S-Class it does not mean that they have the same lease rates. MB would be broke if they did.

schuk

You are missing my point - in any case your lease pmnt will be much lower than buying a car because you are just paying for depreciation divided over lease term. W221 was brought up as an example.
....unless off course Mercedes starts offering 0% for 60 month financing. But that won`t be happening any soon....

.... but then again with all the craziness around C-class you never know....

LETO

S with no options = $93825

0 down 36mo = $1657/mo X 36 = 59652 paid over lease.

Finance 60mo 2.99% = $1685/mo. After 36mo your loan balance = $39,218

Which do you think is sensible. After 36mo this car will be worth more than 39K?

schuk

After 36 month me driving brand new car again and LETO is driving car out of warranty paying for new tires, new brakes, transmission service, Package B, C etc. etc.
Plus like someone mentioned earlier right now lease term are not very favorable since Mercedes is sliding on a hype of a brand new model. I am leasing MY2015 fully loaded $1,300-1,350 range.

LETO

My car is getting traded in next fall on a s-coupe. No worry about paying for tires/brakes or any worry about warranty.

However, if I did keep it for 36 months with a regular sport pkg car it would be 1 tire change at 1600 max, a set of pads & couple services.

You would have the same expenses on a lease. Unless you would be ok driving a car with bald tires & crap brakes halfway into your lease. Unless your lease includes some coverage for wear and tear.

When you find a MY15 fully loaded at 1300 -1350 with zero down and 12K a year let me know. For I will gladly eat my skepticism.

p.s. did you just point out my own point to me that lease rates are not favorable now??

schuk

Did you just point out my own point to me that it doesn`t make sense buying a car if you plan to trade it in in 36 month?!

Never heard changing tires before 36K miles. They should last for 60,000 miles. I know they put crappy ones at the factory but still should last for at least 40K miles. But then again everybody drives differently. Off course I could kill my tires in 10,000 miles but than may be I shouldn`t be driving a Benz and may be go for a real sport car.
Same with "couple services": major services coming after 36 month, like transmission service $500 etc.etc...
My point: the longer you keep the car the more expensive it becomes in maintenance fees. Add this + extended warranty divide that number by the period of time you own the vehicle and add this to your monthly payment. That`s your cost owning the car

schuk

Cool. I`ll talk to you next year. Peace!

LETO

Schuk:

If you have the right person trade/sell your car for you you can trade your car efficiently. Especially a car that is as hot as the S. Combined with trade in tax credit it can be pretty nice. Therefore I did not point your own point to you.

I have never had tires on an MB that I have owned especially rear ones last over 16K. AMG rear tires especially pzero rosso that I had on some AMG cars lasted 6K for rear tires. My W221 S with 19" sport wheels (Michelin Pilot Sports) gave me 16K miles.

60K miles is an unbelievable expectation. Unless you plan on 15" after market rims with all season rubber.

So now that you are done killing your horse.

There is a financial decision that if fit for everyone. Some people take out reverse mortgages and sell their house to Fred Thompson.

Ultimately, I respect your financial decision & look forward to seeing you in you 1300 a month lease on a S next year.

60K miles on a set of tires is rather nice & please feel free to share your secret to driving as well.

Peace!

ImInPA

I have 27K miles on my 2012 S350, and, based on current wear, I am expecting 36-40K out of the original tires. Not bad for a 5000 lb. car. I think a lot has to do with the type of driving you do. I do a lot of highway driving, so I rack up a lot of relatively easy miles.

schuk

...missed my point but never mind.


you just shot yourself in the foot: you don`t pay tax on lease vehicles! There are only few states that charge tax on lease but you can also get tax credit on lease returns.


..sure, here we go: http://wiki.answers.com/Q/What_is_th..._of_a_car_tire

Wolfman

LETO is right. 60k miles for tires on an S-Class is laughable. With performance tires on AMG wheels expect no more than 15k miles; with the crappy M&S tires up to 40k...

I have never got more than 16k miles on performance rubber on any MB, less so with Pirellis.

Dema

Lease doesn't eliminate trade in option. You can buy a car for remaining cost after lease end and then trade it in. Actually Audi dealer suggested me the option since they have lease payments too high, so you get quite of equity after lease end.

LETO

Deama: Agreed.

However, payoff at the end of a lease will almost always be higher than market value. Especially on MB

LETO

.sure, here we go: http://wiki.answers.com/Q/What_is_th..._of_a_car_tire

You have obviously never owned a pair of "low quality" Michelin Pilot sport or Pirelli P-zero Rosso.

On your S with 19" wheels. Tires befitting the car. Expect to shell out $1600 for a full set every 15-16K miles as Germancar1 stated.

The new S has run flats. My past experience with run flats, they are wretched after 50% tread wear.

Wolfman

The whole conversation of Lease vs. Buy is completely worthless unless somebody starts listing specific lease details. Then we have something to talk about...

zakato

Got the first written offer today for a car optioned out to 107,515. 36 months, 4217.58 drive-off, 12K a year, $1932.00 plus tax (CA, depends on city). The residual is at 52%. We ordered the car, and it is here, but we don't have to take it. We got out of a 110K optioned S400 lease that ended, and were paying $1400 out the door. We are going to have to think HARD about this one. Bummer.....

ScottCLS55

I never realized so many people leased and financed the s-class. I looked at it with the business write off doing low mile lease's in 3 different ways. If you have the money to be able to drive a 100k car why not pay for it. And yes i make money with my money and I can beat the money factor etc but they still get the better of you any way you cut it. Basically, I dont need to borrow money from MB financial to fund other business deals.

BTW, there is no way the fully loaded s class at 120k plus is going to lease for 1300 unless you pay 20k down which would be financial suicide. (wreck the car, it gets totaled)

Also, tires going 60k on a s-class with 19+ tires. ha ha

Wolfman

I used to buy our cars outright but given the level of tech on today's cars I will not keep one longer than to two to three years anymore.
If you keep your car much longer, your math may work, but not in the short-term.
Not now but within a year you will be able to hit $1400-$1500 a month on a $120k sticker with nothing down without a problem.

Dema

It is a beauty of crediting system, you do not need to have lot money to try some expensive things. It certainly creates certain unfairness, like people who work hard and earn a lot can't clearly differentiate from people who doesn't work and just keep borrowing. I could never afford to buy a car for full price, so lease is only an option for me.

Kratos-TM

I could buy the car out cash, but for some reason it just doesn't make sense to my brain to dump 120K out of my checking for a car I'll keep 3 years....

Now I don't know why it doesn't make sense to me.....all I know is that it just doesn't feel right.....

MercPlease

Because some people don't have the time nor the desire to go sell a car themselves or deal haggling on a trade in. I just toss them the keys and drive home a new car.

LETO

I agree with you.

If you pay 120K out of pocket & total it on day 1 you take a loss.

If can afford to pay 120K cash you can get tier 1 credit & a relatively low interest loan. with gap insurance.

close to 5K down & payment of 2K per month for 12K is nuts

If you can pay 2K per month you could be financing a 120K with that same down payment going toward tax

NickCats

Ok, what am I missing here ?

$107,515 for 5 years at 2.9% = $1927.13 per month

In 36 months loan balance would be $43,064

Why would you lease at the numbers stated above ?

Nick