Am i getting ripped off on lease terms ...
Thread Starter
Member
Joined: Feb 2007
Posts: 90
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Am i getting ripped off on lease terms ...
Dealer (California) quoted me roughly $2,930/month incl taxes on a 36 month, 7,500 miles/yr lease. He was using a 58% residual and a money factor equating to almost 11% (shocking!!). This included $5,100 down (basically first month + 2,200 tags, fees etc.
I pushed and got him down to about a 9.5% int rate or about $110/month less. Still seems like very expensive financing though ......
Any views/info??
I pushed and got him down to about a 9.5% int rate or about $110/month less. Still seems like very expensive financing though ......
Any views/info??
Senior Member
Joined: Aug 2004
Posts: 265
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From: Bay Area
2020 GTR Roadster, 2020 GT63S
Dealer (California) quoted me roughly $2,930/month incl taxes on a 36 month, 7,500 miles/yr lease. He was using a 58% residual and a money factor equating to almost 11% (shocking!!). This included $5,100 down (basically first month + 2,200 tags, fees etc.
I pushed and got him down to about a 9.5% int rate or about $110/month less. Still seems like very expensive financing though ......
Any views/info??
I pushed and got him down to about a 9.5% int rate or about $110/month less. Still seems like very expensive financing though ......
Any views/info??
It seems to me that you are getting ripped.
If you would like to know my terms, PM me.
MBWorld Fanatic!
Joined: Oct 2005
Posts: 1,271
Likes: 1
From: CA
2010 CL65
Dealer (California) quoted me roughly $2,930/month incl taxes on a 36 month, 7,500 miles/yr lease. He was using a 58% residual and a money factor equating to almost 11% (shocking!!). This included $5,100 down (basically first month + 2,200 tags, fees etc.
I pushed and got him down to about a 9.5% int rate or about $110/month less. Still seems like very expensive financing though ......
Any views/info??
I pushed and got him down to about a 9.5% int rate or about $110/month less. Still seems like very expensive financing though ......
Any views/info??
Ask MB owners in your area which dealers and salesguys they would recommend....in my expce, better/more honest dealers/salesguys have a deep base of savvy, repeat customers.....Darwinian selection perhaps?
S63 should be discounted, even in CA.....mkt is very soft...
Don't want to put money down on lease; mf roughly .00395; resid about 56% (vague recall from CL63 for 36 mos); get 7500mi/yr (price cost of extra miles vs pre-pay miles cost vs fact mileage is irrelevant if early-terminate lease); consider term of lease vs sales tx costs (each state calcs sales tx vs leases differently).....and how long really plan to drive car (vs early-termination implications)....
Also consider opportunity cost of one's capital vs tying it up in rapidly depreciating car; and consider leased cars have risk advantage over owned cars of lease-gap insurance.....
Less than honest dealers like fact that most customers don't understand basic lease arithmetic/logic, so very profitable transaction for dealer
.....but, for most customers, actually buying any of these cars is economically inefficient vs an intelligently chosen lease, though perhaps writing a single check (w/full sales tx incld
) is more nominally understandable for customers who don't understand leases (and prob many other financial transactions/costs/risks).....net, net, actually buying any new car is a fairly archaic concept; many guys <40yo have never bought/owned any car....they've leased cars all their life.....
Good luck; obviously, carefully diligence any other "deals" from this/any other dealer before signing the paperwork.....
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Super Member
Joined: Nov 2001
Posts: 894
Likes: 1
They aren't ripping you off, per se. If the dealer is quoting MB Financial lease rates(make sure you see with your own eyes the money factor and residual) and you're 700+ credit, he's not ripping you off. X65 and X63 models are notorious for depreciation and the money factor and residuals reflect it.
Just make sure you're not paying more than MSRP for the car. If the dealer is trying to add in points on the money factor for himself, then just leave and find another dealer.
MB Financial has set rates that are published.
Just make sure you're not paying more than MSRP for the car. If the dealer is trying to add in points on the money factor for himself, then just leave and find another dealer.
MB Financial has set rates that are published.
Member
Joined: May 2007
Posts: 174
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From: Los Angeles
2008 S63
my sticker for an 08 S63 w 030 package, pano, rear seat package, distronic plus and premium 3 was $146,165. all factory installed equipment and no mark up beyond MSRP. you can add more factory options as well.
Thread Starter
Member
Joined: Feb 2007
Posts: 90
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My car similar to Noxxin but no rear seat package (baby seats in back) and no Distronic (wouldn't use it)
I pressed my dealer ..... lease terms went from 2,930/month for 36 months (first payment down) to $2,740. Given the $6500 difference in payments, i'm pretty pissed that they would try to scalp me like that
I pressed my dealer ..... lease terms went from 2,930/month for 36 months (first payment down) to $2,740. Given the $6500 difference in payments, i'm pretty pissed that they would try to scalp me like that
Super Member
Joined: Nov 2001
Posts: 894
Likes: 1
Seriously, just walk away. They assumed your were some kind of whale they could swindle.
The dealer has to fully disclose everything, MSRP, money factor, and residuals. If they are not and the numbers seem to be off, walk away.
The dealer has to fully disclose everything, MSRP, money factor, and residuals. If they are not and the numbers seem to be off, walk away.
Super Member
Joined: Feb 2007
Posts: 657
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From: PCH
OO7 CLS63///G55TANK ///S80-T6///R1///R6
. BTW, Saw a car with your same exact set up on ventura and winnetka yesterday, Thought it was you then I realized it was only a 550.
Member
Joined: Jun 2007
Posts: 228
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From: Los Angeles
2010 S600 sold
Member
Joined: May 2007
Posts: 174
Likes: 0
From: Los Angeles
2008 S63
I guess I under estimated the price tag on those beasts but I didnt expect them to go so high into 65 territory. But you seem to have the whole deal and then some. BTW, Saw a car with your same exact set up on ventura and winnetka yesterday, Thought it was you then I realized it was only a 550.
. BTW, Saw a car with your same exact set up on ventura and winnetka yesterday, Thought it was you then I realized it was only a 550.
