pierno80

Good morning Forum:

Decided to pull the trigger on a 2019 S63. The S63 has been my dream car for a long time so I know I will keep it for a long time. My salesman recommends lease for 48 months and purchase the car at the end. I haven't received the money factor details yet however, below is the breakdown of the lease.


2019 S63
MSRP: $167000
Discount : $7000
Down Payment: $5000
48 months lease
10k miles per year
Monthly Payment: $ 2945.

I wanted to finance the car for 84 months and pay it off sooner instead of leasing it. The dealer says the lowest interest rate available on financing AMG' is %5.99 ( MBFS) !! Not sure if I can get a better rate from my credit union or no. I wanted to share this with you before going any further. What do you think? If I can get a lower rate for finance like %3.99, does it make sense to purchase the car or should I go with the dealer offer and lease it at first? I was just curious why my dealer is trying so hard to push the lease offer instead of purchase? Thanks for sharing your opinion.

MTrauman

First of all, CONGRATS! You are going to love this car. I did Euro Delivery on my ‘19 S63 in November. I have 7300 miles on the car. I have loved every mile. I purchased a new S class every 3 to 5 years over the last 25 years or so. This one is the best. You are going to love this car. Smooth when you want it to me and an absolute power monster when you want it to be.

I would look very closely at the numbers for leasing as the numbers for leasing a ‘19 S63 have been horrible on the money factor—we know depreciation is not going to be pretty on this car whether you lease or purchase. Penfed at www.penfed.org CU is offering 3.49% for 60 mths at $100,000 borrowed. So you might want to talk to your credit union as the MB rated quoted to you seems high but it is for 84 mths so that may be the going rate. My local bank (PNC Bank) is offering on their website 72 months fo 4.19%.

Again, you are going to love this car!!

Heisenberg

Lol I'm sure the salesman does want you to take that deal. Ask your dealer exactly what the MF and residual are... likely they'll balk at telling you and instead focus on your monthly payment. Residulsl are set by corporate and very month to month as do money factors (APR/2400). You can count that lease payment is high MF (likely higher than MBFS with dealer adding spread for more profit) and unrealistically low depreciation, meaning at lease end the car will be worth less than the residual so you would not be buying it out. You also have to pay sales tax on the residual should you purchase the car, which a lot of people forget - you end up getting double taxed in a way.

Years ago there were third party leasing companies where you sometimes could find a lease with high depreciation and low MF - in that scenario a 'lease to buy' might make sense, but I haven't seen such deals in many years.

I'd definitely try to negotiate a larger discount (6.5-7% off MSRP) and then finance the car through a credit union, for the shortest term possible to keep your monthly payments in the range you want.

COOPERDB

`


O.P. - you refer to "My Salesman recommends..." -

Is this a salesman you have worked with in the past -

Those numbers look good for the dealership -


Thank-You
D.B.


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fabbrisd1

Frankly - on ultra-luxury/ultra-performance S63 lease rate/payment reflect the depreciation hit - and it is one way to "pay-to-play".

Planning to "buy at end of lease" is not a strong reason to Lease - the best reason to Lease is that you are "clean" at lease end and free to move forward to your next Mercedes

The 2019 S63's were "held back" quite a bit at dealers from a "stop-sale'recall" having to do with the Distronic - which has since been corrected.

That said - there are "a bit too many" out in dealer inventory - sh*t - I have a very/very nice Obsidian Black on my showroom floor - PM me if you want me to ship it to you for better all around deal.. no big sweat..