v8plus4

Hi guys, does anyone have information on current money factor and residuals on the 2014 SL? Are there any current or upcoming incentives I should know about?

Also, what are the advantages and/or disadvantages of the "Single Payment Lease"?

Thanks!

v8

emilner

I would never do a single payment lease. I have never looked into it, but why have MB keep your money for that time? Also, what happens if your car is stolen tomorrow? On a regular lease you are out whatever you put down.

mikey94025

Really? I'd like to understand how this is true because I always assumed that paying more money "up front" for a lease decreased what you owed on the vehicle. So if your car is totaled/stolen and is worth $X, then your insurance company pays you $X. If you owe the leasing company $Y and $Y < $X, you get to keep ($X-$Y). A problem occurs if you owe more than the car is worth, i.e. $Y > $X, so you need gap insurance to cover this scenario or else you're out an additional ($Y-$X).

Unlike cap cost reduction, a single payment lease can reduce the total financing cost for the car. I did an internet search and found this good description of some of the benefits and risks: http://www.realcartips.com/leasing/0...r-leases.shtml

mikey94025

OK, I'm answering my own question. I found a better reference for one-payment leases: http://www.leaseguide.com/sn/prepaid-lease.htm

The important clause:
So in summary, one-payment leases are a bad idea. Thanks for bringing this up!

Wolfman

Yes, single payment leases are a dumb idea. I had a total loss after a few months due to water.

You loose your down payment and also the pre-paid maintenance, which is non-transferable.

Best is to negotiate the best terms with zero down...