SL/R231 2014 SL550 Lease Numbers/Single Payment Lease

Jan 22, 2014 | 04:24 PM

v8plus4

Thread Starter

Super Member

Joined: Jun 2004

Posts: 731

Likes: 23

From: 30-A

2024 AMG G63, 2023 Bentley GTC Speed

2014 SL550 Lease Numbers/Single Payment Lease

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

Jan 22, 2014 | 08:43 PM

emilner

MBWorld Fanatic!

Joined: Jun 2007

Posts: 1,936

Likes: 350

From: Huntington NY

S560

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.

Jan 22, 2014 | 09:56 PM

mikey94025

Member

Joined: Jan 2002

Posts: 155

Likes: 12

From: San Francisco

2015 S550 Coupe

Quote:

Originally Posted by emilner

Also, what happens if your car is stolen tomorrow? On a regular lease you are out whatever you put down.

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

Jan 22, 2014 | 10:01 PM

mikey94025

Member

Joined: Jan 2002

Posts: 155

Likes: 12

From: San Francisco

2015 S550 Coupe

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:

Gap coverage, even if included in your pre-paid lease, provides no benefit to you. It does not cover your cash losses — exactly the same as if you purchased your car with cash. This risk is greatest in the early months of a pre-paid lease, and lessens as the lease nears its completion.

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

Jan 23, 2014 | 01:28 AM

Wolfman

Super Moderator

Joined: May 2002

Posts: 10,556

Likes: 3,680

From: Land of 10,000 lakes

AMG GTC Roadster, E63s Ed.1, M8 Comp. Coupe

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...

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SL/R231: 2014 SL550 Lease Numbers/Single Payment Lease

SL/R231: 2014 SL550 Lease Numbers/Single Payment Lease