Taking delivery of 2006 E55 tomorrow... Good price?
05-31-2006, 01:19 PM
#26
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Gs460
Originally Posted by metalica_23
BTW, this is also a little misleading. The part that gets lost is that you have the option to trade in your used car to a dealership and knock that off the price of the new car. You then only pay sales tax on the "new" sales price after your trade-in. So, you essentially get a "refund" on the "unused" portion of your car's value. It's certainly not as good as a lease, since you have to drop the whole bomb upon purchase, but it's not nearly as bad as people think it may be.
Of course, if you sell the car outright, you lose this benefit. But if you're too impatient and lazy to sell your own car, like I am, then trading it in gets you a similar (albeit delayed) tax savings.
Of course, if you sell the car outright, you lose this benefit. But if you're too impatient and lazy to sell your own car, like I am, then trading it in gets you a similar (albeit delayed) tax savings.
Regarding the GS450H, it is very nice but you miss the growl of the V8! I definitely want a V8... As far as the GS460, I was looking at clublexus.com last night and I got that information for the first time.. I kept thinking when are they going to change the old 4.3L, even though it is a nice engine, it is past due for a change. Displacement goes up just .3 liters, HP goes up from 300 to 380! Very nice improvement considering the small displacement change. This changes everything for me, I will definitely be waiting for the GS460.
Do you have any estimation on what month the GS460 will be released? That would be great, thanks for all your help.
05-31-2006, 01:20 PM
#27
Member
Originally Posted by metalica_23
BTW, this is also a little misleading. The part that gets lost is that you have the option to trade in your used car to a dealership and knock that off the price of the new car. You then only pay sales tax on the "new" sales price after your trade-in. So, you essentially get a "refund" on the "unused" portion of your car's value. It's certainly not as good as a lease, since you have to drop the whole bomb upon purchase, but it's not nearly as bad as people think it may be.
Of course, if you sell the car outright, you lose this benefit. But if you're too impatient and lazy to sell your own car, like I am, then trading it in gets you a similar (albeit delayed) tax savings.
Of course, if you sell the car outright, you lose this benefit. But if you're too impatient and lazy to sell your own car, like I am, then trading it in gets you a similar (albeit delayed) tax savings.
05-31-2006, 01:23 PM
#28
Member
Originally Posted by E55Tuner
After consulting with a few friends and family members and reading your informative posts, I have come to a decision. You have all been very helpful in guiding me in the right decision: To NOT go with this lease. I forgot to mention, the dealer told me that the car sat in their lot for less than 3 weeks. However, when I had another MB dealer do a check to verify that was true, they advised me that this car has been sitting in the lot since September 2005! Wow, what a liar this dealer was. I assume, this is what you mean by "punched".
In addition to this, after I calculated, the amount I would have paid ($1298/month X 36 months + $5500 to start) totaling $52,228 and comparing that to a car around the $50k-$60k price range, I made up my mind. I KNOW I am comparing apples to oranges and there is NO WAY to compare the 06 GS430 to the E55 and the E55 will blow it away no doubt, and that the GS430 is better compared to the E500. I thought it may be a better decision to pay about $66k for a fully loaded GS430 with Navigation Package including tax and financing over 48 months and have a similar monthly payment. I will own a $30k car at the least after 48 months instead of paying $52k and enjoying a german muscle car. Yes, the 5.5L Supercharged MBZ will outperform Toyota's N/A 4.3L with no hesitation but for me, this is the smarter and more efficient way to go. I guess I wont be getting into the German car scene afterall.
Thanks again for all your help, it really made a difference.
In addition to this, after I calculated, the amount I would have paid ($1298/month X 36 months + $5500 to start) totaling $52,228 and comparing that to a car around the $50k-$60k price range, I made up my mind. I KNOW I am comparing apples to oranges and there is NO WAY to compare the 06 GS430 to the E55 and the E55 will blow it away no doubt, and that the GS430 is better compared to the E500. I thought it may be a better decision to pay about $66k for a fully loaded GS430 with Navigation Package including tax and financing over 48 months and have a similar monthly payment. I will own a $30k car at the least after 48 months instead of paying $52k and enjoying a german muscle car. Yes, the 5.5L Supercharged MBZ will outperform Toyota's N/A 4.3L with no hesitation but for me, this is the smarter and more efficient way to go. I guess I wont be getting into the German car scene afterall.
Thanks again for all your help, it really made a difference.
05-31-2006, 02:06 PM
#29
Senior Member
Originally Posted by SoxFan
I wonder if after you calculate all the costs, including the cost of capital, that your cost of ownership after 3 years, or 4 years, usung realistic trade in value, won't be close on leasing the E55 vs. buying the GS430.
Now, you did have to put an extra $12k down, but you end up with a $34k asset (~53% resid value based on KBB for a private party sale). Of course, the cost of owning the MB will likely be greater (maintenance, repairs, etc.), but assume it's a wash. Regardless, you'd have to be able to turn $12k into $34k in 3 years' time - not an easy task.
06-01-2006, 10:16 AM
#30
Member
Originally Posted by metalica_23
Possible, but seems unlikely. Even fully loading a GS430 (~$12k worth of options), you're talking about a car that's only going to cost $60k at most (including CA tax and giving the dealer $1k over invoice). Assuming you put $17.5k @ 6% for 36 months, your pmts are $1,300/month.
Now, you did have to put an extra $12k down, but you end up with a $34k asset (~53% resid value based on KBB for a private party sale). Of course, the cost of owning the MB will likely be greater (maintenance, repairs, etc.), but assume it's a wash. Regardless, you'd have to be able to turn $12k into $34k in 3 years' time - not an easy task.
Now, you did have to put an extra $12k down, but you end up with a $34k asset (~53% resid value based on KBB for a private party sale). Of course, the cost of owning the MB will likely be greater (maintenance, repairs, etc.), but assume it's a wash. Regardless, you'd have to be able to turn $12k into $34k in 3 years' time - not an easy task.
Buy a fully loaded car for $66,000 as he reports and pay 8.25% tax = $71,400. Use the car for three years and then sell for $35,400 = a "loss" after three years of $36,000, or $1,000 per month. Now, factor in a cost of capital (5%/year?) on $71,400 and you get about an additional $300/month, or an all-in cost of $1,300 per month.
To me, the numbers compare pretty favorably with the lease proposal at $1,300/month, especially considering the differnce in vehicle quality and the fact that you have the risk and hassle of having to sell the GS430 at the end of three years.
OK...so on this one, I cheated a little bit, because he said he had to put down $5,500 to get the $1,300 lease, which is "worth" $150-165/month (most of us think he can do better) -- but wouldn't you want an E55 vs GS430 for anything close to that difference?
Actually, I did these same numbers on leasing vs. buying a used E55, and came to the conclusion that I was better off leasing a new E55 vs. buying a 2 year old used one. Go figure.
The "rub" with a lease is that you have to be prepared to hold the car to the end vs. the flexibility you naturally have when you own a car, although I went through a few scenarios with the business manager at the dealer I purchased from and there may be more financial flexibility in the leases we got based on the prices we got than I would have thought (i.e., less likelihood to be upside down by a material degree after 2 years -- in fact my guys thought I'd be even to ahead at that point), but I think we all know that was a "special window of opportunity".
06-01-2006, 11:09 AM
#31
Senior Member
Originally Posted by SoxFan
Here's how I look at it:
Buy a fully loaded car for $66,000 as he reports and pay 8.25% tax = $71,400. Use the car for three years and then sell for $35,400 = a "loss" after three years of $36,000, or $1,000 per month. Now, factor in a cost of capital (5%/year?) on $71,400 and you get about an additional $300/month, or an all-in cost of $1,300 per month.
To me, the numbers compare pretty favorably with the lease proposal at $1,300/month, especially considering the differnce in vehicle quality and the fact that you have the risk and hassle of having to sell the GS430 at the end of three years.
OK...so on this one, I cheated a little bit, because he said he had to put down $5,500 to get the $1,300 lease, which is "worth" $150-165/month (most of us think he can do better) -- but wouldn't you want an E55 vs GS430 for anything close to that difference?
Actually, I did these same numbers on leasing vs. buying a used E55, and came to the conclusion that I was better off leasing a new E55 vs. buying a 2 year old used one. Go figure.
The "rub" with a lease is that you have to be prepared to hold the car to the end vs. the flexibility you naturally have when you own a car, although I went through a few scenarios with the business manager at the dealer I purchased from and there may be more financial flexibility in the leases we got based on the prices we got than I would have thought (i.e., less likelihood to be upside down by a material degree after 2 years -- in fact my guys thought I'd be even to ahead at that point), but I think we all know that was a "special window of opportunity".
Buy a fully loaded car for $66,000 as he reports and pay 8.25% tax = $71,400. Use the car for three years and then sell for $35,400 = a "loss" after three years of $36,000, or $1,000 per month. Now, factor in a cost of capital (5%/year?) on $71,400 and you get about an additional $300/month, or an all-in cost of $1,300 per month.
To me, the numbers compare pretty favorably with the lease proposal at $1,300/month, especially considering the differnce in vehicle quality and the fact that you have the risk and hassle of having to sell the GS430 at the end of three years.
OK...so on this one, I cheated a little bit, because he said he had to put down $5,500 to get the $1,300 lease, which is "worth" $150-165/month (most of us think he can do better) -- but wouldn't you want an E55 vs GS430 for anything close to that difference?
Actually, I did these same numbers on leasing vs. buying a used E55, and came to the conclusion that I was better off leasing a new E55 vs. buying a 2 year old used one. Go figure.
The "rub" with a lease is that you have to be prepared to hold the car to the end vs. the flexibility you naturally have when you own a car, although I went through a few scenarios with the business manager at the dealer I purchased from and there may be more financial flexibility in the leases we got based on the prices we got than I would have thought (i.e., less likelihood to be upside down by a material degree after 2 years -- in fact my guys thought I'd be even to ahead at that point), but I think we all know that was a "special window of opportunity".
06-01-2006, 11:35 AM
#32
Member
Originally Posted by metalica_23
If the above scenario was near reality, I'm with ya. But it's obvious that $71k is way overpriced for the GS430. If you're going to say that your paying $71k for the GS430, then you have to use $92k for the lease calculation on the E55. Of course we all know that you won't pay sticker for either. $60k is a much more reasonable assumption on the GS430, and that makes a huge difference in the analysis.
We're talking about a car that's $25-30K different in MSRP that may be $200-300/month different in total cost.
My point is that buying a cheaper car, or a used car, does not necessarily generate the savings many people expect, especially if you can get a fovorable lease deal with a low interest factor, or an inflated residual, or both.
