After 2 years of lurking, I finally pulled the trigger
12-30-2007, 12:21 PM
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'34 Lagonda, '69 280SL, '07 E63 wagon
After 2 years of lurking, I finally pulled the trigger
Thanks to all the help from this forum I finally got an E63- and a wagon at that. I thought others may be interested in my buying experience
After browsing the forums for two years (but never realistically thinking I would get one), the year-end AMG Mercedes lease special gave me the excuse I needed to seriously begin my quest. (I have never seen AMGs discounted before)
As it turns out I didn't even get in on the lease deal, when I found a left over 2007 demo wagon that didn't qualify for the lease. (For tax reasons, I need to lease) The dealer discounted the wagon to the point were we were close to the lease deal of the '08s. The lease special on the 2008s is pretty subsidized, with the inflated residuals, low money factors and cash to the dealers, even with a selling price $12000 greater, I could have saved about $50 -$70/ a month on a new 2008 lease. But there is something about a station wagon with 500 hp that really caught my interest.
Here is the deal I ended up taking:
2007 E63 wagon P1, (Demo with 3000 miles)
MSRP $90,700
Discount -$19,250
Sell price $71,450
39mo lease
12K miles / year
$1245 month before tax
I found similarly equipped 2008s were being offered at $80k -$84K (about $2000 under invoice) These 2008s were leasing out around $1150 -$1210 month before tax. (Also there is a fleet deal Mercedes offers which could have shaved another $140/mo off the payment)
I would be interested if anyone else has had similar deals. (A little validation is always nice with a purchase this large) I understand without the discounts and the subsidized money factors, these typically lease out around $1700 -$1900 /mo with similar mileage
Maybe I shouldn’t be thanking you since my wife is seriously beginning to question my sanity in buying a station wagon nearly three times the price of a minivan.
After browsing the forums for two years (but never realistically thinking I would get one), the year-end AMG Mercedes lease special gave me the excuse I needed to seriously begin my quest. (I have never seen AMGs discounted before)
As it turns out I didn't even get in on the lease deal, when I found a left over 2007 demo wagon that didn't qualify for the lease. (For tax reasons, I need to lease) The dealer discounted the wagon to the point were we were close to the lease deal of the '08s. The lease special on the 2008s is pretty subsidized, with the inflated residuals, low money factors and cash to the dealers, even with a selling price $12000 greater, I could have saved about $50 -$70/ a month on a new 2008 lease. But there is something about a station wagon with 500 hp that really caught my interest.
Here is the deal I ended up taking:
2007 E63 wagon P1, (Demo with 3000 miles)
MSRP $90,700
Discount -$19,250
Sell price $71,450
39mo lease
12K miles / year
$1245 month before tax
I found similarly equipped 2008s were being offered at $80k -$84K (about $2000 under invoice) These 2008s were leasing out around $1150 -$1210 month before tax. (Also there is a fleet deal Mercedes offers which could have shaved another $140/mo off the payment)
I would be interested if anyone else has had similar deals. (A little validation is always nice with a purchase this large) I understand without the discounts and the subsidized money factors, these typically lease out around $1700 -$1900 /mo with similar mileage
Maybe I shouldn’t be thanking you since my wife is seriously beginning to question my sanity in buying a station wagon nearly three times the price of a minivan.
12-30-2007, 07:13 PM
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12-30-2007, 07:22 PM
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E63 P30, CL500 Sport
After I purchased my car and went to pick it up, I saw a similar deal at the dealership. It was a silver demo 2007 E63 with 3500 miles on it, and an asking price of $76k. Talking to the salesman for a few minutes, he was willing to drop it down a few grands more
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12-30-2007, 07:58 PM
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'34 Lagonda, '69 280SL, '07 E63 wagon
I spoke to a fleet salesmen offering this. (He was posting the $999/month E63lease deal on Swap-a-lease mentioned in an earlier thread). This deal gives you another $5000 off over and above the other incentives.
2 ways to get the additional $5k:
You don't need to be a Mercedes employee, but you need to work for a company which is set up as a fleet customer of Mercedes. Proof of employment would be required. Many large companies are already set up as fleet customers.
The 2nd way would be to apply as a fleet customer. You need to have at least five cars titled in the name of the company and submit the registrations of at least 4 vehicles titled in your company's name with the fifth vehicle being the one your are purchasing. This probably assumes you are the business owner.
My company does not have that many company cars so I couldn't qualify. (but in the future I may attempt to qualify)
12-30-2007, 08:50 PM
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'34 Lagonda, '69 280SL, '07 E63 wagon
If I didn't want a Wagon, I could have gotten a better lease deal with a new (and higher priced) 2008 sedan. That deal is a .00205 MF and a residual of 56%
12-30-2007, 11:47 PM
#11
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I spoke to a fleet salesmen offering this. (He was posting the $999/month E63lease deal on Swap-a-lease mentioned in an earlier thread). This deal gives you another $5000 off over and above the other incentives.
2 ways to get the additional $5k:
You don't need to be a Mercedes employee, but you need to work for a company which is set up as a fleet customer of Mercedes. Proof of employment would be required. Many large companies are already set up as fleet customers.
The 2nd way would be to apply as a fleet customer. You need to have at least five cars titled in the name of the company and submit the registrations of at least 4 vehicles titled in your company's name with the fifth vehicle being the one your are purchasing. This probably assumes you are the business owner.
My company does not have that many company cars so I couldn't qualify. (but in the future I may attempt to qualify)
2 ways to get the additional $5k:
You don't need to be a Mercedes employee, but you need to work for a company which is set up as a fleet customer of Mercedes. Proof of employment would be required. Many large companies are already set up as fleet customers.
The 2nd way would be to apply as a fleet customer. You need to have at least five cars titled in the name of the company and submit the registrations of at least 4 vehicles titled in your company's name with the fifth vehicle being the one your are purchasing. This probably assumes you are the business owner.
My company does not have that many company cars so I couldn't qualify. (but in the future I may attempt to qualify)
thanks for the info. even without the fleet discount, 2008 lease figures are pretty good. MB USA must be dying to move these cars. enjoy your new ride!!
12-30-2007, 11:51 PM
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btw, i just did some quick math, $1245/mo without tax x 39mo = $48555, and you can only drive 36k miles total!!
did you put any $mdown??
if you bought the thing for $71,450, you don't think you can sell the car in 39 months for more than $22895..??
did you put any $mdown??if you bought the thing for $71,450, you don't think you can sell the car in 39 months for more than $22895..??
12-31-2007, 01:51 AM
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BMW e39 540it Touring
pics?
i think you got a good deal...i mean a 19K discount...not bad at all...by the way, any pics? =) did you know your wagon is considered the mecca of all wagons this day in age? =)
12-31-2007, 04:59 PM
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'34 Lagonda, '69 280SL, '07 E63 wagon
Keep in mind I am using this as a company car. I know it doesn't seem like it would be better to lease this, and I initially figured on a straight purchase, but when I went through the math with my CPA, the tax savings to my company (about $22K.) made the lease the better choice. (the net cost to my company about $27k or around 700/month)
(I an repeating what my CPA explained so excuse me if I make any math errors)
With a purchase on a company car (SUVs are a different story) The IRS allows you to depreciate:
$3060 1st year
$4900 2nd
$2850 3rd
$1775 4th and every year there after:
I would need to keep the car more than 37 years to fully depreciate it. Leases on the other hand can be expensed. My CPA explained that virtually all his clients (small busness owners) leased their high line cars. SUVs weighing more then 6000lbs and trucks can be depreciated more rapidly so most of these are purchased.
Tax experts here may be able to explain the benefits better than I.
01-01-2008, 01:53 AM
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I didn't put any money down and I am allowed 39K miles
Keep in mind I am using this as a company car. I know it doesn't seem like it would be better to lease this, and I initially figured on a straight purchase, but when I went through the math with my CPA, the tax savings to my company (about $22K.) made the lease the better choice. (the net cost to my company about $27k or around 700/month)
(I an repeating what my CPA explained so excuse me if I make any math errors)
With a purchase on a company car (SUVs are a different story) The IRS allows you to depreciate:
$3060 1st year
$4900 2nd
$2850 3rd
$1775 4th and every year there after:
I would need to keep the car more than 37 years to fully depreciate it. Leases on the other hand can be expensed. My CPA explained that virtually all his clients (small busness owners) leased their high line cars. SUVs weighing more then 6000lbs and trucks can be depreciated more rapidly so most of these are purchased.
Tax experts here may be able to explain the benefits better than I.
Keep in mind I am using this as a company car. I know it doesn't seem like it would be better to lease this, and I initially figured on a straight purchase, but when I went through the math with my CPA, the tax savings to my company (about $22K.) made the lease the better choice. (the net cost to my company about $27k or around 700/month)
(I an repeating what my CPA explained so excuse me if I make any math errors)
With a purchase on a company car (SUVs are a different story) The IRS allows you to depreciate:
$3060 1st year
$4900 2nd
$2850 3rd
$1775 4th and every year there after:
I would need to keep the car more than 37 years to fully depreciate it. Leases on the other hand can be expensed. My CPA explained that virtually all his clients (small busness owners) leased their high line cars. SUVs weighing more then 6000lbs and trucks can be depreciated more rapidly so most of these are purchased.
Tax experts here may be able to explain the benefits better than I.
Better check back with your CPA and confirm your tax benefits under the lease.
01-01-2008, 11:03 AM
#16
MBWorld Fanatic!
I didn't put any money down and I am allowed 39K miles
Keep in mind I am using this as a company car. I know it doesn't seem like it would be better to lease this, and I initially figured on a straight purchase, but when I went through the math with my CPA, the tax savings to my company (about $22K.) made the lease the better choice. (the net cost to my company about $27k or around 700/month)
(I an repeating what my CPA explained so excuse me if I make any math errors)
With a purchase on a company car (SUVs are a different story) The IRS allows you to depreciate:
$3060 1st year
$4900 2nd
$2850 3rd
$1775 4th and every year there after:
I would need to keep the car more than 37 years to fully depreciate it. Leases on the other hand can be expensed. My CPA explained that virtually all his clients (small busness owners) leased their high line cars. SUVs weighing more then 6000lbs and trucks can be depreciated more rapidly so most of these are purchased.
Tax experts here may be able to explain the benefits better than I.
Keep in mind I am using this as a company car. I know it doesn't seem like it would be better to lease this, and I initially figured on a straight purchase, but when I went through the math with my CPA, the tax savings to my company (about $22K.) made the lease the better choice. (the net cost to my company about $27k or around 700/month)
(I an repeating what my CPA explained so excuse me if I make any math errors)
With a purchase on a company car (SUVs are a different story) The IRS allows you to depreciate:
$3060 1st year
$4900 2nd
$2850 3rd
$1775 4th and every year there after:
I would need to keep the car more than 37 years to fully depreciate it. Leases on the other hand can be expensed. My CPA explained that virtually all his clients (small busness owners) leased their high line cars. SUVs weighing more then 6000lbs and trucks can be depreciated more rapidly so most of these are purchased.
Tax experts here may be able to explain the benefits better than I.
Hi Rich, thanks for the explanation. I'm still a youngin and not very familiar with leases, I've always bought my modest cars with cash.. I appreciate the tax savings info!
