sbarsap

All,

This is my first lease so I need some advice.

Is this a good deal?

The MSRP of the car was $95,740

Here is what the dealer emailed me:

Cap cost- $81740
Residual- $56184
Term 27 months
Fees= dealer fee $599 1st payment @$1399+tax, tag $250, $6.50 battery &
tire tax, tax on the cash down $225.23. The balance is the cash down to
equal $6000
Acquisition fee $1095 (bank fee)


Thanks in advance for the advice.

deniska

Terrible deal move on..

LZH

Sounds like alot and that risidual is not that great. Personally, if it were me....I would go with a late model E55. The 63 is a great motor but you really have to wind it up to get the most out of it. Below 4000 rpms is it prety tame. For the street in a 4 door sedan, that is not a very good combination IMO. I would prefer to have the 55 supercharged torque monster in an E class. And you save quite a bit of $$$ Just my .02

shamefulanomaly

I agree, not a great deal.

If you are interested, for 8K down you can take over my 2007 E63 lease for $925/month with 15K+ miles a year remaining.

Taximan1

The residual is actually VERY high (a good thing, as long as you plan to give it back at lease end) What is the true selling price??

If I read your email correct, its $81k + $6k cap cost reduction? Or did you mean $6k TOTAL down? including tax.


The only 2 negotiable items in a lease, are money factor and purchase price... All other terms are not controlled by the dealer.. To start, Selling price on this car should be invoice, in this market. And the money factor should be the "base" money factor. No markup. Its pretty low right now, maybe .00150 or so..

The Deal is not bad.. I just helped my dad find a lease deal on an E63 last month. I looked and shopped this deal to death. Believe me, I know.. Problem is, its "still" a big ticket car. Even with the discounts, these will always be in the 1200-1300 range.. Unless you not in the "real" world... And by that I mean, the national advertisment.

Sure you can get an E63 for $999/mo.... Its a stripped P1 car, with 7500 miles a year(who the hell drives that), and about $7700 cap cost reduction PLUS starts.. So, your close to $10k down out the door, to get $999, on a low option, 7500 mile lease.. Thats a lease deal?

Most of the people who commented (no offense) have not shopped for one of these lately.. And/or dont know the "real" terms and condition behind the $999 deal..

O.P. - Your deal is not a giveway by any means, but its not that bad either.. $95.7k is a very high option car.. Keep that in mind..

shamefulanomaly

No offense, but this is a terrible deal, the residual is low and the payment is high for the amount down. Deals will get better on these as the year progresses. Like I said, I got a very highly optioned car in 2007 with 15K/year 33 months with a 65K RV. The dealers can work on the down payment and Cap Cost, but the lease rates and RV drive the price and MB Financial drives that.

I would wait until the rates/terms get better or pick up my 07 for sub 1K with 15K miles.

sbarsap

Thanks guys for the help. I am new to leasing so don't really understand the terms.
The dealer said they will sell me the car for $81,740 on an MSRP of $95740.
So I suggested to give me a lease figure as I would like to lease due to business tax deductions.

She said if I lease then I will need to put 6K down. After this she gave me the numbers. The reason I want this E63 is because it is Black with Cashmere interior and Burl (which i have been looking for a while.
What should I ask to change on the deal?

Honestly I was expecting the monthly payments to be around $1K/month.

Mr Kram

looks like you're getting screwed on the MF. for qualified buyers, you should be getting .001 MF on 27 months. your MF looks to be about .003. otherwise the purchase price is very good and the residual is what it is.

FWIW, i recently leased a similarly equipped car for 27 months, 12k miles (60% residual) for $1240 + tax. no cap reduction.

shamefulanomaly

If it is the car you want and you can get it for a price you can afford, then go for it. It looks like the RV is really going to kill you on the deal though.

Taximan1

The RV is, what it is.... Residuals will do nothing but continue to go down.. There may have been "better" deals out there in 07'. But that means absolutely zero, on 7/22/08.. The fact is, MB credit is adjusting these residuals down, because they see how soft the resale really is, on these car... $65k residuals?? Those days are gone..

I agree though, they must have buried some profit in the MF.. They are selling a $95k list car, for $81k, and its new?? 0 miles, never been titled?? Thats a steal!!!!!!!

I would think the payments would be lower, on that kind of selling price..

jquinn71

Sounds high - did a deal in May - 08 E63 - 33mo/10k/$5500 total out of pocket plus wheel and tire insurance for 1133/mo. Sticker was 94k.

Yacht Master

Next month the 09 are here and 08s will be zero down and $999. Mo.

CrazyDonkey

i hope so, either that or have the CLS63 back on that deal.

The MF is like .00150 for an 08 E63 up to a 48 month lease i think. If anyone is trying to charge you more then that, tell em to go screw themselves.

jtc55

i don't know about zero down for less than $1000/mo. i think u'll still have to drop down at least $6000 to get $999/mo.

ldangeli

The residual on this car is 59%. This is NOT a terrible deal. It is ok. Go to this site after you get your money factor and plug in the numbers, it will tell you around what you should be paying. LeaseCalc You are getting 14k off the car, plus a 59% residual on a 27 month lease. Its not too bad.

1985mb

+1

If you plug your numbers into a simple lease calculator like this, but you'll see they must be inflating the MF or something.

According to the Lease forum (which I'm assuming shows the same residuals and MF that MBFin is using), the resids and MFs looks this:

24 mo: 58%, .00100
36 mo: 49%, .00175

Vic55

While your net cap cost is inviting you have to remember that you are participating in the cap reduction. Your 6k down is not just for drives but also brings your gross cap down so your true price of the car is higher than the 81740 number above. I dont find this deal too worthy- the raw benefits of leasing is the minimal cash investment and your 6k is a precious commodity in this environment.

Capital is precious- cash is king- save your money.

jangy

Too true. I wouldn't put more than $3K drive off right now and that includes month 1.

Mr Kram

you shouldn't put any cap reduction down period.

Taximan1

If you look above, he is claiming they are selling the car for $81k and change.. Which in a $95k list, has to be under net/net on this car.. Invoice is probably in the $85k range.. Maybe that $81k is WITH the cap cost? Even so, still nota terrible deal... Bottom line is, $95.7k is very high option car.. So, thats jacking things up a bit, since most of those options are NOT residualized.

ldangeli

What was the money factor?

Never mind, I see where you are. I originally asked where you were in NJ You going to the Bristol Run on Saturday?

Vic55

I agree and I think the 81k is net of the 6k but we need the OP to chime in there. If not including the 6k its at 85-86k its not a deal IMO but if you can get one for 81k gross of the 6k then it might be worth it in a lease format only. The reduction in payoff via monthly payments will not outrun the depreciation on these cars so a purchase would be crazy right now unless someone planned on keeping it for a long long time. Oh every factory option that is included in the MSRP is residualized except for gas guzzler tax with MBCC. Chase and other banks have MRM limitations.

Taximan1

agreed.. Buying one of these is suicide right now, especially with the new E-class coming.. 07 E63's have already sunk to mid/upper $50's, wholesale.
Even at payments north of $1G/mo. Your still better off, after 3 years by leasing. I learned my lesson with buying AMG cars.. Bought a 04' CL55!!!! which is 2nd, only to a CL65 in parachute style depreciation.. Needless to say.... I lost a few bucks on that car..

O.P. - Can you post more details... I just helped my dad buy one of these last month. So Im pretty familiar with the terms, and what "deals" are really out there... The $999 lease deal is complete BS.. Who wants to put down $7k cap cost, on a no option, 7500 mile/yr. car? And I believe thats only $4k dealer contribution, off list.. With the market, you should have no problem grabbing one of these at invoice.

The selling price sounds good. Even with options, payments should be in the $1200;s... They might be pushing up the Money Factor a bit.. Any other details we should know about??

Is there a trade involved, that you have negative equity in?? That would certainly throw a wrench in things..

sbarsap

I don't know I copied and pasted from the email the dealer sent me. I will ask and get back. I told today that I am going to wait till the 09's come out as my local dealer said I might get a better deal.

As I said the dealer was going to sell me the car (if I finance) for 81,640 that was 14K off MSRP.
I then asked what would a lease option look like. She said for lease on an E63 a down payment of 5-6K will be needed. I told he I am willing to put 6K. I plan on probably purchasing the car at the end of the lease and wanted my payments to be lower. I was looking in the 1K/month range. She ran the numbers and said my payment would be $1399/month.


There is no trade involved.

Here is the first response from her:
Ok I worked out a lease based on the selling price of $81740
For 27 months 12,000 miles/yr. your pre taxed payment will be $1399 (I
will have to see how Texas calculates the tax on the payment. Every
state is different!
The buyout $56184 at the end of the lease, IF you wanted to buy the car.


I then asked to give me specifics of the deal and she came back with:
Cap cost- $81740
Residual- $56184
Term 27 months
Fees= dealer fee $599 1st payment @$1399+tax, tag $250, $6.50 battery &
tire tax, tax on the cash down $225.23. The balance is the cash down to
equal $6000
Acquisition fee $1095 (bank fee)


This the the last response from her today (after I said I was going to wait for the 09's):
The fact that the E63's are so few, Mercedes does not normally make
further attempts to move them even when 09's come out. I do not think
your local dealer is entirely accurate. What is more likely to happen is
for them all to be sold and you will have to lease a 2009 with very
little discount, since we have a whole year to sell them. This is a
great deal on an awesome car. Let me ask, what did you think the
payments would be on this car???

Mr Kram

she is full of crap. you don't have to put any money towards cap reduction. you have to ask her specifically what the MF is and if the selling price includes your contribution to the cap reduction.