Dr Chill

After days of research and many quotes, I found a deal significantly better than the others. It came from Mike Latham of Auto lease specialist. The deal is for 12,000 miles per year and has an interest rate of 3.9%. the prices below are for the MSRP of my vehicle-$79970.

39 months $1141/mo residual 58% or $46382

48 months $1062/mo residual 51.5% or $41171

The next best deal was $120 more per month but the buyout was lower (51%).

Upfront cost is first month lease payment + tags and title. Gap insurance is included but taxes aren't.


The lease is with a bank in Kansas City who called my office to confirm income and employment. I'm sure Mike would appreciate more business if you are leasing. MB credit couldn't come close. Their MO is to give "the highest residual in the business" so you think you're getting a good deal but they then kill you with the money factor (money factor X 24=interest rate). The buyout is prohibitively expensive thus forcing you back to the dealer to turn in your car, thereby giving them another shot at getting a new MB.

Mike Latham's website is:

http://www.autoleasingspecialist.com/

Stiggs

Well, Mercedes Benz credit got me with my 1999 CLK430 lease. The buyout was prety high for my liking so I said "bye bye" to my baby.
I will never lease again!!!

Dr Chill

Dude, you must be lost. This is the E55 forum, not the CLK55 forum, Benedict.

KrispyK

The deal sounds fantastic, but how reputable are these guys? I wouldn't want to lease a car through them and then get hit up with millions of end-of-lease costs.

Frisco

I'm not all that up on leasing deals and don't know how the rate changes in the last couple months have impacted things, but for perspective, I got a 4.25% simple interest loan from my credit union when I bought my car in November of last year.

alz

with tax included (which is 8.5% where I live in in NY) 39 months $1349 per month --

NOTE that the tax (which was not included in your lease rate) adds around $170 per month to the lease . Given that the numbers are nearly even the fact that MB gives me Zero hassles when I return the car (i.e. no upcharges for scratches, dings, etc.) really makes a difference to me.

The only quesion I have is whether to get a 24 month lease because of the possibility of an E60 coming our way soon.

Dr Chill

To my calculations, the tax in your lease quote should be about $105 and not $170, and the tax on the lease I quoted comes to $68 a month in FL(6%) or $97 in NY(8.5%). That would make your lease $107 a month more expensive. The lease I quoted has no termination fees and the car is picked up at your door at the end of the lease. Over 39 months, that cost difference would be $4173. Yes, it is possible that they can nickel and dime me at the end of the lease, but my last MB lease was a nightmare. I finally had to settle after several letters to pay half of what they said I owed when the dealership said that everything was fine when I turned in the car.


Secondly, MB credit as of last week no longer offers a 39 month lease program, only 24/36/48 months. IMO, a 24 mo lease is too expensive. Also, how can they offer you a lease price when the MSRP of the 2004 E55 is not known yet. I think that you are being misled by MB because the lease prices I was given 3 months ago by MB credit were better than the real ones I'm getting now since my car is 2-3 weeks away and they know that I'm shopping around for the best rate. If they could come close, they would but the dealer is not willing to cut the price below MSRP.

Please, if anyone out there knows a better deal with 12,000 miles/year, post it here.

Dr Chill

Yes, interest rates are low right now, but leasing allows several benefits if a good lease interest rate and residual are given:

1) Sales tax on only the portion of the vehicle you are leasing
2) Ability to use car as business expense if leased by the business (thereby reducing the overall cost of the vehicle by approximately 30%)
3) Minimum up front costs

The amount of the car purchase that is financed is based on the residual value quoted in the lease. If your residual on an $80,000 car is 50%, then you only finance $40,000 of the purchase. Your buyout at the end of the lease is $40,000 plus a small fee (usually 200-400 dollars).

Therefore, if you plan on giving the car back at the end of the lease, your best bet is a low money factor or interest rate, and a high residual. If you want to buy the car at the end, then arrange higher lease payments to get the greatest tax advantage for business owners, and a lower residual. The key to the best lease always depends on a low money factor. MB credit historically has the highest money factors except when they subsidize their lease program as is being done with the C class vehicles now (2.9-3.9%).

lease interest rate=money factor X 24

Stiggs

I assume you are kidding with me...just that I don't see any smiley faces.....so maybe you're not kidding. If not then that hurts.

Of course I won't mention how I've been enjoying my AMG for almost 2 months now and you're still waiting for yours!!

Dr Chill

Of course I'm kidding Stiggs. I was just not in the smiley face mood. When I get my ride I'd run with you, man. Just be prepared to stare at the quad pipes.

amg55

We may have debated this in the past, but if your business ever gets audited by the IRS you are likely to have a difficult time getting clearance on the business write-off part of your lease.
I know many people do write this off, but I have a colleague who was audited for this and the IRS was not in the mood to bend the rules, which say that miles eligible to be written off are those which are driven only after you arrive at work (unless you're a delivery person, work on the road, or drive for a living).
The commute to and from work does not count.
And any personal business and leisure driving cannot be written off.
A detailed mileage log must be presented if you're audited or penalties are due the IRS.
Things were much more liberal in the 70's and early 80's.

Stiggs

You would ruin me....but man oh ,man......that would be one hullava race!!!:p

Dr Chill...you are one cool dude!
You got my respect!

kengi

You can write it off if you have two jobs and are using the car going to your second job. My wife is a realtor so she drives and van to work but when she comes home she drives the mercedes
around to her clients.

BigHat

Pisses me off that these "business owners" drive their car to work like the rest of us and write it ALL off. May you have a warm bunk in a low security prison in your future.
We need more IRS auditors.

Dr Chill

Some of honest folk use our cars to conduct our business in different locations. The problem are these IRS laws giving huge tax deductions for SUV's > 6000 lbs. The laws were originally intended to give businesses (i.e. farmers) a break when purchasing heavy machinery, not for the attorney with a Range Rover.

E55AMG99

Are you serious? What we need is LESS IRS auditors, LESS governement and SIMPLER/FEWER tax laws!

BTW, The lease write off rule was not really for farmers but Secton 179 asset depreciation (leases are not assets but liabilities) rule is.

BigHat

Less taxes is where we wanna go. But until the law changes I wanna see you pay the complete cost of ownership I do. Screw your bogus business use deduction. Those who abuse the tax law need to go TO JAIL. I pay to drive the car I want and I'm tired of seeing you scam the rest of us to get a 30 precent discount because you abuse the tax code.

Dr Chill

So you're suggesting that businesses that lease vehicles for their employees' use on the job should not be able to pay for these leases out of business funds? Or do you just want to penalize business owners like me because you are not one. You probably think that people who drive cars leased on their business should have to drive their "owned" car to their place of business and use the business car during business hours only because in effect that's what you do.

It's so refreshing to see such an honest person on one of these forums like you BigHead. I suggest you go back to your chosen calling----turning people in for getting illegal cable tv.

BigHat

I didn't say we should exclude honest use of cars for salesmen etc. I know a number of business owners, probably like you, that have no requirement for a vehicle to execute their business yet write off 90 percent of the cost. How much do you write off Chill?

Funny you should dismiss other illegal activity. It's okay to steal cable? Have you taught your kids to steal music off the internet yet? If you don't pay your rightful share of taxes you are a criminal. If you steal any good or service you are a thief. Pull your head out of the sand and face reality.
I haven't turned anyone in for doing anythng nor will I. That doesn't mean I have to like the fact that taxpayers are paying the cost of some people's fraudulent lease deduction.

Dr Chill

Yes, I guess I am a criminal because I write off 90% of the use and estimate that 25% rather than 10% is for commuting and personal use. Unfortunately for you, the system allows for it without much policing, however if audited it is unlikely that I would be found accountable due to good recordkeeping.

Here are some more confessions:

1) Yes I owned an illegal cable box for a couple of years about 15 years ago.

2) I've smoked marijuana before (but not in the last few years).

3) My kids already download music from Kazaa as do I amongst other things.

4) I drive over the speed limit regularly and frequently come to a rolling stop at stop signs and traffic lights when turning right.


Dude, you should be thanking me for doing some legwork for you if you're looking for a lease on this car since the deal I quoted as far as I know is the best one out there. That was the purpose of this thread. Instead you decided to make a personal statement about what I should or shouldn't do. I'm sorry I don't live up to your holy standards.

I suppose you believe homosexuals should be sent to jail also.



Picture of BigHat reading this thread

BigHat

Your last post reflects it better than I ever could.

Keep us posted on those kick backs from the lease deal you're schilling.

E55AMG99

You need help.

Dr Chill

Ah, but here's the sweet irony. I'm an idiot that spends 30% less for my vehicle than you.

And by the way, if you are going to criticize others, it might carry a little more weight if you proofread and corrected your multiple spelling errors before posting. And on that note I bid adieu.

BigHat

Posts concerning you aren't worth the time it takes to proofread.

KrispyK

But it's certainly worth the time to reply to them, I suppose? Nice half-a$$ed job you're doing.