Limited Production Cars and Resale: Lease Vs. Buy
Thread Starter
Super Member
Joined: Dec 2001
Posts: 763
Likes: 0
Limited Production Cars and Resale: Lease Vs. Buy
I haven't actually worked through the numbers (would take some time and be tricky) but is the following hypothesis true?
High end limited production cars (E55, S55, CL55 etc) cost more to buy/own/resell than to lease because resale values usually don't hold up as well as expected.
I got to thinking about this again after Kev's post about E60's and plummeting S55 resale value etc.
I don't like leasing in general, but opted to lease my E55 as a hedge against resale difficulties (including limited supply of potential buyers and unpredictable resale values which seem to be lower than predicted in more cases than not lately).
Anyone care to offer an opinion or data pro or con?
High end limited production cars (E55, S55, CL55 etc) cost more to buy/own/resell than to lease because resale values usually don't hold up as well as expected.
I got to thinking about this again after Kev's post about E60's and plummeting S55 resale value etc.
I don't like leasing in general, but opted to lease my E55 as a hedge against resale difficulties (including limited supply of potential buyers and unpredictable resale values which seem to be lower than predicted in more cases than not lately).
Anyone care to offer an opinion or data pro or con?
Member
Joined: Mar 2003
Posts: 101
Likes: 4
From: Moon
e55k
I am a big advocate for leasing due to the following:
-I own my own company and can take a bit of a write off
-I do not like to tie up funds in a depreciating item.
-I like the latest and greatest new auto every three years.
-I like a car under warranty
-Selling a car for retail is next to impossible and a MAJOR pain in the a**. I have always gotten KBB trade in and have lost my shirt no matter how RARE or rarely driven the car was.
-Do the math on a lease vs. purchase and the numbers are VERY close.
-As far as driving over the alotted mileage it will cost you approx .20/mile if you own it or if you lease it. Once again, do the math.
Henry Ford once said:
"if appreciates buy it, if it depreciates lease it."
If you want to own it for the long term (4-7 years) it is always smarter to purchase.
My $.02.
David
-I own my own company and can take a bit of a write off
-I do not like to tie up funds in a depreciating item.
-I like the latest and greatest new auto every three years.
-I like a car under warranty
-Selling a car for retail is next to impossible and a MAJOR pain in the a**. I have always gotten KBB trade in and have lost my shirt no matter how RARE or rarely driven the car was.
-Do the math on a lease vs. purchase and the numbers are VERY close.
-As far as driving over the alotted mileage it will cost you approx .20/mile if you own it or if you lease it. Once again, do the math.
Henry Ford once said:
"if appreciates buy it, if it depreciates lease it."
If you want to own it for the long term (4-7 years) it is always smarter to purchase.
My $.02.
David
MBWorld Fanatic!
Joined: Nov 2001
Posts: 1,425
Likes: 0
2000 W210 E55->2003 R230 SL500->2004 W211 E55->2007 997TT+2007 E63->2010 GLK350->2012 E550 4matic
I buy
Low mileage, enjoying taking care of cars in their perfect condition, usually dings and accidents free.
I like the flexibility of being able to sell the car anytime. By the way, unlike the S55, the E55 should hold its value slightly better.
I go for speciality cars with *initial* waiting lists such as M3, E55, M5, SC430, 996TT, 360, etc.
It all depends on your requirements, for my wife she crashes her car every year or so and so we lease to keep the depreciate fixed.
I like the flexibility of being able to sell the car anytime. By the way, unlike the S55, the E55 should hold its value slightly better.
I go for speciality cars with *initial* waiting lists such as M3, E55, M5, SC430, 996TT, 360, etc.
It all depends on your requirements, for my wife she crashes her car every year or so and so we lease to keep the depreciate fixed.
Senior Member
Joined: Nov 2003
Posts: 285
Likes: 0
From: Newburgh, NY
2004 E55
I was going to pay off the C32 and put that down and lease. You don't want to do that, the salesman said and gave me a long explanation why. Okay, I said, we'll put a small amount down and lease. I went home and crunched the numbers and for us I couldn't get it to make sense. Sure, we could direct our savings elsewhere, but the lease payments would be huge and then after 3 years we're giving up a great car and have nothing. So we financed.
Newbie
Joined: Nov 2001
Posts: 20
Likes: 0
The one thing with buying/financing is you need to pay the sales tax on the total when you buy it. My understanding is with a lease you don't pay the sales tax on the total right away, you pay sales tax every month. And in CA where tax is 8.25% that is alot of money!
My current experience with my '01 w210 e55: it is paid in full and cost was $85K (sales tax and license included). Now if I want to trade it in today I will probably only get $45K from the dealer. If I sold it private party I would probably get $50K.
I've had my car for 3 years and 3 months now... You can do the math.
Leasing can make sense if you plan on selling/changing your car in 3-4 years. If you plan on keeping it longer it maybe more worthwhile to buy/finance it straight out.
My current experience with my '01 w210 e55: it is paid in full and cost was $85K (sales tax and license included). Now if I want to trade it in today I will probably only get $45K from the dealer. If I sold it private party I would probably get $50K.
I've had my car for 3 years and 3 months now... You can do the math.
Leasing can make sense if you plan on selling/changing your car in 3-4 years. If you plan on keeping it longer it maybe more worthwhile to buy/finance it straight out.
MBWorld Fanatic!
Joined: Nov 2001
Posts: 1,425
Likes: 0
2000 W210 E55->2003 R230 SL500->2004 W211 E55->2007 997TT+2007 E63->2010 GLK350->2012 E550 4matic
Timing is important
I sold my W210 E55 at a good price well before the W211 E320/E500 were announced. Used the SL500 as a bridge between the W210 and W211 E55.
Staying in tune with the latest offerings and getting onto waiting lists before the general public will help.
We also have huge taxes but it's transferable between the trade-in and new car. It's important not to lose out too much on depreciation, as one will not be able to recover the depreciated tax lost.
Staying in tune with the latest offerings and getting onto waiting lists before the general public will help.
We also have huge taxes but it's transferable between the trade-in and new car. It's important not to lose out too much on depreciation, as one will not be able to recover the depreciated tax lost.
Trending Topics
Senior Member
Joined: Nov 2003
Posts: 285
Likes: 0
From: Newburgh, NY
2004 E55
There would have been sales tax for me if I leased, which surprised me.....$6,263. That was another factor in my decision. While we ditched the C32 after a year, we love this car and will keep it a long time, so financing made the most sense for us.
MB World Stories
The Best of Mercedes & AMG
Manual Mercedes? 6 Times Sindelfingen Let Drivers Have All The Fun
Verdad Gallardo
Mercedes SLR McLaren 722 S Is Extremely Rare Example Modified by McLaren
Verdad Gallardo
8 Classic Boxy Mercedes Designs That Have Aged Like Fine Wine
Verdad Gallardo
Flawlessly Restored Mercedes 190E Evo II Heads to Auction
Verdad Gallardo
Electric Mercedes C-Class Unveiled: 11 Things You Need to Know
Verdad Gallardo
Mercedes EQS Gets A Major Update: Everything You Need to Know
Verdad Gallardo
5 Underrated Mercedes-Benz Models That Don't Get the Love They Deserve
Verdad Gallardo
Mercedes 300D Has Pushed Well Past 1 Million Miles and It Ain't Stopping
Verdad Gallardo
10 Most Reliable Mercedes-Benz Models You Can Buy Used
Verdad Gallardoappreciates, buy, buying, car, cars, depreciates, ford, henry, hypothesis, lease, limited, low, math, production, resale
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
