Some lease questions, think the dealer is trying to skrew me
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Joined: Sep 2002
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Some lease questions, think the dealer is trying to skrew me
I put a deposit down for a black on black e55 that is coming in on the 26th. I want to lease the car, so I went over what the payments would be with my salesman. The sticker is 87k (heavily optioned car) and with 20k down, 60 month lease, and 10k miles per year, he quoted me $1050.00 a month. Now, that sounds extremely high for that large of a down payment. I did a search and some people on here were being offered e55 leases at 1250 a month with 0 down and for 39 months.
What should the payment actually be and how bad is he trying to skrew me? I'm thinking of just grabbing another salesman and telling this guy to fist himself.
What should the payment actually be and how bad is he trying to skrew me? I'm thinking of just grabbing another salesman and telling this guy to fist himself.
Member
Joined: Sep 2002
Posts: 190
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From: vienna
2001 E55 & 1988 BMW M6
you need to know two additional pieces of info:
1. what is the residual value after 60 months
2. what is the "money factor" he is using...
If he's trying to screw you, it would likely be the money factor he's trying to screw you with...
I pulled up a lease calculator that I've used in the past - assuming residual values haven't changed too much in the past 2 years, you're being assessed a money factor that equates to about a 5% interest rate. sounds a bit steep to me.
my guess: once you start asking questions, your salesman will realize you know what you're talking about, and start quoting you a better rate, and thus, a better monthly payment... [fyi - residuals are typically industry standards provided by a group called ALS, so the "money factor" is typically how they can screw the uninitiated...]
best of luck.
1. what is the residual value after 60 months
2. what is the "money factor" he is using...
If he's trying to screw you, it would likely be the money factor he's trying to screw you with...
I pulled up a lease calculator that I've used in the past - assuming residual values haven't changed too much in the past 2 years, you're being assessed a money factor that equates to about a 5% interest rate. sounds a bit steep to me.
my guess: once you start asking questions, your salesman will realize you know what you're talking about, and start quoting you a better rate, and thus, a better monthly payment... [fyi - residuals are typically industry standards provided by a group called ALS, so the "money factor" is typically how they can screw the uninitiated...]
best of luck.
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Joined: Jun 2002
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From: Treasure Coast
2018 Mclaren 720s, 2021 Aston Martin DBX
I wouldn’t put money down on a lease. You lose the down payment if the car gets totaled since the gap insurance pays off the lease…not what you put into it. Make better use of the money.
I wouldn’t lease a car for longer the warranty period. It’s a crappy feeling to pay for some expensive repair on the car to only return it in a couple of months.
If you would be cutting it close with 10k miles, go for 12k…there isn’t that much of a difference in cost.
Find out the money factor. Multiply it by 2400 to get a comparable interest rate to another lease and get the residual as high as possible.
Another salesman at the same dealer isn’t going to help since he is going through the same lease guy. Tell them you are going to find a leasing company to get the same car and see what their counter is and then find the leasing company.
Plug in your numbers and see what you get on this site: With 20 k down it says you should be paying a little over $900 a month.
http://www.cars.com/carsapp/national...ota&mdnm=Camry
I wouldn’t lease a car for longer the warranty period. It’s a crappy feeling to pay for some expensive repair on the car to only return it in a couple of months.
If you would be cutting it close with 10k miles, go for 12k…there isn’t that much of a difference in cost.
Find out the money factor. Multiply it by 2400 to get a comparable interest rate to another lease and get the residual as high as possible.
Another salesman at the same dealer isn’t going to help since he is going through the same lease guy. Tell them you are going to find a leasing company to get the same car and see what their counter is and then find the leasing company.
Plug in your numbers and see what you get on this site: With 20 k down it says you should be paying a little over $900 a month.
http://www.cars.com/carsapp/national...ota&mdnm=Camry
MBWorld Fanatic!
Joined: Nov 2001
Posts: 5,640
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From: GMT -8 hours
Mercedes-Benz
holy crap, that is a terrible deal. If you have 20k id suggest a multiple security deposit lease or purchase the vehicle outright. With your lease deal you will be paying almost 83,000 dollars in the 5 year period. I can't believe that!!!
MBWorld Fanatic!
Joined: Dec 2002
Posts: 1,351
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From: Palm Beach Gardens, FL
Porcelain Bus
Originally Posted by ima55r2
I wouldn’t put money down on a lease. You lose the down payment if the car gets totaled since the gap insurance pays off the lease…not what you put into it. Make better use of the money.
I wouldn’t lease a car for longer the warranty period. It’s a crappy feeling to pay for some expensive repair on the car to only return it in a couple of months.
If you would be cutting it close with 10k miles, go for 12k…there isn’t that much of a difference in cost.
Find out the money factor. Multiply it by 2400 to get a comparable interest rate to another lease and get the residual as high as possible.
Another salesman at the same dealer isn’t going to help since he is going through the same lease guy. Tell them you are going to find a leasing company to get the same car and see what their counter is and then find the leasing company.
Plug in your numbers and see what you get on this site: With 20 k down it says you should be paying a little over $900 a month.
I wouldn’t lease a car for longer the warranty period. It’s a crappy feeling to pay for some expensive repair on the car to only return it in a couple of months.
If you would be cutting it close with 10k miles, go for 12k…there isn’t that much of a difference in cost.
Find out the money factor. Multiply it by 2400 to get a comparable interest rate to another lease and get the residual as high as possible.
Another salesman at the same dealer isn’t going to help since he is going through the same lease guy. Tell them you are going to find a leasing company to get the same car and see what their counter is and then find the leasing company.
Plug in your numbers and see what you get on this site: With 20 k down it says you should be paying a little over $900 a month.
I got an excellent deal with US Bank through www.autoleasingspecialist.com. www.leasecompare.com is a good place to start, but there are better deals out there if you search for them.
Member
Joined: May 2004
Posts: 172
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From: chicago
only amg
Leases
Though There Is Many Circumstances Surrounding A Great Deal On A Lease, Money Factors, Residuals,money Down Etc. I Never Hear Anyone Talk About Early Termination Charges, Disposal Fees Etc,
Then There Is The Credit Scores, Which Effect Money Factors, And As Far As Benz Having The Worst Money Factors Not Always The Case, Most Of The Time It Is The Dealer Trying To Make Points On Finance, Like A Mortgage. And Then On The East Coast, New York And Various Other Liability States The Leasing Company Requires An Insurance Policy, Usually Cost Around 1500, So Thats Added To The Cost.
Then There Is The Credit Scores, Which Effect Money Factors, And As Far As Benz Having The Worst Money Factors Not Always The Case, Most Of The Time It Is The Dealer Trying To Make Points On Finance, Like A Mortgage. And Then On The East Coast, New York And Various Other Liability States The Leasing Company Requires An Insurance Policy, Usually Cost Around 1500, So Thats Added To The Cost.
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MBWorld Fanatic!
Joined: Jun 2003
Posts: 1,634
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From: Houston, Texas - USA
2009 C63 AMG
If you're willing to put $20K down, might as well just finance it, wouldn't the monthly be roughly the same. I would advice to never ever ever ever put any money down on a lease.
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Senior Member
Joined: Mar 2004
Posts: 385
Likes: 1
From: Palm Beach Gardens, Fla.
2004 E55
Ditto to Dr. Chill's statement.
US Bank also has my lease - ..........No money down, 48 mos., 12k/yr, $1275 month plus tax. MSRP sticker was $84,885 and the residual after 4 years is 36,950. -- I used "Lease-By-Tel" at 1-(877)-989-1500. BTW -They did all the paperwork and dropped it off at my front door!! Buying a car was never so effortless and easy!!
Check it out - Dr.Chills contact and mine.
US Bank also has my lease - ..........No money down, 48 mos., 12k/yr, $1275 month plus tax. MSRP sticker was $84,885 and the residual after 4 years is 36,950. -- I used "Lease-By-Tel" at 1-(877)-989-1500. BTW -They did all the paperwork and dropped it off at my front door!! Buying a car was never so effortless and easy!!
Check it out - Dr.Chills contact and mine.
Newbie
Joined: Jan 2006
Posts: 2
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Lease-By-Tel hassle not worth the savings
Problem with Lease-By-Tel is that they give you the run around when it comes time to delivering the car to you. I got my car more than 3 weeks after the date I was promised. Had to spend more than $600 on rental cars in the meantime. They kept coming up with excuses after excuses. They would promise me it would be delivered on a certain day and they kep coming up with excuses. The savings were just not worth the hassle..Next time I will talk to my local dealer face to face
Super Member
Joined: Jul 2002
Posts: 689
Likes: 2
From: So. Cal
05E55
Food for thought:
Put the $20k in a interest bearing account. (ING orange savings account if you're conservative)
Put $0 down and lease a new 06 ($85K+) for around $1300-$1400 a month for 36 or 39mths.
Use the $20k to offset your monthly payments (minus $500 to $550 a month for 36 to 39 months).
Now you only have to come up with say $800 a month for the car.
If you are able to write the car off for tax purposes take off another $250-300 per month.
Your car payment now is around $500.
By the time your lease ends sell the car w/ 36k miles on it for $50-$55k (cheap by the cars in autotrader selling for $62k) payoff the $47k residual. And use the extra $5 or 10k for your next lease.
Put the $20k in a interest bearing account. (ING orange savings account if you're conservative)
Put $0 down and lease a new 06 ($85K+) for around $1300-$1400 a month for 36 or 39mths.
Use the $20k to offset your monthly payments (minus $500 to $550 a month for 36 to 39 months).
Now you only have to come up with say $800 a month for the car.
If you are able to write the car off for tax purposes take off another $250-300 per month.
Your car payment now is around $500.
By the time your lease ends sell the car w/ 36k miles on it for $50-$55k (cheap by the cars in autotrader selling for $62k) payoff the $47k residual. And use the extra $5 or 10k for your next lease.
MBWorld Fanatic!
Joined: Mar 2002
Posts: 1,662
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From: South Florida
STS,FGT,12C,P85D,M4
please let me know where you're going to get 30% interest on that $20,000 to make $500/month from it.....
Originally Posted by L8Apex
Food for thought:
Put the $20k in a interest bearing account. (ING orange savings account if you're conservative)
Put $0 down and lease a new 06 ($85K+) for around $1300-$1400 a month for 36 or 39mths.
Use the $20k to offset your monthly payments (minus $500 to $550 a month for 36 to 39 months).
Now you only have to come up with say $800 a month for the car.
If you are able to write the car off for tax purposes take off another $250-300 per month.
Your car payment now is around $500.
By the time your lease ends sell the car w/ 36k miles on it for $50-$55k (cheap by the cars in autotrader selling for $62k) payoff the $47k residual. And use the extra $5 or 10k for your next lease.
Put the $20k in a interest bearing account. (ING orange savings account if you're conservative)
Put $0 down and lease a new 06 ($85K+) for around $1300-$1400 a month for 36 or 39mths.
Use the $20k to offset your monthly payments (minus $500 to $550 a month for 36 to 39 months).
Now you only have to come up with say $800 a month for the car.
If you are able to write the car off for tax purposes take off another $250-300 per month.
Your car payment now is around $500.
By the time your lease ends sell the car w/ 36k miles on it for $50-$55k (cheap by the cars in autotrader selling for $62k) payoff the $47k residual. And use the extra $5 or 10k for your next lease.
Super Member
Joined: Jul 2002
Posts: 689
Likes: 2
From: So. Cal
05E55
Originally Posted by Fikse
please let me know where you're going to get 30% interest on that $20,000 to make $500/month from it.....
$20k / 39 months = $512
If you find a savings account or any other interest bearing account yielding 30% let me know.
MBWorld Fanatic!
Joined: Mar 2002
Posts: 1,662
Likes: 1
From: South Florida
STS,FGT,12C,P85D,M4
I see what you mean now...
Originally Posted by L8Apex
Starting balance $20k ending balance $0
$20k / 39 months = $512
If you find a savings account or any other interest bearing account yielding 30% let me know.
$20k / 39 months = $512
If you find a savings account or any other interest bearing account yielding 30% let me know.
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Joined: Sep 2004
Posts: 1,958
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From: Ventura County USA
'06 E55, '05 SLK55, a few others
Why would anyone EVER put a down payment on a car they are renting?????? 
If your FICA score is above 700, NEVER, I repeat NEVER put money down on a lease. 
If your FICA score is above 700, NEVER, I repeat NEVER put money down on a lease.
Super Member
Joined: Jul 2005
Posts: 577
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From: South Florida
2007 S65, 2005 Nissan Armada
Originally Posted by Fast55
Why would anyone EVER put a down payment on a car they are renting?????? If your FICA score is above 700, NEVER, I repeat NEVER put money down on a lease.
If your FICA score is above 700, NEVER, I repeat NEVER put money down on a lease. 
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Joined: Jun 2004
Posts: 1,149
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From: NW Ohio
2008 335 vert, 2004 MDX
My dealer didn't even mention MB credit. He found 4 leases for me, all of which beat my bank. My company does a lot of business with my bank and I told my dealer I was disappointed that my bank didn't come up with much of a deal. He called my bank and got them to match the best lease rate he found. Now that's service.
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