drop997stop

I am considering going back to a e63. Currently driving a 11 cts-v but saw 63 on the lot and fell in love

Question is do I lease or buy. I have always leased and enjoy driving a new car every couple years. I am not self employed so there is no write offs for me leasing

Wife on the other hand says you must buy the next car. She wants to have no payments in the future

The big question is do I really want to buy a car that is notorious of depreciating very quickly. Once again never ever bought a car so don't know what to expect.


How many are leasing comparing to buying? And why

joshb63

I'm leasing, and for no particular reason. Just sounded fun

otakki

Buy will always be cheaper than leasing in the long run provided you keep the car for a while. Buy new and you will have to bite the heavy depreciation (see the recent AMG depreciation post) but it probably wouldn't matter if you are keeping it for a long time. Best is to buy it CPO IMHO.

drop997stop

Josh, it looks your from the bay area. Where did you buy the car from?


Do you mind telling me the final purchase price

enzom

Lease if the cost is reasonable. Buying a depreciating asset isn't worthwhile unless you intend to keep the car for a long time AND the cost of post-warranty maintenance is cheap.

From my personal experience, I hated leasing my cars because after 3 years, I would have 20k miles. So I felt like I had been ripped off and that the leasing company would make a killing off of my off-lease cars.

So I bought my 05 E55 new for about 90k in August of 2004, drove it for 5 years and put 17k miles on it, and dumped it in August of 2009 when I couldn't sell it. Lost almost 60k, not including the expensive MB warranty.

drop997stop

I normally drive my cars the full mielage due to the wife never driving. I guess I get the best use all the miles I paid for.

I am concerned if I ever need to sell the car that I will lose my shirt. Never been in the position so don't know. Its interesting that the used car market is on fire right now. I am not sure how long this will last. The intention is not to sell the car but I guess at some point in time I will need a new car. This probably wont be till 6-7 years later. I know cars do hit a point where it really does not depreciate anymore. I have a coworker that has a 2006 toyota corrolla that had over 150K in miles. He sold the car for 12K. think he only paid 17 for it new. He had several offers on the car.

I have never had to deal with a car out of warranty either since I usually lease for 3 years and give it back.

I am clueless at this point. The idea of buying a used 2012 next year makes more sense but I want one now. I also have never bought a used car and don't know how I feel about that.



I figure I should wait and see if there is specials in the future on the car

pgordon888

I went through a similar decision process with my cls63 and ultimately ended up buying because I expect to hold the car for over 5 years and only put 6000 miles a year on my cars. See the thread on my thinking below. For warranty issues posts 4 years I used geico mechanical breakdown coverage as I am only worried about big ticket repairs and it is extremely cheap compared to the mb extended warranty.

https://mbworld.org/forums/showthread.php?t=417677

805Benz

Your problem is not the lease or the finance.

New car every couple of years for you or a permanent car to keep the wife happy.

Once you figure out your dilemma, the rest will come easy.

Whufc

Leasing will save the depreciation, and you might be able to snap it up for a bargain at the end of your lease. My guess is that the Car market (Especially big engined cars like AMG's) will depreciate even more in the next couple years, as people will be even more worried about the price of petrol/maintenance. (In UK anyway)
And, if your going second hand (like I think I saw in one of your above posts) you could get a great deal on a second hand one. Hope I Helped, and I hope you get your E63 Dude!

looney100

You won't save depreciation by leasing. The leasing company factors in the expected depreciation when determining the buyback. This, of course, is just put into the lease rate.

joshb63

I got my car from Smythe European and got it at about 6-7k off MSRP

hyperion667

even though my AMG is currently for sale, I bought mine because I really hate that game dance of loans, interest and other people using me to make long term profit

vdubpower

so did you buy yours lock stock the whole lot at time of purchase,

hyperion667

yup

vdubpower

nice

otakki

Yeah, companies wouldn't be so dumb to let you take advantage of the depreciation by leasing first and buy later. They already did all the number crunching already to make sure they come out ahead.

K-A

Are you saying only in terms of Leasing then buying the car out after the Lease, or do you mean with Leasing in general?

otakki

Leasing in general will definitely cost more in the long run. Buying after leasing is definitely better, but still not as cost-saving as buying the car right at the beginning.

One better way to approach the buying after leasing is to not letting them know about your plan to lease: Thus you walk into the dealer negotiating the price as if you plan to buy; after you have reached the price you like, tell them you want to lease and use that negotiated buy price as the basis of price to buy at the end of the lease. Just watch out...they will be mad as hell when they find out, though. This is what they will look like on the inside--->

K-A

Lol. I see what you mean.

Yeah, I've priced out buying out my Lease. It would cost me several thousand more than if I bought my car off the bat (I have a good Lease deal and an artificially inflated buyout to makeup for that, so basically they'd be getting me after I got them). On the flip side, I guess you can say that you're simply paying extra interest due to prolonging the buyout of your car (saying that you Lease for 3 years, then Finance for 5 years), and giving yourself the ability to get out early if you don't want it after the Lease, i.e you're paying for some extra Luxuries. In the long run, however, you could have bought a much more expensive car right off the bat, but each way can have their perks.

I could probably get an E-Class for $6K less than what my buyout is, after my Lease, but it comes down to whether $6+K is worth keeping "your car", or buying someone else's old car.

Also, one must take into account the opportunities one can use to grow the money that they would have otherwise spend paying for the car upfront. Saying that buying a Lease out after the Lease would cost you an extra $6K from buying the car outright initially, if you hopefully do well with the investments or whatever, you can possibly come out even or ahead.

CharlyE500

How much approx to lease new E63PP ? $1400 per month after $5k down ?

otakki

Yes, it's importance to balance what other investment you can put your money into during the duration of the lease or paying off the car. Many times, you can put that same money to work and generate more in return while leasing or taking advantage of the low APR rate, ie 1.9% APR. Just gotta get out that calculator and do some serious number crunching to help you decide.

Hmm, not sure what is good number for leasing for E63.

Snipe656

What if you can write off the lease payments? I read somewhere that if you are self employed and use the vehicle for work purposes that you can write off the percent used for work. Meaning if you use it 80% for driving to/from your office to clients offices then you can write off that percentage. I never really looked into this or leases but when I read that it seemed to me that it could result in getting the car at a hefty savings if at the end of the lease you buy the car.

otakki

If you have a business entity or activities that is involved in generating income, you can certainly deduct things such as lease payments. However, things like that get complicated so it will be best for most people to talk to their accountant when doing that.

My tax situation is getting quite complicated but I have been doing them myself before handing it to an accountant so I will know it easily when an accountant is missing something. There are lots of info in the tax books on writing off the lease payments. It's not that hard to do as long as you keep good record and maintain good book-keeping practice. Definitely talk to an accountant if you feel uncomfortable with handling it yourself.

K-A

I'm an Independent Contractor who drives lots of long distance with my Leased Car for work. However, my Accountant said that I didn't fall into the category of someone who could write off their Lease payments. Based on my gatherings, that makes no sense to me. Gonna have to grille him on it this time around.

Snipe656

Do you write off your miles? I do with the argument of my business office is at home and I am going in between clients offices. My problem with doing a lease is my clients are all very far from me. For business miles I rack on upper 20k if not 30k miles a year. Kind of hard to get a lease accommodating to that.