milepostnate

I was leaning toward waiting for a 2014 E63, but stopped by the dealership yesterday to see what they had. There are only about 20 2013 E63s left in the country it seems, and they located one that I liked (I don't know if I can wait 8 months for a new car).

When I asked what general lease terms would be on this car, they quoted me a money factor of 2.5 (!) for a 36 month lease with only 12k miles per year. This seems outrageously high to me. They explained that the AMGs have no residual value, causing the high money factor.

If that is the case, maybe I should buy a used 2012 E63, finance it myself, and then lease it to my company. I was told I could lease the car to my company with a lease document, then my car re-payment from my company would not be taxable. Has anyone had any experience with this?

In addition, any good advice on getting a below the sticker price on AMGs? I was in the car business, and know how to negotiate, but no dealer in my area seems to want to negotiate on an AMG.

Thanks

shchow

If it's your company, why wouldn't you simply lease the car under the company's name to begin with?
Why the need to buy it and then lease to your company?
I looked into this a few years ago.
Company car lease payments are 100% deductible which would give you a 25-30% advantage over a private lease, but company car insurance rates are higher.

dr. ss

My car is paid through my company, pretax. Saves me 40%

milepostnate

The plan is to have my company lease it. I want to stay less than $1,500 per month, but with a money factor of 2.5 that I was quoted, the payment is more.

Even though I could do that, that money factor seems like it is insanely expensive.

oggie

With the new look coming out in 2014, the existing 2013 should be heavily discounted. I would expect better rates and prices.

E-Ridium 63

Ya i agree...they are gonna want to dump them. I know it probably not the most accurate inventory count, but cars.com says there are 62 in the country which probably on the low side. No body is going to want to have last year's inventory on hand during a mid-cycle upgrade. I wouldnt play ball at those prices....sounds like full price to me. I've seen lease rates at a snick over 1100 here on the forum (granted I don't recall the details) but i"m almost certain they are likely better than what you've been quoted.

Good luck

Vic55

This is hilarious- a dealer told you the money factors are higher because the residuals are lower? (im assuming based on the context of your post stating "no residual" value). This is counteractive to promoting leases as most captive lenders will push lower money factors when their cars are devalued more after certain terms. Even when the cars are higher line units they may not subvent the money factors but in now way will they bump them even higher.

So in short, your dealer is full of sh..t. They are just trying to make money on your potential lease with some lease reserve dollars. .00250 is equal to 6.00% apr and if your credit score is lower then maybe this is fair but its its top tier (760 plus on transunion) then the mf should be .00160 or .00150 (it was in December- I will get your confirmation).


Edit: They went up to .00175 top tier. Now if you do autopay (from your bank) they will drop it to .00165 and all you do is make a few payments and then cancel.

callmiro

Boom!

You're like a "Lease information God"

Wish we could get you some info on what's happening in Canada

Would love your feedback

Vic55

Its cold as fawk....

Sorry I dont have access to the Canadian numbers

milepostnate

Thanks for the input guys. Vic, I almost sent you a PM a few days ago, but did some research on leases and figured out a little more on leases. I must tell you all that my home dealership in Northern Virginia has a manager that fits every typical car salesman stereotype. This is the second run in with him, and while the salesman is great, this guy is painful to deal with.

I am in Charlotte on business and found that MB of Northlake has a great car, optioned just the way I want it. The sticker is $111k, so after getting the lease approved, we are going to negotiate price. My credit is good, and I was a tier 1, but they are concerned about my payment going up so much. Hopefully tomorrow, we get that handled (I provided them my income and asset statements to show I can easily afford it), and then I can negotiate the price.

Thanks for all of your help.

milepostnate

By the way, I must add that the car I am looking at has Premium Leather, and it is MUCH better than the standard leather. Vic - I think I read that you only wanted that, which made me look for it. You are right, it is worth finding one with premium leather. Thanks!

dflamer

If you lease it to your company, you are going to have taxable income personally that you will not be able to fully offset through the depreciation and interest.

milepostnate

After talking to my CFO, we came up with the same conclusion. Even if I don't negotiate as much off the sticker as I want to, for me, it will still be a great deal since my company will realize the full lease payment as an expense, and it won't be income to me.

dflamer

That is a better way to go, but talk to your company's tax counsel, there is an imputed amount that you should be picking up. That is between you and your employer.

milepostnate

I got it all worked out. Sorry for the crappy picture.

2013 E63 with tons of options.

Thanks for everyone's help!

dr. ss

Congrats! Very nice. I hear there aren't very many '13s on the lots, less then 20... Which makes sense w '14s coming out

Gsc

Congrats, can you post up your deal?

milepostnate

Sure. For me, it was a great deal, but I am sure others could do better. This car is optioned exactly how I wanted it. The sticker was $111,420, and I got the USAA discount for $108,920.

My lease money factor was .0025, which as Vic says is a 6% APR (I have since learned that the money factor times 2400 is the APR). My financing was tough... MB credit was concerned that the payment escalated too much, even though my debt-to-income ratio was 4% of my income, including the car payment.

Lease was for 36 months with 12k miles per year.

All in all, others would definitely be able to do better, but with $9,000 total for first payment and capitalized cost reduction, my payment is $1,498. I could have waited for a 2014, but that is 1/4 of my lease term, and I wanted something now.

Every time I drive this car, I am amazed. It is light-years ahead of my 2004 E55.

dem123

I too have the premium leather and it is glove soft and has worn very well...

TheOtherEric

Do you remember what Residual Value they assumed? It looks like about 60% of MSRP, or around $67k? Seems about right.

milepostnate

The residual value was 61%.

TheOtherEric

Interesting. That's exactly what the car should sell for with that mileage after 3 yrs based on data I'm seeing. So it seems they're making all their money on the 6% interest rate. Thanks for all the info; I found your data really useful.

BTW, looks & sounds like you got a great car!