plivac

considering lease vs. financing and think I am not getting good deal on first lease quote - maybe some of you can help

first time looking at leasing for 36mos at suggestion of car salesman (I know...), previously financed.

Money factor on car quoted at 0.0033 (equivalent to 7.9% APR) - a bit high?
Residual on car is 56% after 3 years.

'14 E63 Wagon

Pertplus

That was exactly what a Fletcher Jones sales manager who I've done business with previously offered me. I laughed and didn't even bother responding to his email.

ace10

Who *wouldn't* want to borrow money at nearly 8%?


:rotfl:


That's an extra $16-$18K in finance charges over the first three years. Plus inception fees, plus disposition fees, plus any other nickles and dimes.

What a bargain. Sign me up.

Credit Unions are still handing out long money at 1.49-1.99%.

plivac

was able to negotiate money factor down to 0.0025 (6%), but still think paying to much... car is in.... final lease rate is $1,500 for 36 months with $20k down (trade in most of it). Plus NYC tax rate sucks @ 8.9%.

ends up being $75k over 3 years with $65k left on the car - which is reasonable.. I guess.... I still have the option of buying, but would hold the car for maybe 4-5 years...

I also think I didn't get a good deal on my 4yr 35k '10 prestige (w ADS) S4 ($26k), but who is going to go out there and try to sell the car on his own.

Either way, excited about the car but now need to make a decision:

1. lease or buy
2. try to get better deal for the S4

neither is a must (I am flexible financially), but hate being taken advantage of, but at the same time lazy to sell the car myself.

decisions.. decisions...

RJD AMG

Can anyone chime in with the march money factor and residuals we should be paying? My dealer quoted me a high number too...forces me hand more into the purchase option...

Topsupra

I went thru this situation prior to purchasing my E63S...Although it may make sense to purchase vs. lease with all the great rates being offered, all that can get ruined with one minor fender bender and a dirty carfax....

I had a BMW X5M that was financed and I had my E63S on order and when my E63 was about 3 weeks from delivery my dealer gave me a set trade in value on my X5M.. Then 10 days before my E63 arrived I was involved in a very minor accident and someone hit me in the rear and thankfully no damage occurred but the police were called and that very same day my X5M had an accident reported to carfax and my damage was less then $200 but when I informed the dealer I lost almost $7500 in trade in value due to the carfax report and I even attempted to sell it my self but the carfax completely killed the value of my X5M...Bottom line if I would have leased the X5M I would not have had anything to worry about, it would have been the leasing companies problem. As great as these AMG or M cars are a bad carfax can kill the value big time..

plivac

that's was my decision too - just don't want the risk of a large hit on re-sale value due to some stupid little accident which is not my fault. I would have sold the car for sure at some point in the next 3-4 years and so went with lease. Peace of Mind.

Vic55

Don't quote me but the 36 month 15k residual on the E63S is 57% and the best money factor (if you are approved this way) is Tier A1 at .00195- you then can get to .00185 by using autopay when you sign the lease agreement. Autopay can be cancelled at any time.

captlst

That my friend is exactly why I leased mine. I've seen too many cars value plummet because of one minor little incident.

Topsupra

I use to think the leasing companies were over charging for there cars, but after experiencing it for myself 9 times out of 10 your always better off leasing. Only car I was able to benefit buying vs. leasing was my 2009 GTR. Only reason it worked out was Nissan raised the msrp and I was lucky enough to keep the car for 2 years with a clean Carfax and equity. Which was a miracle with all these kids tail gating my car when it first was released. I was very lucky I didn't get rear ended.

mtimmy

So our best bet is tier A1 lease rate at the moment?

hbmess

What are the residuals on the sedans? Any incentives?

cnolke

Sounds like hard-ball negotiation tactics. I would have walked away from the deal. They had no actual need to deduct $7500 from a trade based on the carfax. I've bought and sold a lot of cars and a single carfax like that for a minor accident has never killed a deal yet.

My opinion is that a purchase actually gives me more peace of mind. I've listened to friends return leased cars both on time and before they were supposed to and they were astonished by the surcharges... each one being nothing they could negotiate out of (they signed the lease contract).

seanthebomb

I agree with that but i mysekf had something i want others to learn from: I purchased a 2012 e63 with the pp and LSD. I went to Laguna niguel and the car was advertised with 8200 miles on it. Even though there was 11,000 in person. It was a dealers car "manager used it to drive himself around" since buying the car last summer 13, I have taken the largest residual loss then any car I have purchased in the past of my AMG collection. At the time they had two vehicles a 2013 with pp but no LSD with wood grain v piano laquor. Since I was hesitant on buying a used e63, dealer assured it wasn't used and title was new, I mentioned to them I know that their is a large inventory bc the facelift for 2014 is already out. Regardless of the first issue, since buying the car there have been multiple issue I have come across. The main issue being was that the advertised information was not accurate, then when I went to fletcher jones for service I found out that at 15,000 miles all services were done. In my purchase agreement Laguna niguel stated that all services have been done. So when the diff started locking up a lot, I contacted my device guy and I inquired about the cars LSD service. Needless to say, I was told that there is only a service done on the system at 9700 miles. I contacted Laguna niguel and the sales men who sold me the car. The salesmen told me "I can't give any service info over the phone." Funny right? I get emails and birthday cards etc from the guy who sold me this car for more then it was worth and he couldn't even get me a copy of the service record? Next I go in and ask for service records after leaving multiple messages for service manager and even go in yet he "wasn't there, and at lunch." So he must have Vernon a long lunch huh for 5 months of no response still? mNext step was contacting mbusa. I mentioned the issue and how it could be a breach under the stated terms of warranty and cost a lot more money(residual loss) then if there were no issues on the car. Side note I bought the used/new Benz because it had the LSD option and every other option available for the car. Not my favorite color, but the one thing that was crucial for me to accept buying a used car was that it was rwd with pp and had a LSD. Again after my contact with mbusa they apologized and said they will not deem the car breach of warranty on my part and the Laguna niguel Mbz would pay to service the LSD. I ended up taking it into service at 15000 miles and that's when mechanic told me the oils was black sludge in the LSD. This was the "cherry on top" that has turned we away from buying another Benz. I would have paid the extra 5000 for the new e63 that was 2013 ( might I add at the end if summer) let's be frank the car we all knew should be cheaper bc other dealers had still many in stock. This is a blatant case of misrepresentation- where defendant induced plaintiff into an agreement where the (D) misrepresented a material fact- e.g. Being the condition and services done in the sales contract. Since I discovered the issue, it's been 5 months and no one from Laguna niguel has gotten back to me and I contacted mbusa and no response. So when I say I got the worst end of the deal, wait there's more. So the car I found out had been smoked in and the manager left a note regarding throat cancer and an electric cig, plus the cig lighter had been used. There's even more, the day after I bought the vehicle, I told the sales manager I would prefer you do an inspection on the vehicle and the "promised detail" again nada. Now it's been 8 months and the moment I found out about the LSD I haven't driven the car. I checked the trade in value, it dropped more then 20,000 from what I paid not including taxes. So basically I paid more then msrp on a "used/new" e63 a year old at time bc it had the LSD. Key point being the LSD. Now that the car sits in the garage. I contacted another mb dealer and they said they could offer 58k trade in and a new 2014 type s would have been 3 k more then what I paid in total. The fact the car took a loss in value doesn't as big as the fact they negligently did not service the vehicle and they fraudulently misrepresented material facts about the car. Basically Ive been screwed this way to Sunday and yet no help from mbusa. Any recommendations on what do with this matter? I hope none of you guys are upset with my opinions but the facts are indisputable- the key fact they sold me something that was not materially identical to the sales contract. I know the dealer hasn't responded to my calls or attempt to resolve this issue. At time of purchase, trade in value of car was 10grand below what retail was and they charged 6 over retail. The reason I reiterate all this is because any transaction on a car you loose money, but driving the car a total of 5,000 miles and loosing around 30k seems w/o tax and licensing is absurd. There has to be a remedy. So like I said I apologize about my rant, but if the car had been properly taken care of, then I wouldn't be here posting so much. I honestly feel like I'm so dissapointed with mbusa and their dealer Laguna niguel that I no longer want to buy a Benz. This is my 8th AMG in last 10 years. And my 12th Benz. Only AMG I bought used and this was what detoured me from buying it in first place but after all the "fluffery" and deciet from Laguna niguel to find out your car you traded in and all the cash you out down means that you loose so much isn't as annoying as the mere fact I was played for a fool and there is breach on their part in the contract.
Back to my point, they are in breach and I would like someone's 2cents on what I should do from here on out in regards to the fraud? Thanks for any suggestions

ace10

Discover the beauty of paragraphs.

[And no, that's not a grammar-**** thing... that's a "how in the **** am I supposed to read that" thing"

seanthebomb

I apologize for the misspelling and grammar errors however It's hard to take the time on a subject that vexes me so much and to gauge my writing on my iPhone screen.

seanthebomb

By the way not justifying the writing errors just standing by my own experience and disappointing situation arising from the circumstance I am in. If you read it through, the elements of misrep are met.