36 vs 48 month lease
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Q7
36 vs 48 month lease
Any input regarding a 36 vs 48 month lease?
My thinking is that I will definitely not mind driving this car for 4 years. Car will still be under original warranty, and the payments will be lower with 48m lease. Any downsides other than possibly getting hosed if I decide to jump ship mid lease? With MSD, interest rate will be around 3%, which is comparable to the interest rates on loans but without the back end risk.
My thinking is that I will definitely not mind driving this car for 4 years. Car will still be under original warranty, and the payments will be lower with 48m lease. Any downsides other than possibly getting hosed if I decide to jump ship mid lease? With MSD, interest rate will be around 3%, which is comparable to the interest rates on loans but without the back end risk.
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C43 AMG
The debate rages. Many of these manufactures do 'pull ahead's' after 36 or 48 months to get you into a new car. I have gone and on several sites plugged in numbers for both leases and financing with 36 and 48 month terms. They are almost identical at the bottom line. Living in CA where we pay the entire DMV taxes up front instead of the incremental for a lease, it's a no brainer for me. Sure, 48 months, why not? It gives you the option to buy it after 48 months if you love it anti has a value (doubtful) beyond the residual value Banks aren't stupid They know the value going in Even with the last 2017 911 Traga I bought and sold (supposedly going to appreciate), I still sold it and lost money Car=depreciating asset
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Hyperion's Candy-Coated 4 x 4
The debate rages. Many of these manufactures do 'pull ahead's' after 36 or 48 months to get you into a new car. I have gone and on several sites plugged in numbers for both leases and financing with 36 and 48 month terms. They are almost identical at the bottom line. Living in CA where we pay the entire DMV taxes up front instead of the incremental for a lease, it's a no brainer for me. Sure, 48 months, why not? It gives you the option to buy it after 48 months if you love it anti has a value (doubtful) beyond the residual value Banks aren't stupid They know the value going in Even with the last 2017 911 Traga I bought and sold (supposedly going to appreciate), I still sold it and lost money Car=depreciating asset
Last edited by Pertplus; Sep 11, 2018 at 01:09 PM.
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in Maryland you pay all the taxes upfront anyways so 48 is fine.. as long as 12k miles a year or less for warranty
on an 18 E63 sedan.. the difference in 12 months (36 to 48) is only 7% so a 48 month lease would be cheaper here.. plus spreading the taxes across an extra 12 months
on an 18 E63 sedan.. the difference in 12 months (36 to 48) is only 7% so a 48 month lease would be cheaper here.. plus spreading the taxes across an extra 12 months
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in Maryland you pay all the taxes upfront anyways so 48 is fine.. as long as 12k miles a year or less for warranty
on an 18 E63 sedan.. the difference in 12 months (36 to 48) is only 7% so a 48 month lease would be cheaper here.. plus spreading the taxes across an extra 12 months
on an 18 E63 sedan.. the difference in 12 months (36 to 48) is only 7% so a 48 month lease would be cheaper here.. plus spreading the taxes across an extra 12 months
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Yea but it isnt because they they do the average of 36 and 42 and round the residual down.. it honestly depends.. MB like most manufacturers artificially adjust the residuals if they want the cars coming back in 3 year, 42 or longer... sometimes (Like 18 GLE350's) they go from 36 to 42 months and drop 7-8% so a 36 month lease is cheaper than a 42.. if I did 39 it'd still be worse monthly than 36... but 48 is better on many cars (most depreciation is 24 to 36 months and tapers off)
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Yea but it isnt because they they do the average of 36 and 42 and round the residual down.. it honestly depends.. MB like most manufacturers artificially adjust the residuals if they want the cars coming back in 3 year, 42 or longer... sometimes (Like 18 GLE350's) they go from 36 to 42 months and drop 7-8% so a 36 month lease is cheaper than a 42.. if I did 39 it'd still be worse monthly than 36... but 48 is better on many cars (most depreciation is 24 to 36 months and tapers off)
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2018 AMG E63S
Not entirely on-topic but close... see my thread wrt/ my lease being listed for assumption: https://mbworld.org/forums/w213-amg/...-000-msrp.html
I thought this might be of interest to you.
I thought this might be of interest to you.
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Susman knows his stuff--- cause he Benz Jedi 
Id say in this day and age with Benz, 36 is the best term to keep a car with a decent payment and especially those who like to get a new car every 3 years. The good thing about MBFS is that one can actually get the same MF for any term if they qualify from a credit and deal structure standpoint. Ive seen some opt for 60 months to drive their payment down while having the same MF thats offered at 36. Further, because the rent charge in dollars is a derivative of the residual plus the net cap cost times the MF itself, the longer the term the less one pays in interest per payment on average. But because of the much longer term, the monthly payment does not lower the payoff as fast.
There a basically 3 types of taxation on leases (outside of DMV costs): tax on each payment and any cap reduction, tax due up front on just the payments for the term of the lease and cap reduction, and taxes due on the capitalized cost of the entire car.
Id say in this day and age with Benz, 36 is the best term to keep a car with a decent payment and especially those who like to get a new car every 3 years. The good thing about MBFS is that one can actually get the same MF for any term if they qualify from a credit and deal structure standpoint. Ive seen some opt for 60 months to drive their payment down while having the same MF thats offered at 36. Further, because the rent charge in dollars is a derivative of the residual plus the net cap cost times the MF itself, the longer the term the less one pays in interest per payment on average. But because of the much longer term, the monthly payment does not lower the payoff as fast.
There a basically 3 types of taxation on leases (outside of DMV costs): tax on each payment and any cap reduction, tax due up front on just the payments for the term of the lease and cap reduction, and taxes due on the capitalized cost of the entire car.
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Q7
Interesting with the 60 month lease Vic. I recently had a SA tell me to do a 60 month lease at 7500 miles, with all intention of only driving the car for about 36 months. This would net the lowest monthly payment, and probably $400 a month less than the 36 mon. He said to come trade in the car at 3 years, and the value of the car would be roughly the buyout of the lease. He says there is no prepayment penalty for the lease and the interest not charged on future payments.
Its hard for me to wrap my head around that. I just feel like I will probably owe $75-80k on the car and they will offer me $60k at trade in. If I walk and run out the lease, I have to drive it for one year out of warranty which makes me real nervous.
Its hard for me to wrap my head around that. I just feel like I will probably owe $75-80k on the car and they will offer me $60k at trade in. If I walk and run out the lease, I have to drive it for one year out of warranty which makes me real nervous.
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Interesting with the 60 month lease Vic. I recently had a SA tell me to do a 60 month lease at 7500 miles, with all intention of only driving the car for about 36 months. This would net the lowest monthly payment, and probably $400 a month less than the 36 mon. He said to come trade in the car at 3 years, and the value of the car would be roughly the buyout of the lease. He says there is no prepayment penalty for the lease and the interest not charged on future payments.
Its hard for me to wrap my head around that. I just feel like I will probably owe $75-80k on the car and they will offer me $60k at trade in. If I walk and run out the lease, I have to drive it for one year out of warranty which makes me real nervous.
Its hard for me to wrap my head around that. I just feel like I will probably owe $75-80k on the car and they will offer me $60k at trade in. If I walk and run out the lease, I have to drive it for one year out of warranty which makes me real nervous.
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2019 AMG E63S
Vic,
If I was going to do a 36 month/45,000 miles lease on an 2019 E63S at a cost to me of $116,000 (not including taxes, fees), what would be considered a good monthly payment? Thanks for your help - have been going back and forth buying or leasing. Good thing the car is sitting in Baltimore, give me time to make the right decision
If I was going to do a 36 month/45,000 miles lease on an 2019 E63S at a cost to me of $116,000 (not including taxes, fees), what would be considered a good monthly payment? Thanks for your help - have been going back and forth buying or leasing. Good thing the car is sitting in Baltimore, give me time to make the right decision
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'19 G63 Ed 1,'18 M5, '16 G63,'12 458 , '11 E63, Brabus SL55-K8, '10 S63, '94 E500 "Wolf", '91 560SEC
In all seriousness, what approach do the Vic55's of the world take, when one only wants the car for a year or so. ADD is too bad to keep one for 36 months.
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Hyperion's Candy-Coated 4 x 4
You buy a used one with depreciation already built into the price. Buying a brand new car (or leasing one) and dumping after a year....unless its one where the demand far exceeds supply....will never net you a financial windfall.
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Interesting with the 60 month lease Vic. I recently had a SA tell me to do a 60 month lease at 7500 miles, with all intention of only driving the car for about 36 months. This would net the lowest monthly payment, and probably $400 a month less than the 36 mon. He said to come trade in the car at 3 years, and the value of the car would be roughly the buyout of the lease. He says there is no prepayment penalty for the lease and the interest not charged on future payments.
Its hard for me to wrap my head around that. I just feel like I will probably owe $75-80k on the car and they will offer me $60k at trade in. If I walk and run out the lease, I have to drive it for one year out of warranty which makes me real nervous.
Its hard for me to wrap my head around that. I just feel like I will probably owe $75-80k on the car and they will offer me $60k at trade in. If I walk and run out the lease, I have to drive it for one year out of warranty which makes me real nervous.
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Vic,
If I was going to do a 36 month/45,000 miles lease on an 2019 E63S at a cost to me of $116,000 (not including taxes, fees), what would be considered a good monthly payment? Thanks for your help - have been going back and forth buying or leasing. Good thing the car is sitting in Baltimore, give me time to make the right decision
If I was going to do a 36 month/45,000 miles lease on an 2019 E63S at a cost to me of $116,000 (not including taxes, fees), what would be considered a good monthly payment? Thanks for your help - have been going back and forth buying or leasing. Good thing the car is sitting in Baltimore, give me time to make the right decision
MSD's?
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From: San Diego
Hyperion's Candy-Coated 4 x 4
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Hyperion's Candy-Coated 4 x 4
Are the MSDs like BMWs program where you do up to (6 or 7 or something like that) payments up front and it buys your rate down and you get the money back (minus any damage or other things they take off for)?
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This has always been an issue for anyone I know who is considering this term as well... the only caveat is an MBFS pull thru which can occur often and that usually entails 3 or 6 payments as a push. But its a gamble when someone is leasing the car for 39 at inception. 39 does work if someone knows for sure they will not keep the car to term. 1/12 lesser payment is not huge but can be slightly attractive.
