I need a leasing whiz.

[Benzbro_R30]

Hello
I have a difficult question that if someone with a lot of lease experience can help me with, I would really appreciate.

I just leased a R350 and love it. I got a great lease from a Benz dealer. The cars sticker was $57,100.00 the out the door price with all the discounts and rebates was around $49,000.00 so the payment for 27 months is around 500.00 with tax and all.
Now the residual was at 73% or 74% but I see the purchase price at the end of the lease is about 41,000.00 so it seems to me that they figured that price from the sticker and not the negotiated price.

I may want to by this car at the end and that would mean I paying about 5k more to do so, then if you take the out the door price and figure it should be a payoff of about 36,000 at the end

Am I incorrect or is the deal shady or what?

Thanks so much.

[ravenr1]

Nope, sounds all good. the residual is based off the msrp, making the difference between sale price, and resid amount less = lower payments.

However, if you purchase the car at lease end, you will be buying it WAAAY over market value = you're a dumbass.

NEVER buy a lease car at lease end!

[BenzNewbie]

I fully agree it is not worth to buy out the car. Not just because of the price but also the services cost and warranty end or you have to buy an extended warranty. Your car could develop some problem in future and in case you are involved in a car accident or have some big issues with your car performance or other problems it is better always lease a new car. When the car is on lease it is owned by Mercedes and when there are some problems they always will treat you better and you get more done than if you finance the car.
New car has almost no problems and technology advances a lot every couple years. It is nice to be on the top.

It is better to pay some extra km and get rid of the car at the end of the lease.
It is beter during a dealing with the dealer to try to lower your extra km charge or get some other options free like roof rack or carpets or free first service etc.
Sometimes they offer 1000 or more for accessories or use it as downpayment. Always use it as a downpayment to lower the monthly payment. Remember you pay financing charge from the whole price not just the whole lease price. At least here in Canada you do.
As long as you can get good low interest on the lease it is well worth to lease than finance your car. You can always change for new Mercedes before end of your lease. Mercedes dealer will be happy to help you with that usually it is very easy and it doesnot cost much.

[endodoc]

Originally Posted by ravenr1

Nope, sounds all good. the residual is based off the msrp, making the difference between sale price, and resid amount less = lower payments.

However, if you purchase the car at lease end, you will be buying it WAAAY over market value = you're a dumbass.

NEVER buy a lease car at lease end!

Good point, why would someone buy at the end.... If you were to buy, buy up front.

I am not leasing my E, but one advantage I see to leasing is easy in and easy out of a car in 2-3 years time and you can write most of the car off.

[Benzbro_R30]

Somethings are not all dollars and cents, if you fall in love with the car you might fell like the lease term is going to come to quick.

[endodoc]

Originally Posted by Benzbro_R30

Somethings are not all dollars and cents, if you fall in love with the car you might fell like the lease term is going to come to quick.

If not dollars, then buy 2... Keep one in the collection and one to drive, but make sure its under 10, 12, or 15 k miles a year.