2018 GLE Offer in TX - good deal or not?

tx
mercedes-benz
suv
#1

Posted a deal previously for 2018 GLE 350 but seemed like it was not that great. Wife was still looking and came across this one which was a previous fleet car I believe. Any thoughts on the numbers below?

Mileage: 8768 (due to being fleet?)
MSRP: 58640.00
Sales Price: 47490.00
Term: 36 months @ 10,000 miles/year
Down pmt: with first months lease payment and fees ($1,500) down
Monthly payment: $718.52
Tax: 2968
Acquisition Fee: 1095
License, Reg Fees: 353
Residual: 48% (28140)

Dealer claims that the $1500 is drive-off but not sure about that. Anyway, I used leasehackr calculator and not sure I’m doing things right.

Any advice as first time lease? Some of his numbers dont seem to add up to me. Would great appreciate insights and guidance here!

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#2

Also, I intend to ask about MSD which I think MB will be able to do

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#3

For a $55k MSRP with that many miles that isn’t good. But the high mileage will be ruining the residual due to the mileage penalty so without a huge discount a good deal probably isn’t possible. For that kind of payment in Texas we’ve seen people get Escalades, Q7 P+, SQ5, all of which were brand new not ex-loaner/demo. BMW X6’s are also great value at the moment.

Have you decided on the GLE or are there other vehicles you’d consider?

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#4

Wife is pretty set on GLE.

Can you explain what you mean by “ruining the residual due to mileage penalty”? Would i incur some type of mileage penalty bc there are already so many miles on it?

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#5

Miles reduce the residual value, hence increase the payment. Awful payment for that msrp

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#6

Find a new wife? J/k

Maybe you guys can find a certified used one at around that payment?

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#7

So I get that the extra miles would impact RV, which is calculated from MSRP. But on a lease, since I am paying the difference between sales price and RV, I would have to negotiate a like reduction in sales price to make up for the reduced RV? Am i thinking through that correctly? Sorry for the newbie questions.

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#8

Do you mean as a purchase? Supposedly this one is a CPO type but they are willing to lease it out. Thought it might be a decent way to get a good deal but not so sure…

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#9

Definitely not a good deal. However, that same purchase price over 60 months financed is high 800s.

Mileage is pretty high and it’s hurting your RV making this deal bad.

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#10
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#11

That’s a horrible deal. Should be under $600 (not including your crazy TX tax) with nothing down. That’s an outgoing model. Find a different car, if not a different dealer!

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#12

I’m guessing this is one of the vehicles at Grapevine? They have loads with high mileage, as much as 18k mileage, which makes them effectively unleasable due to the mileage penalty.

Btw is this a 2018 or 2019, the title and text say different things. I’m guessing 2018? If it is a 2018 that interior is really outdated and you could get a new 2019 GLC300 with a more modern interior for less than the loaner GLE. The downside is the rear space is reduced so it depends what you need it for.

I haven’t seen any good deals on the new 2019 GLE (which has the completely updated Benz interior), the last I saw was something like ~$900 a month but the brokers here might be able to advise what’s possible. It’s going to be way more though as it’s so new.

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#13

Yeah good catch - I was thinking 2019 but it is a 2018 GLE. We have been scanning for deals on 2019 and I believe the 2020s are coming soon, which wife does not like at all. Hate how TX does the taxes on leases and wonder if that is a reason getting a good deal on a lease is hard to do (at least since we have been looking for MBs).

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#14

Looking again at the quote you got, if you’re set on it or something similar you can get sales tax credits which would knock most of the tax off. That would save you another ~$2.5k, or $75 off the monthly cost. You’re still in the high $600’s p/m including the down payment. If they’re not willing or able to do tax credits I would definitely move on as it just doesn’t make financial sense.

If they can find you a lower mileage ex-loaner with a similar MSRP then that will give you a better residual and thus a better deal.

Another thing to note about going for the older or newer version of the GLE, if for any reason you or your wife wants out of the older version GLE lease it will be much more costly as the value will depreciate faster than the newer version. That is only amplified given it’s a loaner with significant miles on it already.

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#15

All new 2020 gle is set to hit dealerships soon. No way should you get a loaner ‘19 unless they’re giving it away.

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#16

That’s a terrible deal even if the gle had zero miles.

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#17

Appreciate all the great feedback from all! So with this particular deal, from the feedback it is not good but what would need to happen to make it such? Seems the only trigger would be to reduce the sales price to a level that the payment is reasonable, so what might a reasonable payment look like in this case?

So what are the factors in general i want to look for that make a “good” deal particularly with an MB? For example, are there certain ratios I should look for in like Sales Price vs RV or RV vs payment or such that indicate the lease is ideal? I can’t imagine t is just based on monthly payment since obviously everyone would like it to be low, but if you are getting into a luxury car whereby RV’s are pretty std then the price will obviously be higher.

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#18

With the miles on this one you need a minimum 25% off before any incentives and buy rate on the money factor.

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#19

I’ve added your numbers to the Calculator and I’m within about $2k of your quote:

The most recent numbers I could find on Edmunds was from March on an AWD version here: https://forums.edmunds.com/discussion/47074/mercedes-benz/gle-class/2018-mercedes-gle-class-lease-deals-and-prices/p22

So either the numbers have gotten worse for April, and/or the dealer is marking up the MF. Might also be a small difference between the RWD and AWD, I couldn’t see which one you went for. If you check with the dealer what the MF they’re using you can work out if they’re inflating it. In terms of getting a better deal you’re at 19% discount and if they’re marking up the MF then you might be able to push for a little more discount or get them to give you the base MF. I would be surprised if you get much more off, but others might know what is possible. You should also be able to get Sales tax credits. Those extra savings would get you to around $640p/m with nothing down:

Edit: forgot to mention you can add MSDs on top to bring the payment down further.

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#20
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