Searching on behalf of my mother, who has never leased a vehicle herself. She is looking at a 2019 GLE 43 AMG 4MATIC Coupe in Texas.
From what I’ve seen, the MSRP is $80,775, $995 of which is the destination charge. The invoice appears to estimate at $75,591 and figure dealer holdback is about 1-3%. She intends to secure it, but I’ve told her to ask for $76,000 and 39 months. I would suggest lower, but I figure it might be dismissed as too low.
Is this a fair offer? What monthly amount should she target, as term doesn’t matter, but one hopes to get the most for their money (as in lowest payment w/o anything down. A potential total loss can equal waste of a downpayment. Credit is above 750.
Need most reasonable capitalized cost for Texas (EPTX area)
MB SUVs generally aren’t the best but you can find deals. But when you combine AMG with the Coupe body style…ouch. This lease is going to be easily north of $1k a month. I’d say maybe $1300-$1400, which gets you a $100k+ S-Class. And you’re in Texas where you ppay the full tax, making this an even more terrible idea. And you’re in El Paso where I’m guessing the closest next Benz dealer is in Albuquerque, so no competition.
Ah, I figured as much. Good to know I wasn’t particularly imagining that scenario.
I have to wonder if tacking off money from the MSRP, is still viable? With a 1-3% holdback (guessed), I estimate them earning $5,991.75 to $7,607 on this unit. I wouldn’t think asking for $4-5k off would be too much? Thank you.
You may want to post a question in the Edmunds forums to determine what the RV and MF is for this specific vehicle in the vehicle’s registered zip code. The RV will be fixed but you will then need to get the dealer to pass along the buy rate for the MF (that Edmunds will provide).
You’re sort of focusing on things that are just noise. Holdback…invoice…all of that stuff is mostly irrelevant in my view relative to leasing. If anything, they are data points to help triangulate around what a realistic discount might be, but at the end of the day supply and demand, the dealership (volume vs. smaller/local) and your ability to canvas for the best deal will determine what you get.
If this is a lease, as others have noted, you need to go on the Edmunds forums, get the residual, money factor and any incentives available based on your location and from there you can start figuring out roughly what the lease will look like. Residual value for the model is set by the bank, money factor as well though dealers can mark it up to a point. You mostly have to work within those parameters so the part you can control is how you maximize incentives/rebates and discount. You can’t have one without the other two. A big discount off of a car with a high interest rate and very low residual (sub 50%) will likely always net out worse than a small discount on a car with lower interest but a substantially higher residual.
On that note, coupes/cabs always tend have the worst residuals for body style. Then, with lux brands, the higher the trim level…especially sport variants…the worse the residual and higher the interest. So with an AMG GLE, you are in for a very ugly lease even if you get a big discount. On the flip side, the 43 line AMGs sell well and discount poorly so prepare for the worst.
Unfortunately, the choice of model is what ruins it all and she won’t budge, for something more lease friendly. My mother met with the sales manager yesterday afternoon (Wednesday) and her saleswoman, told her that the 2019 GLE 43 I looked at in the back lot on Tuesday, was already sold that morning allegedly.
She asked for $76,000 (as I told her to), on the $80,775 MSRP. I wasn’t present, so I cannot comprehend what the real deal is (whether sold or lying). They didn’t run a credit check, but based on word of mouth, they came up with figures of $2,000 down, 36/10k at $1560-$1700 a month!
I told my mother it was a nonsensical offer, considering that at Edmunds they said she can do 42/12k at $1,203 a month with fees and taxes, $0 down. MF of 0.00113 and 46% RV. I’ve said go elsewhere and get it, but IDK honestly.
It sounds like your mom has very specific wants in terms of trim, options, model etc. She should just finance the car and get what she wants. No value in leasing over 42 months and paying 54% of the cars value.
Ironically, my father suggested to finance through her local credit union account. I pushed for leasing, so she isn’t burdened by resale value, when switching vehicles for either next generation GLC or different brand product.
If this was a Lexus RX450h, I wouldn’t question financing it and resale.
Our 2016 740i went from $102k MSRP down to $42-45k resale, but residual was $54k. Awful.
One San Antonio area dealer, has a good match in Iridium, but ugly multispoke wheels that make it look more top heavy against 5-spokes.
We are working with a broker though and he’s almost done. Just got off phone.