I am a total newbie to all of this so please don’t pile on me about what a schmuck I am for considering such a thing. I lived in NYC my whole life so never needed a car. I moved to SoCal three years ago and got totally hosed on a lease because I didn’t do my research. So I’m only now starting to learn.
I’m looking for a GLC300 SUV. From what I’ve read on this site, Mercedes doesn’t offer big discounts on their non-ev vehicles. So I called a nearby dealership about a new 2024 GLC300. They gave me a price over the phone, I said no thank you and that I was going to go look at the BMW X3 (which was true). The salesperson then sent me this deal to try and lure me back.
MSRP - $49,995
Sales Price - $44,594 (10.8% off)
Loyalty Incentive - $2000
3 years / 10k a year
Residual $28,497 (57%)
Acquisition Fee - $1,095
Down Payment $0 (But I could make one)
Money Factor - Wasn’t listed on offer sheet but the calculator puts it at 0.00225
MD - $2,499
Monthly Pre-Tax $561
After Tax monthly $614
TrueCar says that the average % off MSRP in my area (Los Angeles) is
7.5% so this would seem like a good deal, but the lease calculator below says otherwise. Is this normal for Mercedes? I know that I still need to get the exact money factor. What else can I negotiate? Thanks!
It’s not a hack by any stretch of the imagination. More importantly how do you benefit from a series of unhacked leases? You’ll spend $685 this time and let’s assume $725 on the next one — roughly $50k spent over 72 months (two leases) and $0 equity at the end.
I said that I was new to this and still learning. I never claimed to have scored a major hack. I was simply asking for guidance. I didn’t sign this deal. It was the first one that they presented to me by e-Mail. I hadn’t even initiated a negotiation.
I’m not sure what you mean by a series of unhacked leases.
The point was to ask yourselves the same questions. Unless you are leaving the country or retiring from driving on the day the lease ends, what are you going to do? Obviously you’re not going to start taking the bus all of a sudden.
A lease is not a singular event because by definition it needs a replacement and therefore it’s a series of events for people who have the foresight to look ahead into the foreseeable future. Needing to replace a predictably expiring lease is a very foreseeable event and one needs to plan accordingly if you elect to go down that path.
I don’t follow the GLC lmarket but the preincentive discount seems good. What you can’t change are the programs set by Mercedes (incentives, mf, residual) that impact the lease payment. Have you run a lease vs finance comparison in the calculator? Have you checked Marketplace to see what brokers are currently offering in your region (if any)?
If you are married to this car you need to decide if the cost of a 3 year lease is worth it to you compared to financing. If financing makes more sense, is it still worth it if you get hit and now have an accident on the Carfax tanking the value? Would you keep it out of warranty and/or need to purchase a $4k extended warranty?
You can just throw the keys back at the end of a lease without fear of the above issue which should factor into your decision as well.
