GLC 300: MF and msrp discount

Ask the Hackrs
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1

Hi,

Could you explain how MF is related to a lease credit application?

I pinged mb dealers around here in PA for deals on GLC demos, few gave me official quotes but without full details. I told them between the discount, low residual and probably high MF deals do not fit the budget.

One said: “Keep in mind this is (the MF) preliminary and not etched in stone. It is also not based on your financial backing and we can always adjust the money factor based on your financial backing. The MF we provide is a base MF, until we have a credit application submitted in house, we can not provide definitive numbers.”

So I understand they can mark up MF to make some money, but I’ve never heard about “not provide definitive numbers”?

Anyways, here are some lease offers I got from local dealers:

Just a default quote I guess, same price as advertised on website
36/10k
GLC 300 AWD 2019
4400 demo miles
520 before tax :grimacing:


(I made up fees to match the monthly they quoted without actual MF or incentives)

A better one:

36/10k
2020 Mercedes-Benz GLC 300 AWD 4MATIC
upgraded stereo, premium package
4500 demo miles
MSRP 50
Sale 41200 (17.5%)
Due 2075
Residual: 27711
Monthly: 420 (458 w tax)


again made up some number to match the due and monthly

Slightly better, but still the effective payment is 480 before tax. They seem all have standard 17.5% off msrp for demos.

My target for this car is 390-400 before tax. Realistically speaking (location, year end, demo car etc), do you guys see getting there from these quoted numbers?

2

Some banks charge a higher MF to those with poorer credit. So they’re basically saying you may get charged more if you don’t qualify for tier 1 credit.

3

I see. Still not nice the sales wouldn’t disclose base.

4

You can get from Edmunds. Numbers for mb are national

5

Never rely on the dealer to provide baseline numbers. You should know those numbers before you ever talk to them.

6

None of the dealers I looked had moved any demos and yet they still would laugh me off for asking 20% off on 2019 demos. Or refuse to provide quotes in an email (can do only in person).

One actually updated their offer: 458$ all-in including tax (before it had 2k DAS). Too good for 50k 2020 demo? Going to bs if I go there?

460 is still considerably higher than my target, but I’m not in a hurry to get in.

7

You would have to get us all the details for us to properly gauge the deal. Exact msrp, selling price before incentives, MF, residual (based on term/mileage), and any incentives you qualify for, and a break down of drive offs.

8

I don’t have “real” lease spreadsheet (those generated in “text” terminals). Only CA dealer send me one right away when I asked, but delivery would eat any potential improvements.

Deal 1: numbers from a form that looked like some print out from a website
2019 GLC300
Market Value 48,370.00
Discount Savings -8,571.00
Vehicle Selling Price 39,799.00
Document Prep Fee 144.00
License / Title 184.32
Acquisition Fee 1,095.00
Capitalized Initial Fees 552.31
Total Cap 41,774.63
Net Cap 41,774.63

Base Payment 506.71
Monthly Tax 45.60
36 Month Payment 552.31

Capitalized Initial Fees -552.31
1st Payment 552.31
Due On Delivery 0.00

Rate 0.00066
Annual Miles 12,000
Residual % [48370] 50+2=52%
Residual Amount 25121

I’ve replied on Saturday asking:
22% off
MF .00016 (it was marked up I think according to edmunds)
10k/year (53% residual)
400 before tax

and haven’t heard anything…

Second

2020 GLC300
MSRP 50k
demo miles: 4500
discount 8750
sale 41200
cash 2075
rebates 544
cash + rebates: 2620
doc fee: 144
advanced payments: 458
upfront charges: 1568
total cap reduction: 529
Due: 2075

Monthly: 420
Tax: 37
W tax: 458
Residual: 27711
36mo/10k

Which was initial offer (458 + 2k DAS), now they are saying “only 458” but I didn’t receive confirmation when asked to clarify DAS.

I’m not sure about any incentives I can qualify for. Researching fleet discounts…

9

So offer for deal #1 improved:
20% off
438 + tax
Due first mo only: 477
10k/36

I guess with few more percentage points off, it could get to my target.

What would you do if they don’t move any further, go and negotiate in person? Get some other incentives, e.g free maintenance? They did provide all information I asked for, no usual bs…

10

Aaaand… signed!

36/10k
2019 51500 MSRP
Sale price: 40600 (-21%)
Base 434
Tax 39
Total monthly: 473
Downpayment: 500

5 MSD of 2750

It lowered total monthly by ~25
MF went from 0.0070 to 0.0043
they probably have it marked up but I didn’t care much, our kiddo was getting ready to destroy showroom :slight_smile:

Total out of pocket: 3250… and effective monthly 487
It has maintenance included (1280$ added to capitalized cost), without it would be cheaper by ~15$/mo, I was thinking it wouldn’t worth time saving on maintenance.

The wife loves the car and I feel pretty good about the deal.

11

This is part of why you sort these things out from the comfort of your home rather than going in to negotiate