Help with next step of negotiation re: C300 loaner

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1

Hi everyone,

First time posting; apologies if this is in the wrong forum. I have been exchanging emails with a dealer regarding a 2019 C300 loaner. The negotiation is generally going in the right direction (i.e., lower monthly payment) but I’m hoping to get some guidance on my next move. Here are the specifics:

  • MSRP: $48K
  • Selling price: $37K
  • MF and RV for my area: .00076 and 57% (according to Edmunds)
  • Lease terms: 36 months / 10K miles
  • My ideal monthly payment: low $300s
  • Other: According to Edmunds, Dealer Cash of $1,500 is available in my area. Not sure if this factors in at all, but I previously leased a C-class loaner from the same dealer about 5 years ago (before I discovered LeaseHackr!).

At first, the dealer said they were pricing C300 loaners in the range of $400 to $440 with $0 down. After I asked for specifics on the model that I wanted, the dealer provided the following details (via email):

  • MF and RV of .00092 and 54%
  • Monthly payment of $345
  • Taxes and upfront fees of $2,700 (unfortunately, I am in a state that charges taxes up front)

When I asked for a breakdown of the taxes/fees, the dealer simply emailed me a “Deal Summary” PDF – without explanation – showing the breakdown of doc fees, tag fees, and state taxes. Interestingly, the deal summary sheet has a monthly payment of $385, which is $40 higher than the amount in the dealer’s previous email.

Also, I had asked the dealer to move closer to MF and RVs of .00076 and 57%, but the dealer did not respond or address this point.

Any thoughts on how best to proceed? I would like to get closer to a $300 monthly payment. It seems that the dealer should be able to move closer to the Edmunds-provided MF/RV values. Also, I don’t think the dealer has applied any of the $1500 Dealer Cash. Finally, I would be open to putting down MSDs, but have not raised this with the dealer yet.

Any responses would be greatly appreciated. Thank you.

2

Residual value is not a negotiable value. If their RV is lower, it’s either because you asked for a different amount of miles per year than the Edmunds numbers, it’s a different trim than you asked about, or the dealer is giving you the residual value after the loaner mileage reduction.

3

That makes sense, thank you. It appears the dealer adjusted the RV after the loaner mileage reduction.

4

To follow-up, my initial thinking on the next steps is something along the following lines:

  1. Confirm that the monthly payment is $345, per the dealer’s previous email. (In that email, the $345 number appeared several times, so I don’t think it was a simple typo.)
  2. Assuming the dealer confirms point #1, then ask again to reduce the MF so that it is closer to .00076 (it is currently at .00092).
  3. After getting a response on point #2, then ask the dealer to apply any available incentives, etc., including the $1500 Dealer Cash. I will also raise the fact that I had previously leased a C-class from this dealer and ask if this triggers any incentives, etc.
  4. Finally, after exhausting points #1-3, I will ask the dealer to apply the maximum number of MSDs available.

At each stage above, I will ask the dealer to provide the updated monthly amount.

Does anyone have thoughts or suggestions?

5

Why don’t you just tell him what you want straight up instead of wasting time going back and forth? Even better send the exact same proposal to every MB dealer within 250 miles on an in-stock C loaner…

6

I’m confused. You are getting 23% off on a Mercedes. Even for a loaner, that’s pretty darn good.

Beyond that, not much to negotiate here. The MF and RV are set by the bank. Are you sure they are writing the lease through MB? Do you qualify for Tier-1? If you think they are marking up the MF, mostly likely no negotiations will reverse this.

A $48K car for $300/mo is just not that realistic (aside from the unicorn or two). Typical lease payment on this car is much closer to $450/mo. You should look at an A or CLA model.

7

Agreed
if you study the deal here, you will find the number that is realistic and stick with that number and make an offer. End of month may not be a bad idea but that will be about 20 days away.
This is a 2019 C300 loaner and no one really wants that car when people are looking for new 2020 C300.
Not sure about lower $300 per month but will aim for less than $345 for sure, say $330 just a guess.

8

A marked up MF is always worth negotiating, either directly or in your discount amount.

9

Residual is only 54% for 36/10K right now.

Are you located in California?

10

Stop beating around the bush.

Determine the deal you want and tell the dealer. You’re not doing yourself any favors by trying to incrementally work up to it.

1 Like
11

Are you sure they havent already? I would expect the dealer has already taken the 1500 out of the selling price.

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12

The $1500 dealer cash is already included in the selling price.

If you qualify for fleet, there would be another $500 off

20% off MSRP + incentives is not strong on a loaner

Try more discount with markup MF, or ask the dealer doing buy rate

(If you are not in rush getting a car, try to compare a 2020 loaner with 24 month program)

13

Thanks everyone for the helpful feedback. I spoke with the dealer; he confirmed the $345/monthly payment with 1st month’s payment/state & local taxes/dealer fees DAS. The sales price already reflects available incentives. When I asked about MSDs, he told me that his location had stopped accepting MSDs several years back. I did not realize MSDs could be dealer-specific.

I plan to head to the dealership tomorrow to finalize the deal. If anyone has any last minute thoughts on any other possibilities for lowering the monthly amount, please let me know. Thanks again.

14

20% off MSRP + incentives is not strong on a loaner

What do you mean by this? Just curious.