# How is residual reduction calculated on a loaner (MB EQS 580)

I am heading to the dealer today to do battle… they have a couple of loaners, one with around 6k miles and another with around 2k miles.

This is the only portion I do not know how to calculate ahead of time and without knowing how it’s done the dealer will possibly try to finagle those numbers.

Use LH calculator, it has demo miles option for MB.

I tried that but it actually increases the price for any number up to 10k miles (where it just matches the 0 mile price). I can understand why that happens but I feel the real story must be different, no? I am guessing the dealers are just willing to discount a loaner more than a new vehicle… but other than “I know someone else who got X% discount” I am not sure how to negotiate that… I thought maybe I am missing something, but maybe it does just come down to how much the dealer is willing to deal?

Negotiate what? Loaner mileage penalty? You can’t negotiate it, it is \$0.25(?)/mile over [someone knows how many, but I think 3k miles] and it reduces the RV by this amount.

Terrible idea in general and you seem woefully underprepared.

Post a LH calculator for what your target deal is.

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Well, obviously a loaner with 6k miles would reasonably have a lower lease price than a new car with 0-some miles. The calculator increases the price for a loaner deal, so nobody would ever go for a car with thousands of miles vs one with no miles.

Unless… the dealer is finding that money somewhere else, which they must be in the form of a larger discount to move the loaner.

As it should. The residual value is reduced by mileage, so the amount of depreciation you’re paying goes up.

A demo at 18% off with 5000 miles on it would be a more expensive lease than a brand new one with 18% off.

After 10k miles, I don’t believe it’s leaseable as a demo any more, so the rv calculation stops working.

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Underprepared by thinking that a loaner with thousands of miles is worth less (and consequently should lease for a lower price) as compared to a new model? Nonsense. I am simply wondering where the delta comes from - the answer is given above. I am asking so that I can be prepared… the local dealer has few new models and a couple of loaners - which prompted the question.

Post your target deal calculators for the vehicles of interest that they have

Who would pay more for a loaner with a few thousand miles vs a new car with no miles? Nobody would, if given the choice. So the difference comes from the discount offered from MSRP then.

I am aiming for something around this…

Yes, for a demo to make sense, you need a larger discount to offset the mileage reduction

Where did you get that MF from? *edit- missed it was a 580

Where are your fees?

How did you come up with a 20% off pre-incentive target?

Correct… which is what I assumed in the first reply after being educated that the calculator simply deducts the mileage * rate. So it may be more fruitful to negotiate a new vehicle and then leverage that on a further discount on a demo - maybe?!

Personally, I don’t see the point in beating around the bush.

Fully flush out your target offer for the vehicle you want and make them an offer on the one you want.

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Money factor is published on Edmunds for 36mo on a EQS 580

I haven’t heard back from the dealer what their fees are yet

20% is a target number I would be happy with, based on reading other dealers that range from 15%-20% off on new models and 22-23% off I’ve read of on loaners (I feel those are less easily replicable)

Yah, I assumed you were looking at 450s because your post asked about 450s.

I updated the post title - thanks for the catch. Seems the 580 is a better lease value considering the 450 is getting the hyper screen standard for 2024 but people seem to (reasonably) feel the 450 pressure will come more when 2024 models drop with that.

Usually dealer fees can be found on the dealer’s website in some small print somewhere. You can generally find registration fees on your state’s dmv website… at least enough to get you in the ball park.

Don’t forget to add in the mileage of the demo unit