Lease newb exploring a lease for Mercedes A220 4Matic

My wife is interested in this car and I said if it’s a MB, it has to be leased. I’ve never leased before, but purchased quite a few cars in my lifetime, so I’m humble to admit I know nothing about leases. I’ve been doing research and it’s a bit overwhelming. I understand the concept of residual, MF, but the idea of the deposit (MSD vs deposit) and negotiating the MSRP is a bit mystifying.

Despite all this, we ventured down to the MB dealer for a test drive and my wife enjoyed the car. They didn’t have the car with the options we wanted, but instead offered a fully loaded A2204matic for about 51k (and a laughable lease deal of 716 a month). Luckily I fell of the turnip truck long ago and know this is a sucker deal and we walked.

So I’m looking for guidance on how to proceed in this conversation. Do I negotiate the MSRP down before we talk further? How are deposits handled?


The A220 is a disgustingly depressing car at the 51k price tag… I had to actually look at car listings to se did it really went that high… apparently it can go to 56k… an economy luxury car for 56k… the world has lost its marbles.

Anyways, you need to do your research on this site, Edmunds lease forums, autobytel (for available incentives) and other car forums to see what people are actually paying for their cars.

For example, if you see that people are negotiating the A220 to 12% discount before incentives (I don’t know if this is actually possible) then simply tell the dealer that you want the car for 12% off MSRP before incentives are applied. It’s pretty easy and straight forward. There should really be very limited negotiation going on. Just set the price you want to take the car for and offer it. They can accept or reject it.

If they reject your offer, then move on to the next dealer or find a broker that can get you the deal you want. You just need to set reasonable expectations. Don’t go into thinking you can get 25% off before incentives.

I wish I could see the deal sheet for this. How could they even mathematically get there unless it is loaded with dealer add-ons???

No discount and a high MF?

Do you mean down payment? What about MSD vs. down payment is confusing?

Agree w/ this. The only prob is if OP is looking for unusual option packages since there will simply be less data and the data that does exist might not apply b/c of supply/demand.

Agree. A series is not worth it. Proportions are weird. I’d take a Kia or Hyundai over an A series.

Why are you set on the A? BMW 3 series, MB C300, Volvo S60 are all viable options that give you so much car for a much lower payment.


I’m usually not one to steer anyone away from a certain car they’re interested. To me it’s your money and if you want a particular car and it does something for you then have it.

With that being said, the A series is one of those models that you shouldn’t overpay a dime for. You’re essentially paying to drive around with their badge. If you’re looking to get into a MB at least check out the C class.
I’m also scratching my head at how an A220 can get to $51k, dealer definitely must have added vin etching :joy:

As for leasing, start with Leasing 101 on this site. Get to know how deals are structured and keep reading until you understand how the numbers work. They can be easily manipulated to make a deal look better than it is.
You negotiate a lease just as you do when buying. Other than the residual, everything else is negotiable.
Don’t put cash down for a lower monthly payment. Know the base MF and RV beforehand. And so much more, so read up.

Just to clarify, MF is only negotiable if it is marked up over buy rate and then it’s only negotiable down to buy rate.

Fees and such are also not really negotiable. The only thing that really is negotiable is pre-incentive discount and MF mark up.

I think instead of deposits your talking about down payment or cash due at signing.
I highly suggest reading leasing 101 on this forum

MSD = Multiple Security deposit , for MB you can do up to 10
This is money you give for the Bank to hold which lowers your interest rate. This is REFUNDED to you at the end of the lease.

Down payment vs Cash due at signing:
You can always tell the dealership you want a 0 drive off (THIS IS NOT REFUNDED AT END OF LEASE)

Cash due at signing usually includes 1st month payment, taxes and fees

Down payment is usually Cap Cost Reduction, which is extra cash given upfront to lower monthly rate (I have seen Down payment and Cash due at signing interchanged but I would always use the term total cash due at signing when taking to dealerships)

MF= Money Factor —> interest charged during the term if your lease, there is a base rate, depending on the car and model. Usually on Edmunds. If you have a good credit you can tell dealerships you want Base MF as per Edmunds forum.
Now just like any other negotiation this is up to the dealership, some may not want to lower due to a higher discount on the Sales Price
On top of whatever rate you are given you can Use MSDs to lower it to a certain point

Your also confusing what MSRP is and what Sales Price is
MSRP can not be negotiated
Sales price Is what is negotiated

Also regarding the A class
1: It leases poorer compared to other models because it is relatively new
2: optioning a car to exactly what you want will give you less opportunity to negotiate. This usually applies to most cars not just MB
3: people will steer you towards BMWs and other brand cars because they usually offer better incentives and higher discount on the SALES PRICE vs Mercedes.

hah fully loaded with the space of a Chevy Spark

…with the right lease hacking you can almost get 2 A classes per month for $716

Got one last year with an msrp of 44 with amg night package, premium package, ambient lighting and the black wheels . We did 500 down and 429 a month. With prepaid maintenance it’s 449. It’s a nice ride but don’t pay more for it. Seen a lot of bad deals on that car. Best of luck. Also I got it from Texas and got lucky with tax credit in April.

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How do you find out when MB might be doing tax credits? I have thought about a C43 or C63 lease but because I’m in TX I definitely would love to find some tax credits. :slight_smile:

You are looking for a Toyota Tundra based on your reply in another thread. C63 and Tundra are two very different cars with very different payments…

I didn’t realize you were only allowed one car…or to not consider two different options…getting a super cheap truck as well as a sporty car is exactly what I’m looking at. I know Toyota leases very well. And I know MB is typically worse than BMW etc. But, right now, BMW has tax incentives on the X5, for instance, here in TX…and because we have to pay the tax on the entire sales price, not just the lease amount, TX is not usually a very attractive lease state.

I just thought you had a huge range is all but if you say you’re going to get two cars, then cool!

Ask dealers. Some manufacturers might say they have them on specific models while some have a set allocation for any model.

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