The new Benz S580 Sedan I ordered a few months ago just arrived. It’s MSRP is at $148,200. The dealer told me for a 48 months/10k miles, the car has a 44 percent residual ($65,221), MF of 0.0021 (5%). With 5,000 drive off/due at lease, the car is about $2376 a month. So basically the deal has zero discount and even a marked up MF.
I want to get your opinion in regards to where do I have room to negotiate that’s reasonable. What is a realistic discount off MSRP for the s580?
Am I in a better situation if I just finance it for 60 or 72 months? Please advise.
Let’s take a quick look at those numbers $2376/month for 48 months, and $5000 due is $119,048 to drive the car for 4 years. Seems like a lot on a $148,000 car
What are the interest rates on a buy? Probably your best bet
If there was a killer lease on a $150k car, I can see it worthwhile to discuss how to maximize the deal and/or obtain the car.
But in this case, OP committed to a $150k car knowing that it was unlikely to lease well. Am I the only one that finds it odd that we’re discussing the best financing terms for a $150k car?
There’s not much difference between financing $150k at 3% ($2279) or 4.5% ($2381). If you can afford a $150k car, just pay cash or put down however much you want and finance the rest. The difference in payment isn’t material at this price point.
The problem is you got like $20K in options on top of the base S580 trim, which essentially eliminates a balloon loan. I actually think the MBFS lease sounds like the best deal, I would try to get the MF down to buy rate and then put down max MSD.
If you financed, your balance at the end of 48 months would be $53k-$54k (interest rate doesn’t matter much) compared to the $65,221 MBFS residual. That should be the basis for your decision.
How realistic is the MBFS residual and how will the $20k in options truly retain their value?
I would probably agree with z0lt3c because i) options usually don’t hold their value and ii) I believe CA taxes on lease payment so you would save $3000 in taxes by leasing vs paying sales tax on the full vehicle.
Processing will be glacial, and god help you if you need to call.
Secure messaging only gets generic responses asking you to call the loan department, where the phone queue is 90 minutes to three and a half hours deep.
If they need something from you they may call, and if you can’t speak at that moment they will tell you they’ll call you back – but never will.
Eventually they’ll get it done, and maybe not the way you want, but the money’s cheap.
So you ordered the car and are NOW asking what a realistic discount should be? This should have been a discussion at the time of ordering. I assume they took a deposit at time of order, yes? And you just agreed to MSRP at that time?
OP, it seems the majority advice is that if you want to retain the @success handle for a long time, you walk away from the deal assuming you have a refundable deposit on this. Over 2k on an s580 only makes sense for those with money to burn (and thus no need to consult leasehackr).
Once you get this dog, you will be in negative equity territory and won’t be able to flip it without incurring over 10k haircut.
Tough choice even if the finance might be a better “deal”.I personally would rather lease the car to feel more comfortable with this market. Ask for base money factor and if the payment is reasonable for you go for it @success
