Currently working on a deal for an E-Class loaner, below is the detail. It’s for 24mo 10k. I’m turning in my current lease for this one which was 5 payments away from lease end. (MBFinancial will waive the remaining 5 lease payments).
The cap cost includes an over mileage charge of $1037. The E-class is a loaner with around 9k mileage.
Monthly Payment == $436.83
Drive off (First Month $436.83 + Registration & Doc Fee) == Around $900
Above is the total based on my calculation, however, the dealer came up with $501 and they couldn’t tell me why and they said my calculation was off? I would like feedback on this deal and if my numbers are correct.
Plugging into the LH calculator my numbers agree with yours. Are they hiding the 5 payments somewhere and that is causing the additional cost? Also, are you buying any maintenance or anything else that may increase cost. That’s a really good residual on a 24 month lease, I might need to look there to try to get to sub $300.
Also, see if you can use MSDs to drive monthly down - once you sort out the $65/month discrepancy.
Thanks for the quick reply, my previous lease is also a Mercedes ($600 per month / $3000 total), which is why I can take advantage of the lease payment credit promo Mercedes is running. They waive 3-5 payments depending on the model you are leasing, in this case, an E-Class is eligible for 5 payments credit.
The total does not include any other add-on services (maintenance package). Does adding maintenance package increase the residual value? I know it adds 1% for Audi but not sure about Mercedes.
They told me the residual is 67% for 24mo 10k, and 60% for 36mo 10k, with money factor of 0.00152 initially before I sent them my calculation. I’m not sure if they are still basing on that money factor, but even if they do, numbers still came out to be a lot less than $501 that they quoted me.
Are you saying I need to deduct $0.20 * 6k to the current residual value of (24mo 67%) $37,637.25? I was under the assumption that the sale price already reflects value being a used car with 9k miles on it.
Yes, the used mileage is deducted from the residual value of the car, which is why you have to negotiate an even bigger discount on the selling price to account for it. The 6K adds $1,200 to the lease cost by reducing the residual value.
