Are you looking for a great deal on a new Mercedes-Benz car/SUV? If so, please read this post in its entirety.
Disclaimer: I am a MB dealer in the Phoenix, AZ area. I’m posting this information for the following reasons:
(1.) To level set a potential lessee’s expectations with regards to leasing a new Mercedes-Benz. Far too often I’m receiving requests from individuals on leasehackr that want to lease a new $80,000 MB car/SUV for $399 per month. Anyone that truly understands leases knows this is just about as likely as getting a 50% discount from MSRP on a new Mercedes-Benz. Not going to happen, ever… LOL
(2.) For those that are serious AND realistic about leasing a new Mercedes-Benz car/SUV, I will be able to assist you by reviewing the lease numbers you’ve been quoted and do one of the following: (a.) confirm you’ve been quoted an amazing deal locally or (b.) earn your business by beating your local dealer’s numbers. Obviously, my goal is to give you the best deal and win your business but you’ll win either way.
Okay, on to the good stuff!
Step 1: You’ll need a good lease calculator. A good one can be found HERE.
Step 2: You’ll need to input the relevant numbers into the lease calculator, of these numbers ONLY the NEGOTIATED SELLING PRICE and MONEY FACTOR are adjustable. Literally, all of the other numbers are fixed (not negotiable) and will need to be entered exactly as per below:
(a.) Retail price or MSRP – ask your local dealer to provide you with the factory build sheet and enter the full MSRP price exactly as shown at the bottom.
(b.) Negotiated selling price – This is the discounted sale price you’ve received from your local dealer. Typical discount on a new MB will ranges 0-7% depending on the vehicle. Example: Some of the limited supply AMG models receive no discount at all whereas the common MB vehicles may be discounted 4-7%. As point of reference, invoice pricing on an MB vehicle is roughly 4.5% below MSRP.
(c.) Dealer Acquisition Fee - $1,095
(d.) Registration Fee – you can estimate this with the following formula: (MSRP x 0.0172)
(e.) Other costs - $499 (this is the Doc Fee charged by ALL dealers)
(f.) Trade in – you can estimate this by visiting KBB.com and finding “trade-in value” for your car.
(g.) Down payment – you can play with this to see how it changes your payment
(h.) Other reductions – leave blank
(i.) Lease term – enter 36 months (this is the typical lease term)
(j.) Money Factor – the calculator shown will allow you to enter the MF as an APR. This will vary depending on the Mercedes car/SUV you choose, the lease term and the total mileage allowed. For the purpose of this calculation, you can use 3%-8%. Sedan’s and SUV’s as a general rule tend to have lower Money Factors than sports cars. AMG sports cars usually have the highest Money Factors.
(k.) Residual – typical is around 51% but this can range from 45-61% depending on the vehicle and total mileage allowance for the lease. Your local dealer will be able to tell you what this is for the vehicle, lease term and mileage allotted on your lease.
(l.) Sales tax – Here in AZ our total sales tax (city + state + county) is 8.1%
REMEMBER: You can enter your trade in value and total down payment. Beyond that you can ONLY adjust the Money Factor between 3-8% (ballpark estimate) and the negotiates sales price. Everything else MUST be entered exactly as per above as these fees are on EVERY lease and are not negotiable.
In summary, it is my hope that you will now have a “realistic” idea of what is possible in terms of lease payments on a new Mercedes-Benz car/SUV. This information is totally free. I would simply like an opportunity to win your business by beating any lease deal you can find locally.