Here is the offer i got
2017 c300 36/12k
7.75% tax
msrp 43,675
sale price 37,123
mf .00074 (10 msd + autopay)
$418 a month
What do you guys think?
Money factor is marked up it looks. Discount is pretty good. What are your out of pockets? I am guessing they marked up the acquisition fee as well. I would push for base money factor and base acquisition fee. Also, I would add prepaid maintenance since it can be residualized and is cheaper than paying for 3 services. I calculate $381 with base MF (.00124) and base acquisition fee ($795) rolled in. Maintenance would add about $13 to your payment.
Also, check if you qualify for fleet incentives though your company or ABA (lawyer) or AMA (doctor). I believe it is $2,000 on c class, which would get you into the low 300s for payment. Hope this helps.
Thank you @Jason_B . Acquisition fee is marked up ($1095) they accepted that but they said it something they dont negotiate. Is the base MF the same nation wide?
Correct, money factor is same everywhere. My suggestion is to hold firm on base MF and base acquisition fee. I have never paid a mark up on either. If they would rather take $300 off the selling price, it would get you to same place.
In my experience, dealers stand firm on marked-up acquisition fees. It was not the same 5+ years back when I don’t remember paying marked-up acquisition. But like you said, it’s possible to have them compensate the difference by reducing sale price.
It is all money being moved around. When a dealer claims they have to charge a marked up acquisition fee or massive dealer doc fee, I always just tell them “the net cap cost must be X, and it doesn’t matter to me how you get there.”
How does fleet incentive work? Lets say you a doctor what do you need?
Exactly - there is no difference to me, that’s why I have no problem with it. They do prefer straight-up cash that they get from marked-up acquisition and dealer fees.
@Jason_B @Ursus thank you I’ll try that and check with other dealers. One more question about prepaid maintenance which the sale person said it’s residualized, what is that mean?
Membership in American Medical Association. That’s it.
I believe it costs 975 for c class, which gets added to MSRP before calculating the residual value. Then also gets added to your cap cost. You end up only paying for 40% of the cost ($390) since residual increases by $585, which is a no brainier since 3 services at even a reasonably priced independent would run around $600.
Awesome. Thanks for the info.
I just leased the same car with sport and P3 package (Msrp 53360) for 375/month. I am a physician and used employee fleet discount (same as AMA discount). Check out the deal here:
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Also, if you are leasing for just 3 years, you don’t have to buy 3 service package since you will be returning the car at the end of 3 years. Just go for the 2 service package which is 750$.
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On 36 month leases & you plan on staying within the 10/12k miles per year, please only get the 24 month maintenance package like @cooldoc89 said. When you return the car in 35.9 months, the dealer will have to do the 36 month service. Residualized means it is rolled into your monthly. For example, mine is $995 for 24 months (Mas) and that bumped up payment by about $28/mo. Yours should be around $750 so $21/mo - edited, see below
Residualized is slightly different from what you explained. It means that the cost is added on to the msrp and residual is then calculated on the new msrp. So you end up paying only (100-RV)% of the cost of your maintenance package. eg- the 750$ package would add 465$ (62% of 750) to the residual value of the car, so it would only cost you 285$. (you can still divide the 285 equally into your monthly payments). Some things cannot be residualized, eg the lease protection package (899$), but you can still divide them over the term of your lease.
Thanks for the clarification … will edit post
I believe M-B service is 1 year or 10k miles so if 12k miles per year, 3rd service will be due before end of lease. But still not a bad idea to buy only 2 service since you may do a pull ahead or something.