::smacks head:: Forgot we were talking about the PHEV.
Lease options I was given on a $81k MSRP Mercedes GLE 450e hybrid (PHEV):
-
$1853 / 24 months with $0 down
$1527 / 24 months with $5k down
$1328 / 24 months with $10k down
Residual is $46821 in all 3 scenarios -
$1527 / 36 months with $0 down
$1361 / 36 months with $5k down
$1197 / 36 months with $10k down
Residual is $41170 in all 3 scenarios -
$1328 / 48 months with $0 down
$1199 / 48 months with $5k down
$1072 / 48 months with $10k down
Residual is $37134 in all 3 scenarios -
One pay lease (24 months) of $41,883 with $46,014 residual
All scenarios apparently included the $7500 PHEV lease credit. Financing was way more expensive (some scenarios would have cost me over $106k after 66 months).
Straight up cash would have been $75,253 OTD with all discounts, my trade-in ($8k), taxes and fees.
None of these make sense.
You can lease the 450e and then immediately pay it off. Or just buy a 350. I’m not sure the 450e is a better value.
Nothing can be evaluated without knowing the selling price and MF.
MF should be 0.00295
Does MBFS allows leasing and then buying out in a month or two ? Buying out could be either all cash or financing via private banking.
Or does this vary state to state ?
Yes, they do allow immediate buyout. Answered!
Yes they do (at least the salesperson in my state of VA said it was permissible). What he told me, whether right or wrong, is that I could lease the car, pay one month’s payment and then buy the car outright. The problem, according to the salesperson, is that the residual remaining on the car for a payoff would be higher than the price if I bought it outright with cash.
I don’t know how accurate his statement is because I should theoretically receive a $7500 PHEV lease credit. I would think it would help decrease my residual payment after paying one month of the lease payment.
Not sure if he’s getting a higher commission for an all cash deal versus a lease deal?
The payoff is higher than the residual (I think). Maybe that’s what he meant?
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This would be a dealer either lying or more likely, misinformed
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In a normal situation leasing-to-buy would involve paying an acq fee and possibly tax on rebates for no good reason and result in a higher payoff than cash.
But here you’re getting the $7,500 in exchange.
The real question is whether, even after the $7500, you’re getting a better deal on the 450e vs just buying a similarly optioned 350 with cash.
I specifically wanted the 450e for the hybrid capabilities. I mostly drive locally and prefer to go on all electric mode in town but have the option to use gas when we drive out of state. That’s why the 350 isn’t in consideration.
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She’s in VA, so the difference is only the acq fee.
I am split between getting a Full EV (EQS or iX – lease only) or PHEV like 450e (lease to buy because I don’t want to leave that cash on table). GLE450E gives maximum of 58 miles of pure electric range on good weather day. I saw one plugged in charged to full 100% showing 58 miles of pure EV range. This is sufficient for ones daily needs and office commute especially if you can charge at work. You don’t have to worry about heater and AC draining your battery, which will be the case with full EV during peak summer or peak winter. This PHEV will not suffer from winter range degradation.
Another advantage of GLE 450e is, it allows DC fast charging. So even on your long trips you can go full EV to a some/good extent.
You can also drive in hybrid mode where when you are not accelerating, it will switch on pure EV to power during cruise phase. At least thats my understanding (happy to be corrected on this)
So you have $7500 rebate and $500 from Amex on this car if you lease this car and only $500 AMEX discount if you buy one. Even I am stuck at how to make lease first and then buy later work out. I don’t want to leave $8000 on the table.
Another question bothering me is if you are charging daily on level 2 home charger how long before the battery degrades. I don’t know the answer to that question.
On phevs, the ac and heat definitely does drain the battery while on electric and your electric range will suffer from winter range degradation
Have you looked at the Rivian R1S if you’re in this price range? The SUV is seriously too notch. Finance only, no leasing yet with Rivian
I don’t want a full electric vehicle. My husband has a Tesla and my plan is to use his level 2 charger (I would buy the J1772 adapter). I’m aware that using heat, a/c and other functions will deplete the battery since that’s our experience with the Tesla.
Most of my driving will be within 5 miles so the battery should be fine without charging for a few days at a time.
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You will like to hear this discussion on CR:
Plug-In Hybrids Are Not What You Think They Are | Talking Cars with Consumer Reports [#429]
I skimmed the article mentioned in the video (https://www.consumerreports.org/cars/hybrids-evs/is-a-plug-in-hybrid-vehicle-right-for-you-a9339147016/).
The OP’s use case seems to be exactly what PHEVs are optimized for. They only drives a few miles a day and have a charger at home.
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I can buy in WA or CA (go to CA every other month, fiance lives there. I am in WA now. If 450e has income limit, I would make the fiance buy it bc he is currently laid off. But since it is no relevance, I am looking at the lease option for the 7500 incentive.
Looking at 450e for the very identical reasons, I drive local 10 min a day (5 min each way) to see family and to park into my brother’s garage. I can use his Tesla charger, and he can build one for me in my house that I just bought in May. I have been driving his BMW until the dealer broke his engine (long story) it was in perfectly condition…so pretty too super unfortunate.
I am in the same consideration as OP person, did she buy yet? Thank you
There are a lot of BEV and PHEV on the market, the GLE is definitely one of the more expensive ones.
Are you open to anything else?