I can’t decide if this is crazy or brilliant. It seems, most think it’s crazy, but I did it anyway.
2023 Mercedes Benz EQS 580 SUV Exclusive Trim
Original MSRP: $137,360
Balloon MRM: $102,500
Selling Price: $57,900
Months: 24
Miles/Yr: 7.5K (extra miles at only $0.10)
Acq Fee: $155
Doc Fee: $700
Reg Fee: $400
Disposition Fee: $195
Residual on MRM: 54%
APR: 6.74%
Mileage: 43K (crazy part)
Actual Payment: $502/mo (due 50 days after signing)
LH Score on Actual Payment: 17.8 years
Effective Payment: $469/mo
LH Score on Effective Payment: 18.7 years
Financed via an AFG used-vehicle balloon loan. I would opt to return the vehicle, in place of the 24th payment. The min TCO would include only 23 payments and the $195 disposition fee. Going with 7500 miles, given $0.10 for overage, it’s cheaper vs the RV hit upfront, and super cheap for an EQS. It does have 43k miles on it and I will only be under new car warranty for some of my ownership period. The battery and drivetrain warranty provides coverage until 155K miles.
Some additional details for all the haters,
MB recently performed the 40K mile service, including 4 new tires, brake fluid flush, new hepa/cabin filters and an alignment. The invoice for the service was $4600.
MB extended warranty is around $5K for 1 year. If I don’t make any claims I will get about $2500 refunded.
The selling dealer is a Nissan dealer and agreed to ground my Ariya early. I was able to use it as one-way transportation.
Vehicle is super clean and has ceramic tint on all windows and rear hatch glass.
Equipped with factory tow package which can be hard to find.
EA free charging promotion is still active
I avoided sales tax by completing the deal before the NJ exemption expires.
I’ve had both and I concur, EQS and even EQE to some extent are nicer in terms of luxury and comfort than IX. IX is a more fun and nimble drive though. All of them suck at random stupid issues lol.
How does the balloon structure work in layman’s terms? I’ve read the thread on it a long time ago but cautious about it.
My exposure will be between 40K and 50K miles on a vehicle that has been trouble free and well maintained. The worst-case scenario is I spend $5000 on the MB extended warranty. Even in this case, the TCO is still significantly cheaper than my BMW IX or I5, with a lower effective payment, no money at signing and no MSDs. I don’t have to make the warranty decision now. Cheapest CPO option was $11K more.
My wife will never go to a gas station again.
We are well beyond the lemon window with a 2-year-old vehicle at over 40k miles. Any factory defects would have surfaced already.
There are probably less then 5 of these unicorn loaner deals possible, at any time, and like 1000 people trying to score them. On the other hand, a new 2024 EQS 580, if you can even find one, is leasing for $1520/mo plus inceptions and MSDs. See @AutoCompanion sheet here
The best point made.
It’s really simply. I make 23 payments, first one 30 days after origination, then return the vehicle in place of the 24th. No other option will make sense, no need to complicate things. However, one downside to balloon is you have to pay tax on the full purchase price, which I avoided thanks to NJ.
How do you know it’s been well maintained and trouble-free? I mean… someone could inherit my EQE today and have no idea that the A/C has a rich history of blowing hot air, incredibly faulty CarPlay, and cameras that like to display surroundings upside down. Sure, there aren’t any service reports, but that’s a reflection of how little time I have to deal with shit engineering, not a reflection of the vehicle’s reliability.
I mean, I’m sure you’ll be fine. I just don’t have the risk appetite
