My Take: Some old thing, different month. The only noticeable change is the 60-month term, where the money factor drops from 0.00395 to 0.00385. My recommendation is to pass on this, but if you are really in need of the E-Class and simply can’t live without one right now, wait until the very end of the month and try to get as close to invoice as possible. Avoid sale events (such as Labor Day) since the busier a dealership is, the less likely they are to cut you a nice deal.
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2010 Mercedes E-Class
2010 Mercedes E350 Coupe
24-month | 15k miles | residual 62% | .00382 base money factor
36-month | 15k miles | residual 57% | .00347 base money factor
48-month | 15k miles | residual 48% | .00347 base money factor
60-month | 15k miles | residual 40% | .00385 base money factor
2010 Mercedes E350 Luxury Sedan
24-month | 15k miles | residual 61% | .00315 base money factor
36-month | 15k miles | residual 56% | .00270 base money factor
48-month | 15k miles | residual 45% | .00270 base money factor
60-month | 15k miles | residual 37% | .00385 base money factor
2010 Mercedes E350 Luxury 4MATIC Sedan
24-month | 15k miles | residual 61% | .00304 base money factor
36-month | 15k miles | residual 56% | .00259 base money factor
48-month | 15k miles | residual 45% | .00259 base money factor
60-month | 15k miles | residual 37% | .00385 base money factor
2010 Mercedes E350 Sport Sedan
24-month | 15k miles | residual 61% | .00315 base money factor
36-month | 15k miles | residual 56% | .00270 base money factor
48-month | 15k miles | residual 45% | .00270 base money factor
60-month | 15k miles | residual 37% | .00385 base money factor
2010 Mercedes E350 Sport 4MATIC Sedan
24-month | 15k miles | residual 61% | .00304 base money factor
36-month | 15k miles | residual 56% | .00259 base money factor
48-month | 15k miles | residual 45% | .00259 base money factor
60-month | 15k miles | residual 37% | .00385 base money factor
2010 Mercedes E550 Coupe
24-month | 15k miles | residual 60% | .00390 base money factor
36-month | 15k miles | residual 55% | .00347 base money factor
48-month | 15k miles | residual 46% | .00347 base money factor
60-month | 15k miles | residual 38% | .00385 base money factor
2010 Mercedes E550 Luxury Sedan
24-month | 15k miles | residual 58% | .00315 base money factor
36-month | 15k miles | residual 53% | .00270 base money factor
48-month | 15k miles | residual 42% | .00270 base money factor
60-month | 15k miles | residual 34% | .00385 base money factor
2010 Mercedes E550 Luxury 4MATIC Sedan
24-month | 15k miles | residual 58% | .00304 base money factor
36-month | 15k miles | residual 53% | .00259 base money factor
48-month | 15k miles | residual 42% | .00259 base money factor
60-month | 15k miles | residual 34% | .00385 base money factor
2010 Mercedes E550 Sport Sedan
24-month | 15k miles | residual 58% | .00315 base money factor
36-month | 15k miles | residual 53% | .00270 base money factor
48-month | 15k miles | residual 42% | .00270 base money factor
60-month | 15k miles | residual 34% | .00385 base money factor
2010 Mercedes E550 Sport 4MATIC Sedan
24-month | 15k miles | residual 58% | .00304 base money factor
36-month | 15k miles | residual 53% | .00259 base money factor
48-month | 15k miles | residual 42% | .00259 base money factor
60-month | 15k miles | residual 34% | .00385 base money factor
Quoted following on a premium 1 pkg car, with wheel pkg
$54175 MSRP
$49175 selling price
-Acquisition fee $795
and misc fees due signing
-Zero Down payment
.00270 was money factor they gave. 60% residual 36 months 10k/yr
$700 including tax per month. I dont know why but its still high.
@stuart. the reason why it feels high its because it is. The sale price is fine, but you are paying a really high interest rate on the car right now. You have two options, put in more security deposits to ‘buy-down’ the rate, OR you wait to see if next month it improves. Still early for the 2010s, so I wouldn’t sweat it too much.
How would i put in more deposits and how does this work to reducing the rate? are these deposits to me at lease end, like the traditional security deposit?
I could try this with the S5 im considering. Can you elaborate more with the deposits to bring the rate down? thanks!
@akber. multiple security deposits is an option you can do to lower your money factor. The dealer will tell you how much each deposit is and how much that deposit lowers the money factor. For example, if your security deposit is $500 and then say that each security deposit lowers the money factor 0.00007 points. So if you put down $2000 in security deposits, you can knock off 0.00028 points off your MF. The deposits are fully refundable at the end of the lease, in the event of a total-loss accident or theft. If you sell the car as a trade-in however, you will lose it. Contact your dealer for details. Jake ran into a problem least week when some dealers were offering that option, while others weren’t. So don’t be discourage some say no. This is little used technique that people should use more often, instead of putting capital cost reduction (or down payment). Cap cost reduction is NON-REFUNDABLE in the event of theft or accident and you most certainly will not be able to recover it in a sale.
The deposits are refundable only at a loss or accident or theft? What if nothing happens to the vehicle and you go take it back to the dealer after the lease ends? You cant get your deposits back?
If so, whats the point then since its acting like a downpayment?
@akber. as MSF says, you do get your deposits back once the lease ends or if it ends prematurely due to theft or total loss collision.
Akber, as G posted, MSD are refundable at end of lease, down payments are not.
BTW, wow @ how bad the MF is on the 350 coupe
@msf. i didn’t see those numbers this month, but they shouldn’t be too different from Augusts:
2010 Mercedes E350 Coupe
24-month | 15k miles | residual 62% | .00382 base money factor
36-month | 15k miles | residual 57% | .00347 base money factor
48-month | 15k miles | residual 48% | .00347 base money factor
60-month | 15k miles | residual 40% | .00395 base money factor
I will put it off because I think the paymetn should be under $650 a month on this car with taxes. The sellig price is good that I am getting but the money factor is ridiculous.
@stuart. good call on the e. i think all the savings are practically given back due to the high interest rate on the MF.
I called my audi dealer and they said they dont allow MSD’s on the vehicle. He concurred that the deposits are refundable at lease end but they are not allowiong it on the S5. The guy said “the numbers you have for the S5 are correct…money factor/residual and mileage are correct however since the numbers are very favorable at this time from a customer standapoint to lease this vehicle, the bank is not allowing us to take additional deposits to reduce the mone factor rate”
I will call another dealer.
Yah i called anotehr dealer and he confirmed it is possible to put additional MSD’s and it does lower the money factor rate. He was surprised at how the other finance director at the other dealership lied to me.
This finance guy quoted me 0.00005 reduction per security deposit with a maximum of 10 including the intial security deposit. What do you think?
@akber. glad you found one that would be willing to do it. As Jake found out, MSDs are not offered by all dealers. I think 0.00005 is okay. How much is per deposit?
G, what is the residual on e550 base on 10k/yr, 3 yrs lease, thanks G.
@lease only. For MBZ, 12k is +2% on the 15k residual and for the 10k it’s +3%
Thanks G. How come Stuart was able to get a deal with 60% 10k/yr, 3 yrs? I thought residual is standard set for all dealers.
@lease only. residuals are set by bank and can’t be changed. 60% residual on a e350 can only be done on the coupe since it’s residual is 57% + 3% for 10k miles instead of 15k. If you look at the lease rates I posted, they are only for 15k/yr leases.
60% residual is if you go for 10K miles per year. Thats according to MBUSA for a 2010 E350 sport sedan. The rates posted by G are all based on 15K miles per year
Thanks Stuart, I see there’s a difference in residual for 350 and 550, thanks
Hello G. Enjoy the expertise and have turned many cars guys onto the site. So, what would you say is good deal on a msrp 59700 E350 paying all payments up front. I was was quoted 36200 all in. I am in Virginia with 4.6% tax. Sincerely appreciate this G. Steve
@steve. hi steve. thanks for the referrals! I greatly appreciate it. I wouldn’t advise doing an “all up front” type lease. There aren’t any advantages to paying your lease upfront. However, you can try Stuart’s suggestion to see if they are willing to negotiate. The problem I see with this is that lease rates are all preset, so the only way for the dealer to negotiate with you on this is sell you the car for much less and lower the MF significantly. There is a possibility that MBFS will lower your MF significantly for paying your payments upfront, unfortunately, I have never done it and I have never heard of anyone that has gotten a break for paying it all upfront.
I am guessing this is a 48 month lease. Id say tell him to do it for $30,000 all in. And then meet him half way or something using this strategy.
If this is a 36 month lease…then hes ripping you off for sure. Hes pockeitng easily 4K from you.
G and Stuart. Thanks, Gentlemen. I need to spend the money this year for tax reasons. I was told today there is a new deal from MB today that he is going to tell me soon. I will do my best on the negotiation and report back.
@steve. no problem. if you aren’t in a huge hurry, wait a little bit until the MB lease rates start popping up around the web. I don’t suspect that things will change much on the E class this month to be honest, but u never know. My experience with leases is that the 2nd half of the year isn’t as good as the 1st since the new model year gets introduced and most dealer don’t discount as much. 2nd half of the year is usually better for buying remaining 2009 models in my opinion. I’ll keep you guys posted on the numbers once I get my hands on them.
I’m interested to hear the new #s (and any incentives) for OCT, please let us know what he says Steve
I looked at MBUSA’s website for their “special offers” through November – nothing on the E. I think Steve’s dealer may be feeding him a line – I’m also anxious to hear what he comes up with.
G I’m wondering…on the E350 sport sedan for example, you predict the #s to be better the 1st half of the year, what would the MF be around?
@msf83. Once we near the 1st half of 2010, you’ll start seeing cash incentives and lower money factors, probably in the .00100’s. Of course residual values will take a hit, but the current MFs are so high, there just isn’t any way that they wont come down. That should help offset things.
G – Spoke to a dealer today re 2010 350 Coupe. Residual on 36 months, 15K miles is still 57%, but he said the MF had dropped to .00318 (down from .00347). I asked him about MSDs and his finance people said MBFS only does that when the MF hasn’t been bought down; i.e., when it is up in the .004 range.
Is he blowing smoke up my you know what? If so, why? Doesn’t it just impact MBFS?
@barry. I don’t think this dealer is being honest. Remember that MSDs seem to be something that some dealers offer, but not all. There’s gotta be some kickback the bank gives them for signing people up on really high interest rates and MFs. I find .00318 HARDLY a good MF. It needs to be bough down at least 10 times in order to make it somewhat realistic. I would much rather have a low residual and a low money factor instead of a high residual and a high money factor. In any case, call around and see what other dealers say. I know Audi dealers do this too. Some say you can, other say you can’t.
G – So I asked a different dealer about it and he said the best way to buy down the money factor is with a single pay lease. What’s your take on that?
Barry
@barry. well that depends on the MF. You see, I think single pay its pointless unless the MF is ZERO. If you are to pay the entire amount of the lease loan UP FRONT, then effectively they aren’t lending you any money. If that’s the case, why charge you financing at all?
Am I really paying the entire amount of the lease loan up front? Aren’t they still lending me the residual? I”m just pre-paying the interest on that “loan” and so they are giving me a cheaper rate for the pre-payment. Am I missing something?
Barry
@barry. Alright, sorry about the confusion. I was a bit confused about the concept too. Now that things a “clearer”….here’s the deal:
You only pay the depreciation portion of your lease, and you pay the total interest on the residual portion. You avoid paying interest on the depreciation portion. You save some finance charges, but you are still responsible for the interest on the residual value since you are borrowing the amount of the lease-end residual value for the entire term of the lease, then paying it back only when you return the vehicle at the end. There are times were banks will calculate it like a regular lease loan, rolling in all the interest and depreciation. So gotta watch out for that.
In all honesty, the only advantage I see is that you don’t pay taxes on the depreciation AND the interest. Just the depreciation. It may be some savings, but nothing astronomical if you ask me. A potential disadvantage is what happens if the car is in totaled or stolen. Since insurance companies only pay market price, if your car’s market price is much lower than anticipated, you would potentially lose a lot of cash there, kind of like how you lose money doing cap cost reductions.