werewolf

Below are the specifics of a buy / lease opportunity for a MB 2009 e350 (heresy I know). As you may know there are some crazy deals for these cars right now. I am torn between leasing and buying. Can you give me some pointers / your viewpoint?

Thanks!

A couple of questions (I can't tell if this is BS or not)
1) Dealer claims as a lease, I am liable for a finance charge against the whole car value (MSRP / not negotiated price) at a money factor = 3.96% APR
2) Lease APR = 3.9% for 36 months while a 36 month loan comes in at 1.9%. I know the MB wholesale cost of loan money to the dealer is 0.9% for 3 months. Is there a way I can get MB to lower the money factor? Dealer won't accept multipe security deposits
3) Residual at 3 yrs at 12k miles is 45%.
4) I think a 3yr loan would be hard to do for me. If I bought, I would probably do the 66month loan. Is this a bad idea?
5) I don't get a 1099 so I need to pay with post-tax dollars not pre-tax ones


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Vehicle: 2009 MERCEDES BENZ E CLASS E350W 4dr Sdn E350 Sport

PURCHASE OPTION

Selling Price: $33,951.00

Sales Tax (estimate): + $2,978.07
Tag/Registration Fees (estimate): + $447.00
Tire/Battery/MVWEA: + $8.75
Electronic Filing: + $29.00
Documentation Fee: + $55.00
Flat Add/County Fee: + $26.00
Balance Due (estimate): $37,494.82

No Trade-In
FINANCE OPTIONS
with Cash Down of $1000 $3000 $5000
36 months APR: 1.90 % pmt = 1045 988 931
48 months APR: 2.90 % pmt = 808 763 719
60 months APR: 2.90 % pmt = 655 620 584
66 months APR: 2.90 % pmt = 600 567 534

LEASE OPTIONS
Cash Due 36 months
12,000 Miles Money Factor 3.96%
with $1,000 down pmt = $440
$3,000 down $379
$5,000 down $318

Debonair

Pssssssssssssssssst....this is the 2GS forum.

GS300ToM

iTrader: (32)

if i was you just PASS on it and cash on out... putting 3k 5k aint gonna make a difference really...... buy one and dont have to worry about it for the rest of your life lol just my .2, GL

lalexusgs

Brand new E350 for $37K? I think it's a steal.

LexusFiend

What about the huge depreciation hit this vehicle is going to take because the 2010 is a new body style? I would either lease or pass

dunnojack

i know nothing about leases.

is that really a $37000 final selling price? Loaded?

if i were gonna drive it into the ground, I'd buy it. It doesn't get much more reliable than that. final year, all bugs worked out....

werewolf

Basic, loaded makes it 38k before tax, 42k+ out the door.

Fizzboy7

That's a good selling price for an E. But I'd pass, being the car has been out and seen for five+ years now. You're basically buying a deal and not a special car. This will hit home the more you see the new model on the road (starting very soon).

sakataj

iTrader: (182)

hahahhaa love the little guy

werewolf

lol...I know

I figure if GSers say it's a go then it's gotta be a great deal.

PHXSC

IMHO - Leases suck.
You don't mention how much you drive, but at turn-in time, if you're over the alotted 36k miles, you may pay upwards of 15 cents a mile for every mile over. Then they'll nail you for anything not considered normal wear and tear, like minor windshield chips, paint chips, tires, etc.
Their main advantage is that you are NOT amortizing the whole price of the car, or being taxed on the whole price of the car, which from your post seems not to be the case with this lease.
If you want it, buy it. The 1.9% money looks pretty good.

werewolf

True, I wasn't looking at the car until someone said 20k off

dunnojack

a brand new 2009 stripped E350 for $33k before taxes.
MB-tex, no nav.

that is a good deal

at that price, you're not concerned about image. And if you fix it up, no one is gonna care that it's the last generation model.

it's not a bad looking car either. I like the side profile better than the 2010

I'd buy it.

LexFather

Its a great deal and Benz is trying to move them out. I would lease for business tax write-off purposes OR if you know you will want a new car in a couple years as this is the old bodystyle. Since this is the last model year, most all of the kinks have been worked out. If this is your first Benz, you might want to lease in CASE you realize this is not the car/brand for you.

I am slightly biased as I have LOVED this car since its debut and I think its aged as well as a sedan can.

mmarshall

As far as comparing the two, the 2010 model should be out now at most dealerships (I myself reviewed a new 2010 E550 several weeks ago), so you can compare the 2009 with the 2010 before making a decision.

https://www.clublexus.com/forums/car...edes-e550.html

(The 550, of course, has a V8 to the 350's V6, but much of the rest of the review applies)

But, right off hand, dunnojack makes some good points above about the 2009 being a steal at 37K. I agree with him about not concerning yourself with "image", and just looking at and/or buying the car on its merits. (As I was typing this up, Mike (1SICKLEX) added his view, and I agree with him, too)

As far as the lease-vs.-buy question, leasing works out best if you use your car in buisness and can legally deduct the lease payments. You also need to take meticulous care of it because of the wear-and-tear clause, and not drive over the specified mileage limit.....usually 10-15K miles a year, otherwise penalties can apply at the end of the lease term. Either way (lease or buy), the factory warranty will apply, but you will be responsible for getting your own insurance.

Also keep in mind that Mercedes products have a very poor reliability record, especially in electronics, but that has been improving somewhat in the last couple of years.