2014/2015 Mercedes-Benz C-Class Thread
08-07-14, 07:51 AM
#676
Lexus Fanatic
People will buy this C I promise you. And every C won't be $60k, in fact the vast majority of C's won't be $60k. just very well optioned ones. Don't blame MB for not being afraid to offer a highly optioned car like Lexus is.
Originally Posted by MPLexus301
Now a days, if you want a loaded IS, 3 or C Class as referenced above, you're shelling over $50k+. I get it, and I understand why, but it's a bit of a shame. It used to be that if you were a few years out of college and landed a decent job, something like a nice 325i or 330i was generally within reach. Now, you're looking at a car that costs almost 40-75% more, and a lot of jobs are paying less now than they were back then. No wonder young people are losing interest in driving...
In reality, these cars are still within reach. An IS can be nicely optioned for $40k. Same with a C Class, same with a 3 Series. Will it have every option? No. Best engine? No.
You also have to look at the difference between "loaded" today, and "loaded" 10-12 years ago. These cars have MANY more options and features today, but can be had equipped similarly to those cars 10-12 years ago and when you compare the prices of cars equipped that way and you adjust for inflation...I think you might be surprised to see that prices have come down
According to an inflation calculator $44k in 2004 is $55,516 today. I think you'll find if you compare a truly comparably equipped modern IS, 3, C whatever including an engine that is similar in performance (not the top engine, an IS300 is very comparable to an IS250), you'll find it won't cost $55,516.
08-07-14, 08:55 AM
#677
Lexus Test Driver
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Seems like most people in USA "lease", especially luxury cars.
Here in Australia leasing is not a option. So most people pay full price for their cars.
I wish we had the same lease programs here, just pay for the 3yrs residual value of a car.
Here in Australia leasing is not a option. So most people pay full price for their cars.
I wish we had the same lease programs here, just pay for the 3yrs residual value of a car.
08-07-14, 08:58 AM
#678
Lexus Fanatic
For luxury cars the lease rate is like 70-80%.
08-07-14, 09:18 AM
#680
It's not quite that high. For luxury brands, the total market average for leasing is closer to 45%.
Brands like Porsche and Land Rover are generally lower than that, while Mercedes and Infiniti are a little higher.
Not even close. Lexus overall average residuals in the market are closer to 45-50%. Now, Lexus Financial can choose to boost residuals as a form of incentive, but then they bear the risk on the resale value at the end, which of course they can possibly recoup through some CPO certification charges to the dealers that buy the cars, etc.
Brands like Porsche and Land Rover are generally lower than that, while Mercedes and Infiniti are a little higher.
Not even close. Lexus overall average residuals in the market are closer to 45-50%. Now, Lexus Financial can choose to boost residuals as a form of incentive, but then they bear the risk on the resale value at the end, which of course they can possibly recoup through some CPO certification charges to the dealers that buy the cars, etc.
Last edited by pbm317; 08-07-14 at 09:22 AM.
08-07-14, 09:38 AM
#681
Lexus Fanatic
Residuals are around 60% yes, high 50s...low 70s for shorter terms.
Originally Posted by pbm317
It's not quite that high. For luxury brands, the total market average for leasing is closer to 45%.
Note that they market leases, not purchase. Why would they consistently market to less than half of their buying pool?
Not even close. Lexus overall average residuals in the market are closer to 45-50%. Now, Lexus Financial can choose to boost residuals as a form of incentive, but then they bear the risk on the resale value at the end, which of course they can possibly recoup through some CPO certification charges to the dealers that buy the cars, etc.
08-07-14, 10:03 AM
#682
I mean 70-80% of luxury cars are leased in the US.
Residuals are around 60% yes, high 50s...low 70s for shorter terms.
Have a source for that? Every source I've ever seen has a figure similar to what I quoted, and every dealer I've ever done business with has told me that they see 70-80% leases.
Note that they market leases, not purchase. Why would they consistently market to less than half of their buying pool?
Not anymore. The residual on my GS is 58%, thats 36 months with 15k per year. LFS residuals are much higher nowadays. We're not talking about resale values, we're talking about lease residuals.
Residuals are around 60% yes, high 50s...low 70s for shorter terms.
Have a source for that? Every source I've ever seen has a figure similar to what I quoted, and every dealer I've ever done business with has told me that they see 70-80% leases.
Note that they market leases, not purchase. Why would they consistently market to less than half of their buying pool?
Not anymore. The residual on my GS is 58%, thats 36 months with 15k per year. LFS residuals are much higher nowadays. We're not talking about resale values, we're talking about lease residuals.
Last edited by pbm317; 08-07-14 at 10:07 AM.
08-07-14, 10:13 AM
#683
Lexus Fanatic
98% of Lexus leasers lease through LFS, and these are the lease residuals. The market [b]is[/i] LFS. So if the question is "what kind of residuals are offered on these Lexus models"...your response of 45-50% is incorrect. You wont find a Lexus lease with a residual below 50%, even on the LS, perhaps residuals are that low for the very small percentage of people who lease outside LFS...
Check out Ride with G's lease rate page for Lexus:
http://www.ridewithg.com/lexus-lease-rates/
Not one residual below 57%.
You'll find even higher residuals at BMW and MB.
Last edited by SW17LS; 08-07-14 at 10:18 AM.
08-07-14, 10:17 AM
#684
But thats totally a different topic. We're talking about lease residuals, and the fact is that these are the lease residuals from Lexus Financial...
98% of Lexus leasers lease through LFS, and these are the lease residuals.
You'll find even higher residuals at BMW and MB.
98% of Lexus leasers lease through LFS, and these are the lease residuals.
You'll find even higher residuals at BMW and MB.
Yes, BMW and MB boost their residuals as well. These are seen as less damaging to the brand than cash incentives.
08-07-14, 10:20 AM
#685
Lexus Fanatic
Yes LFS handles nearly all Lexus leasing, but that doesn't mean that they aren't being boosted/subvented by Lexus Financial above what the financial market lease residuals are. LFS repackages their porfolio as an asset backed security, but cannot do so with those boosted residuals. But this is getting off topic.
Yes, BMW and MB boost their residuals as well. These are seen as less damaging to the brand than cash incentives.
Yes, BMW and MB boost their residuals as well. These are seen as less damaging to the brand than cash incentives.
Last edited by SW17LS; 08-07-14 at 10:24 AM.
08-07-14, 10:24 AM
#686
Fine, I just wanted to help provide facts on what true values are.
08-07-14, 10:26 AM
#687
Lexus Fanatic
What are "true values"? He asked what the lease residuals were not what the resale values of the cars were. The lease residuals through LFS where 99% of all Lexus vehicles are leased through are high 50s-mid 70s depending on model and term. I don't see how values used by banks that make up less than 2% of the market are the "true values". To me the "true values" are those that apply to 99% of leasers, not those that apply to 1%. You said "average residuals" are between 45-50% and thats just not true. The LFS residuals will weigh much harder on the average than these other banks because they make up the vast majority of the market.
Last edited by SW17LS; 08-07-14 at 10:31 AM.
08-07-14, 07:54 PM
#688
Lexus Champion
Exactly. If I'm looking to downsize, the IS and 3 Series are several steps below the GS in interior quality. The C Class, on the other hand, may even have it beat. My challenge is that there are few smaller cars that offer the quality of their larger counterparts. Judging by the reviews and pictures, this one does.
08-08-14, 05:19 AM
#689
Guest
Posts: n/a
Exactly. If I'm looking to downsize, the IS and 3 Series are several steps below the GS in interior quality. The C Class, on the other hand, may even have it beat. My challenge is that there are few smaller cars that offer the quality of their larger counterparts. Judging by the reviews and pictures, this one does.
As you stated not everyone wants a larger car. The C class offers what's the larger cars do in a smaller package.
It's not quite that high. For luxury brands, the total market average for leasing is closer to 45%.
Brands like Porsche and Land Rover are generally lower than that, while Mercedes and Infiniti are a little higher.
Not even close. Lexus overall average residuals in the market are closer to 45-50%. Now, Lexus Financial can choose to boost residuals as a form of incentive, but then they bear the risk on the resale value at the end, which of course they can possibly recoup through some CPO certification charges to the dealers that buy the cars, etc.
Brands like Porsche and Land Rover are generally lower than that, while Mercedes and Infiniti are a little higher.
Not even close. Lexus overall average residuals in the market are closer to 45-50%. Now, Lexus Financial can choose to boost residuals as a form of incentive, but then they bear the risk on the resale value at the end, which of course they can possibly recoup through some CPO certification charges to the dealers that buy the cars, etc.
Lexus only now has really started to engage in attractive leases to attract buyers. Their business model is different in regards to subsidizing leases.
