Leasing: Mercedes BLUETEC Update
I wrote a previous blog recommending that buyers question everything in a car deal and what I found was that readers started questioning my blog too! Actually, it's really cool that readers of this blog critically review what I write. I mean hey, I was wrong about something . ...
In that blog I had talked about getting a quote for a lease payment for the 2008 Mercedes Benz E320 BLUETEC of $1,000 a month. Some readers immediately wrote in suggesting that payment was WAY too high. They threw out residual estimates and alternate payments. They're absolutely right that it's way too high. But, unfortunately, that's about what it will cost.
First of all, my non-mathematical explanation for the high payment is this: we want to get one of the first BLUETECs sold in Southern California. When you try to get a car quickly your leverage for negotiating diminishes rapidly. When I called to find out about the car's arrival date I was told the cars are now "on the water" which means they are about a week away. There is a lot of curiousity about this car and only 100 cars will be sold in Southern California.
(I later learned that we could have gone out-of-state and possibly gotten a BLUETEC earlier. But we've decided not to go that route because of registration problems.)
Now for the mathematical explanation of the whooping $1,000/month payments. The car will be leased at sticker price which is about $57,000 ($51,000 plus options), $2,000 in drive off fees will be paid during a lease term of 24 months. Using our lease calculator and plugging in these figures, I get a lease payment of $1,128 a month. Now, there are still many "unknowns" such as the interest rate (or "money factor" in lease speak) or the residual value. Mercedes can probably manipulate these figures to keep the lease payments from being more than your house payment.
Bottom line, if you want a deal, don't buy the latest and greatest thing that everyone else wants.
- Posted by
- Philip Reed October 19, 2007, 11:01 AM
- Permalink
- Categories:
- Auto Leasing
Thanks for the update! :)
makes since but still high...
Jetta tdi for me! And no bluetec refilling too! 100hp/177lbs ft pre 2007 or 140hp/23xlbs ft post 2007
i miss edit....
i forgot to add why i said what i said....
For 25k and approachable 50+mpg, and un morgagelike payments is as better deal imo. But its nit a mercedes... or big... but it fits my needs better
I cant wait ti start reading about more diesel vehicles!! karl keep us updated!!
thanks for the updates. I still want my edit, so i can delete my stupid early morning math.
while the numbers make sense. using caculators. at times its still a bit shocking to see a 1000+ dollar a month car
It's California. $1,000 a month looks like nothing next to mortgage payments...
In the midwest, thats close to a 2bdrm condo in a decent location.