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Out of curiosity is there a lease option for the CLA45?
The auto finance industry (whoever that is) need to first establish a residual value for the car, and being it's not due to be released for a few more months, I don't know when that value will be set. Call your local MB dealership. They will have more insight.
 

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Just a guess. Plain Jane CLA45 - $55,000. 60% 3 year residual value @12000 mi per year. No Cap reduction.
Depreciation: $22000 $611 per month
Finance Charge : $220 per month
Lease cost: $831 per month
Tax @ 9.25%: $77 per month
Total lease cost: $908 per month x 36 month. Option to buy car after three years at $33,000 + tax.
Derive off: $1095 ( MB lease initiation fee) + $908 ( first month ) + $500 ( license) + $0 ( security) = $2503

Finance in stead of lease:
$55,000 + $5,087 (tax) = $60,087
Down payment 20% = $ 12,017
Total financed: $ 48,070. At $20 per $1,000 per month, payment= $961.40 per month for 60 month.
 

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Just a guess. Plain Jane CLA45 - $55,000. 60% 3 year residual value @12000 mi per year. No Cap reduction.
Depreciation: $22000 $611 per month
Finance Charge : $220 per month
Lease cost: $831 per month
Tax @ 9.25%: $77 per month
Total lease cost: $908 per month x 36 month. Option to buy car after three years at $33,000 + tax.
Derive off: $1095 ( MB lease initiation fee) + $908 ( first month ) + $500 ( license) + $0 ( security) = $2503


Finance in stead of lease:
$55,000 + $5,087 (tax) = $60,087
Down payment 20% = $ 12,017
Total financed: $ 48,070. At $20 per $1,000 per month, payment= $961.40 per month for 60 month.[/QUOT

You look like you know what you're doing crunching those lease numbers. Would you do me a cavorted and add the following: $7500 down, 6% tax, 10,000 miles/yr. Thanks!
 

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Just a guess. Plain Jane CLA45 - $55,000. 60% 3 year residual value @12000 mi per year. No Cap reduction.
Depreciation: $22000 $611 per month
Finance Charge : $220 per month
Lease cost: $831 per month
Tax @ 9.25%: $77 per month
Total lease cost: $908 per month x 36 month. Option to buy car after three years at $33,000 + tax.
Derive off: $1095 ( MB lease initiation fee) + $908 ( first month ) + $500 ( license) + $0 ( security) = $2503


Finance in stead of lease:
$55,000 + $5,087 (tax) = $60,087
Down payment 20% = $ 12,017
Total financed: $ 48,070. At $20 per $1,000 per month, payment= $961.40 per month for 60 month.[/QUOT

You look like you know what you're doing crunching those lease numbers. Would you do me a cavorted and add the following: $7500 down, 6% tax, 10,000 miles/yr. Thanks!
Cavorted=favor (autospell fail)
 

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Assuming you are talking about leasing.

Higher residual value at 10000 mi a year say at 63%
Cap cost at $55000 - $7500 cap reduction = $47500
Depreciation: $12850 @ $357 per month x 36 months
Finance charge: $205 per month
Lease cost : $357 + 205 = $562
tax (6%) : $34
Total lease cost : $596 per month x 36 month
Option to buy car after lease @ $34500

Personally I would never put a large cap reduction on a lease.
That's like paying part of your lease payment in advance. For example, $3600 cap reduction over a 36 month lease cuts payment by $100 per month ( minus interest difference.)
Aside for a little less interest charged, you get nothing for it. Unless the lower payment help you qualify for the lease.
If you decided to terminate the lease down the road for whatever reason, that money is gone.
Remember, cap reduction is NOT down payment.
 

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The general rule is that every add'l $1k down will further reduce the monthly fee by about $33. Any cap reduction, however, is potentially throwing away money. If the idea of a lower monthly payment suits a lessee, they should take whatever amount they plan on using towards a capital cost reduction, set is aside and use it towards their larger monthly payment each month. That way, if their car is totaled as they drive off the lot the value isn't literally thrown away.

-Eric
 

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Lease with no cap reduction for 36 months or finance with 20% down for 60 months all come to $900-$1000 a month for a plain CLA45.

I have learned over the years there are many things that costs big money but leaves little to show for it down the road.

Expensive wine - $1,000 a bottle 1975 Chateau Lafite becomes the same straw color liquid waste in three hours as the $1.99 Night Train.
Expensive Flat Screen TV - $5,000 50" 1080 LED purchased in 2005 now worth $75 at garage sale.
Expensive cars : 2003 Mercedes CLK55 AMG - stickered at $83,000 now sold for $7000 with 130,000 miles on the motor.
2014 Mercedes CLA45 AMG - stickered at $55,000 in 2024 will be worth $4,500 with 130,000 miles

On the other hand,
Expensive watch: $4,500 Rolex no dates Submariner from 2003 now worth $4,000 on ebay.
$8,000 Rolex Stainless Steel Daytona from 2003 now worth $8000 on ebay.
 

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Think of the cap cost reduction as the money you give the bank for the sole purpose of lowering your monthly payment...like a down payment towards the purchase of a car. Only with leasing you don't own the car...not even a little. The cap cost reduction doesn't mean you own more of the car...it's a rental...and it doesn't give you any more rights. It's a way to make a lessee feel like they're getting more of a deal.

"You too can drive a brand new Lamborghini Gallardo for only $399/mo! Just put down $100k."

If you have $10k to put down you should either consider buying or, if it makes you feel better or more secure, keeping the $10k in a separate account so you can allocate a portion of it towards your monthly lease payment. If your car is stolen or totaled, your cap cost reduction/down payment is GONE. Gap insurance will cover the difference owed to the bank between what you've paid and what you owe on the lease - yes, you still owe this even if the car is stolen. You're not off the hook for the remaining lease payments any more than you'd be off the hook to the bank for your remaining loan payments and gap insurance generally does not cover your reduction.

Whenever you negotiate a lease you need to know a few things in order to understand your deal:

- The capitalized cost (i.e., the sales price of the car - this needs to be negotiated just as if you were buying the car!!!)
- The residual (i.e., the value of the car at the end of the lease term)
- The money factor (I.e., the interest rate charged on the difference between the cap cost and the car's residual value)
- You should always base the numbers you get on a $0 cap cost reduction (even if you ultimately plan on putting something down).

Once you know these factors you can compare deals between different dealers and also determine whether leasing is right for you. Leasing definitely has its advantages and there are many who are truly better off leasing than buying but you need to know the ins and outs of leasing to avoid being taken by "the deal of the decade" that turns out to be anything but.

-Eric
 

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What if you are planning on leasing to buy? Would it makes sense to put down $10K during the lease?
Your $10000 all goes into reducing your monthly lease payment. IT DOES NOT reduce your residual value.

If you lost your job a month after you leased the car and have to get out of the lease, your $10000 cap reduction is gone. Completely. Every dime.
To add insult to injury, you may have to pay extra cash just to get out of the lease.

I, on the other hand, would offer to assume your lease and save you the extra cash to get out because you have already paid forward $10000 for me :)
 

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What if you are planning on leasing to buy? Would it makes sense to put down $10K during the lease?
No. Remember, on a lease you are only paying for the portion/value of the car over the period of the lease. That means, using round numbers, if your car costs $30,000 and has a 60% residual over the term/mileage of the lease, you're going to pay $12,000 (40%) to the bank. If you put down $10,000, you're going to pay the difference ($2,000) over the period of your lease. You'll have an insanely low monthly rate but you're not going to own a larger percentage of the car than if you put $0 down at least inception. At the end of the lease you're still going to have to buy the car from them (and likely finance that cost). And, if your car gets totaled as you drive it off of the lot, that $10K is gone...kaput...finito...hasta never. Gap insurance should cover the $2K but your down payment is gone with the wind.

Leasing to buy is bad for the consumer but GREAT for the bank. They get to charge you interest over the term of the lease (let's say 36mos) and then at the end when you want to buy the car they'll give you a loan (let's say 60mos) to buy it. Some people wind up paying off a car over 8 years just so they can say, "Woohoo, I now own an 8yr old car with 100K miles on it that's worth a whopping $5K on trade-in." Just say no. :)

-Eric
 

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Just curious, so what would be the advantages of leasing one? You save on the initial lump sum of the tax? I am a MB employee and was planning on leasing since they offer special lease prices. Ive also heard of employees leasing cars and selling the leases after atleast a year and pocketing a couple thousand back. Would financing the car still be a better route?
Thanks
 

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There are a number of advantages to leasing in the US but they invariably depend on the buyer/lessee's circumstances, wants and needs.

One benefit is that you can typically "afford" to drive a car you might not otherwise be able to own. With a loan you're paying the full price of the car over a period of years (typically 3-5yrs); whereas with a lease you only pay for the predicted value of the car you will use over the period of the lease (e.g., 40-50% on a 36mo lease w/15k mi). Generally speaking, the monthly payments are significantly less; especially when there are factory incentives built into the lease rates.

If you are the kind of person who has to have a new car every few years then another benefit is that the cost to you over the course of a 2-3 year lease is generally better (read: less) than the pay-off amount left on a loan.

Another benefit, closely linked to the first example, is that you don't have to worry about a down payment and, in fact, as noted in earlier posts you should avoid any additional cost reduction through the equivalent of a down payment. This allows you to free up capital that you can otherwise use for investments or other needs over the short term of the lease.

Yet another benefit, at least in some states where property taxes apply, is that you don't have to pay tax on the value of the whole car. Often the tax is only applied to the monthly fee. There are also sometimes tax breaks if you own a business and can run the lease through it.

Just a few things to consider. I may have missed something and I am sure someone will chime in with other thoughts, Whether it makes sense for you is an individual question. The key to leasing is doing it intelligently. Know the terms. Know how to negotiate a lease or learn how. Know what you're getting yourself into. And, most importantly, know what to avoid and run from.

My $.02,
-Eric
 
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