– Hi guys, welcome back.

Patrick Muranyi, sales manager here at Zimbrick Mercedes-Benz, reaching out to you guys today over our social media accountsto discuss some leasing, some benefits of leasing and why almost half of ourcustomers at Mercedes-Benz choose to do so.

It is a different form of finance a lot of people are notfamiliar with so let's dive in and take a look andsee how we'd get there.

(techno music) So what are some reasonsthat some of our clients decide to lease a car? Obviously a big factorwould be, if you're like me, technology's changing quickly, you might want to beinto something brand-new every three years.

Leasing gives them that option 'cause you're going to be able to switch in and out of the car, whether that be a sedan,going into a convertible or a cabriolet or into an SUV.

You can do so every three yearsand you don't have to worry about your negative equity because one of your options at the end of that lease termis to simply turn that car in and re-lease or buyanother Mercedes-Benz with no turn-in fees whatsoever.

Okay, another benefitof leasing is getting into a car of, say, $52,800 for little to no money due at signing to get to a very, verycheap monthly payment of $458 here, after tax.

Now, if I tried to getto that same payment while doing a traditionalfinance at, say, 60 months, I will be looking at puttingalmost half the value of that car down to getclose to that $500 payment, which seems to be kind ofeverybody's goal nowadays is to get to aroundthat five hundred bucks.

Now, leasing will be availableon all of our 2019 models and some remaining 2018sthat I do have in stock.

That's gonna be one of the examples that I'm gonna use for you today is actually one of my 2018 C 300s.

Obviously with more aged units,we can discount those cars a little bit more heavily, as we get better incentivesfrom Mercedes which lead to some very attractivelease payments for you guys.

So I've got a leasequote in front of me here that I'm gonna walk you guys through, run through just some major vocab things that you guys will hearwhen discussing a lease and what factors are importantto you when you are looking at what your lease payment may be and what budget you can afford.

So, first and foremost,we have to select a car.

So what I've chose for thisis a 2018 C 300 4MATIC.

Okay, so that is oursmall-size sedan vehicle here, one of our top sellers for Mercedes-Benz.

MSRP on this car is $52,800.

Okay, so that's the firstthing that's important is the MSRP of your vehiclebecause that is gonna start where our payments are gonnacome from, is that MSRP.

Second thing is going to be what they refer to as the residual value.

Okay, the residual valueis what you can purchase your vehicle for at the end of your term, whether that be 24 months, or in this case, I'musing the traditional 36, which is what you'llsee on most of the ads.

Now, your residualpercentage changes depending on how many miles you drive.

In this case, I'm saying I'ma 7,500 mile-per-year driver, as I am myself, which wouldgive me a 55% residual.

That means at the end of my term, Mercedes-Benz is sayingmy car will be worth 55% at the end of three years, assuming I've only driven7,500 miles per year.

In this case, that wouldmean my car is worth $29,040 at the end of my lease term, okay? The next thing that goes intothat is your money factor.

Money factor, think of an interest rate, but it's gonna be your interest rate plus a little bit of a rental charge.

In this case, that number is.


Now what the heck does that mean? If we take that number and we multiply that by a factor of 2,400, that's gonna give you aneffective interest rate.

In this case, that wouldbe a.

78% interest, okay? But remember, it does include that little rental charge in there too.

So very, very aggressivefinancing on the leases as well.

So we're not paying a ton to do that.

In this case, for this example, I'm selling you guys the car for $44, 900.

In one of Nick's other videosabout our loaner program, we have Sean come in andmention why he leased one of those loaner vehicles.

Right there, that discountis a huge reason why and you'll see that by the time we get to the end of our lease payments here.

Okay, so you have your MSRP.

You have what I'm gonnasell you the car for and then we have our residualand our money factor.

So how does that equate into what a lease payment's gonna be? You have your MSRP timesa percentage, of 55%, means my car's gonna be worth $29,000 at the end so I have that gap.

Now, what you are gonna pay is the gap between what I'm gonna sellit to you for, at 44,900, down to that residual at 29,000.

That number times the money factor is what's going to equalour monthly payments.

Now, how can we change thosemonies that are due each month? One thing would be a cash cap reduction.

In many of our ads, you guys are gonna see cash cap reductions of3,400, sometimes 4,500 on the bottom in thatlittle disclosure, right, of how much is due at signing.

A cash cap reduction isjust an amount of money that you're gonna give upfront to reduce that monthly payment.

In my example here, I'm using a cash cap reduction of $2,000.

Now, per thousand dollars on a lease, you're gonna reduce yourpayment about thirty bucks.

I'm taking that onethousand and dividing it by your term of 36 months, equals about thirty dollarsthat you'll reduce that payment.

So in this case, for this lease, with the $2,000 cash cap reduction and then paying upfront justyour first month's payment and then your DMV fees, would equal a total of$2,770.

33 due at signing would equate to a monthly payment of $458 for your brand-new Mercedes-Benz.

Doesn't that sound likea pretty good payment on a $50,000 Mercedes-Benz? It's a lot cheaper thanyou probably thought.

So at the end of your term, what are your options with your lease? You have three different options.

One, of course, is to buy your own vehicle that you've been driving.

That is what that residual value is, that $29,040 is your purchase option at the end of your lease.

You can either pay cash,we could finance that.

You can't re-lease thatbut we can finance that for any term that you would like at the end of your term as well.

So option one, buy my carthat I'm still loving.

Option two would be toturn in your current car and lease or buy another new Mercedes-Benz or certified pre-owned Mercedes-Benz from us here at Zimbrick Mercedes.

Your third option is tocompletely turn in the keys and walk away from that lease.

If you do walk away from that lease, they will charge you whatthey call a disposition fee, which is charged by everysingle leasing company that is out there and that'sbasically just a turn-in fee for them to come do aninspection on the vehicle and then take that caroff to auction or offer it to other dealers for their lots.

Now, that disposition fee in this case would be one more payment at$458 to turn in that vehicle.

Come down and see us.

We have plenty to drive, plenty of the great deals just like this.

We'd be happy to get youin a new Benz.


(upbeat music).