CDI vs. Gas e350 Help Me
 

Last year I was all set to lease 2006 CDI from the dealer. I own a business so accountant said lease the car for write off. I negotiated a decent lease last July- lots of incentives etc. While in process, salesman made the mistake of telling me that an AWD diesel version would come out for 2007. I decided to wait for a diesel AWD and later found out that this was not true. By the time I found out, there were no new 2006 cdis left with the options and colors I wanted. Grrrrr! I looked at the bluetec- car felt totally different and more plasticy. For months I have looked at the used 2006 CDIs but do not see the one I want. So now folks I am looking to take over a lease from a guy who put $7500 down on a reg. 2007 gas e350 Prem. 1 and Sport pkgs. Guy has lots of money-5 cars and feels he is too tall for the e350 so wihout down payment he will let me take it over for 16 months.- less than 5k miles. I think that if I do this deal- when the 16 months is up, I will next purchase a CDI. That CDI from 2006 with the panoramic sunroof still haunts me. Temp situation. What do you guys think of these cars. Help.

Call an accountant or a tax attorney right away and talk to them about business use deduction of vehicles. There's really no difference whether you buy or lease in many cases. There are also big incentives to go with an SUV -- they've tapered off some since 2003 or so, but are still very good.

Either way, it pays to know the rules. Writing off a vehicle can be very suspect on a tax return, depending on your type of business, business use, etc. You're going to want to keep good records in case the auditor shows up.

I've found that tax advice from car salesmen is not always too sound. ;)

Cheers, John

You might try leasetrader.com, a site where people looking to get out of their leases link up with those who are looking to take one over. They show several 2005 and 2006 model CDI's available...

leasefolks
 

if you want a big write off there is an E63 on www.leasefolks.com right now

Again, talk to a tax accountant or attorney. The code is very clear about the caps (maximums) you can write off, regardless of the expense of the vehicle. As I mentioned earlier, SUVs continue to be the loophole. You could probably write off the same amounts on a Ford Towncar as you could on an E63 due to the caps...

Cheers, John

I agree there are very specific rules about business deductions for leased vehicles, make sure what you are considering makes financial sense and isn't just an excuse to get a new car. There are other options, for example, I keep my cars in my name and take a before tax mileage payment.

To answer your question, get the diesel not the gasser.

I just took a look at the leasetraders website. After paying $700 to $1000 per month for 2 or more years of the remaining lease, the buyouts are extremely high: $33000 and up. You can buy a low mileage 2005 CDI for $35K to $40K and depreciate it as a business expense and own it free and clear within 48 months with a similar payment schedule.

My uncle just bought a 2008 E350 4matic a few weeks ago. Its a nice car, about what you would expect from Mercedes. He usualy keeps cars for 2-3 years then trades them, does pretty well.

I wonder if their is any benifit for holding a car in your name vs your business? Guess it depends the business structure. But I was always told you don't want anything in your name.

The E350 gasoline car is a rocket and will whoop on the diesel. If you want low end torque around town and better fuel economy get the diesel though.

The diesel is a rocket too.

Tom W

Isn't the 2007 E350 and the 2007 E320 Bluetec basically the same car? I don't understand why the E320 Blutetec is "too plasticy" but the E350 isn't?

Yeah they are the same car.

I read somewhere that the CDI actually beats the E350 in acceleration. I don't know if that's really true, but I know from a test drive that the CDI has tons of power... way more than anyone needs for daily driving.

The CDI is a 15 second quarter mile car while the e350 is a 14 second car. Same goes for the bluetec. The diesels do whoop on the gas car in top gear acceleration though, thanks to all that torque. No need to downshift!

I havent driven the diesel model but the mags say it feels faster than it actually is.

E320 Cdi Vs E350
 

Thanks for the replies. I may just short term lease the E350 for 16 months and shop for the CDI. I did say I thought the E350 felt plasticy-- I guess it is because the steering wheel felt that way no leather in the reg. 2007 Bluetec steering wheel just felt odd. The car I am going after has the wood leather upgraded steering wheel- feels better. + Sport Pkg. Probably going to be gas version for now but diesel in future. 2005 or 2006 CDI later. MB financial sure take a while to transfer a lease.