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Leasing or Financing

Leasing is ideal for people who drive less than 15,000 miles per year, take good care of their vehicle, and want a new car every 2-4 years.

By leasing a vehicle you can:

• Get a bigger, better-equipped vehicle than what you could purchase for the same amount.
• Pay only for the portion of the car’s life you use (which means a lower monthly payment).
• Receive tax benefits if used for business.
• Invest any savings in appreciating assets like stocks, bonds, etc.
• Spread applicable sales tax across monthly payments (varies by state).
• Enjoy end-of-lease options: you can buy the car or lease another vehicle.


LeaseFinanceBalloon Finance
You enter a long-term contract for the use of the vehicle and make regular monthly payments – typically for 3 years.You are given a loan for the purchase of the vehicle outright and make regular payments over the period of the loan.Similar to standard Finance except you make a large, lump-sum payment at the end of a long-term loan, reducing monthly payments.
Monthly payments are usually lower than the standard Finance option.Monthly payments are higher compared to other options.By far the lowest monthly payments of any option.
Locked into making payments for the duration of the lease – no option of paying it off early.You’re not locked into a fixed ownership period.The entire amount is not paid off over the life of the loan, so the remaining balance is due in one large lump sum to the lender.
Lower out-of-pocket costs to acquire the vehicle.Down payment is always greater than on a lease.Down payment can exceed the usual $15,000 limit set by MBUSA Financial.
Insurance premiums are usually higher for a leased vehicle.
If vehicle is driven over specified number of miles, you are charged an extra fee per mile.No mileage penaltiesNo mileage penalties
A lease may have tax advantages if the vehicle is used for business purposes.Good for drivers interested in tax depreciation.
You essentially pay for portion of the vehicle used over the payment term.Once all payments have been made, you will own the vehicle.Once all payments have been made, you will own the vehicle.
At end of lease, you can either buy the vehicle outright, or turn it in and enter into another lease for a new Mercedes-Benz.Vehicle can be sold at any time, under any terms.Vehicle can be sold at any time, under any terms.


The benefits of leasing vs. purchasing

• Monthly Payments are usually reduced

• The need for a cash down payment is reduced

• Upgrading to a more expensive model is easier

• It’s easier to benefit from the latest technology

• Lease-end purchase option

Retail Financing (Purchasing)

Some potential advantages to financing (purchasing) the vehicle:

• Vehicle ownership upon final payment.

• No mileage limitation

• No penalties for Excessive Use or Wear

• No limitations to vehicle modifications. Though, some modifications may void the warranty.

• Insurance rates may be slightly lower.

Buying (financing or cash) a new car is called “investing into a depreciating asset”… WRONG from any angle.

Leasing – just paying off the depreciation. At the end of the lease, if you choose to buy it out – you lost nothing!

However you have multiple “exit strategies” and you can choose one. When you buy, you can only sell (that will depend on the market, condition, your sales skills, etc).

New car should be a lease and if you buy, it should be a pre-owned.