Buying a Vehicle Vs Leasing

“You Found Your Dream Mercedes-Benz! What Next?” 

When it is time to take your Mercedes home, one of two options could be a better fit depending on your lifestyle. Financing and leasing are the two most common choices. Leasing is like renting a vehicle for a fixed term. You make monthly payments and at the end of the term you return it in a pre-agreed condition and start the process over again. Financing a vehicle means buying it with the help of a loan. You make monthly payments and once the loan is paid back you own the vehicle. There are several considerations to keep in mind when it comes to making this important choice.

Ownership: When purchasing you become the owner. This is not the case when you lease the car where you return the vehicle at the end of the lease agreement.

Payments: Generally speaking, lease payments are lower than finance payments on a vehicle. When leasing you pay for the value you use up during the time you are driving the vehicle. When buying, monthly payments go toward repaying the lender, plus any applicable interest.

Customization: When leasing you can customize your vehicle with approved accessories through your dealer, but only at the beginning of the lease. When financing you can customize any way you like and at any time.

Mileage: Leases usually come with mileage restrictions. At lease start, you typically have a variety of mileage options to choose from depending on your driving needs. However, if you exceed your mileage limit overage charges apply unless you choose to purchase the vehicle at the end of the lease (which is usually an option). When financing you are free to drive as many miles as you want since you will be the owner when the vehicle is paid off.

Wear & Tear: A normal amount of wear and tear is usually covered under a lease agreement. However, wear and tear in excess of normal limits may end up costing more unless you choose to purchase the vehicle. With a financed car, there are no additional charges for vehicle wear and tear. However, excessive wear will lower the vehicle’s trade-in or resale value at the end of your note.

A typical vehicle will be worth about half of its sale price after four or five years due to depreciation. You are paying for a vehicle’s depreciation when you choose the lease option. Several other factors can also influence the vehicle’s value over time. When you own a vehicle, you assume responsibility for major repairs, whereas leased cars are typically covered by a bumper-bumper warranty. However, leasing can come with all sorts of surcharges, like mileage overages and excessive wear and tear fees. Contact the Mercedes-Benz Manhattan Finance Center today! Whether you’re looking for car leasing on a new or pre-owned Mercedes-Benz vehicle, you can get auto loan financing advice from our finance experts.