Auto Financing: Leasing vs. Buying

 

Leasing vs. Buying Guide

How to Decide Which Financing Solution Works Best for You

When you're shopping for your next Mercedes-Benz, it's always a good idea to research the various models, trim levels, and all available options to determine which premium vehicle is the right one for your daily driving needs. Here's another thing you want to consider: whether you should buy or lease that new dream car.

Mercedes-Benzof West Covina

2010 East Garvey Avenue south
Directions West Covina, CA 91791

  • Sales: (866) 293-7065
  • Service: (866) 240-5730
  • Parts: (866) 917-7457

Hours

  • Monday 9:00AM-9:00PM
  • Tuesday 9:00AM-9:00PM
  • Wednesday 9:00AM-9:00PM
  • Thursday 9:00AM-9:00PM
  • Friday 9:00AM-9:00PM
  • Saturday 9:00AM-9:00PM
  • Sunday 10:00AM-8:00PM

You see, our auto financing team is happy to crunch the numbers and come up with both car loan and Mercedes-Benz lease terms specifically designed for you. However, if you don't know which approach is better suited to your ownership style, you might make a costly error based simply on either the down payment or monthly payments. That's why we've put together a guide to the advantages and disadvantages of both buying and leasing, so you can make an honest assessment of which method works best for you.

Pros of Leasing Your Mercedes-Benz:

  • Lower initial cost of acquisition
  • Since you're only financing a fraction of the vehicle's worth, your monthly payments are typically lower
  • The warranty usually covers any repair costs, since leases are usually shorter than new car warranty coverage periods
  • You're able to drive the latest models, which come loaded with the up-to-date technologies and safety features you want

Cons of Leasing Your Mercedes-Benz:

  • You're restricted to annual mileage limits and may have to pay expensive excess mileage fees at the end of the lease
  • You may also be responsible for excess wear penalties if you don't keep the Mercedes-Benz in near original condition for the duration of your lease
  • When your lease is up, you have no equity in the Mercedes-Benz and need to start your car search all over again

Pros of Buying Your Mercedes-Benz:

  • You own the vehicle and can make any customizations you want
  • You're not constricted by annual mileage restrictions, allowing you to drive to your heart's content
  • When you make the last payment, you enjoy the full equity of your Mercedes-Benz
  • That gives you control over when it's time to trade-in or sell your vehicle

Cons of Buying Your Mercedes-Benz:

  • Generally, you have a larger down payment and monthly payments compared to a lease
  • If you continue driving your Mercedes-Benz after the warranties expire, you're responsible for all repair expenses
  • If you only plan on driving the vehicle for a couple of years, you may owe more on your loan than your vehicle is worth as a trade-in

In the end, purchasing or leasing a vehicle is your decision. Make sure to take an honest assessment of your preferences before you decide, as the wrong choice can potentially cost you dearly. If you'd like to discuss your options with an expert, feel free to contact the team in our Finance Center. After all, we're here to help you!

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