Mercedes-Benz is one of the most sought-after luxury car brands on the market. So, if you intend to own a Mercedes-Benz one day, you have the option of either buying it or leasing it. However, which one is better – leasing or buying Mercedes?
Buying or leasing a new Mercedes depends on your needs. Both of these options are excellent but have their own pros and cons. Therefore, before you make up your mind, it’s best to find out whether leasing or buying a new Mercedes is good for you or not.
Benefits of Leasing a Mercedes-Benz
- One of the main advantages of leasing a new Benz is that you will get lower sales tax compared to buying. Leasing a car lowers sales tax in many places. In some locations, you may only be needed to pay tax on the amount you put forward in the down payment and for the monthly payments.
- If you don’t have the cash to buy the latest Mercedes model, leasing is the next best option. This is because you will only be required to pay for the part of the car you use. Besides, if the leased Mercedes is for business, you may qualify for some tax advantages.
- Leasing a new car means that you don’t have to worry about the resale value or trading-in. Mercedes typically takes the risk of the resale value at the end of your lease period. However, owners are also given a set purchase choice.
- Maintaining and repairing Mercedes under the lease is stress-free, as any challenge that comes up is covered under warranty, as long as you don’t go beyond the set mileage limit.
- Leasing allows you to enjoy the latest Mercedes models with high-end features after every lease period. Besides, you can always upgrade and select a car that impresses you the most after every few years.
Setbacks of leasing a Mercedes-Benz
- The biggest setback to leasing a new Mercedes is that you’re limited in what you can do with the vehicle. You cannot sell the car if you want to when the lease period is over. Furthermore, you cannot customize the car to your liking.
- Leasing is expensive in the long run as you pay for the first 2 to 3 years of the car’s life. This is also the time when the car depreciates faster.
- Leasing limits the mileages that you cover. As a result, you cannot drive the car as you want to or you may get a penalty for exceeding mileage.
- There are a lot of hidden fees when you decide to lease the car. You will have to pay an acquisition fee and a disposition fee.
- Insurance rates for a leased car are usually higher than those of a bought car. So, you will end up paying more rates in a short span.
Benefits of buying a Mercedes-Benz
- Buying a new Mercedes-Benz doesn’t limit you in any way. You can sell your car when you feel like it, unlike leasing a new Benz. Therefore, you will be creating your equity towards ownership.
- Additionally, you can decorate or even customize your new car as you want. You can add non-factory accessories or modify them as you want. However, if you decide to lease the car, none of this is allowed.
- If you travel a lot with your Mercedes, buying a new car will be the best choice. This is because leasing limits the miles that you can cover. As a result, buying a new Mercedes allows you to drive as much as you want without any restrictions.
- Even though the initial cost of buying a new car is more expensive than leasing one, it will become cheaper as years go by. So, in the end, it will be cheaper to buy than lease a car for a few years.
- Buying a car gives you the freedom to sell it any time that you wish. This is because you don’t have any binding agreement that keeps you from selling the car like when you lease it.
- Buying a car attracts lower insurance limits for liability and property damages compared to leasing. So, you will also save in the long run.
Setbacks of buying a Mercedes-Benz
- The initial cost of buying a new Mercedes-Benz is quite higher than the acquisition cost. Hence, you pay more to get a new Mercedes than to lease it.
- When you decide to buy a new car, your monthly car payments will be higher than lease payments.
- You will be in charge of repair and maintenance costs once the warranty expires.
- When you want to trade in or sell the car, you will be on your own and try to look for a buyer or a trading partner.
Overall, both of these methods of owning a new Mercedes-Benz are excellent and it depends on what you want.
How long are Mercedes leases?
Mercedes leases vehicles for about 24 to 36 months. This means you can get to drive new vehicles after every 2 to 3 years. Besides, they also offer short lease cycles that allow people to lease new cars with the most recent technology.
What is the best time to lease a car?
The best time to lease a car is the same as the best time to buy a new car. This is because leasing means renting a car from the dealer for a particular period. Thus, the months of October, November, and December are the best times to lease a car.
How much does leasing a Mercedes cost?
It depends on the car make and model that you’re leasing. As expected, the more expensive the model, the more expensive the lease. For instance, the Mercedes-Benz CLA-Class will cost you around $4,203 upfront with monthly payments of about $409 for 36 months.
Generally, buying or leasing a Mercedes are both fantastic ways of owning a new Mercedes-Benz. If you have the cash and want to customize your car, buying is the best option. But if you don’t want to own the car for long or go through the hassle of selling it, leasing is the suitable choice for you.