Should I Buy or Lease a Car?
If you’ve been researching for a new vehicle such as Mercedes-Benz luxury cars and SUVs, you’ve come across Mercedes-Benz special offers to finance and lease a car. You can’t go wrong choosing any vehicle from your Mercedes-Benz dealer, but which is best: to buy a car or to lease?
Benefits exist for both options, but your situation may be more suited to one than the other. When you’re faced with the choice, these tips can help you decide on the best route to take for your vehicle ownership.
Buy Vs Lease: Which Should I Choose?
Leasing a car is essentially paying only the amount of depreciation it’s expected to experience while you own it for a set term, along with taxes and fees. In a lease, you are not responsible for the whole purchase price of a vehicle. When your lease term matures, you have the option to return your car to the dealership or buy it for the lease’s residual value. Benefits for leasing include:
- Lower monthly payments typically. Because you’re only paying for a portion of the car, not the whole sale price, your payments can be much less than if you finance.
- Warranty coverage. Since common leasing terms are three or four years, the majority of your time with your lease is covered by manufacturer’s warranty. You don’t have to account for unexpected repair costs and most major maintenance items won’t be due during your lease.
- You’re always driving a car with new technology. Because Mercedes-Benz leases are on new vehicles, you’ll be able to easily switch into a model with the latest features and options when your lease matures.
- Flexible end-of-lease options. When the lease matures, you can pay the residual value and keep the car, switch into a new lease or purchase, or simply walk away!
Leasing is a straightforward process and is a great way to get into the driver’s seat of a Mercedes-Benz.
Why You May Want to Buy a Car
The traditional car ownership method continues to be purchase financing. When you agree to the sale price for the Mercedes-Benz you want, you can finance the purchase with competitive rates. Although you are paying a higher dollar amount than leasing overall, there are perks when you buy a car instead of leasing. They include:
- Equity in your vehicle. When you finance a vehicle, you’re paying towards eventual full ownership. As you pay down the loan, the point comes where your car is worth more than you owe, known as equity. You can use equity when you trade in against the newest model, or as a down payment toward a lease.
- Drive it as much as you want. In a lease, excess wear and tear comes at a cost when the lease is turned in. When you own it, you can do as you like with your Mercedes-Benz vehicle. Drive as much or as little as you want with no penalties.
- No payments after the loan is paid. If you look forward to a day without a car payment, financing may be for you. Once your car loan is satisfied in full, you can drive freely knowing your no longer making car payments.
Whether you decide to lease or finance your next vehicle, a Mercedes-Benz is always a stellar choice. Visit your local Mercedes-Benz dealer, Mercedes-Benz of Goldens Bridge, to test drive the latest models or to cash in on Mercedes-Benz special offers today.