Lease vs. Buy

Mercedes of Hoffman Estates: Leasing vs Financing

Don’t know whether to lease or finance your next Mercedes? From financial benefits to lifestyle necessities, our experts at Mercedes of Hoffman Estates finance department breakdown a few frequently ask questions about leasing vs financing. Discover which option is best for you, if you have any question contact us or come by in person at our dealer conveniently located at 1000 W. Golf Rd. in Hoffman Estates, IL, just a short drive north from Naperville via I-355 N. We’re proud to offer the full lineup of new Mercedes-Benz vehicles at our Chicago area dealership-whether you’re looking for the new CLA, the flagship S-Class, or something in between, Mercedes-Benz makes a vehicle that will suit your tastes. Schedule test drive today on any of our new or pre-owned, and be sure to check out all our latest specials for a great offer!

Should I Lease or Purchase my next Mercedes?

If you’re choosing between leasing and buying your next Mercedes, consider the following differences:

• Leasing is often less expensive from month to month.
• If you choose to finance, you’ll own your vehicle after you’ve paid off your loan.
• For drivers who want a new Mercedes every three years, leasing can cost less.
• Leases charge more the more you drive, and might be a bad choice for high-mileage drivers.
• Of course, the choice between a lease or a purchase depends on your individual situation, so find out more information today.

Which is Right for You?

What is the difference between buying and leasing? It’s a question that all car shoppers ask at some point. The main difference is that when you lease a vehicle, you’ll only pay for the depreciation that is expected to occur while you have it. Depreciation is defined as the difference between the vehicle’s current value (called its capitalized cost) and what it’s expected to be worth at the conclusion of the lease (known as the residual value). Since this is always a lower amount than the full purchase price of the car, your monthly payments with a lease will often be much less than if you had financed it.

Lease End Process

Leasing your current Mercedes-Benz? You’ll want to start preparing for the end of your lease four months before the end of your contract. That way you’re prepared for the lease return process, and you’ll know where your next vehicle is coming from. Mercedes-Benz of Hoffman Estates can help you find a new Mercedes-Benz vehicle to replace your previous leased model. Find out more about the Lease End Process today.

When Should I Lease a Mercedes?

If you answer yes to the following questions, leasing your next Mercedes could be the way to go:

• Would you prefer a low monthly payment and a low down payment?
• Do you value extensive upgrades for less money?
• Would you rather not have to deal with repair costs?
• Do you enjoy the benefits of having a new car every two or three years?
• Do you keep your vehicle in great condition?

What are the downsides of leasing?

• The main downside of a lease is that you aren’t putting money toward the purchase of the vehicle, but instead paying the dealership to use it.
• You’re limited to a preset mileage amount, with the option to purchase extra.
• Lastly, you’ll be charged for repairs if the vehicle is in rough shape when you return it. That makes leasing a tough prospect for families with young children.

How Do Lease Payments Work?

For example, say that the vehicle you’re looking at has a sticker price of $40,000, and that it’s expected to lose half of its value over the three-year period of the lease. That means that both the future value and the expected depreciation would be $20,000 each. If you decide to finance the vehicle, you’ll be paying the total $40,000 sticker price, whereas if you lease, you’ll only be obligated for half of that.

Specifically, if you get a loan with 2.9% APR and want to pay off your vehicle in three years, you’ll be paying $1,161.49 per month, which will add up to a total expense of $41,813.64. However, if you’re just paying the depreciation value of $20,000 over a three-year lease with a lease money factor of .000510, you’ll end up paying $586.16 per month, with the total expense being $21,101.76.

When Should I Buy a New Mercedes?

If you choose to purchase your next vehicle, you can take advantage of the following benefits:

• Long term savings
• Option to modify the vehicle
• Resale flexibility
• No mileage restrictions
• Trade-In value for your next car

What are the downsides of financing?

• Higher monthly payments
• Higher down payment
• Higher repair costs
• Vehicle depreciation

What are my financing options?

The Mercedes-Benz of Hoffman Estates finance department is focused on ensuring your experience with our dealership exceeds your highest expectations. Our friendly finance managers work with people from all over including Hoffman Estates, Schaumburg, and Elgin to ensure our customers get the right finance program at the most competitive rates.

Visit Mercedes-Benz of Hoffman Estates

Whether you find yourself debating lease vs. buying, or if you know exactly what you want, we’ll be happy to help when you visit Mercedes-Benz of Hoffman Estates. You can find our dealership at 1000 West Golf Road in Hoffman Estates, just west of the intersection between West Golf Road and West Higgins Road.

Questions?

Call us today at 847-885-7000 or send us a message.