Lease vs. Finance

Unsure whether to lease or finance your next Mercedes-Benz vehicle? Explore the differences below.

Lease

You enter a long-term contract for the use of the vehicle and make regular monthly payments - typically for 3 years.

Payments

Monthly payments are usually lower than the standard Finance option.

Locked into making payments for the duration of the lease - no option of paying it off early.

Costs

Lower out-of-pocket costs to acquire the vehicle.

Insurance premiums are usually higher for a leased vehicle.

If vehicle is driven over specified number of miles, you are charged an extra fee per mile.

A lease may have tax advantages if the vehicle is used for business purposes.

Ownership

You essentially pay for portion of the vehicle used over the payment term.

At end of lease, you can either buy the vehicle outright, or turn it in and enter into another lease for a new Mercedes-Benz.

Finance

You are given a loan for the purchase of the vehicle outright and make regular payments over the period of the loan.

Payments

Monthly payments are higher compared to other options.

You're not locked into a fixed ownership period.

Costs

Down payment is always greater than on a lease.

No mileage penalties

Ownership

Once all payments have been made, you will own the vehicle.

Vehicle can be sold at any time, under any terms.

Balloon Finance

Similar to standard Finance except you make a large, lump-sum payment at the end of a long-term loan, reducing monthly payments.

Payments

By far the lowest monthly payments of any option.

The entire amount is not paid off over the life of the loan, so the remaining balance is due in one large lump sum to the lender.

Costs

Down payment can exceed the usual $15,000 limit set by MBUSA Financial.

No mileage penalties

Good for drivers interested in tax depreciation.

Ownership

Once all payments have been made, you will own the vehicle.

Vehicle can be sold at any time, under any terms.

Lease Finance Balloon Finance
You enter a long-term contract for the use of the vehicle and make regular monthly payments - typically for 3 years. You are given a loan for the purchase of the vehicle outright and make regular payments over the period of the loan. Similar to standard Finance except you make a large, lump-sum payment at the end of a long-term loan, reducing monthly payments.
Payments

Monthly payments are usually lower than the standard Finance option.

Monthly payments are higher compared to other options.

By far the lowest monthly payments of any option.

Locked into making payments for the duration of the lease - no option of paying it off early.

You're not locked into a fixed ownership period.

The entire amount is not paid off over the life of the loan, so the remaining balance is due in one large lump sum to the lender.

Costs

Lower out-of-pocket costs to acquire the vehicle.

Down payment is always greater than on a lease.

Down payment can exceed the usual $15,000 limit set by MBUSA Financial.

Insurance premiums are usually higher for a leased vehicle.

If vehicle is driven over specified number of miles, you are charged an extra fee per mile.

No mileage penalties

No mileage penalties

A lease may have tax advantages if the vehicle is used for business purposes.

Good for drivers interested in tax depreciation.

Ownership

You essentially pay for portion of the vehicle used over the payment term.

Once all payments have been made, you will own the vehicle.

Once all payments have been made, you will own the vehicle.

At end of lease, you can either buy the vehicle outright, or turn it in and enter into another lease for a new Mercedes-Benz.

Vehicle can be sold at any time, under any terms.

Vehicle can be sold at any time, under any terms.