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Lease or Finance?
Explore whether to Lease or Finance your next Mercedes-Benz vehicle
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Lease
You enter a long-term contract for the use of the vehicle and make regular monthly payments - for 3 years or more.
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Finance
You are given a loan for the purchase of the vehicle outright and make regular payments over the period of the loan.
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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

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

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

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

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