Lease vs. Finance

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

Finance

A simple interest retail installment loan for the purchase of the vehicle.

Payments

Monthly payments are usually higher compared to leasing.  Buyer is paying the entire purchase price, plus interest and finance charges, taxes and fees; however, payments provide equity toward ownership.

You're not locked into a fixed ownership period.

Costs

Upfront costs due at contract signing may include down payment, taxes, registration, and other fees and charges.

No mileage penalties

Mileage/Excess Wear and Use

Buyer can drive an unlimited number of miles, but higher mileage can result in excess wear and affect resale or trade-in value.

Early Termination

Buyer can pay in full at any point during the contract term without penalty.  Buyer must pay the pay-off amount to end the financing contract early.

Ownership

Once all of the retail installment contract obligations have been satisfied, the customer owns the vehicle.  

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

Balloon Finance

A simple interest retail installment loan for the purchase of the vehicle, with a large lump sum balloon payment due at the end of the term. (Not available in all states).

Payments

Lump sum balloon payment at end of finance term results in lower monthly payments than standard financing.  Final balloon payment must be paid in full by cash payment or financing arrangement.

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

Upfront costs due at contract signing may include down payment, taxes, registration, and other fees and charges.

No mileage penalties

Good for drivers interested in tax depreciation.

Mileage/Excess Wear and Use

Buyer can drive an unlimited number of miles, but higher mileage can result in excess wear and affect resale or trade-in value.

Early Termination

Buyer can pay in full at any point during the contract term without penalty.  Buyer must pay the pay-off amount, including the final lump-sum payment, to end the financing contract early.

Ownership

Once all of the retail installment contract obligations have been satisfied, including payment of the final lump-sum, the customer owns the vehicle.

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

Balloon Finance

A simple interest retail installment loan for the purchase of the vehicle, with a large lump sum balloon payment due at the end of the term. (Not available in all states).

Payments

Lump sum balloon payment at end of finance term results in lower monthly payments than standard financing.  Final balloon payment must be paid in full by cash payment or financing arrangement.

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

Upfront costs due at contract signing may include down payment, taxes, registration, and other fees and charges.

No mileage penalties

Good for drivers interested in tax depreciation.

Mileage/Excess Wear and Use

Buyer can drive an unlimited number of miles, but higher mileage can result in excess wear and affect resale or trade-in value.

Early Termination

Buyer can pay in full at any point during the contract term without penalty.  Buyer must pay the pay-off amount, including the final lump-sum payment, to end the financing contract early.

Ownership

Once all of the retail installment contract obligations have been satisfied, including payment of the final lump-sum, the customer owns the vehicle.

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

Finance Balloon Finance Balloon Finance
A simple interest retail installment loan for the purchase of the vehicle. A simple interest retail installment loan for the purchase of the vehicle, with a large lump sum balloon payment due at the end of the term. (Not available in all states). A simple interest retail installment loan for the purchase of the vehicle, with a large lump sum balloon payment due at the end of the term. (Not available in all states).
Payments

Monthly payments are usually higher compared to leasing.  Buyer is paying the entire purchase price, plus interest and finance charges, taxes and fees; however, payments provide equity toward ownership.

Lump sum balloon payment at end of finance term results in lower monthly payments than standard financing.  Final balloon payment must be paid in full by cash payment or financing arrangement.

Lump sum balloon payment at end of finance term results in lower monthly payments than standard financing.  Final balloon payment must be paid in full by cash payment or financing arrangement.

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.

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

Upfront costs due at contract signing may include down payment, taxes, registration, and other fees and charges.

Upfront costs due at contract signing may include down payment, taxes, registration, and other fees and charges.

Upfront costs due at contract signing may include down payment, taxes, registration, and other fees and charges.

No mileage penalties

No mileage penalties

No mileage penalties

Good for drivers interested in tax depreciation.

Good for drivers interested in tax depreciation.

Mileage/Excess Wear and Use

Buyer can drive an unlimited number of miles, but higher mileage can result in excess wear and affect resale or trade-in value.

Buyer can drive an unlimited number of miles, but higher mileage can result in excess wear and affect resale or trade-in value.

Buyer can drive an unlimited number of miles, but higher mileage can result in excess wear and affect resale or trade-in value.

Early Termination

Buyer can pay in full at any point during the contract term without penalty.  Buyer must pay the pay-off amount to end the financing contract early.

Buyer can pay in full at any point during the contract term without penalty.  Buyer must pay the pay-off amount, including the final lump-sum payment, to end the financing contract early.

Buyer can pay in full at any point during the contract term without penalty.  Buyer must pay the pay-off amount, including the final lump-sum payment, to end the financing contract early.

Ownership

Once all of the retail installment contract obligations have been satisfied, the customer owns the vehicle.  

Once all of the retail installment contract obligations have been satisfied, including payment of the final lump-sum, the customer owns the vehicle.

Once all of the retail installment contract obligations have been satisfied, including payment of the final lump-sum, the customer owns the vehicle.

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

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

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