These days, we all know that brand new cars are quite expensive to buy. It’s not uncommon to see premium cars such as Mercedes-Benz costing in excess of $50,000.
With the recent boom of easier access credit such as PCP and leasing/contract hire, premium cars have become affordable for the vast majority of people. Meaning everyone can enjoy the feeling of having a gorgeous Mercedes C-Class Coupe sitting on their driveway with affordable car leasing.
However, there are still pros and cons to the current car credit systems. In this post, we are going to give a rundown about how leasing is actually the most affordable way to own a Mercedes without breaking the bank.
1. You Can Drive the Mercedes of Your Dreams
First and foremost, leasing means cars that would be out of your budget can become affordable. That $30,000 Mercedes A-Class you’ve been watching goes from expensive to affordable with $300 per month payments. It’s even easier given the fact that you can customize the majority of your lease deal. Contract length, initial rental, and annual mileage all contribute to your monthly expenses. Also, you can simply reduce certain areas in order to meet your budget.
If you know you’ll only do 5,000 miles per annum and want to keep the car for at least 3 years, you can knock down that monthly price by having a 4-year contract instead, giving you an extra year to pay the lease. Optional extras can also be removed to reduce the prices further. Although, all Mercedes deserve the best interior trims for maximum comfort!
2. No Risk of Depreciation
It is common knowledge that new vehicles driven off the forecourt instantly depreciate by at least 20%. You wouldn’t be able to sell your brand-new vehicle with 20 miles on it for the same price you bought it if you didn’t end up liking it. Leasing avoids deprecation by the fact that you hand the car back at the end of the lease and you won’t take the hit to your vehicle’s value (the manufacturer essentially does).
Here’s an example:
You buy a brand-new Mercedes A-Class for $30,000 and sell it in 3 years. You already lose 20% due to the car being used when driven off the forecourt. Your A-Class is now worth $24,000.
After 3 years putting on 10,000 miles per year, your Mercedes is at 30,000 miles and you decide to sell it. You’d be looking at an average $10,000 – $15,000 depending on how the car was maintained. In reality, it’s completely possible to have lost $20,000 on your car over 3 years.
Now let’s lease a brand-new Mercedes A-Class instead. You could easily find one for $300 per month. A contract of 3 years would cost a total of $10,800. Then you hand it back and either lease another new Mercedes or walk away. Leasing saves a huge amount of money and you don’t have to worry about your asset depreciating.
3. Enjoy a Reliable Mercedes with All the Latest Technology
Buying a used 10-year-old car for $5,000 could be an attractive option for those who are budget conscious. However, you may be forgetting issues such as reliability, not having the latest technology and safety features, problems the previous owner hasn’t told you about, etc.
A $300 per month Mercedes lease deal would cost a total of $3,600 per year and you would get a brand-new car. What’s even better is the fact that a lot of lease deals have tiny upfront payments with longer contracts, meaning you could drive your new Mercedes off the forecourt for a tiny $300.
Let’s not forget the reliability a new car brings as well as the latest technology such as satnavs, Bluetooth phone calls, tire pressure monitors and much more that enhances your driving experience. Sure, you have to give your vehicle back at the end of the lease, but at least you won’t have to shell out hundreds (potentially thousands) to fix your used car when it breaks down.
4. Manage Your Budgets Easier and Avoid Surprise Spending
Leasing a car means you pay a fixed price per month. Knowing this, you can ensure that your monthly bills are sorted well in advance and you won’t need to worry about any other out-goings related to your car. We’ve all been in (or been close to) the situation where something suddenly breaks and you need to pay for it to be fixed, whether it’s a car or another appliance.
Leased cars have the benefit of being looked after by the manufacturer, as the car still belongs to them, and you’re just leasing it. This means if anything breaks, they will be the ones to pay for it. This isn’t always the case as damage done by yourself may have to be paid out by your insurance! Always make sure you check with the manufacturer on what their stance on vehicle damage is before going through with a lease deal.
5. Avoid the Pitfalls of PCP with Contract Hire
Lots of people are using PCP deals nowadays, but unless you are going to buy the vehicle at the end of the contract, it’s simply cheaper to go with contract hire. PCP deals have to give you monthly rates based on the final estimated value of the car, which is the reason it can be more expensive as a smaller deposit will mean larger monthly payments. With leasing, you don’t have to worry about the final value of the car as you’re giving it back at the end. Money Service Advice goes into more detail about contract hire vs PCP.
There are 5 easy reasons that Mercedes cars are far more affordable than they’ve ever been. With the sheer technological brilliance that Mercedes brings to the forefront of the car industry, everyone deserves to drive one at least once in their lives.
Why not take a look at some Mercedes lease deals and get an idea of how much you would need to lease a Mercedes per month?