The Mercedes-Benz C-Class has been gnawing on your leg now for about six months, and finally, you are about to pull the trigger. You make your way to the Finance and Insurance officer who greets you and asks if you are buying or leasing? You reply with a deer in the headlights look and a simple yes!

Now what?

That's what we will attempt to show you with our beginner's guide to leasing a vehicle from Mercedes-Benz of Rochester.

The best part of leasing is the ability to purchase a vehicle for a set amount of time and mileage and drive it for substantially less money than it will cost you to purchase the car outright. Let's dig in deeper to find out more about this process. 

If you enjoy driving a new Mercedes-Benz every three years, are disciplined enough to keep your mileage under a certain level and have lower payments than you would if you owned the vehicle free and clear, then leasing may be the route for you to take.

Leasing is similar to purchasing, but there are a few differences, too. 

  • Affordability: Leasing at Mercedes-Benz of Rochester allows you to get more car for less money than it would cost you to buy it. Unlike a car loan that considers the car's entire price, the lease involves only a percentage of the car's pricing. Additionally, you will constantly be able to stay in touch with the latest technology available in your Mercedes-Benz vehicle, with every new lease you initiate.
  • Down Payment: If you have only a little or no down payment available, leasing may also be the better option for you. Depending on the car and the lease, the down payment may be negotiable. 
  • Warranty: Most vehicles are leased for three years, which falls within a four year warranty period. In that case, it's like money that stays in the bank because, by the time the warranty expires, you are already on to your next leased vehicle. You are still responsible for maintaining the vehicle with regular servicing that includes oil changes, tire rotations and other services outlined in the Mercedes-Benz owner's manual found in your vehicle. Please be aware that if service is neglected, it can result in unexpected fees at lease termination. Inquire with your sales specialist about Mercedes-Benz of Rochester's pre-paid maintenance plans.
  • Walk-Away: At the end of the lease, you have the choice of stepping into a new lease, buying the car outright or turn in the keys and walk away. To paraphrase the chorus from a famous mid-sixties pop song, you won't see it follow you back home.

LEASE TERMINOLOGY: Each industry has its own language. The automobile sales business is no different. Here is a glossary of terms that relate to leasing a vehicle:

  • Capitalized Cost: The agreed-upon price of the vehicle.
  • Residual Value: This official figure is determined by companies like ALG, stating what the vehicle will be worth at the end of the lease term. It is found by taking a percentage of the car's Manufacturer's Suggested Retail Price (MSRP) and converting that back to a dollar amount.
  • Money Factor: The lease rate is essentially the same as the annual percentage rate (APR) of a conventional auto loan. It is used to determine a particular monthly lease payment.
  • Term: Refers to the term or length of a lease. An automotive lease typically lasts three years or 36 months.
  • Mileage Allowance: The mileage allowance refers to the number of miles you can drive while the vehicle is in your possession. It is usually in the region of 10,000 to 15,000 miles, although many leases center around 12,000 miles. You can always purchase additional miles during the lease, but you won't be entitled to a refund if they go unused.
  • GAP: GAP refers to the Guaranteed Asset Protection coverage. Sold as an additional part of the lease, it is designed to cover the difference between the insurance proceeds and the balance you will owe to Mercedes-Benz Financial if the vehicle is declared a total loss because of accident, theft, etc. 

This is just the beginning of a long and fruitful relationship between you and Mercedes-Benz of Rochester. To learn more, please contact the expert sales associates at our facility.

>> Have a Mercedes-Benz Lease Related Question? Call (507) 322-7150 to Speak with a Lease Specialist at Mercedes-Benz of Rochester <<

Contact

Mercedes-Benzof Rochester

4447 Canal Place
Directions Rochester, MN 55904

  • Sales: (507) 322-7150
  • Service: (507) 322-7160
  • Parts: (507) 322-7170

Make an Inquiry