Mercedes-Benz Lease
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.
A great part of leasing is the ability to drive off in 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 you're interested in having lower monthly payments than you would if you owned the vehicle outright, then leasing may be the route for you to take.
Leasing is similar to purchasing, but there are a few key differences.
- Affordability: Leasing at Mercedes-Benz of Rochester allows you to go home in your dream car for less. Unlike a car loan for purchasing a vehicle, which 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're interested in a smaller down payment, leasing may also be the better option for you. Depending on the car and the lease, your down payment will often be considerably less when leasing vs purchasing.
- Maintenance & Warranty: With many leasing agreements, your car will often be covered by warranty for the entire duration of the lease. Leasing a new car often means you don't have to worry as much about maintenance since you can lease a car for its first three years of life and then when your lease is up you can get into a brand new car once again resetting the lifespan.
- Driving New Up-to-Date Mercedes: At the end of the lease, you have the choice of stepping into a brand new lease, buying the car outright, or turn in the keys and walk away. This is great for those that are looking to have the latest tech features in their car, the latest design, or even just like to have the option to change from a sedan to a SUV as your life changes.
LEASE TERMINOLOGY: Each industry has its own language. The automotive industry 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 (contact a Mercedes-Benz of Rochester Sales Representative for exact figures). 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.
Related Mercedes-Benz Lease Articles:
- A Beginner's Guide to Leasing a New Mercedes-Benz Vehicle
- Leasing or Buying a Mercedes-Benz Automobile: Which Makes More Sense?
- How to Get Better Mercedes-Benz Leasing
- Mercedes-Benz Service Loaner Lease
- Early Lease Termination of a Mercedes-Benz Vehicle
- The Ins and Outs of Leasing a Car from Mercedes-Benz of Rochester
- Here's Why You Should Buy Your Leased Mercedes-Benz
- What is High Mileage Mercedes-Lease and How to Tell If It is Right for You
Contact
Mercedes-Benzof Rochester
4447 Canal Place
Rochester, MN 55904
- Sales: (507) 322-7150
- Service: (507) 322-7160
- Parts: (507) 322-7170
Contact Us About A Mercedes-Benz Lease Today
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Dealer not responsible for typographical errors. Pictures are for illustration purposes only. All vehicles subject to prior sales. See dealer for details. MSRP may not be price at which vehicle is sold in trade area. New car prices include applicable manufacturer incentives in lieu of special financing. Plus tax, tag, $350 doc fee, registration & title fees. New car MPGs are EPA's estimated city/highway MPGs. New vehicle MPGe/EPA Range Rating are based on EPA Range Rating. See dealer for copy of limited warranty. Pre-owned vehicle prices plus tax, tag, $350 doc fee, registration & title fees. Pre-owned vehicle MPG claims are based on EPA estimated city and highway ratings when vehicle was new. Pre-owned vehicle MPGe/EPA Range Rating are based on EPA Range Rating when vehicle was new. Consumers actual mileage will vary. The value of pre-owned vehicles varies with mileage, usage and condition. Book values should be considered estimates only.
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