ballon finance
08-17-2006, 12:33 PM
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balloon finance
Is balloon financing is a good way to go regarding on financing a 07 s550,and if so should i put down more than the asking down payment.Iam looking to do 60 months loan with mb financing department,have anyone did a balloon loan financig with mb,or any other bank etc.thanks
Last edited by jesse james; 08-17-2006 at 07:29 PM.
08-22-2006, 07:22 PM
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380 SEL 1982
you sound like a long term lease candidate
Here is why you might want to consider a lease, even a long 60 month one:
1. get in a bad wreck, 20K won't total this expensive car...but it will kill the value. At the end of the lease, turn it back. If you had a baloon payment to make, you might feel strange making it on a damaged car.
2. Depending on your state, you won't have to pay sales tax on the entire car, just the lease payment. With a baloon note, you pay tax on the whole thing and this is added to your balance. Should you decide to trade 3 years from now, you will be more upside down with a baloon retail contract than a 60 month lease!
3. A 60 month lease is essentially a baloon contract, but is 'legally' a lease. The residual value is effectively a baloon payment. Same thing, but you get all the benefits of the lease.
If you really KNOW in your heart you will keep this car 7-10 years then do a 72 month straight retail contract from whoever provides the best rates.
If you are unsure, consider a 48 or 60 month lease.
Just my $.02
1. get in a bad wreck, 20K won't total this expensive car...but it will kill the value. At the end of the lease, turn it back. If you had a baloon payment to make, you might feel strange making it on a damaged car.
2. Depending on your state, you won't have to pay sales tax on the entire car, just the lease payment. With a baloon note, you pay tax on the whole thing and this is added to your balance. Should you decide to trade 3 years from now, you will be more upside down with a baloon retail contract than a 60 month lease!
3. A 60 month lease is essentially a baloon contract, but is 'legally' a lease. The residual value is effectively a baloon payment. Same thing, but you get all the benefits of the lease.
If you really KNOW in your heart you will keep this car 7-10 years then do a 72 month straight retail contract from whoever provides the best rates.
If you are unsure, consider a 48 or 60 month lease.
Just my $.02
01-06-2019, 08:34 PM
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2023 AMG EQE 53
I keep reading the term "lease" or "balloon lease" or " balloon payment", a lease and a balloon payment finance are 2 different things. MB leases are usually do low because MB supports them and at the end the cars value is usually always less than what you've contracted as the residual purchase value si't stupid to buy it. There are also "one payment leases" where you write one check for a 3 year lease, the money rate is very low because the risk is low because you've essentially prepaid everything. First you need to figure out which route you're going to take and then run some numbers. With interest rates still low a traditional lease from MB will put you in the G Wagon for the total least amount of out of pocket money. In 3 years you'll probably want a new one. Lots of variables, cost of money, subsidy by MB, what you can earn on your cash, the value of the car at some point in the future, your appetite for risk. Good luck.
05-09-2022, 12:04 PM
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2023 AMG EQE 53
Not sure who you think you'd be laughing at or why?
But the reality for me is that I had my 2019 AMG43 on a MB lease for 3 years, at the end of 2021 the lease came up and I made a deal with the dealer to buy my car for the residual number from MB since it was worth $10K MORE than the residual number.. He gave me a choice, he'd write me a check for $10K higher number or sell me back the car for the residual number. The dealer bought my car from MB for me and then sold it back to me for that same number. The costs all got rolled in and it took about an hour. So don't laugh at me for now owning my car for $10K less than it's worth. Instant equity. I do have a long term relationship with the dealer, so I can't say that every dealer would do that.
And to add to that, part of the reason I decided to keep the car is that to order a new one is maybe later this year or next and there is absolutely nothing wrong with my current car and I still have a year of factory warranty left, a no brainer for me. He's got me on his list for the new C43 (or whatever it's going to be).
But the reality for me is that I had my 2019 AMG43 on a MB lease for 3 years, at the end of 2021 the lease came up and I made a deal with the dealer to buy my car for the residual number from MB since it was worth $10K MORE than the residual number.. He gave me a choice, he'd write me a check for $10K higher number or sell me back the car for the residual number. The dealer bought my car from MB for me and then sold it back to me for that same number. The costs all got rolled in and it took about an hour. So don't laugh at me for now owning my car for $10K less than it's worth. Instant equity. I do have a long term relationship with the dealer, so I can't say that every dealer would do that.
And to add to that, part of the reason I decided to keep the car is that to order a new one is maybe later this year or next and there is absolutely nothing wrong with my current car and I still have a year of factory warranty left, a no brainer for me. He's got me on his list for the new C43 (or whatever it's going to be).
