Lease or Buy (used) C-300?
#1
Junior Member
Thread Starter
Lease or Buy (used) C-300?
I am going through all my options before making this decision but this one I have some issues with.
Lease a NEW C300: Leasing is slightly cheaper per month, I won't have to worry about any problems with the car, I get to drive a new car every 3 years.
Buy Used: I own it, not under warranty, still low mileage, I don't think the car will be worth much after the length of time I intend on keeping it (8-10 years).
So i'm pretty much torn here because I know it's better to own an asset, but that asset isn't going to be valuable at the end of its life so am I really getting anything out of it? As the car ages I will have to pay for repairs.
Is it actually cheaper in the long run to own a used Mercedes? (considering the additional age related repair costs, depreciation, etc)
Lease a NEW C300: Leasing is slightly cheaper per month, I won't have to worry about any problems with the car, I get to drive a new car every 3 years.
Buy Used: I own it, not under warranty, still low mileage, I don't think the car will be worth much after the length of time I intend on keeping it (8-10 years).
So i'm pretty much torn here because I know it's better to own an asset, but that asset isn't going to be valuable at the end of its life so am I really getting anything out of it? As the car ages I will have to pay for repairs.
Is it actually cheaper in the long run to own a used Mercedes? (considering the additional age related repair costs, depreciation, etc)
Last edited by Aimbit; 06-26-2017 at 05:24 PM.
#2
Super Member
I would think it is cheaper to own any car in the long run. The question is how comfortable you are without having a warranty, do you get tired of a car every couple years, how good are you are budgeting and putting away money, etc.
The most depreciation occurs like the first three years and then slows quite a bit. Look at it this way, say you buy a few year old Mercedes and lease it for $400 a month. That's $4800 a year. Then say you would buy it and have that same payment for 4 years. You would end up paying $19,200 total. To keep it simple figure that would be the cost of the loan. After 4 years you own it outright. Meanwhile, if you lease you would pay that same amount and and then be without an asset. If you own it you have an asset, although not worth as much as when you bought it. Then you want to keep it another 4 years. That means you will be betting on spending less than $4800 on repairs every year over those next four years of ownership. I would think that is a pretty safe bet that you would not average $4800 in repairs every year. Plus, then even after 8 years you still have an asset that has some value you could sell.
Everyone's situation is different and you have to figure out what YOU are most comfortable with.
The most depreciation occurs like the first three years and then slows quite a bit. Look at it this way, say you buy a few year old Mercedes and lease it for $400 a month. That's $4800 a year. Then say you would buy it and have that same payment for 4 years. You would end up paying $19,200 total. To keep it simple figure that would be the cost of the loan. After 4 years you own it outright. Meanwhile, if you lease you would pay that same amount and and then be without an asset. If you own it you have an asset, although not worth as much as when you bought it. Then you want to keep it another 4 years. That means you will be betting on spending less than $4800 on repairs every year over those next four years of ownership. I would think that is a pretty safe bet that you would not average $4800 in repairs every year. Plus, then even after 8 years you still have an asset that has some value you could sell.
Everyone's situation is different and you have to figure out what YOU are most comfortable with.
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Aimbit (06-26-2017)
#3
Junior Member
Thread Starter
I would think it is cheaper to own any car in the long run. The question is how comfortable you are without having a warranty, do you get tired of a car every couple years, how good are you are budgeting and putting away money, etc.
The most depreciation occurs like the first three years and then slows quite a bit. Look at it this way, say you buy a few year old Mercedes and lease it for $400 a month. That's $4800 a year. Then say you would buy it and have that same payment for 4 years. You would end up paying $19,200 total. To keep it simple figure that would be the cost of the loan. After 4 years you own it outright. Meanwhile, if you lease you would pay that same amount and and then be without an asset. If you own it you have an asset, although not worth as much as when you bought it. Then you want to keep it another 4 years. That means you will be betting on spending less than $4800 on repairs every year over those next four years of ownership. I would think that is a pretty safe bet that you would not average $4800 in repairs every year. Plus, then even after 8 years you still have an asset that has some value you could sell.
Everyone's situation is different and you have to figure out what YOU are most comfortable with.
The most depreciation occurs like the first three years and then slows quite a bit. Look at it this way, say you buy a few year old Mercedes and lease it for $400 a month. That's $4800 a year. Then say you would buy it and have that same payment for 4 years. You would end up paying $19,200 total. To keep it simple figure that would be the cost of the loan. After 4 years you own it outright. Meanwhile, if you lease you would pay that same amount and and then be without an asset. If you own it you have an asset, although not worth as much as when you bought it. Then you want to keep it another 4 years. That means you will be betting on spending less than $4800 on repairs every year over those next four years of ownership. I would think that is a pretty safe bet that you would not average $4800 in repairs every year. Plus, then even after 8 years you still have an asset that has some value you could sell.
Everyone's situation is different and you have to figure out what YOU are most comfortable with.
#4
Senior Member
I only buy used, low miles but I tend to keep a vehicle longer than the normal lease term (I had my Chevy Tahoe for 19 years). I let the new purchaser absorb the steep decrease in value and then pick up the 3 - 4 year old car at a better price and keep it longer.
#5
Member
I always lean towards buying, especially if it's used. I only buy used as Card mentioned but I wait until under $10k mark, never paid more than that and never will for a car haha.
If you are going new and don't do work on it yourself and rely on dealership Lease is smart, not sure I'd contemplate leasing used as you will pay about the same as buying.
In my head at least, leasing a new $50k car for 3 years you pay half or a little over half, if you lease a used car say 4 years old you will pay pretty much purchase price of $25k-$30k and end up with nothing.
As Alfa said as well, asset is an asset even with depreciation compared to ending with nothing at all to show for all that $$$.
But just my opinion, I'm also the guy that keeps cars for 10+ years and then passes them off to family that could use them like my mom, she has my 1997 C280 I paid $3k for years ago and just now at 130k miles.
If you are going new and don't do work on it yourself and rely on dealership Lease is smart, not sure I'd contemplate leasing used as you will pay about the same as buying.
In my head at least, leasing a new $50k car for 3 years you pay half or a little over half, if you lease a used car say 4 years old you will pay pretty much purchase price of $25k-$30k and end up with nothing.
As Alfa said as well, asset is an asset even with depreciation compared to ending with nothing at all to show for all that $$$.
But just my opinion, I'm also the guy that keeps cars for 10+ years and then passes them off to family that could use them like my mom, she has my 1997 C280 I paid $3k for years ago and just now at 130k miles.
#6
Super Member
Why would you lease a used car? Did they even give you that option? I'd say buy it, at the end of the day at least you can sell it and recover some money and I don't see lease payments being much lower then buying.
#7
Junior Member
Thread Starter
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#8
MBWorld Fanatic!
If you're going to buy a car, buying a C300 isn't a bad idea. The car is pretty reliable. If it were an E or an S class, I'd suggest leasing. All in all, buy a used car that has a good track record. If you're after the latest and greatest, then lease it if it is a new model (new body shape etc).