Is Lease really cheaper in the US
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2015 MB Sprinter RV
Is Lease really cheaper in the US
I am not financial savvy, but I always considered lease to be a much more expensive path than a straight purchase (assuming you have plenty of funds at hands to finance your own purchase). In the overall scheme of things, is Lease (in particular for a C300) really cheaper or its much more expensive?
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2018 E400W4 Sedan Luxury Trim
It depends on how long you plan on keeping the car and how many miles you'll drive it each year. For many leasing is far cheaper because many people want a new car every 3 years or so and the C300 has very favorable lease terms (high residual and low money factor). Also people worry less with leased cars because if there's something they don't love, it's going back in a few years. There are other pros and cons. The bottom line is the out of pocket cost for a lease (drive off plus monthly) is far lower than a purchase. For example, I'm leasing a car which has a sticker price of $48K for $2,017 due at signing and $399 a month including tax. You simply can't beat that on a monthly basis, and I'd want a new car after 3 years either way, plus I only drive a few thousand miles each year. You are paying very little in "interest" with good leases (same goes with financing now too, even if you have cash to purchase the car you can usually get such a good loan that you can use your capital for better purposes).
The best value is buying a slightly used car.
The best value is buying a slightly used car.
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MB C300
What is peace of mind worth?
After three years tires and possibly a battery might need replacement. After the four year warranty a major repair is not out of the question. MB is not cheap to repair.
Check this board and see what folks are repairing before there first year is up. Is it unreasonable to think that a four year old car with computers and sensors might need a repair?
Again, what is peace of mind worth. I'll lease.
CliffordS
After three years tires and possibly a battery might need replacement. After the four year warranty a major repair is not out of the question. MB is not cheap to repair.
Check this board and see what folks are repairing before there first year is up. Is it unreasonable to think that a four year old car with computers and sensors might need a repair?
Again, what is peace of mind worth. I'll lease.
CliffordS
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From: Bay Area, CA
C43
I think leasing definitely has its merits beyond just cheaper payments when you're dealing with a car that is going to have high maintenance and repair costs. Just my opinion but this is not a car I would want to own outside of warranty.
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The last time, I leased was during college (a lexus), and I remember my insurance was very high, almost equaling the lease payment. And normally I dont use my insurance anyways, since it makes premium sky rocket.
- Whats the average comprehensive insurance you pay (that satisfies the car lease terms)?
The other issue, I face with lease is, that I dont know how many miles I would be driving. My range is anywhere 2k/yr to 14k/yr. How do you manage that constant watching of your odometer
- Dont you feel bad to return the vehicle at lease expiry with all those un-used miles (or for that matter, paying a penalty for the overage) ? Dont you lose that pleasure of 'ownership' ? (and feeling as if you are renting it)
- Whats the average comprehensive insurance you pay (that satisfies the car lease terms)?
The other issue, I face with lease is, that I dont know how many miles I would be driving. My range is anywhere 2k/yr to 14k/yr. How do you manage that constant watching of your odometer
- Dont you feel bad to return the vehicle at lease expiry with all those un-used miles (or for that matter, paying a penalty for the overage) ? Dont you lose that pleasure of 'ownership' ? (and feeling as if you are renting it)
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Joined: May 2015
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From: Cambridge, MA
2015 C300 Sport 4MATIC
The last time, I leased was during college (a lexus), and I remember my insurance was very high, almost equaling the lease payment. And normally I dont use my insurance anyways, since it makes premium sky rocket.
- Whats the average comprehensive insurance you pay (that satisfies the car lease terms)?
The other issue, I face with lease is, that I dont know how many miles I would be driving. My range is anywhere 2k/yr to 14k/yr. How do you manage that constant watching of your odometer
- Dont you feel bad to return the vehicle at lease expiry with all those un-used miles (or for that matter, paying a penalty for the overage) ? Dont you lose that pleasure of 'ownership' ? (and feeling as if you are renting it)
- Whats the average comprehensive insurance you pay (that satisfies the car lease terms)?
The other issue, I face with lease is, that I dont know how many miles I would be driving. My range is anywhere 2k/yr to 14k/yr. How do you manage that constant watching of your odometer
- Dont you feel bad to return the vehicle at lease expiry with all those un-used miles (or for that matter, paying a penalty for the overage) ? Dont you lose that pleasure of 'ownership' ? (and feeling as if you are renting it)
my insurance payment is $190/month with GEICO. Plus my 450 lease payment I'm all in for $640 each month.
my last car was a lease as well, I was under milage but still turned it in a few months early, didn't feel bad. personally, I never have the feeling of renting, why would I? I have the car for 3 years, which is as long as I would keep a car if I had financed it (I get bored quickly). I still treat the car as if I own it, I'm a car guy, so I definitely take care of it. I view leasing as a way out, because I don't want to be worrying about resale value, trading in the car later on, owning the car outside of factory warranty, etc. I feel free with a lease. To be quit honest, I destroyed my last car (GTI) moving in and out of college 3 years in a row with it, and was not charged a penny for any of the cosmetic damage on the car when I turned it in.
IMHO definitely a lot less to think about and potentially worry over with a lease. For example, I just found out my C300 Sport was one of the ones built with the Code 485 comfort suspension, If it was not a lease, I would be ripsh*t about it. Since it is a lease, my view now is that I have a more comfortable ride and I turn it in in 3 years, and simply is not going to be my problem. If I had purchased a car that came out of the factory wrong, you better believe I'd be wasting so much time trying to get it rectified.
Sorry for the essay haha
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2018 E400W4 Sedan Luxury Trim
For the insurance issue I guess it depends, for me I'd have the same coverage with owning vs leasing, and my rates are very good ($122 a month in Los Angeles with StateFarm, but I have several policies with them).
For the pride in ownership issue, this also depends, for me I couldn't care less. This is the big difference between a depreciating asset (car) and appreciating asset (home).
For the wasted miles, certainly not ideal, I know I'll be leaving miles on the table at the end of the lease. I wish they'd refund you the difference but if they did then the lease prices would be higher.
The main thing you lose with leasing is flexibility. If you own a car you can keep it 6 months or 6 years, with a lease you really need to keep it the full term in order to maximize the deal financially.
For the pride in ownership issue, this also depends, for me I couldn't care less. This is the big difference between a depreciating asset (car) and appreciating asset (home).
For the wasted miles, certainly not ideal, I know I'll be leaving miles on the table at the end of the lease. I wish they'd refund you the difference but if they did then the lease prices would be higher.
The main thing you lose with leasing is flexibility. If you own a car you can keep it 6 months or 6 years, with a lease you really need to keep it the full term in order to maximize the deal financially.
