Leasing the right choice?
08-08-2018, 10:14 PM
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Leasing the right choice?
Hi guys,
I have been thinking about buying the C43 for a while now, because man is the car gorgeous.
I have been saving up for a couple of months as I was planning on financing a 2019 coupe.
By the time the car will be available in the US (~November from what I have researched) I will have saved roughly 15-18k.
But reading through forums and the web, I found that the majority of the posts are about leasing the car. (2017~2018 models)
I was really curious as why that was because I have heard from a friend who owns a 2015 C63 that leasing AMGs was not a good idea (didn't really give specific reasons).
From what I can tell, the major pro of leasing is the low monthly pay with no Downpay required, and also that you don't have to deal with the crazy depreciation of a new coupe c43.
I guess my question is:
If I have saved up more than 20% of the car's value to use as DP, is leasing still the better option?
.. Because if I calculate ~80% car's cost and compare it to some of the lease payments, it is very similar.
Any thoughts/comments are appreciated
I have been thinking about buying the C43 for a while now, because man is the car gorgeous.
I have been saving up for a couple of months as I was planning on financing a 2019 coupe.
By the time the car will be available in the US (~November from what I have researched) I will have saved roughly 15-18k.
But reading through forums and the web, I found that the majority of the posts are about leasing the car. (2017~2018 models)
I was really curious as why that was because I have heard from a friend who owns a 2015 C63 that leasing AMGs was not a good idea (didn't really give specific reasons).
From what I can tell, the major pro of leasing is the low monthly pay with no Downpay required, and also that you don't have to deal with the crazy depreciation of a new coupe c43.
I guess my question is:
If I have saved up more than 20% of the car's value to use as DP, is leasing still the better option?
.. Because if I calculate ~80% car's cost and compare it to some of the lease payments, it is very similar.
Any thoughts/comments are appreciated
08-09-2018, 12:01 AM
#2
Senior Member
You will find a ton of people that will argue leasing is better than financing, and vice versa. It's all about how either option fits your lifestyle. In fact, some people buy these cars outright with cash.
I'm a fan of the leasing model because...
You are effectively buying yourself the option of returning the vehicle at the time of lease maturity. Any sort of unexpected heavy depreciation you experience on the vehicle during the lease isn't your headache once the lease is up. If something happens to the vehicle and the value takes a big hit, you are bearing the whole hit if you are financing the vehicle. With aggressive interest rates, often times the difference between leasing and buying out the vehicle at time of lease maturity vs. financing the vehicle, isn't all that much. Basically, the lower the difference between lease and finance interest rates, the lower the cost of leasing will be. That being said, If the vehicle is in pristine condition, under driven, and worth more than the residual, then you can buy back the vehicle and keep it / sell it.
Financing, in my opinion, really only makes sense if you are planning on driving the vehicle much much further than the maximum allowable lease limit during the time of the lease, or if there is a huge gap in finance and interest rates. For a lot of people, neither are the case.
I'm a fan of the leasing model because...
You are effectively buying yourself the option of returning the vehicle at the time of lease maturity. Any sort of unexpected heavy depreciation you experience on the vehicle during the lease isn't your headache once the lease is up. If something happens to the vehicle and the value takes a big hit, you are bearing the whole hit if you are financing the vehicle. With aggressive interest rates, often times the difference between leasing and buying out the vehicle at time of lease maturity vs. financing the vehicle, isn't all that much. Basically, the lower the difference between lease and finance interest rates, the lower the cost of leasing will be. That being said, If the vehicle is in pristine condition, under driven, and worth more than the residual, then you can buy back the vehicle and keep it / sell it.
Financing, in my opinion, really only makes sense if you are planning on driving the vehicle much much further than the maximum allowable lease limit during the time of the lease, or if there is a huge gap in finance and interest rates. For a lot of people, neither are the case.
08-09-2018, 11:31 AM
#3
I financed a used 2013 C50 Coupe 4 matic 2 years ago and i'm trading it in for a C43 2018 Lease. Keep in mind that I made a down payment of 20k and financed 20k (taxes in and financing in at 0.9%) on five years on that car and the dealer gives me 18K for it now. I still have a debt of 12k on the car at the time of the trade in. So this is why I will never buy a german car again, the depreciation is crazy. I will only lease from now on. The car lost 12k in value in 2 years.
08-09-2018, 11:57 AM
#4
Depends. Depreciation on a new car is the main reason people lease high end cars. I leased my C43 so i wouldn't have to worry about depreciation and parts/maintenance etc...I would only consider buying a car if its used and has already depreciated a decent amount, but then you won't have warranty for long or you might have to purchase extended warranty. Unless you absolutely love the C43 and see yourself owning it for over 4-5 years then i'd purchase it....or you could lease it for 3 years, then lease a newer one 
. I also do lease cars because I drive them very hard 
. I also do lease cars because I drive them very hard
08-09-2018, 02:11 PM
#5
Member
this is interesting... me personally i only do CPO because the depreciation on these vehicles are TERRIBLE in that first 3 years... but the only thing about leasing -- well at least what held me back -- was that you have no equity in going into the next car.. don't they require down payments for each new model you jump into?
08-09-2018, 02:18 PM
#6
I keep in mind during my lease that I need some cash down in 3 years when it's ended and just put some cash in a bank account just for that. I keep my monthly payment pretty low so I have some room to keep some cash around.
08-09-2018, 03:36 PM
#7
Super Member
this is interesting... me personally i only do CPO because the depreciation on these vehicles are TERRIBLE in that first 3 years... but the only thing about leasing -- well at least what held me back -- was that you have no equity in going into the next car.. don't they require down payments for each new model you jump into?
You're paying for that equity and I think the money's better kept in my pocket. The tax benefits of a lease outweigh everything for me. Plus, I like having new cars every few years, so it only makes sense to lease.
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08-09-2018, 04:04 PM
#8
Member
My family and myself always choose to lease. I was taught (*warning, you may not agree!*) that you should never lease a car that you can't buy in cash, COMFORTABLY.
Here is why your friend is telling you that AMGs should not be leased - the lease payments/rates are horrific, and most people buy those cars for that reason. Using today's numbers you can expected a '19 C63S sedan will cost about $1.6k-1.7k/mo (tax, etc included). For comparison to a C43 (runs at under $800/mo), take a look @ the C63S lease payment, it is far higher than that of a C43 because it is a true AMG, but when you compare MSRPs it is only $20k more expensive when comparing moderately equipped vehicles. Point is, your friend was correct in stating that AMGs should not be leased, but I don't think that you should be concerned because a C43 doesn't qualify for that overpriced, full blown AMG rate.
Your best bet is to call some dealerships and have them run numbers for specific MSRPs of '18 C43 and '18 C63S under the same lease parameters. Then you'll really be able to see the difference between AMG and Non-AMG.
The reason I am going for a '19 C63S sedan lease over a purchase is because I like to just "rent" and drive the car like no tomorrow because it is not mine, and then give it back and get something else after. That is the only reason. To each their own!
Good luck!
Here is why your friend is telling you that AMGs should not be leased - the lease payments/rates are horrific, and most people buy those cars for that reason. Using today's numbers you can expected a '19 C63S sedan will cost about $1.6k-1.7k/mo (tax, etc included). For comparison to a C43 (runs at under $800/mo), take a look @ the C63S lease payment, it is far higher than that of a C43 because it is a true AMG, but when you compare MSRPs it is only $20k more expensive when comparing moderately equipped vehicles. Point is, your friend was correct in stating that AMGs should not be leased, but I don't think that you should be concerned because a C43 doesn't qualify for that overpriced, full blown AMG rate.
Your best bet is to call some dealerships and have them run numbers for specific MSRPs of '18 C43 and '18 C63S under the same lease parameters. Then you'll really be able to see the difference between AMG and Non-AMG.
The reason I am going for a '19 C63S sedan lease over a purchase is because I like to just "rent" and drive the car like no tomorrow because it is not mine, and then give it back and get something else after. That is the only reason. To each their own!
Good luck!
08-09-2018, 05:50 PM
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Thanks for all the thoughts guys, this thread is definitely leaning me towards the lease instead of financing..
How lenient is Benz with the "Wear and tear" at the end of the lease? I usually do drive pretty rough, as you should when owning such a fun car to drive. What's the usual penalty $ range?
How lenient is Benz with the "Wear and tear" at the end of the lease? I usually do drive pretty rough, as you should when owning such a fun car to drive. What's the usual penalty $ range?
08-09-2018, 06:10 PM
#10
Member
do you personally write off your lease for "business purposes"? if so, then yeah i could see how that helps.. e personally it is just for the pleasure of driving.. my job doesn't require me to drive much.
08-09-2018, 06:14 PM
#11
Thanks for all the thoughts guys, this thread is definitely leaning me towards the lease instead of financing..
How lenient is Benz with the "Wear and tear" at the end of the lease? I usually do drive pretty rough, as you should when owning such a fun car to drive. What's the usual penalty $ range?
How lenient is Benz with the "Wear and tear" at the end of the lease? I usually do drive pretty rough, as you should when owning such a fun car to drive. What's the usual penalty $ range?
I drive very rough, hence why i lease my cars now. After owning cars for a while, it wasn't worth the maintenance out of my pocket.
08-09-2018, 06:37 PM
#12
Member
Thanks for all the thoughts guys, this thread is definitely leaning me towards the lease instead of financing..
How lenient is Benz with the "Wear and tear" at the end of the lease? I usually do drive pretty rough, as you should when owning such a fun car to drive. What's the usual penalty $ range?
How lenient is Benz with the "Wear and tear" at the end of the lease? I usually do drive pretty rough, as you should when owning such a fun car to drive. What's the usual penalty $ range?
Go for a lease if you want to get a new car again in a few years, want to know exactly how much you'll pay for the lease, like that you'll be covered by warranty the entire time, and know that any depreciation will not affect you, and most importantly let the car be the next man's problem after, not yours!
08-09-2018, 06:55 PM
#13
Member
Thanks for all the thoughts guys, this thread is definitely leaning me towards the lease instead of financing..
How lenient is Benz with the "Wear and tear" at the end of the lease? I usually do drive pretty rough, as you should when owning such a fun car to drive. What's the usual penalty $ range?
How lenient is Benz with the "Wear and tear" at the end of the lease? I usually do drive pretty rough, as you should when owning such a fun car to drive. What's the usual penalty $ range?
Hence I buy the prepaid maintenance and lease end protection up to $3500 in unexpected damage.
As far as your lease or buy ? It would depend on which method leaves more $ in your account at years end after duking it out with the tax man. For me it is a complete write off by leasing if I finance gotta track Kms driven deppreciation blah blah.
Well whatever you do enjoy the car.
08-09-2018, 10:12 PM
#14
Super Member
At my return on my c400 byjeez they went over the car fine tooth comb..any of the tinniest nicks in the rim $$ ...tire treads better be up to spec $$... km's over lease agreement $$.. and the old "but am buying another car wont work" They checked brakes within spec and maintenance must be proven. Mercedes is the worst to return a leased vehicle.
Hence I buy the prepaid maintenance and lease end protection up to $3500 in unexpected damage.
As far as your lease or buy ? It would depend on which method leaves more $ in your account at years end after duking it out with the tax man. For me it is a complete write off by leasing if I finance gotta track Kms driven deppreciation blah blah.
Well whatever you do enjoy the car.
Hence I buy the prepaid maintenance and lease end protection up to $3500 in unexpected damage.
As far as your lease or buy ? It would depend on which method leaves more $ in your account at years end after duking it out with the tax man. For me it is a complete write off by leasing if I finance gotta track Kms driven deppreciation blah blah.
Well whatever you do enjoy the car.
08-10-2018, 12:30 AM
#15
This is a stereotype but often true:
1. People lease because they don’t have the money to buy. Leasing let’s you get financing rates when you don’t have a down payment, so people with no money can get the dream car.
2. Leasing is for those who can’t sit still with one car. You like cars, want a new one often, and enjoy the fun of changing often then you lease.
Leasing doesn’t get you any ownership it is the rough equivalent of renting vs buying a home. You are dumping money in a hole with no benefit except the smile. You have no ownership.
Leasers will argue depreciation keeps them from buying, which is true depreciation is rough on high end cars especially these. But so is throwing 20k in a hole over 3 years.Depreciation is a valid argument if you can’t sit still and gotta sell or your lifestyle changes. I’m not a finance or stats junky but if you can keep the car past when you payed it off, every month you aren’t making a 600-700 lease payment on a different car you are doing fine. Over the course of a couple years the depreciation shtick becomes invalid.
If you have ever leased a car for over 5 years, you could have owned own and had no payment until you got antsy or the car died.
i have to play devils advocate here because in a forum dominated heavily by leasers you will get their rationale (and self-affirmation) more than financing. I realize that can be offensive, it is not meant that way.
Leasing is is good option for various reasons, I will not elucidate here because the rest of the forum will do that for you. Simply put, if you have the money to buy, are happy with the car for more than 5 years, and are willing to put up with maintenance headaches here and there then buy. Otherwise lease away.
1. People lease because they don’t have the money to buy. Leasing let’s you get financing rates when you don’t have a down payment, so people with no money can get the dream car.
2. Leasing is for those who can’t sit still with one car. You like cars, want a new one often, and enjoy the fun of changing often then you lease.
Leasing doesn’t get you any ownership it is the rough equivalent of renting vs buying a home. You are dumping money in a hole with no benefit except the smile. You have no ownership.
Leasers will argue depreciation keeps them from buying, which is true depreciation is rough on high end cars especially these. But so is throwing 20k in a hole over 3 years.Depreciation is a valid argument if you can’t sit still and gotta sell or your lifestyle changes. I’m not a finance or stats junky but if you can keep the car past when you payed it off, every month you aren’t making a 600-700 lease payment on a different car you are doing fine. Over the course of a couple years the depreciation shtick becomes invalid.
If you have ever leased a car for over 5 years, you could have owned own and had no payment until you got antsy or the car died.
i have to play devils advocate here because in a forum dominated heavily by leasers you will get their rationale (and self-affirmation) more than financing. I realize that can be offensive, it is not meant that way.
Leasing is is good option for various reasons, I will not elucidate here because the rest of the forum will do that for you. Simply put, if you have the money to buy, are happy with the car for more than 5 years, and are willing to put up with maintenance headaches here and there then buy. Otherwise lease away.
Last edited by FirstMBAMG; 08-10-2018 at 12:34 AM.
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jonathan358 (08-19-2018)
08-10-2018, 09:28 AM
#16
Senior Member
This is a stereotype but often true:
1. People lease because they don’t have the money to buy. Leasing let’s you get financing rates when you don’t have a down payment, so people with no money can get the dream car.
2. Leasing is for those who can’t sit still with one car. You like cars, want a new one often, and enjoy the fun of changing often then you lease.
Leasing doesn’t get you any ownership it is the rough equivalent of renting vs buying a home. You are dumping money in a hole with no benefit except the smile. You have no ownership.
Leasers will argue depreciation keeps them from buying, which is true depreciation is rough on high end cars especially these. But so is throwing 20k in a hole over 3 years.Depreciation is a valid argument if you can’t sit still and gotta sell or your lifestyle changes. I’m not a finance or stats junky but if you can keep the car past when you payed it off, every month you aren’t making a 600-700 lease payment on a different car you are doing fine. Over the course of a couple years the depreciation shtick becomes invalid.
If you have ever leased a car for over 5 years, you could have owned own and had no payment until you got antsy or the car died.
i have to play devils advocate here because in a forum dominated heavily by leasers you will get their rationale (and self-affirmation) more than financing. I realize that can be offensive, it is not meant that way.
Leasing is is good option for various reasons, I will not elucidate here because the rest of the forum will do that for you. Simply put, if you have the money to buy, are happy with the car for more than 5 years, and are willing to put up with maintenance headaches here and there then buy. Otherwise lease away.
1. People lease because they don’t have the money to buy. Leasing let’s you get financing rates when you don’t have a down payment, so people with no money can get the dream car.
2. Leasing is for those who can’t sit still with one car. You like cars, want a new one often, and enjoy the fun of changing often then you lease.
Leasing doesn’t get you any ownership it is the rough equivalent of renting vs buying a home. You are dumping money in a hole with no benefit except the smile. You have no ownership.
Leasers will argue depreciation keeps them from buying, which is true depreciation is rough on high end cars especially these. But so is throwing 20k in a hole over 3 years.Depreciation is a valid argument if you can’t sit still and gotta sell or your lifestyle changes. I’m not a finance or stats junky but if you can keep the car past when you payed it off, every month you aren’t making a 600-700 lease payment on a different car you are doing fine. Over the course of a couple years the depreciation shtick becomes invalid.
If you have ever leased a car for over 5 years, you could have owned own and had no payment until you got antsy or the car died.
i have to play devils advocate here because in a forum dominated heavily by leasers you will get their rationale (and self-affirmation) more than financing. I realize that can be offensive, it is not meant that way.
Leasing is is good option for various reasons, I will not elucidate here because the rest of the forum will do that for you. Simply put, if you have the money to buy, are happy with the car for more than 5 years, and are willing to put up with maintenance headaches here and there then buy. Otherwise lease away.
The renting vs. buying argument on a depreciating good has never made sense to me. Sure, buying a home saves you money because in a lot of cases your investment retains its value if not appreciating in value. A vehicle however is somthing that rarely ever appreciates unless it is a rare gem. Automotive manufacturers come up with residual values based on expected depreciation. By leasing you are effectively paying only the planned depreciation and the interest rate. By financing you are paying for that exact same planned depreciation and a slightly lower interest rate, but you bear the full brunt of unplanned depreciation in the event of an accident or mechanical failure. Sure you technically don't own the vehiclr when you lease, but you also dont own the headache when something happens to it that would hurt its value. You can still buy the vehicle for its expected value at the end of a lease if you choose to do so.
Personal experience - I had a leased Corolla back in my school days and it ended up taking about 10k of engine / cosmetic damage. At the end of the lease, the car was worth substantially less than the residual even after excellent repairs. Toyota's loss.
08-10-2018, 10:24 AM
#17
I am leaning towards leasing, you don't own the vehicle when you lease, nor when you finance, only when your loan is paid in full. I would rather lease a depreciating assets and use the extra money to buy appreciating assets. Hell, why dont you lease the vehicle, open up a sole proprietorship and write your lease off for the business. I know people who have a business where they just consult about credit card rewards. Not hard to do.
08-10-2018, 10:57 AM
#18
You better love the car you BUY because you are paying ALL of the taxes up front as opposed to the partial taxes on the lease. Its a no brainier fo me. AND, these days the finance rate hovering around 5% is more then a lease MF. Case in point...I bought a 2010 GMC Yukon, at the time, finance rate was zero from GMC. When I finally sold it five years later, I did the math, to see what the numbers were...Lease Vs. Finance..bottom line, It was the same money had I leased or financed the truck. The $ I put as a down payment, I got back when sold, but tied it up for five years. At the end of the day, leasing gives more options
08-10-2018, 02:46 PM
#19
A lot of good respectful comments about leasing which I can certainly appreciate and most are valid.
i will add though that if you are someone who buys and keeps, rides out the maintenance, I don’t know say keeps for 8+ years then leasing loses alot of credibility. If you are thinking about getting a diff car in a few years, do not buy certainly
i will add though that if you are someone who buys and keeps, rides out the maintenance, I don’t know say keeps for 8+ years then leasing loses alot of credibility. If you are thinking about getting a diff car in a few years, do not buy certainly
08-11-2018, 08:14 AM
#21
Member
Me I treat a car like a wife, drive it...try it and return it..lease end cause its not what you thought or time for a new ride.
08-11-2018, 10:16 PM
#22
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Based upon my research - 3 years is the rough sweetspot for this car. If you think you will own more than 3 years, buy it. If you want a new car in 3 years lease it.
One big drawback to leasing (which I’m teased with each time I get a new car) is that leasing effectively keeps you in debt indefinitely. When your lease is up you will probably lease again. I want flexibility with my finances and be able to payoff the car and save the extra money if I want to stay with the car for say - 4 years.
One big drawback to leasing (which I’m teased with each time I get a new car) is that leasing effectively keeps you in debt indefinitely. When your lease is up you will probably lease again. I want flexibility with my finances and be able to payoff the car and save the extra money if I want to stay with the car for say - 4 years.
08-11-2018, 10:46 PM
#23
There are plenty of cars that lease for $0 down and roughly $100-170/month. Ofcourse, not the cars we'd like, but those are great lease deals. Most people I know that lease benz or bmws do so for 3-4 years until warranty is up then hop onto another lease. You're better off buying a used c43 thats already took the hit and getting extended warranty. Every $1000 down on a lease is roughly $30 off the monthly payment.
08-19-2018, 09:04 PM
#24
There are plenty of cars that lease for $0 down and roughly $100-170/month. Ofcourse, not the cars we'd like, but those are great lease deals. Most people I know that lease benz or bmws do so for 3-4 years until warranty is up then hop onto another lease. You're better off buying a used c43 thats already took the hit and getting extended warranty. Every $1000 down on a lease is roughly $30 off the monthly payment.
