I think we've all been a bit exhausted worrying/talking about potential tariff implications. Let's switch it up to a new topic with this thread.

I was at my MB dealership getting regular maintenance for my SLS this past Thursday. Since it was going to take only a couple of hours, I decided to stick around and check out some of the new cars they had on display. I ran into the manager so we struck up a conversation. As some of you may know, SoCal is oftentimes labeled as the "G-Class Capital of the World" as they seem to be ubiquitous. To my surprise, the manager told me that more than 2 out of 3 SoCal G-Class drivers lease - as opposed to purchase - their G-Class to avoid the heavy cash layout for purchases. He said most people keep theirs for 2-3 years under their leases, then they get returned to the dealer who then sells them to out-of-state dealers (apparently used G-Class command a higher price outside of CA). I've already noticed there has been a subtle decline in the number of W463A's on the road during the past couple of months. The manager said that we will see even fewer in the next 12 months as their leases become due this year. Apparently, there was a boom in G-Class leases in SoCal during '22 and '23 post-covid period on the YOLO mentality. I must admit the lease vs. purchase ratio for glitzy LA somewhat surprised me and got me thinking.

As for me, I purchased my '24 G63 outright last year without financing. This is not me flexing, but I've always done this with all of my, my wife's, and both of my daughters' cars without exception because I personally prefer knowing I own my things outright. With my personality, I know cash purchases save me from the lingering worrying mindset that I merely have custody of the car until the lease expires, which would be a constant aggravation for me.

I was wondering what folks on this forum generally do in their geographical area? Do you own or lease your G-Wagon, and how did you make that decision?

 

I own. Leasing a G is throwing money away unless you are using it as a business tax write off.

 

I own mine - like you, I also purchase all my cars in full without financing. My Dad drilled this lesson into me at a young age to avoid auto leases/financings because you'll end up paying more, all the while without the enjoyment and peace of mind of car ownership.

I'm not knocking people who have a legitimate business reason to lease, but I'm also from LA and have seen way too many posers. Like you mentioned, I've actually noticed this year a slight decline in the number of recent models of the G-Class on the roads here. The 2:3 lease ratio in LA does not surprise me one bit. Heck, I even know a lot of women who rent designer dresses, jewelry, and purses for events in the entertainment industry...

 

Own outright. Don't have it yet, but own it 😂

 

Briefly financed my 2023 and then purchased my 2025 outright

 

Two facts to keep in mind.

- Historically, G wagen has had quite low depreciation. That was especially true during and immediately after Covid years.
- Most new owners only keep their G for 2-3 years. And buy a newer model as replacement.

This above demographics usually come out ahead when they purchase.

But with depreciation amounts increasing in the last 1-2 years, I would imagine the math has swung more towards the leases. Especially for those who are business owners and can depreciate the full lease payments.

 

Does not make any sense to lease a G-class unless you can deduct the lease for business use through your corporation.

 

My first three G’s I financed over $100k each time between 1.9 and 3.5 percent, but for my 2023, I started putting money into it to pay the loan off.

Once I got on top of the mountain, it’s been usually been a $5-10k check to upgrade each year other than the 2024 to 2025 upgrade, mainly because the MSRP was $15k higher.

i financed the latest one but mostly as a favor to the dealer for continuing to give me allocations and favorable trade in values. I have to keep the loan open four months but have paid it down to a few thousand dollars so interest is minimal. Monthly payment is only $350 lol.

 

That's a Toyota Camry payment🤣

 

What depreciation? My dealer just reached out to me with an offer on my 2021 that was so good I actually paused for a moment and considered it. They said the tariffs have drastically increased demand for used Gs.

 

I pay more than that in gas per month... Congrats @Hodog16 !!!

 

🤣

 

Paid cash for my G63 as I prefer to own all of my cars outright.

 

Finance: I finance for 6-8 months before paying off to help out my dealers and relationships/allocations

 

Financed to own mine. Business expense, accelerated depreciation, so it makes more sense to own. I will keep mine as the work truck. I couldn’t do that with the 911 targa I had, so flipped it for the G550.

Interesting about SoCal market of lease Gwags. I’m in a wealthy SoCal city south of LA, and there’s a lot of Gwags: a mix of new and old ones. I see older people (think late 50s and 60s) driving the older Gwags 2012-2018, and younger folks (think 30s and 40s) driving the newer ones, anecdotally speaking of course. Which made me assume there were more folks that owned that leased.


My experience buying one in my town was relatively easy - only paying $15k adm - and I was a walk-in off the street back in 2022. I was able to get 2023 ~5 mos later.

i have seen a few g63s at the dealer as i pass it once or twice a week, which is something I have not seen before. Though since my town is seasonal, I assumed a lot of folks ship their cars back north for the summer, which would account for the thinning out of Gwags on the street.

 

not for nothing - just saying that your initial gut feel is true

 

I have to think unless the lease is a write off, buying still cheaper. The way these rigs hold value, if you look at total cash outlay after a 3 year lease, ownership still likely cheaper.

 

That was really interesting to hear about the trend toward leasing versus ownership in Southern California - I would have thought most people paid cash. I would be curious to know the trends in Northern California, specifically the SF Bay Area. I lived there for ten years and saw a few G Wagons, but not nearly as many as when I would go to LA. I was just in SF last month for work and I was surprised to still see so many Teslas - it is definitely the predominant vehicle in the SF Bay Area. This was surprising given the current political climate. I live in Massachusetts and see a few G Wagons in Boston or the adjacent suburbs, but not nearly as many as Southern California. I live in a more rural of Massachusetts and there are no G Wagons around, so I will truly be a stranger in a strange land. As I put in another post, unless someone sees the Mercedes Benz symbol, I am willing to bet most people will think it's a Jeep in my town. Haha!

I typically pay cash for my vehicles, but I may finance (not lease) a little bit of my G Wagon being delivered next next week. I plan to put down about 80% of the MSRP, but I am still a little up in the air. I will have to look at everything and then decide soon. If I end up financing some of it, I do plan to pay it off within a year or so. But, overall, I plan to own and not lease.

 

Hi @Angus4x4 , I don't necessarily think it's a "trend". Instead, it has been the norm down here in SoCal. It's just very few people here are willing to discuss it. The dealers especially don't like to talk about it because they make significantly more money off of a lease than a sale, as many on this thread have already said or implied. There will always be posers in Tinseltown, especially for those in the business side of the entertainment industry. In addition, there is a heavy undercurrent of "keeping up with the Joneses" mindset more prevalent here than any other city I've been to. Part of it is that LA has always been a car-centric city where having a car is an absolute necessity for mobility (you simply can't get around LA without a car given our poor infrastructure and lack of mass transit), and the other part is that SoCal is also very focused on wealth or at least the "appearance" of wealth.

With the exception of Ferrari, whose customers mostly purchase their vehicles outright, I would agree with @AMGRonin 's statistics of 2 out of 3 G-Class in LA are leased. I remember growing up and noticing at a very young age how everyone in LA seemed to drive a Porsche Cayenne. I remember going to school and every parent in my carpool was driving a Cayenne - except for my cool Mom who was driving a fully restored "old" Defender... I kid you not - Cayennes were EVERYWHERE and the most popular SUV during that period. Nowadays, you hardly see any of them anymore. I think the G-Class is on the same trajectory but on a smaller scale since MB manufactures only so many G-Class, whereas Porsche was pumping out as many Cayennes as the market could absorb. The G just has a more distinctive and noticeable shape which makes it difficult to blend into traffic. Regardless, I believe that we are at the beginning of a decline in the G-Class's road presence in SoCal as leases are beginning to expire.

I'm also very familiar with SF/NorCal. I agree that you probably won't see too many G-Class in SF. If you recall, many of the roads in SF downtown/financial district are too narrow and parking is impossible to find. Let's face it, the G-Class isn't very maneuverable and a U turn is doable only in an empty supermarket parking lot... Once you get into Silicon Valley in NorCal, however, you will see a mini mirror reflection of LA.

In your part of the country, I hear from my friends there that the G-Class is not easy to see - except in DC. They tell me for reasons unbeknownst to them, the roads in DC are also covered with the G-Class.

Be safe.

 

Hi Amy. Thank you so much for your thoughtful response, you always have such great responses and are so helpful. The information about LA you provided makes a lot of sense, and you are absolutely right about the difficulty in having a G Wagon in SF. Some of those streets, along the with the parking nightmare, is not conducive to a G Wagon. I lived in Bernal Heights and then moved to San Carlos, a suburb just south of SF. Back then I had a built up Land Rover LR4 (Discovery 4) for off-roading and luckily I had a parking spot. I have to agree, I would see G Wagons way more in Silicon Valley area - that's for sure, but still not the number I would see in the metro LA area.

It is funny you mention DC having a lot of G Wagons because I was there last month and saw six of them within an hour. I do see them in the suburbs around Boston, but not nearly as many as other parts of the country. It is kind of fun that I am likely the only person in my town with a G Wagon - though you never know! I certainly have never seen one.

I look forward to providing photos once it arrives likely late next week. Thank you again, it's always a pleasure to get your responses.

 

Thank you for the kind words. Small world. I lived in SF SOMA right near the Bay Bridge for a couple of years before moving back home to LA just before the lockdowns. I had a stick shift Wrangler back then and ended up almost never driving it because of the narrow roads and difficulty in finding parking spaces in the city. I really can't imagine maneuvering a G through the streets of SF and the low ceilings of indoor parking spaces which a G will unlikely clear. SF downtown used to be so nice and clean, but I hear it has really gone down hill since the pandemic.

I'm looking forward to seeing pics of your G!

Be safe.

 

Yes, very common in DC, new and old.

 

Cannot speak for the G wagon, which are not popular here: the most popular are the GLC and GLE.

Historically in the NY Metro area, Mercedes E, S and above Class are 80% plus in favor of leasing vs. buying; There are so many, many good reasons:

• Many are leased through businesses: it is much more convenient to write off the monthly lease payment than take depreciation
• In a lease, assuming the money factor (interest rate) is reasonable, you are only paying for depreciation: If the money factor is below 5% it is wash: for most people 5% is not expensive money: most people can earn better than 5% so the interest is a wash
• Sales tax: In NY where I live when you buy the sales tax is on the purchase price: assume an $80,000 cost, the sales tax @8.625% is $6,900. The sales tax on a lease is the sum of the lease payments. Assuming a lease payment of $1400, for 36 months, 10K per year, that is $50,400. The sales tax would be $4347 a savings of $2500
• By leasing you have fixed your costs: the residual is fixed: When you buy you do not know what your car will be worth.
• By leasing you avoid the dreaded selling your car privately or getting lowballed in a trade in
• At the end of the lease, if you like your car and there is equity in the car, (the market value is higher than the residual) you can buy it. If there is no equity, (the residual is higher than the market value) that loss is passed onto the leasing company.
• You never are driving a car out of warranty
• You are driving a new car every 3/4 years

Hope this helps

 

Purchased my 22, a few years later I traded it in and paid the difference to purchase a ‘25.

Yes a cash purchase for 175k stings a little, but they hold their value well and if you sell/trade for another G down the line the string from the cash difference in minimal.