Leasing or Financing? Keeping GLS for more than 3 years?
Thread Starter
Junior Member
Joined: Jan 2016
Posts: 31
Likes: 2
BENZ GL 350
Leasing or Financing? Keeping GLS for more than 3 years?
Hello Folks,
I'm new here. Registered an ID because I am about to order a GLS as soon as its pricing comes out in Canada.
I am debating whether I should go leasing or financing.
If leasing, there is only 3-year option. I just can't justify spending that much for packages/options for keeping a car for only 3 years. (4 years would work for me)
If financing, I am not sure whether it is worthwhile to keep the car for 4-5 years or even longer?
Sorry for my bad English. Any suggestions would be highly appreciated.
thanks
I'm new here. Registered an ID because I am about to order a GLS as soon as its pricing comes out in Canada.
I am debating whether I should go leasing or financing.
If leasing, there is only 3-year option. I just can't justify spending that much for packages/options for keeping a car for only 3 years. (4 years would work for me)
If financing, I am not sure whether it is worthwhile to keep the car for 4-5 years or even longer?
Sorry for my bad English. Any suggestions would be highly appreciated.
thanks
Member
Joined: Nov 2015
Posts: 154
Likes: 4
2019 Porsche GT3, 2013 Mercedes G550, 2024 Ford F150 Raptor, 2024 Tesla Model Y
Hello Folks,
I'm new here. Registered an ID because I am about to order a GLS as soon as its pricing comes out in Canada.
I am debating whether I should go leasing or financing.
If leasing, there is only 3-year option. I just can't justify spending that much for packages/options for keeping a car for only 3 years. (4 years would work for me)
If financing, I am not sure whether it is worthwhile to keep the car for 4-5 years or even longer?
Sorry for my bad English. Any suggestions would be highly appreciated.
thanks
I'm new here. Registered an ID because I am about to order a GLS as soon as its pricing comes out in Canada.
I am debating whether I should go leasing or financing.
If leasing, there is only 3-year option. I just can't justify spending that much for packages/options for keeping a car for only 3 years. (4 years would work for me)
If financing, I am not sure whether it is worthwhile to keep the car for 4-5 years or even longer?
Sorry for my bad English. Any suggestions would be highly appreciated.
thanks
The reality is that it really doesn't matter... Leasing, financing, paying cash... the GLS will depreciate plenty in 3-4 years. If you want to lose the least amount then get no options. Or buy and keep it for a decade until the wheels fall off.
If you finance you can still get out in 3 years... so not sure why that would matter. In CA we only pay sales tax on the lease payments so that could be a consideration, especially on a heavily optioned GLS.
Member
Joined: Mar 2014
Posts: 83
Likes: 3
From: Southeast PA
2014 GL350
The other thing to consider is how much driving you would be doing. For my situation, I would never be able to lease, because I would be way over the mileage limit for a lease within the first year. If you will be putting a considerable amount of mileage it might be better to finance or risk of paying the overage.
As the previous poster said, you could still get out whenever you want with the finance.
As the previous poster said, you could still get out whenever you want with the finance.
Junior Member
Joined: Dec 2014
Posts: 40
Likes: 0
GL450
If a mileage is an issue (more than 12,000~15,000 per year) - finance
- negative: you will pay full tax on car purchase (US)
- pay attention to % - MBFS not necessarily lowest, check banks credit union
- check the cost of additional warranty, standard: 4y/50K miles
- check the cost of maintenance, with extended mileage cost will go up
If a mileage is NOT an issue (less than 10,000~12,000 per year) - lease
- positive: you will pay tax ONLY on leased value, might avoid luxury tax (US)
- you can include 3~4 year maintenance in your lease payments (take it or leave it)
- slightly more complex to figure out if you are getting a good deal through MBFS or others
- no need to worry about extended warranty unless leasing more than 48 months
- some other business advantages (based on your own circumstances)
- negative: you will pay full tax on car purchase (US)
- pay attention to % - MBFS not necessarily lowest, check banks credit union
- check the cost of additional warranty, standard: 4y/50K miles
- check the cost of maintenance, with extended mileage cost will go up
If a mileage is NOT an issue (less than 10,000~12,000 per year) - lease
- positive: you will pay tax ONLY on leased value, might avoid luxury tax (US)
- you can include 3~4 year maintenance in your lease payments (take it or leave it)
- slightly more complex to figure out if you are getting a good deal through MBFS or others
- no need to worry about extended warranty unless leasing more than 48 months
- some other business advantages (based on your own circumstances)
Junior Member
Joined: Jan 2016
Posts: 64
Likes: 0
From: Alberta, Canada
BMW 528 Xi, BMW M3, FORD F-150
I have asked myself that question too when I placed my order for a 450M. I think it came down to how much you like this vehicle. If you love it, you should finance because you will most likely keep it for more than 5 years. In my case, I plan on keeping this GLS for a long long time since it is the most practical and luxurious vehicle for a family of 5 compared to other competitors such as Lexus and Infiniti. I will probably need to negotiate a deal when the pricing comes out in Canada in order to take the least amount of damage by the dealer when financing.
MBWorld Fanatic!
Joined: Apr 2008
Posts: 1,853
Likes: 9
From: Ottawa, Ontario, Canada
SLS Irridium silver,2014 GL350 BT Irridium, 2015 White Dodge RAM Hemi Quad
The GL is my wife's family hauler, this new GLS would be our third one, I lease this vehicle as every three years I am trading it in for a new one, with full warranty. The GL are one of the best vehicles in the car market for lease residual values. Which translates into very competitive lease rates. But leasing is not for everyone. Good luck!
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Junior Member
Joined: Jan 2016
Posts: 64
Likes: 0
From: Alberta, Canada
BMW 528 Xi, BMW M3, FORD F-150
The GL is my wife's family hauler, this new GLS would be our third one, I lease this vehicle as every three years I am trading it in for a new one, with full warranty. The GL are one of the best vehicles in the car market for lease residual values. Which translates into very competitive lease rates. But leasing is not for everyone. Good luck!
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Member
Joined: Dec 2013
Posts: 96
Likes: 0
From: Hampsted QC, CA
GL 350
lease vs. purchase
2 things to consider:
1. Your're getting a new model (even though its really 90% the same mechanicals). But if the command computer is buggy or the new transmission gives you trouble for example...with a lease - you have to option to return if these items are not addressed fully under warranty (sometimes a lemon is a lemon).
2. In the US and I would presume Canada as well, the lease rates (money factor) is poor for the first few months presumably to capitalize on the people who pre-order --- in other words are very motivated buyers not cross shopping a deal. So a $100,000.00 GLS could lease out for $80 less a month after its been out a few months. This is not a fact, its just my observation over the years.
Good luck
DRP
1. Your're getting a new model (even though its really 90% the same mechanicals). But if the command computer is buggy or the new transmission gives you trouble for example...with a lease - you have to option to return if these items are not addressed fully under warranty (sometimes a lemon is a lemon).
2. In the US and I would presume Canada as well, the lease rates (money factor) is poor for the first few months presumably to capitalize on the people who pre-order --- in other words are very motivated buyers not cross shopping a deal. So a $100,000.00 GLS could lease out for $80 less a month after its been out a few months. This is not a fact, its just my observation over the years.
Good luck
DRP
