Purchasing a new vehicle can be extremely expensive. Between the down payment, the financing, and the high monthly payments, you need to save up some serious cash before you can consider purchasing a new car. If you don’t have the funds to buy the car of your dreams, you may want to consider leasing it.
Leasing a Mercedes E Class allows you to drive a new car at a lower price. Because you’re only borrowing the car for a pre-determined amount of time, you can pay a much lower cost than you would if you were buying it. Not owning the vehicle also means you’re not responsible for repairs or maintenance, which are typically covered under warranty.
What Does Leasing a Car Involve?
Let’s take a look at what leasing a vehicle involves and some of the basics of leasing a car that you need to know.
Your Payments Reflect the Car’s Value
When leasing a vehicle, you will agree to pay a set amount each month for a certain amount of time. The amount of these payments will depend on the vehicle’s value. The more expensive the vehicle, the higher your payments will be. If you’re looking to stay within a certain budget, you’ll want to consider lower-cost cars.
Higher Residual Percent Saves You Money
The residual value percentage is based on how quickly the vehicle’s value depreciates. If the vehicle has a high residual percent, you’ll end up paying less money each month. This is another thing you’ll need to consider if you’re sticking to a budget.
Understand your Set Miles
As part of your Mercedes E Class Lease agreement, you will be given a set amount of miles you’re able to drive during that time period. If you stay within these miles, you will not need to pay any extra mileage fee after returning the car. However, if you go above your set miles, you may need to pay some more money at the end of your lease. The additional fee is typically given on a per-mile basis.
Expect a Disposition Fee
Disposition fees are another cost you should anticipate when returning the vehicle. A disposition fee is typically between $300 and $500 and is paid at the end of the lease.
Understand What Money Factor Means
Money factor is another thing you’ll need to consider when entering into a lease agreement. Your money factor is like your ARP, meaning the lower you can get the money factor, the more money you will be able to save.
Is it Better to Lease or Buy a Car?
Leasing a vehicle isn’t right for everyone, just like buying a vehicle isn’t right for everyone. If you’re considering leasing over buying, there are a few serious considerations you will need to make. Let’s take a look at some of the biggest factors you’ll need to take into account.
You Won’t Own the Car
If you lease your vehicle, you won’t end up owning it at the end of your lease. This means that you are usually required to pay the lease until the end of your agreement and that you’re not able to sell the vehicle if you’re low on cash. You also are not able to take a loan out on the vehicle because you do not rightfully own it.
Not owning the vehicle also means you’ll need to enter into a new agreement once the time period is over. This can be great for people who like to changes new cars often or those who are just looking for a short term commitment.
Leasing Cuts Down Up-Front Costs
When leasing a vehicle, you’re not required to make a down payment. Instead, you simply need to pay a deposit and for some fees and taxes. This drastically cuts down on the out-of-pocket up-front expenses.
No Need to Worry About Selling Mercedes E Class Lease Deals
Once the lease ends, you simply need to give it back to the owner. After your agreed upon time frame is up, the car is no longer yours to worry about. This means you do not need to worry about trying to sell it or trying to get a good trade-in deal for the vehicle.
With a Mercedes E Class Lease, your end payment signifies the close of the deal. You must then return the vehicle. In some situations, you may be offered a deal to purchase the vehicle, although this is a separate deal you will need to make with the car’s owner. Your lease payments do not go towards buying the car.