Mercedes-Benz Lease Terms to Know

Leasing a Mercedes-Benz car at Mercedes-Benz Los Angeles is an excellent alternative to buying one outright, as it involves lower monthly payments, less commitment, and a simple lease-end process. If you’re new to the Mercedes-Benz lease process, you’re likely wondering about some of the jargon around car leasing. Here are some Mercedes-Benz lease terms to know.

Residual Value

The residual value is the estimated value of the vehicle at the end of the lease term. It’s an essential part of the monthly lease payment and it is affected by factors such as the length of the lease and the car’s depreciation rate.

Mileage Allowance

One factor that you’ll find with leases but not with purchases is the mileage allowance. This term refers to the maximum number of miles that you can drive per year without incurring extra fees. If you exceed the maximum allowable miles, you’ll be charged a fee for each additional mile.

Excess Wear and Tear

Another thing to consider when leasing a Mercedes-Benz luxury car is the excess wear and tear clause. Leases allow for a normal amount of wear and tear on the car, but if you incur extra damage to the interior or exterior of your leased vehicle, you will be charged a fee.

Money Factor

Another financial lease-related term is the money factor. This is also known as the lease factor, and it refers to the interest rate on the lease. The money factor is expressed as a decimal, and the lower the money factor, the lower your monthly payment will be.

Lease Return

When your lease comes to an end, you have three options for lease return:

• Returned your leased vehicle and lease a new one
• Purchase your leased vehicle
• Return your leased vehicle and walk away

Start Your Mercedes-Benz Lease in Los Angeles, CA

Now that you know a few of the terms around Mercedes-Benz leasing, get the ball rolling on your lease here at Mercedes-Benz of Los Angeles. Get pre-approved online or visit us in person today!