Mercedes-Benz Services Malaysia’s Lease2Go financing scheme – costs of the programme detailed

Earlier this week, Mercedes-Benz Services Malaysia (MBSM) announced its Lease2Go programme, which offers those who are keen to use a Mercedes-Benz, but do not want to be tied down by traditional ownership commitments, a zero-downpayment financing solution.

As mentioned, the operating lease option allows prospective customers to drive their preferred Mercedes-Benz models as well as an upgrade path to newer models in the future.

The programme offers customised lease packages, with a preferred lease tenure (one to four years) and anticipated mileage usage (20,000, 25,000 or 30,000 km) per year. With it, a vehicle’s insurance premium and road tax are all included into the fixed monthly lease, as well as tyre/rim coverage and 24/7 roadside assistance.

All a Lease2Go customer needs to do is provide a two-month security deposit (refundable) and a one-month lease rental upfront. After that, he or she only needs to pay the monthly lease amount for the period the car is used, as stipulated in the agreed lease tenure, as well as the servicing costs of the car.

Mercedes-Benz Services Malaysia’s Lease2Go financing scheme – costs of the programme detailed

At the end of the lease period, the car will be returned and customers can opt to upgrade to another Mercedes-Benz model of their choosing. From an accounting viewpoint, the car legally belongs to the leasing company, meaning it remains off the books of the company that is leasing the car.

To help prospective lessees understand the benefits of the programme and the costs involved, the company has come up with tables that detail the costs of going with Lease2Go, comparing it against Agility Financing as well as traditional hire-purchase schemes in two repayment periods (60 months and 84 months, with different interest rates).

A couple of readers have shared the tables with us, though it’s worth noting that these calculations are for July 2017, and may be revised accordingly as it progresses.

Models detailed are the A 200, C 200 Avantgarde, C 200 Exclusive, C 250 AMG Line, CLA 200, E 200 Avantgarde, E 250 Avantgarde and Exclusive, GLA 200, GLC 250 and S 400h, and as shown in the cost tables for all 11 examples, the Lease2Go programme offers much cheaper repayment rates than going with a traditional hire-purchase route, though a corresponding Agility Financing plan is more competitive.

For example, taking an A 200 under the Lease2Go programme will entail a lessee to pay RM200,933 over a 36 month (or three-year) period, with a monthly installment of RM5,581, insurance and road tax all factored in. For the three-year period, the full service package for the car will cost RM19,228.

Going with a 60-month hire-purchase Classic scheme at a 2.50% interest rate means a customer will be paying RM254,769 for the car, or RM58,836 more, though the monthly payment rate is less, at RM3,530. He or she also has to pay more upfront – RM25,992 as compared to the RM11,163 (which is fully refundable) with a Lease2Go option.

Agility Financing, which entails the customer to put the same RM25,992 upfront payment, does work out to be cheaper over an identical 36-month period, with a total repayment cost of RM146,985. The monthly installment is RM3,109, but Agility (and HP Classic) does not factor in insurance and road tax – over the course of the next two years, the driver will have to fork out a further RM10,148 for insurance and road tax.

The biggest attraction of the Lease2Go programme for prospective Mercedes-Benz drivers is with its initial zero-downpayment, which allows an easy entry into the world of the Tristar, and there’s no commitment of ownership or disposal of the vehicle – which will be a depreciating asset – needed at the end of the tenure.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • SALang on Jul 13, 2017 at 1:24 pm

    After complete 3yrs.. nothing is belong to u. Regardless the car rv.. u got 0.. yes is zero..
    If I take a conventional hire purchase.. after the repayment period… I can use the car for “free”…. just normal maintenance n repair… or I can sell the car to get back some $$$… even if the rv is bad… still some $$$ back to pocket..

    Furthermore… the monthly commitment is higher than hire purchase…

    How about rent a car… how much monthly rental? Furthermore car rental company will take care of the service.. and don’t need to tie up for 3yrs..
    If go for car rental, u can choose different types of car every month.. let’s say this month got celebration or event… need to show of a bit… rent a MB or BMW.. next month pocket a bit tight.. rent a saga… or use motorbike…

    Well-loved. Like or Dislike: Thumb up 86 Thumb down 3
    • Too expensive for me considering you are not going to own the car after paying all the money. The monthly lease price should be cheaper than paying a monthly installment for 7 year loan at 90% price of car. Plus it should include all the servicing and maintenance cost too.

      Like or Dislike: Thumb up 24 Thumb down 0
      • gti owner on Jul 13, 2017 at 7:27 pm

        This perfect for MNCs & towkays do taxation magic…Execs drive Mercs but claim capex, lower co. tax.
        Privates better off with Agility Financing.

        Like or Dislike: Thumb up 9 Thumb down 1
    • Ollie on Jul 14, 2017 at 3:45 pm

      This applies to 90% of people who can’t afford to buy or even least a merc

      Like or Dislike: Thumb up 0 Thumb down 2
  • Kusta Kinte on Jul 13, 2017 at 1:45 pm

    Hahahha 6k a month for a c200. Some folks here were already drooling at the prospect of trading their saga with a merc just a few days ago. Go back go back nothing to see here.

    Like or Dislike: Thumb up 36 Thumb down 0
    • Haha, no sane person will pay for it unless it is an expat, foreign student or really blur Malaysian waterfish.

      Like or Dislike: Thumb up 12 Thumb down 0
  • superdriver on Jul 13, 2017 at 2:14 pm

    After paying 9 year loan then the car is yours, now we have a chance to pay for some years and get no car in the end….yaaaay???Its a benz…its not suppose to be cheap.

    Like or Dislike: Thumb up 11 Thumb down 2
  • Waaaa on Jul 13, 2017 at 2:18 pm

    Leasing plan is not for individual… it’s for corporate who do not want to go through the hassle…

    Like or Dislike: Thumb up 13 Thumb down 3
    • Guess their bean counters thought if its gud for the company then it must be gud for the individual.

      If leasing repayment is more exp than outright purchase, then nobody will go for it.

      Like or Dislike: Thumb up 6 Thumb down 0
  • Ollie on Jul 13, 2017 at 2:47 pm

    was just looking this up yesterday; the agility calculation shown has some complications. You take on the loan, but have the option to pay off the residual value after 3-5 years and keep the car, or return it with no additional charge. SO the only difference betw Agility and Lease2go is tied up to the loan. Makes sense for ppl who don’t want to be tied to a loan. For various reasons, I met a person who did exactly that. Beyond my worries to find out why, but at least there’s an option. I’m sure people will have 101 ways to show what they think is best, but 100 of those 101 can’t afford any of those options anyway.

    For me, instead of 3-5k a month driving yourself around like a white-collar boy, I’d Uber Black everywhere for half that money.

    Like or Dislike: Thumb up 21 Thumb down 0
    • I’d Uber Black everywhere and spend half that money on sugarbabies

      Like or Dislike: Thumb up 6 Thumb down 0
  • Lumina Kiara on Jul 13, 2017 at 3:21 pm

    I’m trying to figure out who their target is. Someone who can afford to let go of 6k a month wouldn’t settle for a c200 as they could well afford an S class, with some downpayment, which I’m sure they could spare some cash for. Expats? Maybe. Maybe the real answer is what happens to the cars AFTER the lease is up..

    Like or Dislike: Thumb up 6 Thumb down 0
    • stasta on Jul 17, 2017 at 4:00 pm

      this is for companies who want to deduct a percentage (example 50%) of the car rental as operating expenses. because the car will still be registered under Mercedes, and it wont be an asset on the books of the customer’s company

      Like or Dislike: Thumb up 1 Thumb down 0
  • thepolygonal on Jul 13, 2017 at 4:11 pm

    This is not gonna work now is it?

    Like or Dislike: Thumb up 3 Thumb down 0
  • passion on Jul 13, 2017 at 4:12 pm

    yup Uber black is better!

    Like or Dislike: Thumb up 3 Thumb down 0
  • thepolygonal on Jul 13, 2017 at 4:17 pm

    I guess this plan is made for those who wants to make an impression but don’t really have the money to do so. Live within your means. Buy a merc only when you really can afford… not through this… basic calculation …. buy something worth your one years salary and stretch the loan to 3-5 years. Don’t push too hard.

    Like or Dislike: Thumb up 4 Thumb down 2
  • I think this scheme is only good if the service is included, and IT SHOULD! Otherwise, this is just a Grade A piece of sh*t.

    And.. what happens when you drive over the mileage? No mention at all.

    4 years max 30k km is too little, ridiculous.

    I can travel 10k km every 3 months.

    Like or Dislike: Thumb up 5 Thumb down 1
  • LOK CHYI YEU on Jul 13, 2017 at 5:14 pm

    This service is more meant to the company who gonna purchase car for their boss. Company cars.

    As book value in account will depreciate completely by the 5th year, they can just change car for their boss as they like, besides it also cover the service and insurance within it means less paper work and easier for the office to handle. And since this is acquiring service instead of purchasing vehicle it can be put into expenses in account which is a plus point to the company since they can paid less tax becoz profit less due to higher expenses.

    Definitely very good plan if you look from this point of view.

    Like or Dislike: Thumb up 8 Thumb down 2
  • Losantara on Jul 13, 2017 at 6:59 pm

    Irb no record. No need to bother about bank financing. There are PPL going to lease

    Like or Dislike: Thumb up 0 Thumb down 0
  • CoolJO on Jul 13, 2017 at 7:29 pm

    Another key point – this ideal for those who cant take a loan becoz they dont / might not have the papers to support but they have the monies…

    Like or Dislike: Thumb up 3 Thumb down 0
  • is this finance lease or operating lease? All lease vehicles must registered hire & drive perdagangan permit. Without this, it’s consider illegal. Is the Lease2go vehicles register hire & drive perdagangan permit?

    Like or Dislike: Thumb up 1 Thumb down 3
    • Ollie on Jul 14, 2017 at 3:43 pm

      Keep your regulatory red tape fake rules out of this.. People like you is why jpj officers make a lot of”extra” What’s this gotta do with any permit nonsense just to lease a car

      Like or Dislike: Thumb up 8 Thumb down 0
  • Mr. Loba Loba on Jul 15, 2017 at 9:25 am

    LPPL

    Like or Dislike: Thumb up 0 Thumb down 0
  • Svelte on Jul 15, 2017 at 4:24 pm

    this is a not an attractive leasing program. the residuals are atrocious to say the least as one would have almost paid for 70% of the price of the car in the 3 year lease. either that or the interest rate/money factor charged is way too high. the purchase price option at the end of the lease is also not mentioned. if its 120k thereabouts, then its doable as the high upfront cost is negated by a lower buyout price. but i doubt its the case.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Camny on Jul 20, 2017 at 11:56 am

    Its only good for business coz they could deduct 100% of the lease payment as expense and get tax reduction compared to only RM 50k using hire purchase

    Like or Dislike: Thumb up 0 Thumb down 0
 

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