How To Afford A Mercedes

Since Mercedes are a highly desirable car manufacturer, many people want to figure out how they can afford one at some point in their life.  This article will discuss some of the ways that people afford a Mercedes and give some tips to help you get into a Mercedes sooner.

How To Afford A Mercedes

Common ways of affording a Mercedes are to purchase an entry-level model, skip the options, purchase a certified pre-owned or used Mercedes, save up a decent down payment, or lease the vehicle. Determining how much you can afford to spend monthly on a car purchase will determine whether a Mercedes is within your budget.

Ways To Afford A Mercedes

Purchase A Cheaper Mercedes Model

If you want an S-Class it is going to take most people significantly long (if ever), to be able to afford that tier of Mercedes than some other models.  Just like all car manufacturer’s Mercedes has tiers of vehicles, some being pricier than others.

Cars like the S-Class and their AMG line are not going to be affordable for most.  However, if you target their entry-level market, you have a better chance of being able to afford a Mercedes at some point. 

Below is a chart of the cheapest models Mercedes has to offer:

A 220 Sedan $34,700
GLA 250 SUV $37,280
GLB 250 SUV $39,100
CLA Sedan$38,900

Targeting one of these entry-level vehicles is one way to be able to afford a Mercedes.

Skip The Options

Unfortunately, the starting price point for a new Mercedes is almost never the final price to take the vehicle home.  Most options come at an additional cost that can quickly skyrocket the price of that new Mercedes many thousands of dollars.

Thus, another way to afford a Mercedes is to forgo the options and just get what comes standard on the vehicle to keep the cost down.

Certified Pre-Owned Mercedes

In our opinion, one of the best ways to be able to afford a Mercedes is to purchase a certified pre-owned Mercedes.  Cars are depreciating assets, and Mercedes is no exception to this rule.

A Mercedes that is 3 – 4 years used will have dropped by many thousands of dollars off their new purchase price. 

For example, a new GLE 350 4MATIC that starts new at $58,300 before options, and will be well over $60,000 after options, can be found in the certified pre-owned market 3 or 4 years used at around $20,000 or more off of the original purchase price.

The other benefit to a certified pre-owned Mercedes, as opposed to just a regular used Mercedes, is that these vehicles come with up to a 2-year unlimited miles warranty.

The certified pre-owned warranty covers the failure of many of the major components of the vehicles outside of normal wear and tear items.  This warranty can be extended to 3 or 4 years with a mileage cap.

If you want a Mercedes outside of their entry-level tier but can’t afford to drop $50-$60k on a new vehicle yet, consider purchasing a certified pre-owned Mercedes.

Save A Larger Down Payment

Another good way to be able to afford a Mercedes is to wait to purchase one until you can save a larger down payment.

Sometimes, it takes a little planning, waiting, and saving to be able to get into the car of your dreams.  If you want to afford a Mercedes in the future, do your best to keep your expenses low, find extra ways to save, and maybe even find additional ways of generating income. 

Over time, you will be able to amass a nice amount for a down payment which will help bring the monthly cost of a Mercedes into a tolerable range.

Lease The Car

Everyone has different opinions on leases, but they are a way to get into a Mercedes sooner for some people.  A lease is cheaper monthly than purchasing the same car new if you don’t have a huge down payment to make purchasing a Mercedes affordable.

For example, the A 220 Sedan can be leased new for payments in the mid $300’s/month, whereas purchasing the same car at the same monthly cost would require more than a $10,000 down payment.

Lease Through A Business

Oftentimes, people who drive highly coveted vehicles don’t own them personally.   These cars are leased either by their business or the business of someone they work for.

As long as you can meet the requirements for a business lease, and the business can afford the car payment, getting a lease through a business is another way to get into a Mercedes.

A Longer Car Loan Term

Another way to decrease the monthly payment is to opt for a car loan for longer than the traditional 5 years.  Some lenders offer 6 and 7-year car loans.

There are definitely downsides to having a long-term car loan, and although we don’t recommend them, they are a way of cutting your monthly car payment.  However, if you have to go for a 7-year car loan to be able to afford a Mercedes, you may be stretching yourself too thin financially.

How Much Money Do You Need To Afford A Mercedes

How much money each individual will need to afford a Mercedes will vary significantly based on their expenses.  A person who has fewer expenses but makes less can often afford a Mercedes before someone who has more expenses but makes more.

Some of the factors you should consider are the following:

Determine How Much You Can Spend Per Month On A Car

If you plan on financing your car, the first thing you should do is determine how much you can afford to spend each month.  Once you know how much you can afford you should use a car loan payment calculator to determine if you can afford the Mercedes you are eyeing.

If you can only spend $200/month on a car, then you will not be able to afford a new Mercedes given the current prices unless you have a very large down payment.

On average (depending on the interest rate), financing a car in the amount of $30,000 will cost you about $500/month with no down payment.  A $20,000 car will cost around the low $300’s/month with no down payment.

The cheapest new Mercedes is the A 220 Sedan starting at around $34,700.  Thus, you would need to be able to spend about $500/month to finance this car new even if you have a small downpayment, which is a hefty car note for many people.

Save A Down Payment

One of the best ways to make the monthly payment on a Mercedes affordable is to have a larger down payment.  If you can put down a good amount of cash, the monthly payment on a Mercedes becomes more tolerable.

For example, if you can put down half the cost of the A220 Sedan mentioned above, your payment will drop to just under $297/month (of course depending on the interest rate).

Additional Tips For Affording A Mercedes

Although many people desire a Mercedes, unfortunately, they just aren’t in everyone’s budget.  Take a look at your finances and determine how much monthly payment you can afford and compare that to the monthly cost of the Mercedes you want to purchase.

There are many metrics out there that people use to dictate how much car someone can afford.  Some say spend no more than 20% of your annual salary, while others say the car you purchase shouldn’t cost more than 50% of your annual income.

Unfortunately, this question doesn’t have a one size fits all answer. 

Each person needs to access their income, expenses, and tolerance for having a car with high maintenance costs before deciding whether they should purchase a Mercedes.  The outcome of this calculation will vary from person to person.

We suggest not stretching yourself to afford a Mercedes if it is really not in your budget. Some people may be able to pull off getting into a Mercedes, and then when the first unexpected expense hits, they can’t afford the repair. 

You should also consider all the pros and cons of owning a Mercedes before making the leap.

Final Thoughts

Many people dream about the day when they can afford a Mercedes!  Purchasing an entry-level model, considering a certified pre-owned purchase, skipping the extra options, and saving up a larger down payment are some common ways to be able to work toward affording a Mercedes. 

However, even with these tactics, some people will still not be able to afford a Mercedes and that is ok.  Consider some other luxury car manufacturers such as Lexus, BMW, and Cadillac if a Mercedes is currently out of your reach.

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