As of 2015, Mercedes-Benz offers several financing options including leasing, financing and balloon financing. The financing and balloon financing options allow customers to own the vehicle after the terms are complete, but the leasing option does not.
When a person chooses to lease a Mercedes-Benz, he pays the dealer for an agreed number of miles and months. At the end of the term, the lessee does not own the car. However, lease payments are typically more affordable than a financing option. When the lease is over, the customer has the option to buy the car with regular financing. However, the lessee cannot pay off the terms of the lease early, insurance premiums are usually higher, and additional charges may apply at the end of the lease if the car is not in good condition or if the driver has exceeded the allotted mileage.
Regular financing is also available. In this case, the customer receives a simple interest loan that he pays over time, and he can pay off the loan at any time. In balloon financing, which is similar to regular financing, the buyer takes out a simple interest loan, but the payments are lower than regular financing. However, at the end of the loan, a large balloon payment is necessary to meet the terms.