Mercedes Agility Finance Example

Mercedes-Benz Agility Finance is a popular option for acquiring a new Mercedes without committing to outright ownership. It’s essentially a Personal Contract Purchase (PCP) agreement tailored to Mercedes-Benz vehicles.

Here’s a simplified example to illustrate how it works:

Scenario: You want a new Mercedes-Benz C-Class with a list price of $50,000.

Agreement Details:

• Initial Deposit: Let’s say you put down a deposit of $5,000.
• Agreement Term: A common term is 36 months (3 years).
• Annual Mileage: You estimate driving 10,000 miles per year.
• Guaranteed Future Value (GFV): After 3 years and 30,000 miles, Mercedes-Benz Financial Services guarantees the car will be worth a certain amount, say $25,000. This is the GFV.
• Interest Rate (APR): Assumed to be 6% (this is just an example, rates vary).

How it Works:

1. Finance Amount: The initial amount you finance is the car’s price minus your deposit: $50,000 – $5,000 = $45,000.
2. Monthly Payments: You don’t pay off the entire $45,000. Instead, your monthly payments cover the depreciation (the difference between the financed amount and the GFV), plus interest. In this case, the depreciation is $45,000 – $25,000 = $20,000. The monthly payment calculation is complex and depends on the interest rate, but it would be structured to cover the $20,000 depreciation plus interest over the 36-month term. Let’s assume, for this example, the monthly payment comes out to $650.
3. End of Agreement Options: After 3 years, you have three choices:
   • Return the Car: If you don’t want to keep the car, you simply return it to Mercedes-Benz, and you’re done (subject to excess mileage and damage charges).
   • Purchase the Car: You can pay the Guaranteed Future Value ($25,000) and own the car outright. You might be able to finance this amount through a separate loan.
   • Part-Exchange for a New Mercedes: You can use the equity in the car (if its market value is higher than the GFV) as a deposit towards a new Mercedes-Benz Agility Finance agreement.

Key Benefits of Agility Finance:

• Lower Monthly Payments: Compared to a traditional loan, Agility Finance often has lower monthly payments because you’re not paying off the full value of the car.
• Flexibility: You have options at the end of the agreement: return, buy, or upgrade.
• Guaranteed Future Value: Knowing the GFV provides certainty and protects you from potentially lower resale values.

Important Considerations:

• Mileage Restrictions: Agility Finance agreements have annual mileage limits. Exceeding these limits results in excess mileage charges.
• Wear and Tear: Returning the car with excessive wear and tear can also result in charges.
• Interest Rates: Interest rates can vary, so shop around and compare offers.
• GFV Limitations: The GFV is based on the car being in good condition and meeting the mileage requirements.

This example is for illustrative purposes only. Contact your local Mercedes-Benz dealer for a personalized Agility Finance quote.