Automotive

2018 Mercedes Benz CLA 250

  • Last Updated:
  • Jan 22nd, 2018 4:09 pm
[OP]
Newbie
Dec 12, 2017
96 posts
37 upvotes

2018 Mercedes Benz CLA 250

Hey RFD,

I am planning on purchasing a new CLA 250 and was building a price online to see how much it will be for me with all the features I wanted in it. My question is not concerning the features or if the car is good or not, because I am set on this car. The reason for this post is to ask what is a Star Advantage? I wanted to lease the car, but then there's a third option of Star Advantage which has unlimited KM and a buy out price? I will be heading over to a Mercedes Benz dealership later on today to inquire and do a test drive, but wanted to know if anyone on here knows about this so I can have a clear understanding before going over to the dealership.

The salesperson can say whatever he wants, but if as a consumer we are not aware of the advantages and disadvantages of these programs by the dealership then they can suck us into any type of loan. So please guys be easy on me lol and just let me know what it is and if it's worthwhile. If it is not, then I am just going to lease it, and I won't need any advice on leasing as I've done it before on different cars.

Note: Reason for choosing MB is because it has good finance/lease rates at 0 - 0.9%, and sorry forgot to mention this will be a write-off for my business.

Thanks everyone and have a great new year!
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93 replies
Member
Nov 26, 2014
205 posts
210 upvotes
Toronto, ON
Star Advantage is Balloon Financing.
Deal Expert
User avatar
Jul 30, 2007
23204 posts
8161 upvotes
Toronto
My understanding is a combination of a leasing first + balloon financing (with MBFS @ whatever the rate is at end of the initial lease term) or buyout with cash payment, such that you will own the car in the end . You set the term (in months) of your leasing and the payment will then be calculated accordingly with interest rate, residual (much lower than the traditional lease term, such that you are basically paying more but a bit less than traditional financing).

Is this a smart way to buy a MB ? Only your Accountant can advise you on this as he/she needs to crunch some numbers for you. In my view, if you are wanting to own a MB, then just do the traditional financing and your Accountant can determine the portion of cost that can be expensed (tax purpose)
[OP]
Newbie
Dec 12, 2017
96 posts
37 upvotes
booblehead wrote:
Jan 3rd, 2018 8:22 am
My understanding is a combination of a leasing first + balloon financing (with MBFS @ whatever the rate is at end of the initial lease term) or buyout with cash payment, such that you will own the car in the end . You set the term (in months) of your leasing and the payment will then be calculated accordingly with interest rate, residual (much lower than the traditional lease term, such that you are basically paying more but a bit less than traditional financing).

Is this a smart way to buy a MB ? Only your Accountant can advise you on this as he/she needs to crunch some numbers for you. In my view, if you are wanting to own a MB, then just do the traditional financing and your Accountant can determine the portion of cost that can be expensed (tax purpose)
Ok great thanks for the info.
Deal Expert
User avatar
Jul 30, 2007
23204 posts
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here is just one illustration.

Say you configure the car to be $44,300
Assume $0 down payment
Ignore, discount, freight/pdi, fees for now being included in the calculation

Star Advantage: 36 months lease, then balloon payment (assuming it's cash)
* interest rate 0.9%
* Residual 49%
In the end, your grand total cost including balloon payment. Project total cost = $51,820 (taxes included)

Leasing: 36 months lease, then buyout (assuming it's cash)
* interest rate 2.9%
* residual 54%
In the end, your grand total cost including buyout. Project total cost = $53,410 (taxes included)

Difference = $1,590 (taxes included)

> The factor in play here is the interest rate. If the traditional leasing has an interest rate of 0.9%, then this will cost you about $1,000 less than the Star Advantage program.
[OP]
Newbie
Dec 12, 2017
96 posts
37 upvotes
booblehead wrote:
Jan 3rd, 2018 8:53 am
here is just one illustration.

Say you configure the car to be $44,300
Assume $0 down payment
Ignore, discount, freight/pdi, fees for now being included in the calculation

Star Advantage: 36 months lease, then balloon payment (assuming it's cash)
* interest rate 0.9%
* Residual 49%
In the end, your grand total cost including balloon payment. Project total cost = $51,820 (taxes included)

Leasing: 36 months lease, then buyout (assuming it's cash)
* interest rate 2.9%
* residual 54%
In the end, your grand total cost including buyout. Project total cost = $53,410 (taxes included)

Difference = $1,590 (taxes included)

> The factor in play here is the interest rate. If the traditional leasing has an interest rate of 0.9%, then this will cost you about $1,000 less than the Star Advantage program.
Hey great info thanks! I spoke with my accountant and he advised me to lease the car because with Star Advantage (as far as what he knows) the car can not be returned back to MFG to lease a new vehicle every 36 months. So I'm guessing Star Advantage is like a financing type of plan? But at any rate, I will be leasing the car at 36 months. Thanks for your advice on help, much appreciated.
Deal Expert
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Jul 30, 2007
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Go with your Accountant advice. Smiling Face With Open Mouth

Besides, MB owners tend to lease most of the time to avoid reliability issues
Banned
Feb 8, 2017
186 posts
132 upvotes
Just my opinion but at least get c300

Cla250 is like a German Economy vehicle without reliability and fuel economy. Cla250 and B200 are slowest Benz but owners of these 2 models always speeding and driving aggressively. LOL

Your accountant is right. I would choose 3 years lease and go easy on tires. You don't want to have to replace them before lease end.
Deal Guru
Jun 11, 2005
12791 posts
1607 upvotes
Toronto
Crixus45 wrote:
Jan 3rd, 2018 11:52 am
Just my opinion but at least get c300

Cla250 is like a German Economy vehicle without reliability and fuel economy. Cla250 and B200 are slowest Benz but owners of these 2 models always speeding and driving aggressively. LOL

Your accountant is right. I would choose 3 years lease and go easy on tires. You don't want to have to replace them before lease end.
C300 is so slow compared to the C63s. You might as well buy a C63s. I don't see how you can say the CLA is a german economy vehicle when VW takes the cake for german economy. Also reliability and fuel economy? I'm pretty sure all of the mercedes lineup is basically equally reliable and fuel economy is all relatively the same compared to the competition.

The OP already has his heart set on the cla250 so let it be. The definition of a perfect world for RFD is beige corollas for everyone.
Deal Addict
May 4, 2014
3802 posts
3867 upvotes
Toronto, ON
Ugly car, cheap plastics, ultra-cramped interior, but hey it's got a MB badge - that alone is worth something, right?
[OP]
Newbie
Dec 12, 2017
96 posts
37 upvotes
Guys I don't know what it is, but I've always loved the CLA 250. It was either the GLA 250 or CLA, but I'd prefer a car instead.
Sr. Member
Mar 17, 2016
804 posts
592 upvotes
OP you even have C300 in your username. Go with that model instead.

Also curious, what kind of business would you have that you can write off a new Mercedes?
Deal Addict
User avatar
Jul 26, 2007
3881 posts
1578 upvotes
Toronto
Leased a basic cla250 when it first came out. Great car but wasn't worth $600 per month lease payment imo. Still have a lease quote from last year loaded c300 for $550, but bought it instead of leasing.

If you can get cla250 for under $500, then go for it. But price out a c300, might be same monthly and you will definitely see the difference.
[OP]
Newbie
Dec 12, 2017
96 posts
37 upvotes
Hindenburg1 wrote:
Jan 3rd, 2018 12:38 pm
OP you even have C300 in your username. Go with that model instead.

Also curious, what kind of business would you have that you can write off a new Mercedes?
We actually run a family business, where I'm the sole owner. We manufacture indian masala and spices in Mississauga.

I owned a 2012 C300 which I loved so much, but then gave it in for a Lexus IS300 in 2015. And now my lease is up so I am planning on going back to a MB, but never checked MFG website. Hence, why I asked about Star Advantage.

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