Mercedes-Benz Has Cancelled Promotional Loan Rates

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Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

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, Senior Pricing Analyst - August 9, 2017

If you've been looking to buy a Mercedes-Benz, August may not be the best time to do so. At least if you were hoping to take out a loan. In an unusual move, the automaker has cancelled financing offers across its entire lineup.

The brand's longstanding offer of 2.99% APR for 72 months on select models is gone. However, there may be a bright side for those willing to shop around thanks to a boost in unadvertised dealer incentives.

So which models no longer have financing offers? What kind of potential discounts are there? And is it a good idea to lease a Mercedes this month?

Here's what you need to know.

Worse Off

Starting this month, Mercedes-Benz is no longer advertising 2.99% APR for 72 months on models like the CLA-Class, C-Class, E-Class and GLA-Class. Similarly, a promotion involving 2.99% APR for 36 months on the popular GLE-Class has ended.

Those rates may seem pretty horrible, but they're on par with competitors like BMW, which has steadily been hiking rates to 3.29% for 72 months. In contrast, Lexus is offering aggressive rates as low as 0% on models like the ES.

A Mercedes-Benz spokesperson declined to comment on the change in strategy.

That means that at the moment, Mercedes-Benz is only advertising leases. But there could be a silver lining worth being aware of if you were hoping to buy ahead of Labor Day on September 4.

The automaker is giving dealers up to $4,000 in unadvertised dealer cash incentives on models like the S550 Sedan. This month, even brand-new 2018 models like the CLA-Class and E-Class are eligible for similar, albeit smaller, offers.

However, dealers aren't obligated to pass along the savings, so it really pays to shop around. Leasing is a different story. At the moment, we're unable to recommend any single model as a stellar value for the money. Here's an example.

The 2018 CLA250 Premium is advertised at $339 for 36 months with $3,633 due at signing. With an effective cost of $440, this ranks as a fairly poor value given the vehicle's MSRP of $35,495.

More favorable discounts actually make the $45,000 Jaguar XE 35t $32/month cheaper to lease despite being $9,700 more expensive when comparing effective lease costs ($440 vs. $408). As a result, the XE is one of our top picks on a luxury car lease.

See this month's best lease deals »

, Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

Follow On: Google+ | Website