Why pay for the whole cow when steak is cheaper? It’s the same with your Mercedes

Perspective matters, thus say the wise ones. Some see money as an end goal in life, others see money as a resource to effect change on the world.

Elon Musk for example, doesn’t even own a house. He sees physical possessions as things that weigh him down. Money doesn’t mean much to him, other than as a resource for him to accelerate the change he wants to see in the world.

But of course, you and I are not Elon Musk, and if you are reading this and you want a Mercedes, money is your end goal and you love owning cars, which leads us to the next point.

Just because you love steak, it doesn’t mean that you should buy an entire cow so you can get the beef right? But that’s exactly what most car buyers are doing.

When we are buying a new car, we don’t just pay for the cost of purchase and maintenance, but also the depreciation. Add them all up, and the actual cost of buying and owning a car is a lot higher than what the sticker price suggests.

Put it another way, you as the first owner is paying not just for the privilege of owning a new Mercedes-Benz, but is also subsidizing the next owner, who in a about 5 years’ time, will be buying your ‘not new, but still nearly as good as new’ Mercedes off you at a significantly cheaper price.

It’s exactly why savvy buyers prefer to buy certified pre-owned models from Mercedes-Benz Proven Exclusivity, because somebody else has already paid for the depreciation on your behalf.

But still, high-end cars at this segment of the market are about speaking to a certain lifestyle choice, rather than talking about cold hard facts about Ringgits and Sens. At the core of the Mercedes-Benz lifestyle is rewarding yourself with the best and the newest, having something that none of your peers have yet.

And when what you are driving has become too common, it’s time to switch. Why hang on to something that has already gone past its prime? You didn’t buy a Mercedes only to own it like it’s a Toyota Camry didn’t you?

The idea of holding on to something that is long past its prime is contradictory to the genuine luxury lifestyle that, if you are true connoisseur of luxury, should be striving for.

Else, you are just seen as someone who is looking for the cheapest car with a Mercedes-Benz badge to flash around with, and that sets you out as either a fraud, or an ‘MLM’ person, or both.

So, there will always be demand for a new Mercedes-Benz. In comes Mercedes-Benz Agility Financing.

You may have read a lot about step-up / balloon financing but here’s the key point that is often missed out.

The main ideas of Agility Financing are very simple:

1. The resale value of your car is guaranteed

2. Your monthly installments only pay for the depreciation cost, not the whole car (steak vs cow, remember?).

Of course, this pitch is only valid for the first 2 or 3 years, which is why Agility Financing's monthly repayments go up beyond that, because by then the value of the car is considerably lower.

Essentially, this is about you getting to enjoy the best Wagyu steak, without having to buy the whole cow.

Using the example of a Mercedes-Benz GLC 200 (from RM 299,539), instead of paying RM 5,030 per month with a 5-year hire purchase, you are paying just RM 2,388 per month for the first year, RM 2,788 for the second, and RM 4,986 for the subsequent three years.

When you are done enjoying the car at its prime, you simply return it, and sign up for the next new Mercedes-Benz model.

But you will never own the car?!

The catch for Agility Financing is the annual mileage cap of between 20,000 and 30,000 km, depending on package chosen, but this is more or less the annual mileage of most Malaysians so it’s not really an issue.

What is an issue to most traditional-minded buyers is that you don’t own the car after the contract is over.

Actually you can own the car after settling the balance of the contract but that’s not the purpose of Agility Financing. If ownership is what you are looking for, just take a regular hire purchase.

Yes, with Agility Financing you will always be paying monthly installments for the car, essentially signing up for a long term rent. But is that such a bad thing? Remember that the monthly installments are much, much lower than a conventional hire purchase, so long as you change car every 3 or 4 years.

Think about it, do you really want to own and maintain a Mercedes-Benz after its warranty runs out, especially after considering the depreciation cost (close RM 90,000 for a 3-year old GLC 200) that you’ve already stomached?

But for most customers, the maintenance is less of an issue. Not keeping up with their peers in having a better, newer Mercedes-Benz however, is an issue. Thus the appeal of Agility Financing for this demographic of highly demanding clientele.

The guaranteed resale value is below market rate

Not really, your car’s buyer is Mercedes-Benz Malaysia. Obviously they have a direct interest in keeping resale values stable.

But if you are able to convince someone to buy over your Mercedes-Benz at a much higher price than Mercedes-Benz Malaysia’s offer, then go ahead. Simply settle the balance in repayments, and take the car to your next buyer.

It is no wonder that Agility Financing has become the preferred choice for today’s Mercedes-Benz customers. Mercedes-Benz Malaysia’s financing arm Mercedes-Benz Services Malaysia (MBSM) now finances 4 out of every 5 new or pre-owned Mercedes-Benz cars sold by the brand’s authorized dealers.

Between now until 30-June 2021, customers who signed up for Agility Financing will also get a complimentary Touch 'n Go card with RM 2,000 preloaded. 

The promotion is applicable only for C-Class, GLA, GLB, and GLC.

For more information on Mercedes-Benz Agility Financing, click here. 

This post is sponsored by Mercedes-Benz Services Malaysia