MB now have lease scheme for their cars

One month min 5k+ depending car model

Anyone took the offer?

RM5k per month and no car at the end of the deal, what kind of madness is this?

If you can afford RM5K a month instalment better buy outright. At least you can get back residual value when you sell off. On a lease you get nothing.

To top it off servicing cost is on the person leasing. What kind of lease is this? It's like renting a house and having to pay for its repairs.

How did TS know it is 5k+ per month minimum at all?
It doesn't make sense.

I assume if 5k/month is the minimal, that would point the cheapest model A180, 195k+?
Who the hell in the right mind would pay 5k monthly lease for an A180?

If it's 2k per month, I will definitely take a look at this Lease2GO seriously.

2k/mth is ok if for rent during raya only
Even in mudah.my, rm500/day
No need to servis n no need to pay ins
Ensure old car no hutang then no need to buy new car

Singapore should be long ago have this lease option but they include all the servicing and repair cost, but this lease2go if we have to responsible on the repair cost, then this is still not a good scheme.

Expect a raw deal from MBM.

Repair means involve accident ?

Well, figures are out for this Lease2Go scheme and it looks like those aspiring to drive a Merc on the cheap should keep looking. Pualina Tan has the details here.

To take an example the 3 years lease for a C200 is RM6067 a month. The total payout will be:

rm6067 x 36 months = rm218,412
New price of C200: rm258,464

This means that in at the end of the 3 years lease you have paid up 84.5% of the new car price and end up with no car. Oh, don't forget there is a servicing cost of rm20,793 which you have to pay extra.

This is indeed a raw deal by MBM. A fair lease should pay for the depreciation and insurance premium over the lease period.

Actually, i think this caters to specific group of people, the higher management/company owners/corporate fleet.

Should have some tax benefits from my understanding of taxes here. Assuming C class at 300k

If the company actually purchase a mercedes car, the maximum claimable allowance (or depreciation for layman terms) is up to 50k. And some more, spread out over a period of 5 years. Meaning 10k x 24% = RM2,400 per year of tax savings.

Worse of all, cannot claim back GST for this category of purchase. Rugi GST : 300k x 6% = RM18,000

So net tax loss is : 18k - (2.4k x 5years) = RM6,000

But if under this lease scheme :

Assuming lease per month is RM6000

Too bad the lease cost in a non allowable expense in our income tax. But the GST portion can claim : RM6000 x 6% = RM360 per month.

Savings over 5 years : RM360 x 12months x 5 years = RM21,600

Any tax experts can double confirm?

This post has been edited by wkc5657: Jul 13 2017, 04:12 PM

Beauty of leasing is you can claim 100% of the cost under operating expenses instead of only able to have a certain amount of tax deduction.

True, the car still belongs to mercedes, but still not allowed; see page number 13 and 14 (pdf page 20 and 21):

https://www.pwc.com/my/en/assets/publicatio...ess-booklet.pdf

Specifically disallowed :
"lease rentals for passenger cars exceeding RM50,000 or RM100,000 per car, the latter amount being applicable to vehicles costing RM150,000 or less which have not been used prior to the rental"