If you plan to finance your purchase of a Mercedes-Benz car, do consider getting one from Mercedes-Benz directly instead of from the banks via their Agility Financing.
I have returned to Malaysia for good for more than a year now after spending more than 10 years overseas. I was lucky enough I was able to purchase our first car when we were trying to settle down. There were some challenges of getting the car loan especially for a person like me who’s self-employed.
Since Malaysians have to rely so much on personal transport e.g. car, my wife and I have no choice but to get a second car as it was getting a bit inconvenient when we have to go somewhere different at the same time. My online business which I’ve been running for almost three years picked up quite a bit over the past few months so with some money saved, we wanted to get our first and the most affordable Mercedes-Benz car – a Mercedes-Benz A200.
I know it will always be a challenge to get a car loan from the bank because I run an online business which most banks think is high risk. I was able to beat the odds anyway when I was able to secure a home loan – read my previous post on – 7 Tips to Apply for a Home Loan in Malaysia if You’re Self Employed. Naturally banks would turn me down so I explored the opportunity of getting a financing facility directly from Mercedes-Benz.
So what is Mercedes-Benz Agility Financing? Here’s the summary shown on their website:
Mercedes-Benz Agility Financing is designed to provide exceptional flexibility and peace of mind. When your arrangement comes to an end you have the option to settle, extend or return your Mercedes-Benz while we guarantee the future value of your car.
Agility Financing is available for A-Class, B-Class, C-Class, E-Class, S-Class and CLA.
So how is Agility Financing different from a conventional bank loan? Technically, it’s very similar to leasing a car in the US whereby you actually “rent” the car for a certain period of time which can range from 1 to 5 years; with certain mileage capped for each year.
At the end of the term, you will have the options to return the car, pay the remaining balance in full and take full ownership of the car or refinance the residual value.
Mercedes-Benz highlighted that their hire purchase comes with a guaranteed future value. That means a few years down the road, the car that you purchased will still stay at least at a certain value without allowing it to depreciate too rapidly. Mercedes-Benz can still resale the car if you decide to return it after the agreed term.
Of course, there are some disadvantages to Agility Financing mainly the interest rate is higher compared to conventional car loan (I was given 5.6803%). In my case, the down payment I was asked to pay was quite high but that also helped lowered the monthly repayment which is a good thing.
The reason given was because my business was established for less than two years. Another downside is that the mileage is capped at 20,000km per year which is the option I chose. If you go beyond the agreed mileage quota, you will be charged RM1.20 per km.
No modification of any sort is allowed on the vehicle under the agreement. They provided a list of standards of how the car should be returned (if you decide to return it) at the end of the term. These are some of the ways on how Mercedes-Benz retains the future value of the vehicle.
If you’re self-employed and banks are giving you a hard time to provide you financing for a new car, you should consider Mercedes-Benz Agility Financing. The terms and conditions are acceptable in-spite of the restrictions I stated earlier. Check out their website here for more details.
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