Millionaires also pay in installments. This costs financing a Mercedes Maybach S Class more than 250 thousand euros

When someone is considering spending more than €200,000 on a car, it is most likely because their income level is much higher and they already have more of their basic needs covered by significant assets. Or what is the same, you can practically consider yourself a millionaire.

But what is striking is that one of the largest luxury car brands offers the possibility of financing the purchase of one of its most elegant and exclusive models in installments. Do millionaires also pay for their purchases in installments?

If we stick with what the data says, for someone to be considered a millionaire in Spain, their net worth must be at least $2.46 million or $30 million to move into the wealthy category, according to data from the research center. Knight Frank Wealth Report 2024.

The object of desire in question is the admirable one Mercedes Maybach S-Class. An ultra-precise version of the Mercedes S-Class, which adheres to the utmost luxury in every detail, including a pair of champagne silver glasses and the rear seats. First grade With high footrest and small center console desk with foldable table.

We are talking about a vehicle measuring 5.47 meters long and with a curb weight of 2,650 kilograms, which is equipped with two engine options: combustion, with a 612 hp V12; And the plug-in hybrid that develops up to 510 hp.

Let's talk money: How much does it cost to finance this car and why isn't that crazy?

Obviously, all these fancy, fancy materials and mechanical equipment come at a cost. The simplest model has the odd one out Price 200200.01 euros. However, as is usually the case when purchasing a car of any range, configuring the car to your liking will have an additional cost that can easily rise to more than 420,000 euros.

When it's time to leave, the brand offers financing for the purchase amount of the car. Everything seems completely normal, except for the amount to be financed The car you customized According to my taste it is 410679.74 euros.

In this specific case, the financing will have a down payment of €5,823 and you will have to pay an entry amount of €102,669.93 and an opening commission of €9,209.49. Thereafter, a monthly payment of €5,900.52 is required for 48 months at an APR (annual equivalent rate) of 11.28%. In month 49, the final payment of €107,280.17 is due, which you can save if after that time you return the car or exchange it for another.

Total process for the model and finishes I have I dreamedThe chosen one is €496,484.03. That is, I will pay Additional €76,594.80 in interest and financing costs.

Whether through inheritance or personal merit, a person who has managed to accumulate enough wealth to seriously consider purchasing a car of this level knows very well how to manage his money. So, the question again arises: why would anyone want to incur an additional cost of more than €76,500 to finance the purchase? The most logical answer is found in investments.

If at this time someone with the right knowledge (or with the right advice) invested the €308,009.81 financed in this Maybach purchase in stock market assets or other investments, which would very likely be funded within 48 months, you would get a great return. on that money.

2023 has been an amazing year for financial markets with “balls” like those carried out by NVIDIA or major technology companies. The same fate is expected For energy companies in 2024With double increases in the prices of some of them. This indicates that I insist that by following a proper investment strategy, the APR (11.28%) paid by this financing can be compensated for with greater interest.

In this way, the fee paid monthly (after deducting the interest that can be earned from the invested capital) can be little more than just rent.

On the other hand, I keep in mind that great wealth does not work like the rest of us do when buying a car or a property. In these cases, it is usual to It is society that buys goodnessso rental plans and other financing systems Subject to tax deductions Which does not apply to a natural person.

In Chataka | Financing to purchase a car: types and things to consider

Image | Mercedes Benz