How to Finance a Mercedesby Alexis Writing
Many consider a Mercedes Benz to be the ultimate in luxury vehicles. Since a new Mercedes costs upwards of $20,000 as of 2010 for even a base model, it may be difficult to pay for the car upfront. Instead, you may choose to finance a Mercedes through a loan from the dealer or from a private auto loan company.
Make sure you have a good credit score. You will get the best financing if your FICO score is relatively high. You can raise your credit score by making payments on time, refraining from opening new accounts, and improving your debt-to-credit ratio by paying off as much debt as you can.
Determine how much you can afford to pay each month. Before beginning the financing process, it is a good idea to know exactly what outlay you are comfortable with.
Comparison shop rates among lenders. Mercedes Benz offers their own financing program, and they often offer special promotional rates, particularly when you purchase a new car. Therefore, the dealership may be a good place to start to review your financing options. However, private lenders such as Capital One and Wells Fargo also offer auto loans, so do your research and compare terms and interest rates before buying.
Apply for a loan. Once you have determined which lenders are offering good financing rates, apply for a loan. The lender will check your credit score to make sure you are a good credit risk. They may also ask you to verify income by providing your employers name. You can apply for financing from Mercedes Financial right at the dealership, or you can apply for a loan from a private auto loan finance company or a bank online or by requesting an application be sent to you.
Review the terms and sign the loan application. Pay attention to interest rate, which is the amount you will be charged each month and the term of the loan. Auto loans can range from one to six year financing, so make sure you are happy with the length of time it will take you to pay off the car.
- check You may want to consider also purchasing gap insurance, which will protect you in the event of a crash or other loss or damage to the car. Gap insurance will pay the difference between what you owe on the vehicle and what insurance pays out, should something happen to your car and your insurance settlement not cover the full amount due on your auto loan.