A vehicle is a major purchase, which is why you should have all of the information you need before making any decisions. If you’re planning to finance, it’s a good idea to familiarize yourself with key Mercedes-Benz financing terms. Mercedes-Benz of Orange Park goes over five that you should know.
Annual Percentage Rate (APR)
Annual percentage rate, or APR, is an important number to pay attention to. This lets you know what the total cost is every year for borrowing money to pay for your vehicle. APR includes the interest rate along with any additional fees.
Down Payment
One of the best ways to lower your financing costs is with a good down payment. The more money you can supply upfront, the less you will need to borrow and pay back. It’s advised to aim for 20% of the sale price.
Loan Term
The loan term is the loan’s length, and you will get to decide how long you want this to be. Generally, loan terms start at 24 months and go up by 12-month intervals, usually up to a maximum of 84 months.
Depreciation
Over time, the value of vehicles goes down, and this is the depreciation. Cars typically lose most of their value in their first four years, which is one reason why many drivers decide to go with an older model.
Balloon Financing
With balloon financing, you will have a low monthly payment at the start of your loan, which may just cover the interest or a small part of the money you will need to pay back. Then, at the end of the loan, a large payment will be required to pay the remaining balance.
Start the Mercedes-Benz Financing Process in Orange Park, FL
Now that you know more about Mercedes-Benz financing, you may be ready to start the process. To get pre-approved, just fill out our online application. Any questions? Get in touch with the financing department at Mercedes-Benz of Orange Park and get behind the wheel today!
