Mercedes-Benz Financing for Beginners

Buying a new vehicle is a big decision that usually comes with making lots of little ones. Oftentimes, buyers have lots of questions about the Mercedes-Benz financing process. Today, we’re highlighting the basics to give you added confidence about buying a new car or SUV from Keyes European.  

How Does Financing Work?  

Financing allows you to borrow the total cost of your new or pre-owned vehicle from a lender. Our financial experts will collect your basic buying criteria to help you get approved. Once approved, your investment will be divided over your requested term into equal monthly payments, which will be paid to your lender until your loan is paid in full.   

What’s the Difference Between Financing and Leasing?  

When you lease a vehicle, you are essentially agreeing to a long-term rental of a new vehicle. Your lease’s cost is determined by looking at your vehicle’s current value and then subtracting its estimated value at the end of your lease.

You still need to secure the total investment from a lender and make monthly payments. However, since you are only paying for the depreciation of the vehicle, you can typically get into a lease much more affordably.  

How Much Will My Payment Be?  

It’s important to make sure a vehicle’s payment plan works with your budget. An auto payment calculator can give you an estimate of your monthly auto payment. It factors in your vehicle’s total cost, your loan term, your down payment (or trade-in value), and your interest rate. 

When determining your budget, don’t forget to also consider the additional costs of owning a vehicle such as auto registration and insurance.  

Still have questions? Reach out to our Mercedes-Benz dealership near Los Angeles, CA – we are happy to help!