How much of a down payment do I need to finance a car?
The down payment required to finance a car varies based on several factors, including the purchase price of the vehicle, your credit score and the lender's requirements. Typically, a down payment of at least 10% of the purchase price is recommended. However, some lenders may require a larger down payment depending on your creditworthiness and the loan terms.
What additional costs will I be responsible for when buying a new car?
In addition to the purchase price of the car, there are several other costs to consider, such as sales tax, registration fees and any applicable dealer fees. You may also need to purchase car insurance before driving the car off the lot.
How can I find the value of my trade-in?
You can use a trusted online resource like KBB.com to get an estimate of your trade-in's value. By entering information about your car's make, model, year and condition, you can get an estimate of its trade-in value. You can also visit our Salem Mercedes-Benz dealer, where we'll conduct an in-person appraisal of your vehicle and provide you with a formal trade-in offer.
Does my credit score impact my loan rate?
Yes, your credit score can impact the interest rate you are offered on a car loan. Generally, the higher your credit score, the lower the interest rate you will be offered. If you have a good credit score, you may be eligible for a lower interest rate, which can save you money over the life of the loan.
I have a low credit score -- can I still finance a car?
Yes, it is possible to finance a car with a low credit score, but you may be offered a higher interest rate than someone with a higher credit score. It's important to shop around and compare rates from different lenders to find the best option for your situation.
I don't have a credit history yet -- can I still finance a car?
Yes, you may still be able to finance a car even if you don't have a credit history. Some lenders offer special programs for first-time buyers that take into account other factors, such as your income and employment history. However, you may be required to provide a larger down payment or be offered a higher interest rate. Our local Mercedes-Benz dealer can share more about this when you visit our showroom.
What’s the best length for a car loan?
The best length for a car loan depends on your financial situation and goals. Generally, a shorter loan term (such as 36 or 48 months) will result in higher monthly payments but can save you money on interest over the life of the loan. A longer loan term (such as 60 or 72 months) will result in lower monthly payments but may cost you more in interest over time.
Can you offer a better interest rate than my pre-approved rate?
It's possible that we may be able to offer you a better interest rate than your pre-approved rate, depending on your creditworthiness and other factors. We encourage you to apply for Mercedes-Benz financing with us to see what rates and terms we can offer you.
Can I reduce my monthly car payments down the road?
It may be possible to reduce your monthly car payments down the road by refinancing your car loan, negotiating a lower interest rate with your lender or extending the loan term. However, it's important to weigh the costs and benefits of these options with our Mercedes-Benz financing specialists before making a decision.
Can I sell my car while I’m still paying it off?
Yes, you can sell your car while you're still paying off the loan, but you will need to pay off the remaining balance of the loan before you can transfer ownership of the car to the buyer. This can be done by using the proceeds from the sale or by paying the remaining balance out of pocket.
Were all your questions answered by the above? If not, remember that we're just a call or click away. Simply contact Mercedes-Benz of Salem to begin speaking with a sales or financing professional that can answer your questions and help you apply for a loan. With our experts on your side, you'll discover just how easy it can be to park a new Mercedes-Benz in your driveway.