6 Tips for Getting Car Financing at Your Pleasanton Mercedes Dealer

So you’re about to roll off the lot in your dream car: a brand new Mercedes-Benz. This is a day you’ve been looking forward to for some time. There’s still one piece of business you need to attend to, and fortunately, it’s nothing to worry about. Car financing can easily be arranged through your local Mercedes dealer.

1. Make a Down Payment

It’s possible to drive a new vehicle home without making a down payment, and some buyers do just that. But the best approach is to put as much money down upfront as you can. Why? Anything you put down upfront lowers the amount you end up financing, and the less you need to borrow, the more likely you are to get a favorable financing package.

2. Keep Your Budget in Mind

Shopping carefully for your new vehicle, and keeping your budget in mind, can also keep the total amount you need to borrow down. Buy a vehicle you can afford, and try not to add on optional amenities unless you really need them. It helps if you figure out your monthly budget before you set foot in the dealership.

3. Consider More Than One Financing Offer

Once you’ve filled out an application for financing, the dealer you’re working with will solicit various loan offers for you. Be sure to consider each one. The multiple financing offers you can get through an auto dealership are a big advantage. Having more than one loan offer gives you options, and allows you to pick the best package for your situation.

4. Pick a Short-Term Loan

As you start to weigh various financing offers, you’ll quickly realize that loans with a shorter repayment period usually carry a higher monthly payment. But shorter-term loans are usually the best deal because the faster you pay off the loan, the less you’ll shell out in interest. If you can swing the higher monthly payment, take the shorter-term loan.

5. Resist the Temptation to Finance Taxes and Fees

In addition to the purchase price of the vehicle, you’ll also need to pay sales taxes and fees. Many buyers find it convenient to roll those extra costs into the financing package. But if you go that route, you’ll end up paying interest on those fees. Pay those fees separately, in cash, if you can.

6. Pay Attention to the APR

There will be a lot of numbers discussed as you work through the financing process. One of the key figures to pay attention to is the APR, or annual percentage rate. The APR represents the interest rate you’ll pay on the money you borrow. The higher this rate is, the more you’ll pay in interest.

Arranging financing for your next vehicle is a piece of cake if you follow a few rules of thumb, and your local dealer can help. Head on over to Mercedes-Benz of Pleasanton today and start shopping for your next vehicle!