Mercedes-Benz of Athens Finance Center

At Mercedes-Benz of Athens, we pride ourselves on providing the utmost transparency to our customers. We practice honesty and integrity in all of our transactions before, during and after the sale, particularly where it pertains to financing. Bearing that in mind, we would like to offer these tips in an effort to help you more fully understand vehicle financing and lending. Understanding how car loans work can help you to secure the most appropriate and affordable financing. Here are our recommended steps:

1. Use our secure online financing tool to help get pre-approved for a loan. By filling out our online form, we can get started on finding you the best financing even before you leave your home.
2. We work with dozens of lenders to ensure you get the best possible rate, and a payment that fits your budget. There are lots of lenders out there, and we’ll match you with the one that meets your needs.
3. Review the information below to see the factors that affect your payment.
4. Review your budget and finances to select the best option for you.

Here are your loan variables that will determine your financing options and interest rate:

1. Vehicle Type – Choose carefully when selecting a vehicle to purchase. Vehicle year, make, model, mileage, and equipment all affect the cost. Obtaining financing for a vehicle that is beyond your means will be next to impossible, or at least cost prohibitive due to an extremely high interest rate.
2. Personal History – As an automotive loan applicant, your total monthly income, length of time that you have been on your current job (or at least employed in the same field), and the length of time that you have lived in the same residence will all be factors in determining the type of financing for which you qualify. Other factors such as marital status, judgments or liens that have gone against you, and the amount of pre-existing debt that you owe will all affect what type of loan for which you qualify.
3. Credit History – Your credit score, as it is acquired by one or more credit reporting agencies (Experian, Equifax, and/or Trans Union) ranges from a low of 350 to a high of 850. Loan applicants with a higher score are considered less of a risk than those with a low score and will qualify for larger loans with lower interest rates. Previous payment history will be taken into consideration when figuring your credit score. Since it is supposed that no more than fifteen-percent of gross monthly income (GMI) should be spent on an automobile payment, the amount of your monthly payments for pre-existing debt against your GMI will also play a critical role in determining which type of financing for which you will be eligible.
4. Down Payment – The total amount of your combined trade equity and cash down payment will significantly affect the interest rate and length of your loan. The larger your down payment, the less risk you present to creditors. You want to save as much cash as possible to pay down with your trade-in. Depending upon the trade-in value of your current vehicle you may or may not be required to submit a cash down payment before financing can be obtained. At any rate, the higher the value of your combined trade equity, the lower the monthly payments and the shorter the terms (length of time required for repayment) of the loan.

 

Past credit history, as reported by one or more credit reporting agencies, is another major factor in determining the type of financing for which you will be eligible. Credit scores range between 350 and 850. The higher your credit score is, the more likely you will be to secure low interest financing.
Here are the factors that go into determining your credit score:

1. Payment history is one of the main factors in determining your credit score. Consumers who consistently make payments on time and in the correct amount are apt to have higher credit scores than those who are frequently late or “short” on payments.
2. Calculating your debt ceiling is another method that credit reporting agencies use to grade your credit history. A predetermined percentage of your total income (depending upon how much you make) must not be exceeded with accrued debt. The nearer your existing debt is to the projected debt ceiling, the more difficult it will be for you to secure low interest financing.
3. The type of debt that you owe is a factor as well. Having a home mortgage, for instance, is more desirable than co-signing for a sailboat for an irresponsible friend or relative.
4. Credit inquiries also play a part in calculating your overall credit score. Numerous inquiries tend to reduce your score. If you are planning to make a major purchase, you should avoid submitting credit applications for minor conveniences such as credit cards.
5. Public records are also a valuable source of information for credit reporting agencies. If you owe Federal or State taxes or have any liens or judgments in place, you are likely to receive a lower credit score.

Regardless of how good your consumer credit score may be, purchasing a luxury automobile is often a challenging task. If you’re a first-time luxury buyer, have a shorter credit profile, or simply have a few dings to your credit, it mightbe quite grueling. So we’ve accumulated several finance and borrowing suggestions to make your entire car-buying experience as effortless as possible.

Choose a car at a price tag that will fit your finances
Your sales professional will assist in determining what price level of automobiles is appropriate for the payment you are considering. You can also use monthly payment calculator above to get an idea of what your payment maybe before you stop by.
Optimize an upfront payment
Raising your initial payment reduces your entire monthly payment, and will strengthen your offer and probability of acceptance.
Ensure Accuracy
Be sure to provide accurate and complete information on your credit application.
Get an estimate on your trade-in vehicle.
You should have an idea how much value there is in your current vehicle, in the event you’re thinking of trading it in, and to also obtain an improved understanding of the total purchase. In case you aren’t certain, we can present you with a no-cost estimate of your current car, as well as contact your financing company so you can get the most accurate vehicle value.