Whether this is your first time buying a car or you’re a seasoned expert, the financing process can be tricky and filled with a lot of new terminologies. But here at Fields Motorcars, our team of Mercedes-Benz finance experts is happy to walk you through the process. We understand that auto loans can be complex, which is why we’ve created this FAQ with some of the most frequently asked questions about automobile financing.
What is the Difference Between a Loan and a Lease?
Though the two words sound similar, loan and lease refer to different things. When you get a car loan, your down payment and monthly payments are going to the total price of the vehicle. When the loan is paid off, you will own the vehicle.
On the other hand, you can think of leasing as being similar to a long-term car rental. You make monthly payments for the term of the lease, and when the term ends, you can return the leased vehicle or buy it from us — you could even leave with a brand-new Mercedes-Benz model.
What is the Down Payment?
When you purchase a Mercedes-Benz car from us, you’ll likely need to make a down payment upfront. This is what you pay to have access to the auto loan. The larger the down payment, the lower your monthly payment will be.
What Factors Go into the Interest Rate?
A major component of your auto loan is the interest rate. This is an amount that you will pay every month on top of the principal. The interest rate varies from person to person and depends on factors such as:
- Credit score
- Credit history
- Loan term
- Down payment
Learn more about Mercedes-Benz loans at our Lakeland Mercedes-Benz dealership, or drive off in a new car today. We look forward to seeing you.
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