Here at Mercedes-Benz of Southampton, we have your best interest in mind and want to do what we can to make your car-shopping process go as smoothly as possible. To help you come to our Mercedes-Benz dealership serving Long Island more prepared for financing, we put together a list of common finance terms to familiarize yourself with.
- Finance: When you take out a loan from a bank, credit union, or other financial institution in order to make your car purchase more affordable. You will be responsible for paying this money back in monthly installments, plus added fees.
- Down Payment: The payment you make before you pay your monthly payments for your loan. This is required for most car purchases or lease agreements.
- Term: The amount of time you have to pay back your loan, typically between 24 and 72 months. Keep in mind that shorter terms tend to earn lower interest rates.
- Interest Rate: The fees you pay to your lender for their services, expressed as a percentage of the cost of your car.
- Credit Score: A number that represents how well you have paid back debts and handled credit in the past. A credit score above 700 is considered good.
AdChoices