One of the simplest ways to own a Mercedes Sprinter for sale in Salt Lake City is through in-house financing wherein the dealer itself finds a way to secure the necessary funds for the purchase. It makes the sales procedure go smooth sailing, for the same team that sells you the van is also the one processing your loan.
Although you can find in-house financing convenient, you should exercise due diligence to protect your best interests and to secure the best deal. Here are pieces of advice that you should heed to finance your van the smart way:
Know Your Credit Score Beforehand
Walking into a dealership without having a clear understanding of your creditworthiness is a rookie mistake. Letting an auto dealer inform you about your credit score is not only irresponsible but also potentially costly, for it is one of the factors affecting the interest rate that you qualify for.
Check your credit reports in advance. Review each of them, and find any inaccuracy. Correct all incorrect negative items to drive your credit score as high as possible before talking to a dealer.
Think with the APR in Mind
Include the overall cost of borrowing in the total price of your Mercedes Sprinter to have a proper perspective of how much it truly is. Apart from the interest, take into account all fees to determine whether a loan is indeed a good deal.
Choose the Shortest Term You Can Bear
The fewer months you need to repay your auto loan, the less interest you pay overall. Yes, a shorter term means more monthly payments, but you should not prolong the life of your mortgage if you can afford to pay it off sooner.
Put Down as Much Money as You Can
Like when buying a house, pay as large a down payment as you can when purchasing a vehicle. It seems convenient to pay little up front, but this kind of convenience comes at a price: more interest.
Ideally, you should only borrow 80% of the vehicle’s cost and pay the rest out of your pocket. But if it is too much to handle, shoulder more than what the minimum down payment allowed at least. After all, paying more cash up front can help you negotiate for a better deal.
Avoid Adding Anything to the Loan
Making auto buyers like to roll extra expenses into the loan. A dealer, or the true lender extending the credit, might be willing to take care of such costs on your behalf, but allowing another party to pay for it only increases your loan amount and therefore the overall interest.
Do Not Drive the Vehicle Home Until the Financing Is Final
Want to buy a Mercedes Sprinter with absolute peace of mind? Do not take the vehicle until the sale is final. In other words, leave the van in the dealership until your auto loan application is approved. Otherwise, you fall victim to a scam and wind up spending more than you were initially told.
In-house auto financing can work for you only if you do your research and structure your loan correctly. If you do it smart, you can get the most favorable deal available and avoid pitfalls that can inflate your costs.