Zero percent financing is like the Holy Grail. It's free money and who can balk at that? But do you qualify and are there any catches?

Those are great questions and always ones worth asking. A little studying upfront will make your buying experience a pleasant one, and one that will help you avoid any hidden surprises along the way. In this article from Mercedes-Benz of Rochester, we will try to let you in on just some of the details involved with Zero-percent financing. 

Is a Zero Percent Auto Loan Really That?

Often considered the best deal in buying a car, Mercedes-Benz USA, through Mercedes-Benz of Rochester, can offer Zero-percent financing on certain models for various lengths of time. In other words, they may not be for the vehicle you want at any particular time. At other times, our dealership may have alternative financing means that will be the perfect package to deliver a new Mercedes-Benz GLS, Mercedes-Benz GLE, Mercedes-Benz S-Class and more. 

The other thing to remember is that zero-percent financing isn't available to everyone. Typically such financing requires a credit score of 700 or above to qualify. If that sounds like you, you can realize some real savings depending on several factors, including down payment, tax, tags, dealer fees and other out-the-door expenses.

Significant Savings

The savings are significant. But there are other things to consider, too. There may be a rebate on the car, and if that rebate is too big to pass up, you may take that instead. But you can't get both. It's a case of taking the rebate or take the zero-percent financing. The choice is yours. 

But before you walk into the dealership with no money in your pocket, be aware there are other costs required to be settled before driving off in your new vehicle. These are just a few of the costs involved with any Mercedes-Benz purchase:
  • Documentation fees
  • Taxes
  • License and Registration fees
  • First month's payment
Depending on the actual cost of the car, they could range from hundreds to thousands of dollars. It is possible to negotiate those fees into the actual purchase price so they can be paid off on a monthly basis. 


 

Bring Your Reading Glasses (Fine print ahead!)

Leases can be a challenge, too, because there is no standardized way of advertising them. Terms like Down Payment, Down, Drive Offs and Due at signing are used interchangeably but sometimes refer to completely different things. That's why it's necessary to read the fine print, so you can see exactly what your lease or purchase contract means.

Always ask the dealership for the out the door price so that there are no surprises ahead. Sometimes taxes and tag fees are included. Sometimes they are not. That's why it's important to know the bottom line, out the door pricing. For this, the Finance and Insurance officer is the person to have this conversation with.

Advertised Examples

Let's imagine XYZ AutoMall in Sioux Falls, Iowa is advertising an Audi A4 Lease deal:

The fine print may say: "36-month lease with $3,009 down, due at signing. Includes first month's payment and $0 security deposit. 10,500 miles per year. Tax, tag, title, license and documentary fees are not included and will require additional payment. Terms subject to approved credit. Offer ends 5/23/2022.

This ad implies $3009 will be due at signing. However, after taxes, title, license and documents fees are attached, the actual cost to drive off will be much more.

Another Car Lease Example

The fine print states: "Low mileage lease for well-qualified lessees. Lease a 2021 Alfa Romeo Stelvio RWD for $389 a month for 36 months or Stelvio TI Sport AWD for $499 a month for 36 months. Zero down plus bank acquisition fee, tax, title, license & first payment due at signing."

At first glance, you might expect to lease this Alfa Romeo with $0 out of pocket and $399 per month after that. Reading the fine print, though, you'll see that you'll be charged a bank acquisition fee, tax, title, license and first payment before you get the keys.

It's important to keep all these situations and circumstances in mind when comparing lease offers from different dealers. Why? Because something that looks like a fantastic offer might not look so good after adding all those additional fees and taxes.

As a famous British watchmaker says in their advertisements, "Do your research."

>> Have a Mercedes-Benz Lease Related Question? Call (507) 322-7150 to Speak with a Lease Specialist at Mercedes-Benz of Rochester <<

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