Vvvvvv

I'm planing on buying a 2016 E350, and I was wondering how much I should pay for down payment and for monthly payment. So can you tell me what you paid so I can have a better idea? And also what's your APR? Thanks. Also my APR would be pretty high because I'm new to credit. But I don't have any bad history. Thanks everyone! I'm planning to put down around 6k. I don't know if that will be a good number? If so what would be an estimate monthly payment for someone like me that has no credit with that much down payment? I have around 1K to 2K every month free to spend after I pay all the things necessary. But obviously I'm not gonna pay more than 1K haha.
AND THIS IS NOT A LEASE
NOT A LEASE
IM BUYING THIS CAR
Thanks a lot everyone!

pamiboy

You are looking at the problem from the wrong perspective. Before you even step foot to the dealer, first go to your bank/ credit union and get a loan for whatever amount you want. (let's say 40 or 50k). Once you have the loan approved you'll know what is the best APR your bank is offering and your projected monthly payments. Armed with this knowledge you walk into the dealership. I assume you have already searched the inventory of nearby dealers and isolated your car. Forget about APRs and monthly payments for now (even if the dealer pushes you to get that number). The number you should concentrate and negotiate is the actual price of the car. Proceed further only after the final price of car had been agreed. Say that you are paying cash from your bank but will consider their loan only if their offer is better. (Don't tell them your best rate from the bank). Now you have something to compare with. The rates are different for every person and it's futile comparing it to your situation. I myself have got different rates from different dealers (ranging from 1.9-2.7%). Many have got even better or worse rates. Also there are several online calculators that figure out the monthly payments if you provide the APR, deposit and total loan amount. It's very easy.
There is no point discussing the deposit amount and monthly payments with the dealer initially, they will see that you are a Virgin waiting to be screwed. (Excuse my comparison, but this is how dealers act). Good luck.

cetialpha5

Penfed usually has some of the best rates around although I've seen one or two other credit unions that have lower rates, they're at 1.99% for up to 5 years. Usually you should have 20% for a down payment and your car payments including insurance shouldn't be more than 10% of your income. Those are general rules of thumbs. Sounds like you can't really afford to buy it new. You should consider a 2014 with less than 50k, that way you could get a CPO or extended warranty on it good for 3 years so it's almost as good as new. They're usually in the 30k range. A new one is going to start at about 60k but people report getting anywhere from 8-12% off MSRP. So you're probably going to end up financing around 50k. So if you do a 5 year loan, that 50k works out to about $876 a month. And you don't think you'll qualify for that low rate so I don't think you can buy and insure a new car for less than 1k a month. You could stretch it out to 6 years, but their rate for that is 2.75 and the monthly payment goes down to $754. After 3 years, you'll still owe 25k on the car with a 6 year loan and basically have next to no equity in the car as 3 year old MB's are going for 30-35k. It's why most people just lease them for $500-$600 a month, but you need good credit for that.

Vvvvvv

Thanks for replying but this is just ridiculous. No one in their right mind pays 20%😂 Might as well pay out the whole car If you're gonna do 20%. None of any Mercedes owner I know has payed more than 7K for down payment. We'll see about the monthly payment. Maybe I'll just pay as much monthly as they want. I know someone that's 19 YO and she payed about 2K to 3K for a Mercedes that's about the same price as this one and it's brand new. They approved her but it was just slightly around 1K. So she ended up buying an brand new Audi A4 for around 500 a month because she didn't like the Mercedes offer. There's no way I can't afford this lmao
But just in case everything fails, I'll just get a new C300. It's about 20K cheaper at my dealer. It was my first choice but I really liked the rear end design of the E350. But I really like the C300 too. I would never lease. Who wants to lease other than people who can't afford to finance it? We'll most of them.

Vvvvvv

Lol no problem. Thanks a lot for the tip!

cetialpha5

Well 20% was the old rule of thumb, you can put down whatever you like. An A4 is like a C class MB, totally different price point. It's why most people just lease them, the payment is much less. When you only put down 10%, you should also worry about being upside down on the loan, make sure you have GAP insurance, otherwise if the car gets totaled, you end up owing money on a car you no longer have.

I also don't understand what you mean by pay as much monthly as they want. That is really meaningless. Your payments are dictated by the amount you borrow and the interest rate that you get. It's simple math. If you have to go more than 6 years on a loan, you can't really afford it. Find out what interest rate you qualify for and punch it into loan calculator, that will tell you what your payments should be. You should be checking the figures on the documents anyway. Last time I got a loan, they tried to slip in life insurance on me, but when I did the math, the numbers didn't add up and they told me it was due to the insurance that they forgot to tell me about. I had them take it off and the numbers added up. If you can't do the numbers, you're a prime target for getting ripped off.

PeterUbers

I'm very confused -- Op what are you trying to find out? Go to a bank and get a loan and they will tell you what your monthly payments are based on APR and downpayment... Or use an online calculator ... There are about six million online auto loan calculators

Vvvvvv

yes that's true. I'll be extra careful about it. Also about the insurance, a friend of mine who has experience told me when the dealer asks you if you have insurance, always tell them yes you already do because they will find you the most expensive one and rip you off. So just tell them you have one and then after find the cheapest one you can find.
Also just curious, do you currently own a 2016 E350? What's your numbers on it? If you don't mind sharing. Thanks for replying me!

cadetdrivr

This. This. This.

Besides, there are significant differences in option levels and supply/demand by region. One size does not fit all.

There are some pretty basic personal finance issues involve here that I suspect the OP would be well served by learning prior to buying $65k car (or a $5k car.)

Just saying....

cetialpha5

Yeah, none of us are really saying anything that's out of the ordinary. OP needs to google some articles on how to buy a new car and all the things we're talking about would be covered in those articles. If you only have 2k of play money after expenses, it sounds like income isn't really that high.

Step one is to go the bank and see how much you qualify for before you go to the dealership. That will tell you if you should even be in that dealership.

Vvvvvv

Maybe not for you but for a lot of Americans having 2K of play money would be a luxury for them. Plus my rent is almost 4K a month if we're only talking about rent. Living is very expensive in the Seattle/Bellevue area. It's a very wealthy place. And a 4K apartment is a very luxurious apartment in the downtown area. And there's numerous other things to pay. Haven't your rad the article? 3/2 Americans don't even have 500-1K in their bank account if there's an emergency. And do you not know how many Americans work part time for a living and live off of fast food everyday? I consider myself PRETTY good lol. And I might make even more than that later on.

PeterUbers

Reminds me of a scene that's ingrained in tv history: (albeit my opinion of Cosby has gone downhill lately)

babacah

I guess I can't speak for your state but for me it has been more then telling them you have insurance, you need to provide proof of insurance before they let you drive off in the car.

As for the 20% down payment, I think you'll find the majority of people buying a new Mercedes between cash and trade far eclipse this number.

thefisch

I understand that OP is new to credit so getting a loan and keeping up with the payments will help built credit. Of course there are other ways to build credit but those are discussed a plenty online.

You got some good advice here to seek out a credit union and have a loan offer before you go in. They will probably treat you much better than a dealer will. Down payment minimum may be required based on your credit and car value so no need to speculate on that.

Making smart financial decisions now will help you later on. Also, don't spend more than you need to. Missing payments will wreck your credit so be careful.

jylee

You are too nice...OP has no money, he just talk.

pamiboy

I'm totally confused by this thread. The OP has not even decided on a particular class of car or brand, no idea about how the credit system works, claims to be very wealthy and wants to buy a brand new luxury car. There is something inherently wrong here. Like others have said before, may be this is not the right time to buy a car brand new. Buy a cheaper one or CPO used, build credit and learn from there.