Payment Calculator

Purchasing a new vehicle is a big financial commitment, and you should make sure that you’re buying something you can afford not only today but for the years ahead. To help you through this process, Mercedes-Benz of Tyler offers a payment calculator you can use to help estimate your new car payments.

What Is the Payment Calculator?

The payment calculator is a tool we provide to help our customers through the car-buying experience. One of the key questions any new buyer has is what they can afford. However, simply looking at the MSRP of a vehicle doesn’t tell you much about how that vehicle will fit into your monthly budget. By using our payment calculator, you can see how different vehicles would impact your financial situation and pick a vehicle that you can afford.

How Do I Use the Payment Calculator?

To use the payment calculator, you simply complete the form based on the vehicle you’re interested in. You enter the MSRP of the vehicle you’re considering, along with the loan terms you received from a lender. After that, you provide any information about down payments you’d like to make or the value of your trade-in. Once you’ve completed all the fields, you simply click Calculate Payments to see your estimated monthly payments.

From there, you can continue to use the payment calculator by trying different values until you find an estimated monthly payment that works for your situation. For example, you could discover that you can afford a more premium trim level than you assumed, so you may enter the new MSRP and calculate the payments again. Our payment calculator tool makes it easy to try different scenarios until you find one that works.

Payment Calculator Terms

To use the payment calculator efficiently, it’s important to understand the meaning of different values being used.

Price of Vehicle

The price of the vehicle is its total cost, not including any taxes, fees, or additional add-ons. It’s crucial to enter an accurate price to ensure your monthly payment estimate is as precise as possible. When using the payment calculator, be sure to include any desired optional features or packages to get the most accurate estimate of your monthly payments.

Interest Rate

The interest rate is the percentage of the loan amount charged by the lender for borrowing the money. It plays a significant role in determining your monthly payment amount. Typically, lower interest rates result in lower monthly payments and less interest paid over the life of the loan. You’ll discover the interest rate when you apply for financing, either through our dealership or by working with a financial institution of your choice, such as your bank or credit union.

When inputting the interest rate into the payment calculator, you must use the rate you qualify for based on your credit score and financial history.

Loan Term

The loan term refers to the length of time you have to repay the loan. Common loan terms range from 36 to 72 months, though longer terms are becoming more common. A longer loan term usually means lower monthly payments but may result in paying more interest over time. Shorter loan terms typically result in higher monthly payments but allow you to pay off the loan faster and pay less interest overall. Use the payment calculator to explore different loan term options and find the one that best fits your budget and financial goals.

Down Payment

A down payment is the initial payment made when purchasing a vehicle. It reduces the amount you need to finance and can lower your monthly payments. A larger down payment often leads to lower monthly payments and less interest paid over the life of the loan. When entering the down payment amount into the payment calculator, consider how much you can comfortably afford to put down and how it will impact your monthly budget.

Trade-In Value

If you plan to trade in your current vehicle, its trade-in value reduces the amount you need to finance the new car. It’s important to get an accurate estimate of your trade-in value to ensure your calculations are as precise as possible. If you currently owe any money on the vehicle you’re trading in, you’ll want to factor that amount into the trade-in value. The payment calculator allows you to input the trade-in value of your current vehicle, helping you determine how much you can afford to spend on your new car.

Payment Calculator Example

Let’s say you’re interested in getting the new Mercedes Benz E-Class sedan. Without additional upgrades, this model has an MSRP of $71,480, which you would enter into our payment calculator’s Vehicle Price section. After comparing loan options from various financial institutions, you choose the best loan terms, which are a loan of 72 months and an interest rate of 6.88%. You then analyze your financial situation and determine that you can afford to place a down payment of $2,500.

Finally, you use our trade-in evaluator to determine that your current vehicle has a value of $8,500, which you enter into the payment calculator. After entering all this information, you learn your monthly payments will be around $1,025 for 72 months. Keep in mind that this estimate doesn’t include any taxes or fees that you’ll have to pay at the time of purchase. You can now use this information to determine if that monthly payment amount fits into your monthly budget or if you should explore some other options.

Discuss Your Options With the Mercedes-Benz of Tyler Finance Department

Our payment calculator is just one way we make it easier for Mercedes-Benz of Tyler customers to find a vehicle that’s right for them. You can also apply for financing online or quickly get the estimated value of your trade-in. We’re also available to discuss your options with you, either in person or over the phone. Please contact us today to schedule a visit to our finance department, and we’ll be happy to discuss all your options with you.

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