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2799 Piedmont Road NE, Atlanta, GA 30305
Sales: (800) 897-9087
Service: (800) 897-9617
Financial Terms to Know
Sometimes, walking into a dealership to buy or lease a car can feel like walking into a foreign country where they’re speaking a language you’ve never heard. Here’s a quick overview of car dealership and financing terminology that will help you be a little more knowledgeable when you go pay that down payment or get approved for a car loan.
Annual Percentage Rate - Typically shortened to APR or also referred to as a Finance Rate. Basically, the APR is the interest rate on a loan -- the percentage of the full amount of the loan that the lender charges annually for the use of their money.
Acquisition Fee - This fee will only come up if you’re leasing your vehicle. This is the amount charged by the dealer to cover the cost of processing the lease, such as requesting credit reports and insurance verification.
Closed-End Lease - Most leases are closed-ended, which means that the lessee has the option to either buy the vehicle at the end of the lease, or walk away without owing any additional costs for unexpected depreciation in the car.
Destination Charge - An additional fee tacked onto the sticker price of a vehicle that covers the cost of transporting it from the factory to the dealership.
Down Payment - The amount of money paid upfront on a new vehicle that reduces the cost of monthly payments.
Lease - An alternative to buying a car in which the lessee is permitted to borrow a new vehicle from the dealership through a negotiated contract that includes stipulations such as the amount of time the lease will take place, the cost of monthly payments, and mileage restrictions, among other things.
MSRP - Short for Manufacturer’s Suggested Retail Price. This is typically regarded as the “base price” for any given vehicle, though dealers may choose to charge more or less for a given vehicle.
Make sure to stop by Mercedes-Benz of Buckhead for any finance needs or questions. We’ll be happy to assist!