Planning a Mercedes? Few Easy Steps to Finance your Dream

Apr 05, 2018
Planning a Mercedes? Few Easy Steps to Finance your Dream

After years of consideration, if you have finally made up your mind to bring the famed three pointed star to your home, it is time for careful considerations and deliberations, to select the model that will increase the aura of your courtyard. One of the best ways to bring home your cherished dream is to look for good options in the pre-owned market. Many of the models do take a big hit in the depreciation front, so a smart customer will for sure give a close look to the pre-owned models first to see if there exists a deal that can give a maximum bang for the rupees spend.

Once you have seen the car by going through the extensive spec and feature list to finalize the model, the next step is to arrange the FINANCE – and this is where you can save a neat packet if you are diligent enough.

Know Your Budget

Always finalize an upper limit before you start shopping for your dream Mercedes. It is quite natural that you will be tempted to go for few more options or the next model in the lineup and if you do not keep your finances in check, before you know, you will be head over heels with a large cheque against your name.

Just be clear about your budget and expectations and needs from your luxury brand. Then proceed to make a list of all the Mercedes models that satisfy your criteria. Do read and research over the Internet to know more about different variants and trims, and the features each offer. Once the model is finalized, compare its features with the recent releases in the market.

The information so collected can be used further to bargain the deal and make it more budget-friendly. The only exception to this rule is, if you are getting a well maintained Mercedes with full service and no accident history, but at a slightly higher cost than your budget – in such case, check if the price is falling nearby your budgeted amount and in case yes, then go for the deal. Make sure not to exceed your budget by 10%. The only way to save money, time and effort while buying and maintaining a used car is to make sure that you buy the right car at the first time.

90-10 Rule


This is perhaps, the most important rule while looking for a pre-owned car. Always remember that it is not the purchasing cost that affects the pocket but the maintenance expenditure. That is why you have to be attentive, alert and look for a car with full service history, preferably at an authorized service center. Make sure that the car has undergone all the periodic checks and preventive maintenance as indicated by the manufacturer. But, like any other mechanical or electronic item, there is no GUARANTEE that there will not be any failures. While most of the cars are not very heavy on pocket to maintain, one should always budget a provision for a major repair work, if needed.

It is recommended to get all the fluids changed and get a service done once the pre-loved Mercedes is on-board. Do not worry as for the first time there will be a slightly heavy bill as few stuff will get replaced to make absolutely sure that the car works properly and run glitch free for years to come.

The first few months or the first one year is a period when you will be learning new things about your car and the chances of problems popping up out of nowhere are not entirely out of question. That is why it is important to keep at least 10% of your budget for the maintenance of your car for the first year. After the first year, you will know your car better and that will give you a better understanding of the maintenance cost forecast and you can always adjust your 'rainy day break down fund' accordingly.

Under Warranty, Better Deals

Usually, the used car purchases are financed at a higher interest level when compared to new car purchases. There are many caps put by different financial institutions while financing pre-owned cars like the model's year, kilometers driven, etc., and as the car ages, the percentage will step up. One way to make sure that you get a GOOD DEAL is to look for a Mercedes that is still under company's warranty.

The cars takes the worst depreciation hits during the first three years and most of the cars comes with five years of warranty (including extended), so a little effort can land you a sweet deal where you can get a pristine Mercedes that is still enjoying the benefit of being in warranty.

Even if the car does not come with a warranty, do check if the extended warranty period is applicable, once you buy it. Also, you need to check if the extended warranty (if the car is under extended warranty) can be transferred under your name. A little extra insurance never hurts, especially when you are bringing home a pre-loved Mercedes car.

STAR Finance, Banks – Everyone is Ready

STAR Finance, Banks

Once you have grabbed all the nitty-gritty, the only thing left to finalize is the financier. As a reflection of changing times, almost all the major financial players in the market are offering help to finance pre-owned vehicles and Mercedes has its own arm – STAR Finance – to help out the financing of pre-owned purchase deals.

It's always helpful to shop around and getting quotes from different players on the amount you plan to get financed, and sit with your CA to understand the pros and cons of financing V/S outright cash purchase. Under most circumstances, financed purchases can offer some relief under various heads and you may actually end up benefitting more by taking the finance route.

One THUMB RULE while looking for finance is never go for more than 80% of the value of the car. Generally it is a good practice to get 30% to 70% of the finance of the used car's value and make sure you are not earmarking more than 20% of your monthly income to pay for the EMIs and the monthly maintenance.

Make sure that you are getting the best deal for becoming the proud owner of the luxury brand – Mercedes – and within your budget.

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