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Mercedes C250 vs C350: How to finance your decision

Posted by on June 19, 2012 in Comparisons - No comments

Millions of people across the globe aspire to own a Mercedes-Benz. However, very few can afford to embark on one. This article discusses about 2 such cars that epitomize the finesse of German technology and the class of ultra sophisticated owners.

Review of Mercedes C250 & C300

Mercedes c250 Interior

Mercedes c250 Interior

Mercedes-Benz has released its fresh line-up of 2012 C-Class sedans and coupes. It is a mid level car with a starting price of around $30,000. The Mercedes C250 is an entry level car that has a petite but economical engine. It’s a turbocharged 4 cylindered car with 1.8-liter capacity engine. The engine creates a horsepower (hp) of 201 at 5,500 rpm (torque). It is only 27 horsepower less than the Mercedes C300’s 228-hp. On the other hand, C300 has a 3.0 liter V6 engine. The ratio of acceleration for both C300:C250 is 7:1 seconds to reach a speed of 0-60 mph (miles per hour). The 2 models use 7-speed automatic transmission clubbed with manual-shift mechanism.

The Mercedes C300 has enough torque (221 lb.ft – torque at 2700-500 rpm) with commendable performance and fuel efficiency. The engine of C300 guzzles about 18/26 mpg (Models – automatic & E85), 13/19 mpg (Models – automatic & E85) and 17/20 mpg (Model – 4MATIC). Mercedes C250’s engine consumes about 21/31 mpg. The starting price of C300 is more or less $35,000.

Mercedes C250 car is reminiscent of the elitist feel with a lot of leg room and perfect driving pleasure. It has immense resale value also. These are luxurious cars that demand a lot of maintenance eventually driving up owning costs.

Whereas C300 has appropriate price and represents the premium class of cars. It has everything to pamper your family, guests and clients. However, if you want full justice from your huge investment, then you can opt for Lexus, Audi, Infiniti and the likes. These cars will give more features than their luxurious and premium priced (M-B C250 & C300) counterparts.

How to finance your luxurious purchase, i.e., Mercs

mercedes-c300-interior

mercedes-c300-interior

The Federal Open Market Committee promised to keep the rate of federal funds in the range of 0-2.5%. They also vowed to take steps to keep the loan prices in that range till the middle of 2013. This made auto loans cheaper in the year 2012. Therefore, people who want auto loan will be happy to get lucrative loan offers throughout the year.

If you want an auto loan, then you can follow the below mentioned steps to get an affordable one.

Get your basics right – The amount one gets as the loan is called principle. Getting an auto loan is quite simple. However, as soon as one defaults in making the monthly payments, things start becoming murkier. Every loan whether it’s an auto loan or any other loan, comes at a rate of interest. The interest is payable along with the principle.

Credit rating – Interest rates differ on every auto loan. This is based on the loan applicant’s credit score. A “deep subprime” person with a credit score of less than 550 will get loans at a high rate of interest. On the hand, “super-prime” person with a credit score of 740 or more will get the same loan at an affordable price. So, one must build up his credit score before applying for the auto loan.

Auto loan application – An individual looking to purchase cars should get more than one auto loan quotes. There are several places to get affordable auto loans. For instance, one can contact credit unions, banks and any other legitimate lender. Loan applicants are expected to provide accurate information in the application form. Any discrepancy in it will get the application rejected and the applicant may be penalized. This is because lenders do a reference check regarding an applicant’s credit history and other financial statements.

Approvals of loan – People buying car from a dealer are not bound to get the auto loan from him. It is good to get the loan application approved by a credit union or bank. This will ensure that the lender is quoting an honest price.

Mercedes C250

Mercedes C250

Now, many a times, people go overboard with their expenses and fall back in making the loan repayments. A person often asks, “How to consolidate my debt and manage all the payments efficiently”. However, in reality, auto loans are refinanced not consolidated, so that loan repayment becomes easier and helps the borrower to become debt free.

Ways to repay auto loan debt

Refinancing an auto loan is easy. This will lower the rate of interest on the loan. Here is a summarized version of auto loan refinance.

*Low rate of interest – Auto loan refinance may reduce the interest rate by 1%. This will reduce the overall amount paid to the creditor throughout the loan term.

*Value of the collateral – Car is the collateral for the loan. Therefore, creditors will not agree to pay more than the actual price of the car.

*Saving dollars – Refinance is one of the most effective ways to save some extra cash on the loan.

*Reduction of APR – People with good credit score can get their APR or Annual Percentage Rate re-negotiated to reduce the rate of interest on the loan.

*Provision for penalties – One should inform his present creditor before contacting other creditors. If the person has a good financial record, then the creditor may agree to reduce the rate of interest on the loan.

In case one doesn’t inform his previous creditor, then that creditor may levy prepayment penalty charges on the loan. Thus, it will become more expensive to refinance the auto loan than it would have been before.

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