What are the installment payment methods for Mercedes-Benz?
1 Answers
Mercedes-Benz offers 2 installment payment methods: equal principal and interest repayment and equal principal repayment. Equal principal and interest repayment: In the calculation, the interest generated by the monthly loan balance is first calculated, and then the principal repayment amount for the month is formed by subtracting the interest due from the equal repayment amount. In the early stages of repayment, due to the larger loan balance, the proportion of interest in the monthly repayment amount is relatively high, and the repayment of principal is relatively slow. Over time, as the loan balance gradually decreases, the proportion of interest decreases, and the proportion of principal increases. This repayment method is more suitable for those who have fixed year-end bonuses or fixed annual incomes. Equal principal repayment: Equal principal repayment for car loans refers to the equal principal repayment method chosen by the borrower after obtaining a car loan. The total loan amount is divided equally over the repayment period, with the same amount of principal and the interest generated by the remaining loan in that month repaid each month. Since the monthly principal repayment amount is fixed and the interest decreases over time, the borrower initially faces greater repayment pressure, but the monthly repayment amount gradually decreases over time. The calculation formula for equal principal repayment is: monthly repayment amount = (loan principal / number of repayment months) + (principal - cumulative amount of principal already repaid) × monthly interest rate.
