FAQ

 

- The purchase and sale transaction is established directly between supplier and customer, therefore customer is entitled to the proprietary rights;

- the difference between the own risk undertaken by Customer and the total purchase price is settled by Mercedes-Benz Credit Zrt. towards supplier and it enters into a loan contract with Customer for repayment of this amount in instalments;

- the vehicle is exhibited in the books of customer, who expenses depreciation and the interest content of the monthly fees;

- However the Customer is entitled to the proprietary rights, Mercedes-Benz Credit Zrt. stipulates an option to purchase which shall be deleted after the delivery of the payment obligation arising from the loan contract.

- The vehicle is owned by Mercedes-Benz Credit Zrt. and it used by lessee (operator)

- The lease object is activated in the books of lessee based on the invoice issued by Mercedes-Benz Credit Zrt.

- Lessee can expense the interest content of the lease fees as costs and the depreciation;

- Lessee can expense the cost content of the monthly lease fees, and the property acquisition duty payment obligation shall be met by Lessee upon entering into the Contract.

- Upon expiration of the maturity period and delivery of all payment obligations Lessee obtains the proprietary rights of the motor vehicle.

- the proprietary right of the vehicle is due to Mercedes-Benz Leasing Kft., as financer, the operator shall be lessee;

- the lease fees, which can be expensed as costs are invoiced monthly to lessee.

- The VAT content of the lease fee in accordance with the effective laws and regulations – for utility vehicles – can be claimed back.

- At the end of the maturity period the vehicle shall be returned to Mercedes-Benz Leasing Kft.

What is the difference between loan and lease?

With respect to business settlement nothing, the difference is in the legal ownership.

In the case of a loan the owner registered in the registration certificate of the vehicle is the customer, but the register of the vehicle is kept by Mercedes-Benz Credit Zrt.

In the case of a financial lease Mercedes-Benz Credit Zrt. is the owner of the vehicle, the proprietary rights are automatically transferred to lessee upon the payment of the last monthly lease fee and its other charges.

Where can I obtain the vehicle financing services of Mercedes-Benz Credit Zrt?

At main dealers within the sales network of Mercedes-Benz Hungária Kft.

Where and how can I get a car financing quote?

At main dealers within the sales network of Mercedes-Benz Hungária Kft, and via the e-mail address indicated on our web site: ertekesites@mercedes-benz-credit.hu

Can I finance only a new car or is it also possible to finance a second-hand car?

Both.

We finance new and second-hand vehicles with the cooperation of Mercedes-Benz and C/J/D main dealers contracted to us.

What age vehicle do you finance?

In the case of cars the car shall be maximum 5 years old at the time of entering into the contract and at the end of the maturity period a maximum of 9 years old.

In the case of trucks the truck shall be a maximum of 6 years old at the time of entering into the contract and at the end of the maturity period a maximum of 10 years old.

Can I buy a car exported from abroad by using the loan provided by Mercedes-Benz Credit Zrt.?

It’s not impossible, but the criteria are always defined individually.

In the case of a new car where do I have to pay the money in?

You have to pay in the own resources to the dealer upon ordering the vehicle, but the payment shall be made latest upon the acceptance of your financing offer (request).

After the approval of the offer, the dealer by forwarding the invoice about the purchase price, the purchase and sale contract (order) and the signed financing contract via fax initiates the payment of the purchase price remainder, which is transferred to the bank account of the dealer.

Can I purchase a car directly from a private individual by using your loan? How do you pay the price of the car to the seller?

In the case of a vehicle free from encumbrances yes, but only in the case if the financing contract is established with the cooperation of one of our contracted dealers.

Before forwarding the financing request an independent condition survey shall be made, which shall be performed by dealers contracted to us.

The settlement of the purchase price of the vehicle shall take place in such way – depending on your agreement– that you pay the own resources to seller or to the contributor.

After that the vehicle based on your power of attorney is transferred to your name by our Company and we also cause to register the option right of our company.

After the registration of our option right (which we check in the BM (Ministry of Interior) on-line database) we transfer the remaining amount of the purchase price to the bank account of the contributor, and the seller shall be paid directly by the contributor.

The entire process usually takes 1 to 2 days. (In the case of a financed vehicle this is calculated from the day when the vehicle is freed from all encumbrances.)

Can I get the total purchase price of the car on loan? Do I need own resources?

Yes, own resources are necessary in all cases.

The amount of the own resources depends on the loan construction, but in general we can say that in the case of a second-hand car at least 20% of the purchase price shall be paid in.

Can I buy any kind of cars (brand) by using the loan offered by you?

Yes, but we would like to inform you that our company prefers the financing of vehicles distributed by the main dealers of Mercedes-Benz Hungária Kft.

There are certain types of vehicles, which cannot be marketed so easily, therefore they are classified as higher risk models. In the case of financing risky types in the frame of an individual procedure we might request higher own resources, supplementary collateral (e.g. guarantor) and we have the right to reject the financing of certain type of vehicles. In such case we shall promptly inform you after the loan request judgement.

How much loan can I get?

Judgement always takes place individually, depending in the result of the loan judgement and the type of the vehicle to be purchased.

Do you also finance motorbikes?

No, our company exclusively finances cars.

Do you charge any loan judgement costs?

Upon entering into the contract usually we do not charge any loan judgement or contracting fees or handling charges.

However we have a few special financing constructions, where some parts of the construction is some fee payable upon entering into the contract. Our contracted sales partners and aerial representatives will inform you about these special opportunities.

Do I need to present an employer (income) statement?

Yes, usually we request income –statements, except for some special constructions, and during the loan judgement we check your place of work and employment legal status based on the data indicated by you.

Is it required to have a guarantor?

Usually we do not request the participation of a guarantor, only in exceptional cases when you do not have e.g. certifiable income, you are over 65, student, career-starter, you are on maternity leave, you work abroad, you live off occasional work, you require a special construction, or you would like us to finance a vehicle constituting risk higher than the average, etc.

Is it compulsory to take out a fully comprehensive (CASCO) insurance?

Usually yes, but it depends on the financing construction. In the case of payment 70% own resources and purchase of a new car it is also possible to use a construction without fully comprehensive insurance.

However we do not recommend these constructions, because you can lose much more than the insurance fee, if your car is stolen or broken.

Can a company use the loan?

No, for companies we only offer financing in the frame of financial lease construction. On our web page among the downloadable documents you can find those Datasheets, which you need to fill out and you need to forward them to our lease advisors. If your company is not two years old yet, upon entering into the contract it may be necessary to assume personal guarantee.

What can my company "write off"?

In the case of a utility vehicle the total VAT can be claimed back, if your company is entitled to claim the VAT back.

In the case of financial lease depreciation (annually 20% of the purchase price) can be expensed as cost, the invoiced interest, and in the case of a foreign currency based financing the possible exchange rate loss. The exchange rate profit shall be accounted as income.

What is the maximum maturity period?

The maximum maturity period is 72 months.

In the case of the second-hand car this might be restricted by the limitation, that upon the expiration of the financing for example the car shall only be a maximum of 9 years old, namely we can finance a 5 year old car for a maximum of 4 years.

What does the contracting procedure look like?

Before you would shoot off buying a car, please study our financing guide first!

First of all collect the required, original deeds and visit one of our sales partner located closest to you. You can select the car you are interested in and our partner will elaborate your customized financing quote with respect to the selected vehicle and they will help you to enter into the contract.

Once you selected the required vehicle, please hand over to our contracted partner the necessary, original deeds for the application. (You do not have to make any copies, because we do not accept copies.)

While you fill out the loan request forms, our representative will make copies of your deeds, and you will jointly reconcile the content of the forms and sign them at the necessary places. After that our representative will forward the entire documentation in an electronic format for loan judgement.

If we have received the complete package, we verify with you or with your employer the indicated data through the phone; we carry out the identification and solvency checks prescribed by the laws and regulations, and we will promptly (within maximum 24 hours) inform our representative about the result of the loan judgement.

If we accept your financing request you have to pay in the total own risk amount – if you haven’t done it yet. (In the case of a new car, in general we disburse the financing amount prior to putting the vehicle on the road.)

After that the main dealer puts the vehicle on the road (in the case of a second-hand car transfers the vehicle), and enters into the necessary insurances with the insurance company selected by you. After that you can take possession of the car.

You can also request our brokerage company to sort out the insurance contracts for you, which is going to find the most favourable compulsory insurance and fully comprehensive (CASCO) method.

How long is the processing time of the entire procedure?

The financing administration – depending on the completeness of the deeds provided by you and the submitted information – usually takes 1 to 3 hours, which includes the financing advisory services, the elaboration of the optimum financing construction for you, the revision of the data and loan judgement.

Depending on the inventory, the selected vehicle type and its accessories the dealer may arrange the delivery of the vehicle to the business unit 1 to 15 days within the disbursement of the financed amount, the installation of the extra accessories and putting the vehicle on the road.

The condition survey and transfer of second-hand cars free from encumbrances takes a maximum 1 to 2 days.

Under whose name will the car be put?

In the case of a loan in the registration certificate of the vehicle and in the register of the vehicle your name will be registered. Our company, the Mercedes-Benz Credit Zrt. as collateral causes to register alienation prohibition on the vehicle, and during the entire maturity of the loan we keep the register of the vehicle.

If you have settled all your debts, we issue the waiver declaration and register of the vehicle within one day.

In the case of a financial lease in the registration certificate of the vehicles you will be registered as operator (lessee), however in the register of the vehicle Mercedes-Benz Credit Zrt. will be registered as owner, and we shall keep the register of the vehicle during the entire maturity period. If you have settled all your debts we will issue the declaration about the transfer and the register of the vehicle within one day.

In the case of a lease in the registry certification you will be registered as operator (lessee), however in the register of the vehicle Mercedes-Benz Credit Zrt. will be registered as owner, and we shall keep the register of the vehicle during the entire maturity period. If you settled all your debts and returned the vehicle we shall issue the deeds certifying the closure of the contract within one day.

What deeds do I need to present for the loan request?

If you request financing as a private individual:

- valid personal ID card, address card, driving licence and tax card

- original public utility bill dated not later than 30 days and the payment slip or bank account statement certifying the payment of the bill.

- employer income statement

In the case of company owner – at the same time acting manager – private individual:

- certificate of incorporation issued within the last three months

- balance sheet, profit and loss analysis of the last two business years

- valid personal ID card and address card

If you wish to enter into a contract as a private entrepreneur, on the top of the above you will need to present

- your entrepreneur card or primary producer card

- tax return of the last 2 years

If you wish to request financing for your company:

- certificate of incorporation issued within 30 days

- signature specimen

- balance sheet, profit and loss analysis of the last 2 business years

- valid personal ID and address card of the managing director

As a pensioner can I take out a loan?

Of course. If you are over 65, we would need a younger absolute guarantor with a stable place of employment and an employment relationship with a minimum duration of one year.

Currently I am unemployed, can I use your loan?

Our loans are available for customers in employment.

I have not yet received my Hungarian citizenship. Can I still get a loan?

Yes, if you have at least a residency permit and ID card. In this case we will need a Hungarian citizen absolute guarantor with a stable place of employment and with an employment relationship with a minimum duration of one year.

Do I have to pay for the “foreign currency” contracts in foreign currency?

No, in the case of a foreign currency based loan your loan debt will be registered in Swiss Franks or EUR, depending on your choice, but the payment of the instalments shall always take place in HUF.

The conversion of the instalments calculated in foreign currency shall always take place at the prevailing foreign currency exchange rate of Raiffeisen Bank.

Do you have a fixed interest return loan? Is the interest rate of the HUF-based loan fixed?

Of course we have loans with fixed interest return, at CHF and EURO base it has to be taken into consideration that while the interest rate is fixed, the exchange rate varies in each month.

In the case of a HUF based loan the interest of the loan and the monthly redemption does not change.

If I wish to amend the contract, are there any additional fees charged?

Yes, the contract amendment fee is1.5% of the outstanding debt of debtor, but a minimum of 36.000 HUF.

Upon the payment of the contract in one amount:

In the case of a closure within one year 5% of the outstanding debt of Debtor. In the case of a closure over one year, but within two years, 4% of the existing debt of Debtor. In the case of a closure over two year, but within 3 years 3% of the outstanding debt of Debtor. In the case of a closure over three years, 2% of the outstanding debt of Debtor.

Is it possible to close the contract prior to the expiration of the maturity period?

Yes, of course, this is your right provided by the laws and regulations. Upon your request we inform you about the size of the closure amount. The cost of elaborating the closure offer is 6.000 HUF, but this will only be invoiced, if you change your mind and you do not request to close the contract.

Closure fee: in the case of a closure within one year 5% of the outstanding debt of Debtor. In the case of a closure over one year, but within two years, 4% of the existing debt of Debtor. In the case of a closure over two year, but within 3 years 3% of the outstanding debt of Debtor. In the case of a closure over three years, 2% of the outstanding debt of Debtor.

Is it possible to perform advance repayment?

Yes, of course. If at the time of entering into the financing contract you can assess in advance when you are wishing to make the payment of the increased amount, it is advisable to calculate this in the payment plan, this way the contract amendment will not be necessary and the pre-scheduled advance payment is free of extra charges.

But if you cannot define the date and amount of the advance repayment, we will have to request the contract upon your request, which is subject to a fee, which is equivalent to 5% of the advance repayment, but a minimum of 30.000 HUF.

What happens, if I cannot deliver the instalment payments?

You can request contract amendment (payment-rescheduling, or temporary instalment decrease, maturity period extension or payment postponement).

If you become completely insolvent, please indicate the issue towards us in time. We can find a customer for your vehicle with your help or with the help of the sales network.

After the sale, we deduct all your debts from the income, and we pay the difference to you. If the sale price does not cover the total debt, you have to pay in the difference within a short deadline.

How do I repay the capital and interest?

As the instalments are similar and at the beginning of the maturity period the loan debt is high, the first instalments contain higher interest and lower capital repayment. This is the so-called annuity repayment.

Your capital debt namely at the beginning of the maturity period decreased slower at the beginning of the maturity period and it speeds up later on. You will receive exact information about the capital and interest repayment in the monthly statement.

What is the THM?

THM (Teljes Hiteldíj Mutató) means Total Lending Fee Index, which shall be calculated in a method defined by Government decree 41/1997. (III.5.).

This index, contains all cost factors, which can be pre-calculated upon taking out the loan, thus it is more suitable to compare the certain financing constructions than the transaction interest rate.

What does the expression LIBOR mean?

LIBOR (London Interbank Offered Rate), the interest rate which is applied during the interbank procedures performed in the London stock market: the offered rate, at which the large international banks offer loans to each other in London.

What does the expression interbank market mean?

The market, where the banks displace their surplus national and foreign currency reserves for a short period of time. For example: the governing interest rate of the short-term loan available at the London interbank market is the pound-LIBOR.

What does the expression EURIBOR mean?

EURIBOR means "Euro Interbank Offered Rate".

EURIBOR is defined based on the rules and regulations of the European Central Bank and register it at the Frankfurt interbank market.

Offered rate subscribed at the Frankfurt interim bank, defined pursuant to the rules and regulations of the European Central Bank. Also the Hungarian financial institutions use the above as a comparison base in the case of EUR loans, which is displayed on the respective page of the Reuters monitor (or in absence of the above on the respective page of the Telerate monitor) as EURIBOR. Among the EURIBORs with various maturity period the applicable EURIBOR is indicated in the Customer contract.

What does the expression EUROLIBOR mean?

Governing London interbank offered rate in EUR, which means that the banks can get loans from each other in EUR for the given maturity period.