To finance a Mercedes-Benz, your options are to either obtain a loan at a dealership through Mercedes-Benz Financial Services or get a traditional loan from a bank or credit union. Note that while getting a car loan from the dealership is convenient, it may end up being more expensive than bank or credit union lending.
As one of the world’s largest manufacturers of luxury passenger vehicles, Mercedes-Benz is revered for combining high-performing engine technology with world-class design quality. When searching for a car loan, you want an equivalent standard of excellence.
Having multiple financing choices is great, but what’s your best loan option for a Mercedes? Car insurance broker and lending expert Jerry is here to break down all your options.
How to get a Mercedes-Benz car loan
Whether you’re searching for a used A 220 sedan or splurging on a newly minted G 63 Amg, getting an auto loan for a Mercedes is fairly straightforward. The first step is to check your credit report, then compare rates from multiple lenders (three at minimum), and finally get loan preapproval.
Check your credit
Check your credit score before your search because it will factor into the terms of your loan, namely the interest rate. Generally speaking, a credit score of 660 and above is the ideal range for requesting a car loan.
If your credit score is below 660, banks may be hesitant to extend a loan to you. Mercedes-Benz Financial Services approves applicants who proffer their ability to make payments through documented proof of income, a personal reference, or a co-applicant.
Take a look at the table below to see the average APR and monthly payment for various Mercedes-Benz vehicles depending on your credit score:
After you determine your loan eligibility, you’re ready to choose a lender. One option is to purchase directly from the dealer if they partner with Mercedes-Benz Financial Services. You may instead choose to go through a bank or credit union.
Before you settle on a loan, be sure to compare offers from no less than three lenders. Ideal offers will have:
Low APR: 4.93% or lower
Short loan term: 60 months or less
Manageable monthly payment: 10 to 15% of your monthly income at most
Cost shouldn’t be your only consideration when comparing lenders—great customer service is just as important. A lender with attractive approval odds and an affordable payment plan isn’t worth very much to you if you can’t get them on the phone or they have bad company reviews.
Loan preapproval is beneficial for budgeting purposes prior to shopping for your new vehicle. Mercedes-Benz Financial Services offers a no-cost preapproval application online. Most other lenders do, too.
To complete the preapproval form, you will need to submit the following details:
Social Security number
Driver’s license or another form of photo identification
Proof of income (pay stubs, tax statement, etc.)
Key Takeaway To acquire a Mercedes-Benz car loan, first check your credit score. Next, compare lenders and try to get preapproved.
Average loan term for a Mercedes-Benz car loan
One of the most important aspects of financing your vehicle is picking a loan term. The most popular term for a car loan in the United States is 72 months, or six years. Even though this is the average, that doesn’t mean it is the best idea.
Opting for a repayment term of 60 months or less is much better. A shorter loan term means paying off your loan quicker and paying less interest. Your monthly payments will be higher, but having a short loan term means you will be ultimately paying less for the car.
If you choose to go through a dealership for your loan, Mercedes-Benz Financial Services offers repayment periods from 24 to 72 months. One advantage of getting your car loan through Mercedes is that you won’t have to worry about a prepayment penalty, meaning that you’re allowed to pay off the loan early without being on the hook for additional fees.
To get a sense of what your monthly payment and interest rate could be depending on your loan term, see the table below.
The loan offers you can get for a new or used Mercedes-Benz will depend on the age of your car. Mercedes-Benz Financial Services, for example, only approves loans for new and certified pre-owned vehicles that are six years old or newer.
If you need a car loan for a Mercedes older than six years, you should apply through a bank or credit union. While you’ll probably see a steeper APR for used cars, the total loan amount will likely be less, making it easier to pay a high-priced interest rate.
Curious how your car’s age will affect your loan? Here’s what your monthly payment and APR might be based on your Mercedes-Benz model year.
How to calculate the costs for a Mercedes-Benz car loan
Regardless of your Mercedes-Benz’s unique story, your monthly payment and APR will revolve around your credit score, loan term, loan amount, and geographic location. Try out Jerry’s car loan calculator to see what you might pay for a Mercedes-Benz car loan.
Average Annual Interest Rate
Average Monthly Payment
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