Looking to splash out on a Mercedes-Benz but stressed over how to afford it? Many financing options are available to help you drive off the dealer lot in your luxury ride, whether your heart is set on a new convertible, sedan or SUV.
To help bring your new ride home, we’ve evaluated some of the most common ways to get Mercedes-Benz financing.
Buying a luxury car like a Mercedes-Benz is an exciting prospect for many consumers. However financing such a vehicle also requires having a strong credit profile. So what credit score does Mercedes actually use to determine loan eligibility? Let’s take a deeper look.
Understanding Credit Scores Used by Mercedes
Mercedes-Benz Financial Services (MBFS) primarily relies on your FICO® Auto Score 9 from Experian to evaluate loan applications. This industry-specific score examines various aspects of your credit history including:
- Payment patterns
- Amounts owed
- Length of credit history
- Credit mix
- New credit accounts
Auto lenders like MBFS use the FICO® Auto Score because it provides a more accurate representation of a borrower’s credit risk for auto loans The score ranges from 250 to 900
However, depending on your location, Mercedes may also consider your FICO® Auto Score 8 from TransUnion or Experian. So your TransUnion credit data can factor into the lending decision as well.
What is the Minimum Credit Score for Mercedes Financing?
Many experts recommend having at least a 675 FICO® score to have the best shot at Mercedes financing approval. This score range is considered “good” by most lenders and indicates lower risk.
However, credit score alone does not guarantee loan approval. Mercedes also evaluates debt-to-income ratio, income, employment history and other criteria. The specific vehicle and loan terms also play a role.
Some Mercedes dealers advertise financing for scores as low as 600. But such offers may require a significant down payment and charge higher interest rates. Ideal terms usually require 700+ scores.
How to Improve Your Chances of Getting Approved
Here are some tips to boost your odds of Mercedes financing approval:
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Aim for 680+ FICO® scores – This shows lenders your creditworthiness and commitment to managing debts responsibly.
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Lower credit utilization – Keep revolving balances below 30% of credit limits on cards.
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Avoid new credit applications – New accounts can lower your score temporarily.
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Pay all bills on time – Payment history is a major factor in your scores.
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Verify credit report accuracy – Dispute and remove any errors that may be dragging your score down.
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Maintain a stable income – Lenders want to see consistent earnings to ensure ability to make payments.
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Reduce debt-to-income ratio – Keep total monthly debts below 36% of gross monthly income.
Applying for Mercedes Financing with Challenged Credit
Applicants with credit challenges like past delinquencies, collections or bankruptcies can still potentially get approved for Mercedes financing. Additional steps like making a large down payment or bringing a co-signer with excellent credit on board may be necessary.
Test driving your dream Mercedes-Benz is an exciting experience. But securing favorable financing terms requires diligent preparation and understanding the critical role your credit profile plays. With robust FICO® scores, responsible debt levels and a steady income, your chances of financing approval are quite strong.
Estimated average monthly payments for used Mercedes
| Model | Fair purchase price | Monthly payment (501-600 credit score) | Monthly payment (601-660 credit score) | Monthly payment (661-780 credit score) | Monthly payment (781-850 credit score) |
|---|---|---|---|---|---|
| 2018 Mercedes-Benz GLA | $15,538 | $279.59 | $242.19 | $212.56 | $207.61 |
| 2018 Mercedes-Benz C-Class Sedan | $20,722 | $406.68 | $352.28 | $309.18 | $301.98 |
| 2018 Mercedes-Benz E-Class | $21,373 | $422.64 | $366.10 | $321.31 | $313.83 |
| 2018 Mercedes-Benz GLC | $25,285 | $518.54 | $449.18 | $394.22 | $385.04 |
| 2018 Mercedes-Benz S-Class | $34,872 | $753.57 | $652.77 | $572.90 | $559.56 |
Bank and credit union auto loans
Shoppers who belong to a bank or credit union.
It’s worth checking with your local bank or credit union before financing a car, as they tend to offer competitive rates and terms.
Banks may offer discounted rates to account holders, and most let you apply online for an auto loan. Certain banks such as Chase Bank let you prequalify online, so you can check your financing options without triggering a hard inquiry on your credit report.
Remember that banks typically require high credit scores before granting a loan, so qualifying for financing could be tough if your credit score is low.
Credit unions typically offer more flexible financing options. If you are a credit union member, you could get lower rates than you would at a bank. Navy Federal Credit Union members, for example, can get discounted rates and longer repayment terms.
What Credit Report Does Mercedes Benz Pull? – CreditGuide360.com
FAQ
Is it hard to get Mercedes-Benz financing?
Does Mercedes-Benz Finance Bad Credit? Yes. It’s actually easy to get approved through Mercedes-Benz finance programs. Most car manufacturers are eager to help their customers build or rebuild their credit by offering financing programs and deals exclusively through Mercedes-Benz dealerships.
Which FICO score does Mercedes use?
Know Your Credit
What credit does Mercedes-Benz use? Generally, Mercedes-Benz Financial Services determines loan eligibility by checking FICO® Auto Score 9, from Experian.
What does your credit have to be to get a Mercedes-Benz?
Here are the Mercedes-Benz credit score tiers: 781 – 850: Superprime. 661 – 780: Prime.
What credit score do you need for a luxury car?
What is a good credit score to buy a luxury car? A good credit score to buy a luxury car is typically considered to be a “prime” score, or those above 660. However, the specific credit score requirements may vary depending on the dealership and lending institution.