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.
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:
| Credit score | Average Annual interest rate | Average monthly payment |
|---|---|---|
| Any | 8.4 | $361 |
| Fair | 16.25 | $412 |
| Good | 8.36 | $360 |
| Very good | 5.09 | $340 |
| Excellent | 3.88 | $333 |
Compare lenders
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.
Get preapproved
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
- Employment information
- Proof of income (pay stubs, tax statement, etc.)
Key TakeawayTo 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 terms with any credit score, see the table below.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 11.2 | $697 |
| 36 | 8.61 | $470 |
| 48 | 8.08 | $363 |
| 60 | 8 | $300 |
| 72 | 8.32 | $262 |
If you’re approved for a loan and you have fair credit, you’ll likely have slightly higher interest rates and monthly payments, as seen below.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 20.61 | $762 |
| 36 | 16.64 | $521 |
| 48 | 15.69 | $411 |
| 60 | 15.57 | $349 |
| 72 | 16.3 | $315 |
With good credit, you’ll be able to secure more favorable interest rates, and your monthly payments will be lower.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 11.51 | $696 |
| 36 | 8.39 | $468 |
| 48 | 7.94 | $361 |
| 60 | 7.9 | $299 |
| 72 | 8.52 | $261 |
If you have excellent credit, you’ll likely qualify for the lowest interest rates, and your monthly payments will be lower than average.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 5.58 | $660 |
| 36 | 4.11 | $442 |
| 48 | 3.79 | $336 |
| 60 | 3.68 | $273 |
| 72 | 3.59 | $231 |
Finding a Mercedes-Benz car loan in your state
Car loan payments and interest rates differ depending on your state. Try to find a lender with a good grasp of the local economy that can offer you the lowest APR your credit rating allows.
To see your possible loan payments for a Mercedes-Benz in your state, check out the table below.
| Credit Rating | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| Fair | 16.25 | $412 |
| Good | 8.36 | $360 |
| Very Good | 5.09 | $340 |
| Excellent | 3.88 | $333 |
Mercedes-Benz car loans: new vs. used
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.
| Car Year | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 2021 | 7.6 | $305 |
| 2020 | 7.97 | $308 |
| 2019 | 8.12 | $308 |
| 2018 | 7.96 | $307 |
| 2017 | 8.15 | $308 |
| 2016 | 8.29 | $309 |
| 2015 | 8.48 | $311 |
| 2014 | 8.45 | $379 |
| 2013 | 8.52 | $380 |
| 2012 | 9.43 | $511 |
2011 | 9.43 | $511 |
| 2010 | 9.43 | $511 |
Maxine Boyko is an insurance writer with over five years of experience researching and writing for regulatory compliance and product marketing companies. Maxine’s mission is to help car owners better understand the inner workings of their vehicles by providing straightforward, simple explanations of otherwise-complicated aspects of car ownership and maintenance. Maxine has written over 350 articles for Jerry on topics ranging from state driving regulations to model-specific maintenance issues. Before joining Jerry, Maxine spent five years in the food and beverage manufacturing industry while working on a B.A. in psychology.
Jessa Claeys is an insurance writer and editor with prior experience writing and editing for finance-focused publications like BiggerPockets and 401k Specialist. A specialist in personal finance and insurance basics, Jessa’s work equips car owners with the tools they need to be more financially-savvy car owners. Jessa has written short-form articles for Jerry on topics ranging from canceling car insurance to dealing with an insurance adjuster.
