Driving a luxurious auto like Mercedes Benz is a dream come true for most people in the United States and beyond. It’s a high-performance, safe, comfortable car with an iconic status symbol.
Once you locate your favorite Benz, you can either pay for it in cash or take it on credit. Should you opt for the latter, you need to be aware of several requirements that you need to meet, including your credit score.
This post takes you through the Mercedes Benz credit score requirements to help save you time and avoid unnecessary embarrassment. We’ll look at the credit score you need to lease or buy a Mercedes Benz on credit, whether Mercedes Benz finances bad credit, and more.
Let’s dig in!
What Minimum Credit score do I Need to Buy a Car?
Creditors reviewing your car loan application will consider your income and credit score as part of their decision-making. They usually divide their customers into different categories based on the scores, including:
- Super prime: 781 to 850
- Prime: 661 to 780
- Nonprime: 501 to 600
- Subprime: 501 to 600
- Deep subprime: 300 to 500
Lenders prefer borrowers in the prime range or better, meaning you need a score of 661 or more to qualify for most conventional auto loans. Lenders can also accept less credit scores based on the car you want to buy or lease.
So, does Mercedes Benz finance bad credit, and if so, what score should you have? Let’s see below.
Does Mercedes Benz Finance Bad Credit?
I’m sure you have come across this question online, but it bears repeating: will I be able to buy or lease a Mercedes Benz if I have a less than perfect FICO Score?
Mercedes Benz promises to finance a wide range of credit profiles, including those with no or bad credit. The firm offers its customer car financing options through the Mercedes Benz Financial Services network and other creditors like BMW Bank of North America, Wells Fargo, and Chase.
Although Mercedes Benz doesn’t have one specific credit score to access their financing services, you’ll need a score of at least 680-700. Of course, having a higher credit score will only increase your chances of being approved.
Research shows that the average credit score for consumers who leased or bought Mercedes Benz cars in 2018 and 2019 was 720. But if you have a credit score of 680 or more, you stand a better chance of having your loan approved.
The Mercedes lease terms and the actual rate will depend on several factors, including your income, annual percentage rate (APR), credit history, length of the lease or loan, down payment, etc. Keep an eye on Mercedes Benz financing bonus offers for better leasing or buying deals.
For individuals with a deep subprime credit score, you may still get a Mercedes Benz financing loan, but you’ll need to keep in mind that:
- Your loan will have poor terms
- You may be asked to show collateral such as a home or a security deposit
- You may need to bring proof of cell phone bills payment, proof that you’re working, proof of solid income, proof of address, etc.
Once you’re sure your credit score can finance a Benz for you look for an online finance application of Mercedes Benz website or find an authorized Mercedes-Benz dealer.
What Is the Minimum Credit Score to Buy or Lease a Mercedes Benz?
As mentioned above, the Mercedes Benz Credit Score Requirements are a good credit score…680 or more. Individuals with a credit score between 620 and 670 may still qualify, but the terms may be unfavorable.
Similarly, Mercedes Benz customers with a credit score ranging from 550 to 620 may still qualify for Mercedes financing, but their lease terms will be muchly unfavorable. For instance, they’ll have to pay a higher down payment, and higher interest rates.
For individuals with a perfect credit score (781-850), Mercedes Benz has lower interest rates and better terms on leases and loans for you. That does not mean you can’t own a Mercedes if your credit score is poor; there is a car for you – just at unfavorable rates and terms.
Can I lease a Mercedes Benz with a 600 Credit Score?
Are you curious if you can lease a Mercedes Benz with a credit score of 600? Well, the answer is yes, but it can still prove to be very challenging.
The higher your credit score is, the better and more likely you will get a Mercedes Benz on loan or lease. With a 600 credit score, you can get a car from Mercedes Benz dealerships, but the approval will depend on other factors, including your income and payment history.
Also, you may be asked to put down a security deposit and accept a higher monthly payment amount if you have a poor credit score. This is because the loan term, interest rate, and lease terms vary based on your credit score.
Is it Hard to Get a Lease for a Mercedes Benz?
Mercedes Benz is known as one of the most innovative automobile brands in the world, releasing some of the best car models every year. This makes it an ideal brand for leasing for people that like getting a new vehicle every 2-3 years.
But how hard is it to lease a Mercedes Benz?
You’ll have a better chance of getting approved for a Mercedes Benz lease if you meet the minimum credit score requirements. This minimum score may be higher for leases than for buying because a lease presents a higher risk to the leasing firm.
However, a credit score of at least 680-700 is enough to land you a lease from a Mercedes Benz dealership. People with poorer credit scores can still get a lease, but their monthly payment amount will be higher than those with better credit scores.
Tips for leasing or buying a Mercedes Benz with a low credit score?
What happens if you don’t meet the Mercedes Benz credit score requirements to buy or lease a Mercedes car? Do you just give up owning or driving your dream car?
Here are a few options to consider before giving up:
Lease with a co-signer
You can always get a co-signer if your credit score doesn’t allow you to buy or lease new Mercedes-Benz vehicles. These are third parties (with a good credit score) who agree to take responsibility for the car and make your payments if you can’t do so.
A co-signer can be your friend, parent, or partner with an excellent credit score and who qualifies to be a primary borrower. Once you get a co-signer, their name will appear on the car’s title, and they’re required to make payments only if you can’t.
Find dealership leasing events
Every year, dealerships are supposed to meet a certain number of new leases to keep their franchise operational. If a dealership hasn’t met its quota, they hold events where they make some exceptions.
For instance, they may ask for lower credit scores, or the loan terms may be revised. So, keep an eye on Mercedes Benz dealership events; you might find a dealer willing to work with you.
Buy pre-owned Mercedes Benz
You may also consider buying a pre-owned Mercedes if your credit score prevents you from leasing a new Mercedes Benz car. The large down payment may discourage you, but it means that you’ll own a Benz without having an ideal credit score.
You can also purchase or lease a pre-owned Mercedes with a good credit score, and the down payment will be less.
Lease-purchase programs
Finally, you can consider the lease-purchase program offered by Mercedes Benz. The program allows you to apply for a lease or buy a Benz without a perfect credit score. However, you won’t own the vehicle at the end of the lease.
Important: Credit unions may also be an excellent option if you have new accounts or are a recent college grad with a limited credit history.
How can I improve my Credit Score Before Leasing a Mercedes Benz?
Remember, the higher your credit score is, the greater the chance of having your Benz lease or loan approved. So, if you’re planning to lease or buy a Benz soon, try to build your credit score first.
Here are a few tips to help you build your credit score:
- Avoid late payments
- Minimize your debt-to-income ratio
- Establish your credit history
- Dispute credit report errors with major credit bureaus
- Become an authorized user
- Add to your credit mix
- Deal with collection accounts
- Ask for higher credit limits
More importantly, you can seek the help of a debt relief firm to increase your credit score. They have a team of experts with credit repair experience and knowledge.
Getting a new vehicle also helps improve your credit score. You’ll build strong relationships with the dealer and get first-class lease that will leave a positive mark on your credit report.
The bottom line
If you are shopping for a luxury vehicle, then the chances are that Mercedes Benz is already on your short list of brands to consider. But can you lease or buy this luxurious vehicle on credit, and if so, what credit score do you need to have?
This post discusses the Mercedes Benz credit score requirements. It’ll help you get behind the wheel of the Benz you’ve dreamed about!