You have a very slim chance of getting a car loan if your credit score is less than 600. Even if you do, it will be against collateral or on unfavourable terms, such as a high-interest rate. The higher your credit score, the better your chances of obtaining a car loan.
While Mercedes-Benz Financial Services doesn't specify on its website what credit scores are needed to qualify for financing, the company does note that not everyone will qualify for its special financing offers. You typically need excellent credit to qualify for its lowest starting APRs.
It is very difficult to lease a new car with bad credit, since a leased vehicle doesn't work as collateral in the same way that a purchased vehicle does. However, even scores as low as 600 fall within the average range for U.S. buyers–so the new vehicle you want to lease just might be within your reach!
Apply For An Mercedes-Benz Auto Loan From Your Home
We are committed to helping you get behind the wheel of the new or pre-owned vehicle that you are searching for. Bad credit or no credit, don't hesitate to try our online finance application.
What credit does Mercedes-Benz use? Generally, Mercedes-Benz Financial Services determines loan eligibility by checking FICO® Auto Score 9, from Experian.
Calculating Your Down Payment
While every situation and every vehicle is unique, in general, financial buying experts recommend paying around 20% of the full cost of a new auto as a down payment.
You can borrow anywhere from a few thousand dollars up to about $50,000 with a 600 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
There isn't one specific score that's required to buy a car because lenders have different standards. However, the vast majority of borrowers have scores of 661 or higher.
Anything from 670 to 740 can qualify as a “good” score, and even scores as low as 580 can qualify as “fair”. Leasing is still possible with a fair credit score–although you should expect to pay a higher-than-average interest rate–but if it gets much lower, you're going to run into trouble.
Mercedes-Benz E-Class
“With monthly payments estimated at around $1,400, a prospective owner would need an annual income of about $168,000, ensuring the car payment is a manageable portion of their income.”
When you're ready to head to the showroom, be sure to bring the following: Valid driver's license. Proof of income (paycheck stubs and/or bank statements) Three to five personal references (name, address, and phone numbers)
Mercedes vehicles have demonstrated unwavering reliability over time. The company has consistently met customer expectations in terms of vehicle performance. Be it the horsepower of the engine, fuel efficiency, or the overall mechanical performance, you can place your trust in your investment.
The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.
A score in this “fair” credit range is often seen as high-risk by lenders, meaning you'll face higher interest rates if approved for loans or credit cards at all. While making major purchases with a score under 600 is still possible, many things will simply be out of reach until you improve your credit health.
Automakers such as Ford, Kia, and Hyundai are known for working with borrowers who have lower credit scores. In addition, CarsDirect has a network of dealers that specialize in bad credit car loans whether you're considering a new or used car.
What is the highest credit score possible? To start off: No, it's not possible to have a 900 credit score in the United States. In some countries that use other models, like Canada, people could have a score of 900. The current scoring models in the U.S. have a maximum of 850.
However, most lenders look for a threshold of at least 600. However, this may vary depending on the lender, car, and loan type. A score of 700-850 is what most lenders consider ideal. Borrowers in this range can expect to get offered lower interest rates and more flexible loan terms.
There is no minimum credit score required to buy a car, but most lenders have minimum requirements for financing. Most borrowers need a FICO score of at least 600 to get a competitive rate on an auto loan.
While following these guidelines is crucial, it's important to remember that the length of time it takes to reach a 700 credit score varies from person to person. Some individuals may see significant improvements within a few months, while others may take a year or more to achieve their desired score.
Mortgage loans for a 600 credit score
If you have a credit score of 580 or more, you'll only need to put down 3.5% of the home's purchase price, while a score of 500 to 579 requires at least 10% down.
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.
Typically, leases aren't approved with credit scores lower than 620. But don't be discouraged! Check out how to improve your credit score. Then, talk with our MB financial department to see if we have lease options available for you.
2024 Mercedes-Benz C-Class
$528/mo est. $5,528 total due at lease signing includes down payment, first month payment, and $0 security deposit. Total cost to lessee is $24,010 over the lease term. Except as otherwise expressly provided, excludes sales tax, title, registration and other fees.