Mercedes-Benz Financial auto loan review

Couple looking at a car to buy at the dealershipImage: Couple looking at a car to buy at the dealership

In a Nutshell

Mercedes-Benz Financial Services offers auto loans with an easy online application process. But if you’re not in the market for a Mercedes-Benz vehicle — either new or used — you’ll need to find another lending option.

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Pros Cons
Online credit-approval process available Financing can be used only for Mercedes-Benz vehicles
Online, mobile and phone payment options  

What you need to know about Mercedes-Benz Financial Services auto loans

If you’re thinking about buying or leasing a Mercedes-Benz, the company’s financial arm offers a range of auto loan options.

  • Financing for new and eligible pre-owned Mercedes-Benz vehicles
  • Balloon financing

You can find out within a day if you prequalify

Mercedes-Benz has an online application process to apply for credit that should result in a response about approval within one business day. Note that the financing department will be pulling your credit reports as part of this process, which can result in a hard inquiry that may temporarily lower your credit scores a bit.

If your application is submitted on Saturday, Sunday or outside of business hours, you should receive a response between 8 a.m. and noon Eastern time the following business day.

If your credit application is approved, you can print out the details and contact your local Mercedes-Benz dealership to discuss next steps. A Mercedes-Benz representative can explain all of your financing options.

Financing only for Mercedes-Benz vehicles

Mercedes-Benz Financial Services provides lease and purchase financing specifically for Mercedes-Benz-branded vehicles. If you want a different make of vehicle, you’ll have to find another lender.

A closer look at Mercedes-Benz Financial Services auto loans

Here are some of the finer details to know when comparing Mercedes-Benz auto loans with other lenders.

  • Mercedes-Benz Financial Services offers a variety of payment options including auto pay, payment online, pay by mail or phone payments.
  • Mercedes-Benz’s partnership with Liberty Mutual offers some car insurance discounts.

Is a Mercedes-Benz Financial Services auto loan a good fit for you?

A Mercedes-Benz auto loan might be a good option if you’re in the market specifically for a Mercedes-Benz vehicle.

You may be able to get a lower monthly payment if you can qualify for the Mercedes-Benz Financial balloon financing option. With a balloon loan, you’ll make monthly installment payments and a large, one-time, lump-sum payment at the end of the loan term. The balloon payment must be made in full by cash, or you can finance it. If you end up financing the balloon payment, your total costs at the end of the loan may end up being more than with the standard financing option.

But be cautious, because if you’re unable to make the final payment, you run the risk of defaulting on your auto loan. In many states, defaulting on your loan could result in the lender repossessing your car and holding you responsible for the repossession costs on top of it.

When buying a car, it’s important to consider all lending options. If you’re not sure you want to buy, Mercedes-Benz Financial also has leasing options that may come with lower monthly payments and more flexible terms. But all leasing options come with mileage and travel restrictions.

How to apply for an auto loan from MBFS

If you decide a Mercedes-Benz Financial auto loan might be right for you, you can apply for preapproval online.

You can apply with a joint applicant, and you’ll have to enter personal information, including your address, email address, phone number, Social Security number and date of birth. You’ll also need to provide employment and income information.

Not sure if Mercedes-Benz Financial Services is right for you? Consider these alternatives.

Here are a couple of other lenders to consider.

  • Wells Fargo auto loan: This lender may be good for people who have some credit issues, or who already bank with Wells Fargo and are eligible for its customer rate discount.
  • LightStream auto loanThis lender could be a good option if your credit is strong and you want a car other than a Daimler vehicle.

About the author: Ashley Chorpenning is a personal finance writer and content creator. In addition to being a contributing writer at Credit Karma, she writes for solo entrepreneurs and Fortune 500 compani… Read more.