Who else wants a Mercedes-Benz? Learn about your financing options now.
Mercedes-Benz's company tagline “The Best or Nothing” is very much in line with its brand. The sleek and stylish cars with the iconic logo on the hood are more than enough to convince you that it’s all about luxury, with prices to match. At the time of writing, a CLA Coupe will set you back $35,756.53 whereas the Mercedes-Maybach S 650 will cost you an astounding $450,900.60.
This guide will take you through what options you have to finance a Mercedes=Benz.
How can you finance a Mercedes-Benz?
Financing a Mercedes-Benz is no easy task. Luckily, we’ve found a range of solutions to help, including:
- A secured car loan. By using your Mercedes-Benz as security you can purchase the value of the car and benefit from a low rate. But if you default on your repayments the car can be taken off you. Rates start from around 5% p.a. and extend up to 12% p.a. Maximum borrowing amounts differ between lenders so check this before you apply.
- Unsecured personal loan. These loans are more flexible with how you use the funds, but with no security they have higher interest rates and can be more difficult to be approved for. Interest rates are usually between 8% p.a. and 16% p.a. and you can usually borrow up to $50,000.
- Dealership finance. Surprisingly, Mercedes wants to help you get into one of its vehicles. It offers a range of finance solutions in order to make this happen. Its private customer loan offers a 12- to 84-month loan term, no account keeping fees and a fixed interest rate.
- Novated lease. This is where you buy your dream car and let your pre-tax salary dollars take care of it. All operating and maintenance costs will be covered by those payments. You just have to convince your manager that if you buy a Mercedes-Benz it will be beneficial for the business, as your employer will be making the lease payments from your salary.
- Chattel mortgage. A chattel mortgage is where you’re lent money from a financier in order to purchase a vehicle. The lender will use the vehicle as security for the loan until the amount is paid in full. You’ll have ownership of the vehicle as soon as you’ve purchased it. This is usually used for businesses though, so unless your business needs a Mercedes, maybe this option isn’t the best for you.
Compare the Mercedes-Benz loan options below
How much will a Mercedes-Benz loan cost?
The total loan cost will vary, depending on what model of Mercedes you decide to go with. At the time of writing an A-Class Hatch is at the cheaper end of the scale at $43,126.53 whereas, if you’re looking for something a little sleeker, the E-Class Cabriolet will set you back about $133,540.70.
This cost is just the price of the vehicle, by the way. The cost of insurance, general maintenance, fines, fuel and registration haven’t even been factored in yet. Those are additional costs to consider.
If you’re worried about the total cost of your loan, you can figure it out through a car loan repayment calculator. This will show the total loan cost against the amount you can borrow.
How do you decide how to finance your Mercedes-Benz?
Choosing between loans and lenders can be difficult. However, there’s a variety of features that can sway your choice. Some of these features are:
- Repayment flexibility. Whether you can tailor your repayments to your income schedule is a major factor when choosing between lenders. This feature usually offers weekly, fortnightly or monthly options.
- Fees (upfront and ongoing). If you’re unable to find any information about the fee structure and what you’ll be paying, this is a good indication that there’s either a steep dishonour fee or a heavy application fee. Keep an eye out!
- Balloon repayments. This is where a lump sum is to be paid out at the end of your loan term. This sum can be upwards of $5,000 and lowers your payments over the duration of the loan.
- Interest rates. Interest rates are another feature to look out for. Look at the comparison rate, as this rate indicates the true cost of the loan over time.
Frequently asked questions about financing a Mercedes-Benz
Should I get a new or used Mercedes-Benz?
This is a personal choice. No one apart from you is going to know that it’s used unless you tell them. As long as it’s still a Mercedez-Benz, people may be too jealous to figure out if it has just been bought.
Where can I find the different types of Mercedes-Benz available?
On the company website, which is very easy to use.
A Mercedes-Benz is too expensive! What other cars do you know about?
Luckily for you, we know a lot about financing options surrounding other vehicles. Check them out here.