Leasing a Mercedes Benz is an attractive option for many people who want to drive a luxury vehicle without the long-term commitment of ownership.
But what credit score do you generally need to lease one?
In this blog post, we’ll explore the ins and outs of leasing a Mercedes Benz, focusing on credit score requirements, practical tips, and advice.
Get ready to buckle up and dive into the world of luxury car leasing!
Magic Number: What Credit Score to Lease a Mercedes Benz
So, what’s the magic number? While the specific credit score requirement may vary by dealership and lease terms, most Mercedes-Benz dealerships look for a credit score of at least 660. However, having a higher credit score (700+) will not only increase your chances of approval but also potentially secure better lease terms.
It’s important to keep in mind that your credit score is just one piece of the puzzle. Dealerships may also consider your employment status, income, and payment history before approving your lease application.
What if My Credit Score Falls Short?
If you don’t meet the credit score requirements to lease a Benz or buy a new Mercedes, there are still some options you can try before giving up.
Here are a few tips to help you increase your chances of leasing a Mercedes Benz:
Improve Your Credit Score
The best step you can take to improve your chances of getting approved for a Mercedes Benz lease is to improve your credit score.
Start by checking your credit report and disputing any errors. Pay off outstanding debts and make sure you make all payments on time.
Keep in mind credit scores get updated every 30-45 days. So you may have to postpone your new ride for a month or two.
Lease With a Co-signer
If you’re determined to get a new Benz, but your credit score isn’t good enough, you can always lease with a co-signer. A co-signer is basically someone who agrees to take responsibility for the vehicle and make payments in your place if you are unable to do so.
The most common type of co-signer is a parent or partner with a strong credit score and can qualify as a primary borrower. This way, your co-signers name will be the one on the vehicle’s title, and they will only have to make the payments if you cannot.
Dealership Leasing Events
Throughout the year, dealerships will need to meet a certain quota of new leases in order to keep their franchise. During these leasing events, a dealership can choose to make exceptions and approve some applicants with lower credit scores.
Just keep your eye out for these events, and you should be able to find a location that is willing to work with you.
Lease-Purchase Programs
Another great option is a lease-purchase program offered by Mercedes Benz. With this, you can apply without having an excellent credit score and still receive approval. The only downside is that you will not own the vehicle at the end of the lease.
Offer a Larger Down Payment
Putting more money down upfront may help you secure a lease even with a less-than-stellar credit score. A larger down payment reduces the monthly lease payments and the overall risk for the dealership.
A bigger down payment will also make the Benz cheaper to purchase outright at the end of your lease.
Tips to Improve Your Credit Score Before Leasing a Mercedes Benz
Before looking at any of these options, keep in mind that the higher the credit score you have, the greater chance you will have of being approved to lease a Benz.
Here are some tips you can follow to boost your credit score in time for when you attempt to lease.
Be Sure to Pay All Payments On-Time
Late payments can significantly drop your credit scores, and you want to avoid this at all costs if you need an excellent score to get approved.
Establish Your Credit History
New accounts are one of the most important factors to calculate a credit score. Opening a new account can lower your credit scores, but it will help establish a longer and stronger credit history.
Reduce Your Debt-to-Income Ratio
A high debt-to-income ratio is another factor that can harm your credit scores significantly. It would be best if you tried to pay down as much of your debt as possible to reduce this.
Finally, you should always be aware of any credit inquiries and make sure you only allow the ones that will help to increase your credit scores. You can find out what data these affect on a website like https://www.myfico.com/.
Preparing for Your Mercedes Benz Lease Application
Before you head to the dealership, make sure you’re well-prepared. Here’s a handy checklist to help you get ready:
Know your credit score: You can check your credit score for free on websites like Credit Karma. Make sure to review your credit report for any errors and resolve them before applying.
Gather necessary documents: Dealerships typically require proof of income, proof of insurance, and proof of residency. Make sure to have these documents readily available.
Research lease deals: Keep an eye out for Mercedes Benz lease deals and promotions. Special offers can lower your monthly payments or down payment requirements.
Be prepared to negotiate: Don’t be afraid to negotiate lease terms, such as the money factor (interest rate) and residual value (the car’s worth at the end of the lease). You might be able to secure better terms with a little haggling.
Alternative Options: Financing or Leasing a Different Vehicle
If leasing a Mercedes Benz doesn’t work out, there are still other options to consider:
Finance a Mercedes Benz: Financing a Mercedes Benz instead of leasing might require a lower credit score. However, keep in mind that financing typically involves a longer-term commitment and higher monthly payments.
Check out this article on financing a car with bad credit for more information and tips.
Lease a different luxury vehicle: If you’re set on leasing a luxury car but don’t meet the credit score requirements for a Mercedes Benz, consider other luxury brands. Some may have more lenient credit score requirements, like Kia.
Research and compare different makes and models to find the best fit for your budget and credit situation.
Purchase a pre-owned Mercedes Benz: Buying a used Mercedes Benz can be a more affordable option, and it may be easier to secure financing with a lower credit score.
Check out dealerships or websites like CarMax for pre-owned Mercedes Benz vehicles in good condition.
Frequently Asked Questions
While it may be more challenging to lease a Mercedes Benz with a credit score below 660, it’s not impossible. You can try improving your credit score, offering a larger down payment, or finding a co-signer with a strong credit score to increase your chances of approval.
The average credit score required to lease a Mercedes Benz is 680-700. You may still be able to qualify with a lower score if you wait for special dealer offers and sales events or bring a co-signer with you.
Typically, the co-signers credit score should be at least 700 or higher. You can improve your chances of getting approved by having both parties jointly apply for the lease, so their individual credit scores are combined when applying together.
If you do not have a co-signer and don’t want to get one, there are other avenues you can explore to help raise your credit score.
Mercedes Financial primarily uses TransUnion, but will also use Experian to determine your credit score when leasing or buying a Benz.
You can get a free copy of your credit reports once a year from all three bureaus by following the steps here. Credit card companies also provide free credit scores and reports for their cardholders. For example, Discover Card holders can check their FICO Score once a month, while Amex cardholders can check their Experian score.
Upfront costs for a Mercedes Benz lease typically include a down payment, the first month’s lease payment, a security deposit, and various fees (such as acquisition, dealer documentation, and registration fees). The exact amount will vary depending on the lease terms and any ongoing promotions.
Lease terms for a Mercedes Benz usually range from 24 to 48 months, with 36 months being the most common term. The lease term can impact your monthly payments and the overall cost of the lease, so be sure to choose the term that works best for your financial situation.
At the time of writing this article, Mercedes does not allow their leases to be transferred. You must turn in the car and cancel your lease or purchase it before you can do so. This is mainly due to Covid-19 restrictions and may change later in the future.
Final Thoughts
Leasing a Mercedes Benz typically requires a credit score of at least 660, but don’t be discouraged if your score falls short. With preparation, persistence, and a willingness to explore alternative options, you can still find a way to drive your dream car.
Remember to monitor your credit score, research lease deals, and don’t hesitate to negotiate better lease terms.
Whether you’re leasing, financing, or purchasing a pre-owned Mercedes Benz, always make sure to review your finances and credit situation carefully. A luxury vehicle is an exciting investment, but it’s essential to ensure you’re making the best decision for your personal financial situation.
Thanks for reading. If you have any more questions about this topic, please feel free to leave a comment below!
