How To Finance A Mercedes In Canada?

When it comes to the world of luxury cars, Mercedes-Benz is at the top of many drivers’ lists. With millions of sales worldwide every year, the iconic German brand has been producing some of the most stylish and high-performing vehicles since the early 1900s. In Canada, they even offer discounts for Canadian Armed Forces and RCMP members. 

So, if you’re looking for best-in-class horsepower, comfort and safety, not to mention great customer service and vehicle selection, Mercedes-Benz might just be for you. After that, the only problem is the cost. Find out how to finance a Mercedes in 2022. 

Can You Finance A Mercedes Through A Dealership? 

Since Mercedes-Benz is a luxury car manufacturer, their purchase prices are typically going to be higher than the average economy vehicle brand. Don’t worry, there are two ways you can obtain a payment plan for a Mercedes-Benz car through a dealership:

Financing A Mercedes

If you plan to buy your Mercedes, most dealerships can offer you financing, which is where you pay your car off over time with loan installments. Depending on your creditworthiness and where you apply, you may qualify for financing with a Mercedes dealership.  

Leasing A Mercedes

If you enjoy changing your car up every few years, you may prefer a Mercedes leasing plan, as it essentially allows you to rent a vehicle for an extended period. Plus, dealership leasing rates can be slightly lower. Term lengths, vehicle selection and delivery options vary by location.

Other Ways To Finance A Mercedes

Not getting dealership financing through Mercedes-Benz? Don’t worry, there are several other affordable ways to finance a Mercedes, including but not limited to: 

Car Loan

The first thing you could look into is a car loan from one of the following lenders:

• Bank – Many drivers apply for car loans through their bank, as their financing plans come with competitive rates (fixed/variable) and flexible terms, especially for clients with good credit. However, approval requirements can be tough, so you may not be able to qualify with the bank if your finances and credit aren’t great.      

• Credit Union – A car loan from your credit union is much like one from a bank, meaning you can get access to financing with competitive rates and terms lasting multiple years, if you’re financially qualified. Credit union memberships may even offer additional benefits, like lower fees, better savings and top-notch security.    

• Alternative Lender – You may also find many private car loan lenders online. These alternative companies can be feasible options if you don’t have a great income or credit, as their requirements are often more flexible than a bank. Do note, that some private lenders charge high rates to borrowers who present more financial risk.    

Personal Loan

You can also apply for two types of personal loan to finance your Mercedes-Benz:

• Secured – A secured personal loan is a set amount of money that you borrow from a lender to pay for your Mercedes. Secured personal loans are backed by an asset of value such as a house.  While rates are often lower, you have to be careful because your asset will be used as collateral until the loan is fully paid. 

• Unsecured – An unsecured personal loan functions almost the same way, only the Mercedes won’t be used as collateral. So, you won’t be at risk of losing your car to a repossession by defaulting on your loan. However, the interest rates may be higher as the lender will have zero security for the money you’re about to borrow. 

Cost Of Financing A Mercedes

If you do research and compare sources, you may be able to find a used Mercedes for a cheaper price. On the other hand, the average new Mercedes-Benz costs anywhere from $37,000 to $229,000 depending on the model and dealership you finance it with.  

Here are some examples to give you a better idea of what you could pay to finance a Mercedes (to simplify things, we’ll use a rate of 2.99% and payment plan of 84 months):

Discounts Offered By Mercedes

Mercedes-Benz offers a number of special discount programs for Canadian drivers too:

• The Star Access Program – Thinking of purchasing a Mercedes, Certified Pre-Owned vehicle or van? If you do so from a participating dealership, you are eligible to get concierge service support when buying premium tickets for a Live Nations Canada concerts countrywide. Just email or call their dedicated concierge service (available Mon – Fri in French/English) to attend shows and concerts and get exclusive tickets for Mercedes owners.   

• The Rising Stars Program – Some dealers offer discounts to drivers with little or no credit, like students, graduates and first-time buyers. First-time buyers can get up to $20,000 of financing to lease or buy a car if they have 24-months of credit, a good credit history and proof of residency/income (no down payment or deposit required). Students and graduates must pass various criteria (see FAQs below).

• The Canadian Armed Forces Program – Are you presently or a former member of the Canadian Armed Forces, RCMP or Department of National Defence? If so, you and your immediate family can qualify for special discounts on new Mercedes, AMG and smart vehicles. You also qualify for additional discounts and offers. Be sure to bring proof of your participation in an eligible service when you go to buy your car.   

Types Of Warranties Offered By Mercedes-Benz

When financing a Mercedes, it can be a good idea to buy an extended warranty. Doing so increases your coverage by 2 – 3 years or up to 160,000 KM (whichever happens first). You’ll also get extended roadside assistance and powertrain coverage for up to 1 year (with no deductible). Plus, you can transfer an extended warranty to another person.

Otherwise, all new Mercedes-Benz cars come with a basic manufacturer warranty that lasts for 4 years or 80,000 KM, as well as coverage for these components:

• Surface Corrosion = 4 years or 80,000 KM
• Perforation Corrosion = 5 years/unlimited KM
• Wear and Tear = 2 years or 40,000 KM
• Roadside Assistance = 4 years/unlimited KM
• Adjustment Period = 1 year or 20,000 KM 
• Emission System = 2 years or 40,000 KM (8 years/30,000 KM for certain parts)

Additional Reading

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Thinking About Financing A Mercedes-Benz?

If you’re a luxury car enthusiast, financing a Mercedes can definitely be a good option. However, buying a luxury car also comes with a new set of financial responsibilities. So before making the deal, consider your credit score and financial means to cover your payments. Visit a dealership or the Mercedes-Benz website for more information about their financing and leasing plans.