90 per cent of all new Mercedes bought with PCP finance
Discussion
"To wit, one interesting fact he did tell us: 90 per cent of all Mercedes purchased privately are bought through PCP finance."
says Marcus Breitschwerdt Head of Merc uK
taken form this thread
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
I didnt want to go completely off topic on the news thread this info was posted at the bottom.
If its 90% of new mercs are financed I would imagine Audi and BMW would be very similar , quite staggering Im amazed the % is that high.
says Marcus Breitschwerdt Head of Merc uK
taken form this thread
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
I didnt want to go completely off topic on the news thread this info was posted at the bottom.
If its 90% of new mercs are financed I would imagine Audi and BMW would be very similar , quite staggering Im amazed the % is that high.
MiniMan64 said:
I'd imagine a similarly high percentage of all new cars are bought that way.
I agree - it's one of the reasons so many people nowadays can 'afford' a prestige sports or saloon car. Think back 10-15 years when PCP wasn't available and try to remember how many top marques or brand new cars you'd see on driveways!at this price http://www.firstvehicleleasing.co.uk/car-leasing/m... its hardly suprising
Many private hire drivers take out PCP then hand it back halfway through the PCP deal.
I'm not sure what Mercedes UK's view is on it but I can't understand how they make any money. As far as I am aware they owner doesn't have to pay excess mileage.
So Merc have a car with 100k plus miles on it worth bugger all.
How does that work?
I'm not sure what Mercedes UK's view is on it but I can't understand how they make any money. As far as I am aware they owner doesn't have to pay excess mileage.
So Merc have a car with 100k plus miles on it worth bugger all.
How does that work?
GTIR said:
Many private hire drivers take out PCP then hand it back halfway through the PCP deal.
I'm not sure what Mercedes UK's view is on it but I can't understand how they make any money. As far as I am aware they owner doesn't have to pay excess mileage.
So Merc have a car with 100k plus miles on it worth bugger all.
How does that work?
I thought there was always a mileage limit, usually 10k a year... you can get a PCP deal with higher mileage but the monthly cost goes up as the final value of the car goes down....I'm not sure what Mercedes UK's view is on it but I can't understand how they make any money. As far as I am aware they owner doesn't have to pay excess mileage.
So Merc have a car with 100k plus miles on it worth bugger all.
How does that work?
When i did the math on a new car a few months ago, it was actually the same price for me to buy an M135i brand new through PCP, then hand it back either half way through of at the end of the term. 36 months.
Than it was for me to buy a second hand car and keep for 3 years
I think when i worked out the sums i took into account residual values, servicing and maintence, MOT's repairs & monthly payments. Except i would be driving a brand new car, instead of an 8 year old car, which now requires repairs and is out of warranty
i can see why the PCP deals are attractive. But really on these deals that the big 3 german manufacturers seem to offer, you dont get anything like these sort of deals with the Japanese or British makers.
Than it was for me to buy a second hand car and keep for 3 years
I think when i worked out the sums i took into account residual values, servicing and maintence, MOT's repairs & monthly payments. Except i would be driving a brand new car, instead of an 8 year old car, which now requires repairs and is out of warranty
i can see why the PCP deals are attractive. But really on these deals that the big 3 german manufacturers seem to offer, you dont get anything like these sort of deals with the Japanese or British makers.
GTIR said:
Many private hire drivers take out PCP then hand it back halfway through the PCP deal.
I'm not sure what Mercedes UK's view is on it but I can't understand how they make any money. As far as I am aware they owner doesn't have to pay excess mileage.
So Merc have a car with 100k plus miles on it worth bugger all.
How does that work?
Because the cars are normally limited to 10k miles per annum with excess mileage charge on top, plus cost of repairs at the end of the term for which MB are notoriously stringent.I'm not sure what Mercedes UK's view is on it but I can't understand how they make any money. As far as I am aware they owner doesn't have to pay excess mileage.
So Merc have a car with 100k plus miles on it worth bugger all.
How does that work?
Slightly misleading headline. Of all Merc finance customers 90% take PCP-
As with all PCP product, you are limited to the mileage you incorporate into the plan, so not just 10k p/a.
Mercedes in industry renowned for how they structure their product. ie: huge residuals, high finance deposit contributions, low monthlies. No one EVER takes the option to buy at the end and there is generally no equity. But it works for Mercedes and their customers so good luck to them.
As with all PCP product, you are limited to the mileage you incorporate into the plan, so not just 10k p/a.
Mercedes in industry renowned for how they structure their product. ie: huge residuals, high finance deposit contributions, low monthlies. No one EVER takes the option to buy at the end and there is generally no equity. But it works for Mercedes and their customers so good luck to them.
A new Ford Focus is a stupid amount of money. Ford discount them, but it's not enough. So they offer further discount through a Deposit Contribution but you have to take out finance to get it. Min amount, pay it off straight away.
Thus, cash buyers are taking finance to access extra discount.
On paper virtually all are bought on finance, but they're not really...
Suspect same is true of Merc.
Thus, cash buyers are taking finance to access extra discount.
On paper virtually all are bought on finance, but they're not really...
Suspect same is true of Merc.
Ari said:
A new Ford Focus is a stupid amount of money. Ford discount them, but it's not enough. So they offer further discount through a Deposit Contribution but you have to take out finance to get it. Min amount, pay it off straight away.
Thus, cash buyers are taking finance to access extra discount.
On paper virtually all are bought on finance, but they're not really...
I did exactly this with my octavia.Thus, cash buyers are taking finance to access extra discount.
On paper virtually all are bought on finance, but they're not really...
cptsideways said:
It's Merc's owns money financing the whole thing, rather than money in the bank its money shifting metal through the factories. I think they are the biggest by a long long way doing it.
More pertinently, its Mercedes Finance, whos sole aim is most likely not to make money, but to support the sale of Mercedes cars.Gassing Station | General Gassing | Top of Page | What's New | My Stuff