Potential E Class owner... but with some PCP questions!
Discussion
Hi all,
Our 11 year old car is due for renewal after scraping through an MOT by the skin of its teeth. We're looking at treating ourselves to a newer, nicer car rather than the endless cycle of second-hand rust collectors.
We've been looking at a year-old E Class 220 SE. Ticket price is £22,450 for 7k miles on the clock. Throw in paint/fabric protection, GAP insurance and take off what they'll give us for our car, we're looking at £22,750 OTR. Our instinct is to fund this with the PCP we were offered.
The offer on the table is a 48 month PCP (which seems a bit long to me, making the car 5 years old at the end of the term), either a £3.5k deposit and 48 x £283 or a £5k deposit and 48 x £245. I don't anticipate owning the car after the term, particularly if I can get a brand new or nearly-new one on a similar sort of deal in a couple of years' time.
Other options are all available to us too. We could pay with cold hard, or put it on a card or loan to keep the capital available to us. But therein lies that killer: we would intend to keep it no more than 3 years, ideally. Maybe 4 but that depends on the value of the car and the other offers on the table at the time.
Another consideration is that we will be moving house next year. As we're likely to still need a mortgage, how do PCPs affect mortgage offers? I mean, obviously a loan or credit card debt will be accounted for in terms of your repayment affordability, but are PCPs counted in the same way? If so, having the lower monthly outgoing when compared to a loan or credit card debt is likely to be more attractive to mortgage lenders, no?
And finally, what do you folk who already have Mercs on PCP think of the general service? Are they likely to sting you at the end of the term or would you recommend the whole experience?
Thanks all
Our 11 year old car is due for renewal after scraping through an MOT by the skin of its teeth. We're looking at treating ourselves to a newer, nicer car rather than the endless cycle of second-hand rust collectors.
We've been looking at a year-old E Class 220 SE. Ticket price is £22,450 for 7k miles on the clock. Throw in paint/fabric protection, GAP insurance and take off what they'll give us for our car, we're looking at £22,750 OTR. Our instinct is to fund this with the PCP we were offered.
The offer on the table is a 48 month PCP (which seems a bit long to me, making the car 5 years old at the end of the term), either a £3.5k deposit and 48 x £283 or a £5k deposit and 48 x £245. I don't anticipate owning the car after the term, particularly if I can get a brand new or nearly-new one on a similar sort of deal in a couple of years' time.
Other options are all available to us too. We could pay with cold hard, or put it on a card or loan to keep the capital available to us. But therein lies that killer: we would intend to keep it no more than 3 years, ideally. Maybe 4 but that depends on the value of the car and the other offers on the table at the time.
Another consideration is that we will be moving house next year. As we're likely to still need a mortgage, how do PCPs affect mortgage offers? I mean, obviously a loan or credit card debt will be accounted for in terms of your repayment affordability, but are PCPs counted in the same way? If so, having the lower monthly outgoing when compared to a loan or credit card debt is likely to be more attractive to mortgage lenders, no?
And finally, what do you folk who already have Mercs on PCP think of the general service? Are they likely to sting you at the end of the term or would you recommend the whole experience?
Thanks all
The vital piece of info missing, interest rate?
PCP's always seem an expensive way of doing things unless it's heavily subsidised with a low interest rate and a deposit contribution.
And using a loan to fund paint protection, madness.
ETA, I don't know what they're giving you for you PX but the whole deal looks like its costing you around £30k.
PCP's always seem an expensive way of doing things unless it's heavily subsidised with a low interest rate and a deposit contribution.
And using a loan to fund paint protection, madness.
ETA, I don't know what they're giving you for you PX but the whole deal looks like its costing you around £30k.
Edited by PositronicRay on Friday 16th September 07:44
dash23 said:
Interest rate is 8%. Vital information is that we'll be handing it back and getting a new one inside three years. Even if we hang on for the full term and hand it back, it's costing nowhere near 30k — actually between 17 and 18k.
8% APR or flat? If it's a flat rate that's working out around 16% APR. If renting/leasing is your thing often new cars come out cheaper, just look @ the "whole life cost"
Early hand-backs may or may not work, depends on when you reach 1/2 the payments (typically around 42 months in on a 48 month PCP) and how hard the car depreciates.
Post up the figs and we can take a look.
ETA
Rough figs
Look @ the total payable under the agreement inc deposit, PX, interest, final payment.
So if total is £30k, you'll reach the the 50% point @ £15k, you've already paid circa £4k (deposit + PX) so you will need to have settled another £11k so 44 payments of £250
You'll get a rebate of interest when you settle, the amount depends on how early in the term. Don't bank on it being much or having any equity in the car, if you do regard it as a bonus.
If you do handback early, because of a chunky deposit, it'll end up costing you more per month than keeping it full term.
Edited by PositronicRay on Friday 16th September 08:44
PositronicRay said:
8% APR or flat? If it's a flat rate that's working out around 16% APR.
If renting/leasing is your thing often new cars come out cheaper, just look @ the "whole life cost"
Early hand-backs may or may not work, depends on when you reach 1/2 the payments (typically around 42 months in on a 48 month PCP) and how hard the car depreciates.
Post up the figs and we can take a look.
ETA
Rough figs
Look @ the total payable under the agreement inc deposit, PX, interest, final payment.
So if total is £30k, you'll reach the the 50% point @ £15k, you've already paid circa £4k (deposit + PX) so you will need to have settled another £11k so 44 payments of £250
You'll get a rebate of interest when you settle, the amount depends on how early in the term. Don't bank on it being much or having any equity in the car, if you do regard it as a bonus.
If you do handback early, because of a chunky deposit, it'll end up costing you more per month than keeping it full term.
APR is what was quoted when I said 8%. Total payable would be around £28,000 IF we kept the car, which we almost certainly won't. If we hand back, we don't add the GMFV so we'd be paying £17,000 net.If renting/leasing is your thing often new cars come out cheaper, just look @ the "whole life cost"
Early hand-backs may or may not work, depends on when you reach 1/2 the payments (typically around 42 months in on a 48 month PCP) and how hard the car depreciates.
Post up the figs and we can take a look.
ETA
Rough figs
Look @ the total payable under the agreement inc deposit, PX, interest, final payment.
So if total is £30k, you'll reach the the 50% point @ £15k, you've already paid circa £4k (deposit + PX) so you will need to have settled another £11k so 44 payments of £250
You'll get a rebate of interest when you settle, the amount depends on how early in the term. Don't bank on it being much or having any equity in the car, if you do regard it as a bonus.
If you do handback early, because of a chunky deposit, it'll end up costing you more per month than keeping it full term.
Edited by PositronicRay on Friday 16th September 08:44
Would you recommend a lower deposit and shorter term, then? I've heard that recommended a few times. Higher monthly payments are fine as we could buy it outright but doesn't seem worthwhile doing...
Dash. Instead of funding a year old car for 2/3 years, would it not be cheaper to do the same to a brand new one? Recently DTD had brand new e class AMG line cars (the new model) for approx 31k, down from 38/39. Given the lower interest rate and higher residual would it be cheaper to do this?
I'd find out if I as you.
I'd find out if I as you.
Yep, asked that but isn't as attractive as I'd imagine financially, plus we couldn't have a new one until January, so would need to reinsure the rustbucket (if it lasts that long). This way I figure we can get the PCP on a car that's practically new (and already depreciated a fair bit), then change in 2 years just before the first MOT for a new one then, when we've got time to plan ahead and order one in time for a smooth changeover
I am on the mailing list of these guys (no affiliation) and been very close to picking up one of their offers (regularly lower than the price shown in link for cancelled orders etc)
https://www.contractcars.com/car-leasing/mercedes/...
https://www.contractcars.com/car-leasing/mercedes/...
I would get the new model E-Class which is much improved over the old one (I drove a 2012 250CD SE Estate for three years)
You're bound to get a new model from stock almost immediately if you're not fussy about colour.
If you're definitely only going to keep it for just three years why wouldn't you just lease a new one (no MoT headaches, full warranty etc)?
Save the difference between the lower lease payments and the PCP payments and you'll have enough for a deposit on a replacement in 36 months.
Try these people for a quote. I have found them competitive.
https://www.leaseplan.co.uk
You're bound to get a new model from stock almost immediately if you're not fussy about colour.
If you're definitely only going to keep it for just three years why wouldn't you just lease a new one (no MoT headaches, full warranty etc)?
Save the difference between the lower lease payments and the PCP payments and you'll have enough for a deposit on a replacement in 36 months.
Try these people for a quote. I have found them competitive.
https://www.leaseplan.co.uk
dash23 said:
Hi all,
Our 11 year old car is due for renewal after scraping through an MOT by the skin of its teeth. We're looking at treating ourselves to a newer, nicer car rather than the endless cycle of second-hand rust collectors.
We've been looking at a year-old E Class 220 SE. Ticket price is £22,450 for 7k miles on the clock. Throw in paint/fabric protection, GAP insurance and take off what they'll give us for our car, we're looking at £22,750 OTR. Our instinct is to fund this with the PCP we were offered.
The offer on the table is a 48 month PCP (which seems a bit long to me, making the car 5 years old at the end of the term), either a £3.5k deposit and 48 x £283 or a £5k deposit and 48 x £245. I don't anticipate owning the car after the term, particularly if I can get a brand new or nearly-new one on a similar sort of deal in a couple of years' time.
Other options are all available to us too. We could pay with cold hard, or put it on a card or loan to keep the capital available to us. But therein lies that killer: we would intend to keep it no more than 3 years, ideally. Maybe 4 but that depends on the value of the car and the other offers on the table at the time.
Another consideration is that we will be moving house next year. As we're likely to still need a mortgage, how do PCPs affect mortgage offers? I mean, obviously a loan or credit card debt will be accounted for in terms of your repayment affordability, but are PCPs counted in the same way? If so, having the lower monthly outgoing when compared to a loan or credit card debt is likely to be more attractive to mortgage lenders, no?
And finally, what do you folk who already have Mercs on PCP think of the general service? Are they likely to sting you at the end of the term or would you recommend the whole experience?
Thanks all
Be careful that when handing back early that you are not in negative equity!Our 11 year old car is due for renewal after scraping through an MOT by the skin of its teeth. We're looking at treating ourselves to a newer, nicer car rather than the endless cycle of second-hand rust collectors.
We've been looking at a year-old E Class 220 SE. Ticket price is £22,450 for 7k miles on the clock. Throw in paint/fabric protection, GAP insurance and take off what they'll give us for our car, we're looking at £22,750 OTR. Our instinct is to fund this with the PCP we were offered.
The offer on the table is a 48 month PCP (which seems a bit long to me, making the car 5 years old at the end of the term), either a £3.5k deposit and 48 x £283 or a £5k deposit and 48 x £245. I don't anticipate owning the car after the term, particularly if I can get a brand new or nearly-new one on a similar sort of deal in a couple of years' time.
Other options are all available to us too. We could pay with cold hard, or put it on a card or loan to keep the capital available to us. But therein lies that killer: we would intend to keep it no more than 3 years, ideally. Maybe 4 but that depends on the value of the car and the other offers on the table at the time.
Another consideration is that we will be moving house next year. As we're likely to still need a mortgage, how do PCPs affect mortgage offers? I mean, obviously a loan or credit card debt will be accounted for in terms of your repayment affordability, but are PCPs counted in the same way? If so, having the lower monthly outgoing when compared to a loan or credit card debt is likely to be more attractive to mortgage lenders, no?
And finally, what do you folk who already have Mercs on PCP think of the general service? Are they likely to sting you at the end of the term or would you recommend the whole experience?
Thanks all
Mercedes are notorious for the car not being worth the GFV at full term and leaving you with no equity and no car!
A new Merc on a 3 year lease would probably be the cheapest but then you are again left car less at the end.
I would be more inclined if you like the thought of a new car but keeping it 5 or more years is to get a broker price and the cheapest APR loan over 5 years and it's yours at the end!
Speak to these guys and you'll probably get a better deal.
http://www.rivervaleleasing.co.uk/
We went to Mercedes to enquire about a CLA and the deals they offered were ridiculous.
http://www.rivervaleleasing.co.uk/
We went to Mercedes to enquire about a CLA and the deals they offered were ridiculous.
I'd look to see what kind of deal you can get on the outgoing 5 series. Despite the Mercedes being a new model and the 5 series being due for replacement, it's still a better car. Our company car lease deals on the 5 are ridiculous right now - it's cheaper to get a very highly specced 520d than is it to get a 320d Sport.
Would be better getting a car on contract hire. On Freedom Contracts (there are other co's out there) will give you a:
- Brand new E Class (17plate, 220d SE Auto 9G Tronic,
- 10000 mile pa
- 24 months
- £2,267.98 down and,
- £251.98 per month.
Surely that sounds better?
Also some great deals on the site if you don't want an E.
- Brand new E Class (17plate, 220d SE Auto 9G Tronic,
- 10000 mile pa
- 24 months
- £2,267.98 down and,
- £251.98 per month.
Surely that sounds better?
Also some great deals on the site if you don't want an E.
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