Bit of help with valuation/finance agreement please.

[david.mt]

The finance agreement on the other half's SLK200 is up at the end of August. It's 2 year old and has done less than 5k miles (I know....I have told her it would be cheaper to get taxis everywhere!).

It's Blue with orient beige leather and £5k of options (Tip, airscarf, heated seats, parktronic, 10 spoke smoked alloys, telephone, remote roof etc) but no Command. The invoice price was £33.5k after an allowance of £1.6k.

The car is garaged and has been professionally detailed so given the mileage is in showroom condition.

Now MB want £21.6k for me to keep the car or I can just give them the keys back. A quick look at other cars suggests that the price, whilst no bargain, is not unreasonable.

The Mrs likes the car and therefore other than trading it in against a newer one she would rather keep it and we know it has been well looked after.

However I would appreciate views from anyone in the trade whether I would be better off putting the £21.6k or indeed the car itself if there is more value in it against a newer/better SLK or whether the MB deal is too good to miss?

Thanks

[david.mt]

markbe said:

As an 0808 SLK200 Tip cab Elegance book is £21200 at 22k.
Coupe' is £16600.
So fair price for Cab but way over the top for Coupe'.

Mark.

Do not forget they may well take less if you bid them.

Edited by markbe on Monday 12th July 15:37

Mark - thanks for that but are you quoting on a CLK as all SLK's are cabs - that all they are

[david.mt]

Deva Link said:

david.mt said:

However I would appreciate views from anyone in the trade whether I would be better off putting the £21.6k or indeed the car itself if there is more value in it against a newer/better SLK or whether the MB deal is too good to miss?

What kind of deal can you get on a new one?

For many people, once they've got a car on PCP it's a bit of a trap - they'd have to finance the £21.6K vs paying a few grand deposit and, maybe £350/mth, so it's a no-brainer to go for a new car. PCP was invented by the car industry to encourage this behaviour.

If you've got £21.6K to lash out then in strict financial terms it's got to be cheaper to keep the car, and there's the benefit that you know it etc.
However people don't do car things in "strict financial terms"!

Sticking £5K of options on a car that you might turn-in after 2 years doesn't make any sense either, but they're nice to have.

Totally agreed - only did it because they were doing a special promotion night and the finance costs was very low at the time when her company car was up for renewal so she took the cash alternative and we bought the SLK on PCP. The local dealership is also looking at a valuation for me because as you have set out they want to get the Mrs into another new car so will be interested in what they come back with.

Fortunately I can settle the PCP without finance so could do that keep the car a while longer without the monthly payment which is obviously the cheapest option (or just hand the car back and buy her a shed but that would not go down too well). I could also be tempted to buy her a new car but need to decide whether I get a better deal with £21.6k cash or the existing SLK and I suppose this is the crucial question.

[david.mt]

Interesting but the local dealership has suggested that with the current valuations there is no equity in the car at the purchase price and I should return the keys...now I am not sure whether we should buy it and run it for another year or so or hand it back and do something different.

My heart is suggesting buy the car as it is virtually unused but my head is saying why drop £22k cash on a used car when we could get another/better car (even if she still wants an SLK) on the same finance deal especially in the current interest rate environment - although MB have increased their rates to 5.8% and no longer do 2 year deals (they are all 3 years on the web). Think I need a trip to the stealership for a discussion.