Discussion
Hi All. I’m looking for some advice on the following
I have a 2014 Mercedes c class diesel on a PCP which I have had for around 18 months. It costs £330 which when I took it out was fine
However circumstances have changed since then (namely a child has entered the building) and I have changed job so my commute is now only a couple of miles each way, and whilst I can afford it, some extra pounds in the pocket would be handy
Unfortunately as it’s early in the PCP I’m in negative equity by about £1300
I’ve looked for some new cars which will allow a minimal deposit, is automatic and petrol and the Nissan Juke seems to be ticking the boxes.
Through a deal with a dealer on a new juke they are offering a Bose edition, for £288 which also takes care of the negative equity, whilst it’s not a massive reduction to the headline figure, do you guys think in the long run I’d be better off? I.e the juke should be cheaper to fuel, cheaper to run, cheaper to service, insure etc
Thanks in advance
I have a 2014 Mercedes c class diesel on a PCP which I have had for around 18 months. It costs £330 which when I took it out was fine
However circumstances have changed since then (namely a child has entered the building) and I have changed job so my commute is now only a couple of miles each way, and whilst I can afford it, some extra pounds in the pocket would be handy
Unfortunately as it’s early in the PCP I’m in negative equity by about £1300
I’ve looked for some new cars which will allow a minimal deposit, is automatic and petrol and the Nissan Juke seems to be ticking the boxes.
Through a deal with a dealer on a new juke they are offering a Bose edition, for £288 which also takes care of the negative equity, whilst it’s not a massive reduction to the headline figure, do you guys think in the long run I’d be better off? I.e the juke should be cheaper to fuel, cheaper to run, cheaper to service, insure etc
Thanks in advance
How does negative equity work on a car of that age?
If you buy a new car on PCP then the theory is that over say 3 years the car depreciates by 50%, and by that time you've paid off half of the loan. You can either make a final payment and keep the car or hand it back.
Your car is 2014, it's at least 4 years old. How can you have borrowed £1300 more than it's going to be worth at any point in the life of your ownership?
If you buy a new car on PCP then the theory is that over say 3 years the car depreciates by 50%, and by that time you've paid off half of the loan. You can either make a final payment and keep the car or hand it back.
Your car is 2014, it's at least 4 years old. How can you have borrowed £1300 more than it's going to be worth at any point in the life of your ownership?
So what happens if in a years time you find the boot is too small on the Juke to carry all the child gear or you decide you have had enough of it?
You will quite possibly (more than likely) find yourself with an even bigger neg eq bridge to gap.
It is probably a good idea to change the Merc for a car that will cost you less each month but the Juke doesn’t sound like the best option. Maybe take a personal loan with a low apr and buy a used car whilst borrowing the additional 1300 you need to pay off the Merc.
You will quite possibly (more than likely) find yourself with an even bigger neg eq bridge to gap.
It is probably a good idea to change the Merc for a car that will cost you less each month but the Juke doesn’t sound like the best option. Maybe take a personal loan with a low apr and buy a used car whilst borrowing the additional 1300 you need to pay off the Merc.
sorry cross post...
What I mean is your merc has to be worth close to the outstanding loan value, so would you be better off selling it and buying a car from scratch?
I agree you'd be paying less per month for a new car and it will be cheaper to run but £288 for a Juke on mimimal mileage sounds a lot to me.
What I mean is your merc has to be worth close to the outstanding loan value, so would you be better off selling it and buying a car from scratch?
I agree you'd be paying less per month for a new car and it will be cheaper to run but £288 for a Juke on mimimal mileage sounds a lot to me.
I'm assuming the Juke deal is for a further 3 years, and with rolling in the negative equity on the Mercedes it'll take even longer to get back into a positive state?
Personally for the sake of £50 a month I'd keep the C-Class as the Juke will be a significant step down from an ownership perspective (My wife had a 2015 C220 until recently and I had a Juke hire car for 3 months whilst waiting for my company car to be built and delivered so have spent plenty of time in both).
In a few months the negative equity situation will have reversed and you can consider you options rather than making what seems like a snap decision?
Personally for the sake of £50 a month I'd keep the C-Class as the Juke will be a significant step down from an ownership perspective (My wife had a 2015 C220 until recently and I had a Juke hire car for 3 months whilst waiting for my company car to be built and delivered so have spent plenty of time in both).
In a few months the negative equity situation will have reversed and you can consider you options rather than making what seems like a snap decision?
SWoll said:
I'm assuming the Juke deal is for a further 3 years, and with rolling in the negative equity on the Mercedes it'll take even longer to get back into a positive state?
Personally for the sake of £50 a month I'd keep the C-Class as the Juke will be a significant step down from an ownership perspective (My wife had a 2015 C220 until recently and I had a Juke hire car for 3 months whilst waiting for my company car to be built and delivered so have spent plenty of time in both).
In a few months the negative equity situation will have reversed and you can consider you options rather than making what seems like a snap decision?
I had considered this option but worried about how long it’ll take to get into positive, because obviously as fast as I’m paying it off there will be added depreciation. Personally for the sake of £50 a month I'd keep the C-Class as the Juke will be a significant step down from an ownership perspective (My wife had a 2015 C220 until recently and I had a Juke hire car for 3 months whilst waiting for my company car to be built and delivered so have spent plenty of time in both).
In a few months the negative equity situation will have reversed and you can consider you options rather than making what seems like a snap decision?
With the settlement being £15k currently and the part ex value ranging from £13k to £13,700
My guess is I’ll be positive by August/September if I’m lucky - would I be right on that?
Would it not be easier to sell the C220, pay the negative/borrow it or whatever and get one of the cheap Octavia lease deals? Having test driven an automatic Juke recently, it is one of the least appealling cars I've ever driven.
The 1.6 petrol engine (only option for a Juke auto now) is as old as the hills, drinks fuel and the CVT box is sluggish. My friend has a 1.6 manual one so I know that the engine doesn't feel any better as a manual either. Also it's very small inside for such a chunky car, we have no kids and have a new Fabia and a current shape Clio - both are bigger inside than a Juke which is now getting on for a decade old.
The 1.6 petrol engine (only option for a Juke auto now) is as old as the hills, drinks fuel and the CVT box is sluggish. My friend has a 1.6 manual one so I know that the engine doesn't feel any better as a manual either. Also it's very small inside for such a chunky car, we have no kids and have a new Fabia and a current shape Clio - both are bigger inside than a Juke which is now getting on for a decade old.
Edited by kieranblenk on Thursday 17th January 07:59
Friend has a Nismo Juke for their child, terrible, the angle of the rear window - door makes getting a child seat in and out a nightmare and they are tiny inside (inc the boot).
I don't have any children but she was telling my wife the other day and they much prefer using their CLS55 AMG for child duties.
I don't have any children but she was telling my wife the other day and they much prefer using their CLS55 AMG for child duties.
If some of your decision is based on a new born then at least go sit in these cars first and check to see if the boot will hold a folded up pushchair and that entry into the back seats is comfortable for you and your partner to lift a small child in and out of safely. I have had countless conversations with people who are expecting who think they will not be able to use anything other than an SUV or bigger once a baby comes along. We had a Ford Focus, worked an absolute treat, rear seats easy access, large entrance and storage space in the boot, easy to get into the back and clean out the invariable mess that is created etc. The only issue I can see is if you regularly have to shuttle about family and friends in the car along with the baby or you have back/health problems that prevent you leaning in and out of a normal car. Have you looked at the cost of hatchbacks?
Firstly, VT isn't really an option at 18 months. You won't have paid anywhere near 50% of total payable yet. This limits your options somewhat, as you can't simply hand the car back and pay £1300 to get out of it.
The Nissan salesman says you're £1300 upside down. Have you checked this against WBAC and similar? How much would a private sale of the Merc net you in comparison with the PX price? Would this reduce the £1300 significantly?
In terms of overall running costs - the Juke may be slightly cheaper per month, but I wouldn't be expecting it to be wildly cheaper to insure, fuel and maintain (if you use a decent indy to service the Merc)
The Nissan salesman says you're £1300 upside down. Have you checked this against WBAC and similar? How much would a private sale of the Merc net you in comparison with the PX price? Would this reduce the £1300 significantly?
In terms of overall running costs - the Juke may be slightly cheaper per month, but I wouldn't be expecting it to be wildly cheaper to insure, fuel and maintain (if you use a decent indy to service the Merc)
For the first one year kids come with an almighty amount of sh*t when you need to travel somewhere. I remember going down to cornwall for a weeks holiday in November and filling the 320D. A roof box would have been a godsend. After that, it dissipates somewhat - until you have another.
The Juke will be a mistake right now IMHO. Especially if it is over three-four years, as you will need to consider a level of future proofing.
VT the C220 if you are halfway through, or keep it for another year.
Cycle or motorbike to work some days a week to make you feel better about low mileage cost.
The Juke will be a mistake right now IMHO. Especially if it is over three-four years, as you will need to consider a level of future proofing.
VT the C220 if you are halfway through, or keep it for another year.
Cycle or motorbike to work some days a week to make you feel better about low mileage cost.
Integroo said:
Borrow £6300 on a low apr bank loan. Hand back Merc and pay £1300. Buy car for 5k.
This.£6500 over 36 months will be £190 pcm (Sainsburys) saving you £140 pcm.
Pay off the Merc and buy something like this:
https://www.autotrader.co.uk/classified/advert/201...
roadsmash said:
Surely you’d be better off VT’ing?
After you’ve paid half the balance you can just hand the car back regardless of the negativity equity.
As you’re 18 months in surely you can’t be far from half way? Unless it’s a 4/5yr PCP?
Likely the 50% paid point will be near the end of the PCP term, even if it's only 3 years - some deals never hit 50%. Finance companies like PCP as it makes VT awkward.After you’ve paid half the balance you can just hand the car back regardless of the negativity equity.
As you’re 18 months in surely you can’t be far from half way? Unless it’s a 4/5yr PCP?
Plus OP bought used - PCP doesn't usually work well on used cars. On new cars there's often deposit contributuons and low interest rates.
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