PCP - Basic question

[DMJ73]

I'm looking to change cars early 2013. Looking at 2 options. Mercedes and Landover. Almost identical on the road price. One offering APR of 4.8% the other at 11% ? Can someone give me a reason why there is such variance. Thanks

[Buster73]

I'll have a stab ......profit ?

[northandy]

Which is offering which percentage?.

[AmitG]

Post up the full details of both contracts - deposit, monthly payment, final payment, length of contract etc.

Many possible reasons but to start with:

- One of them might be more desperate for the business (LR Evoques are apparently flying out of the showrooms)
- The size of the deposit and final payment may be different (smaller deposit = more default risk for manufacturer = higher APR)
- One of them might be cutting their price to the bone and so have to make it up on the PCP APR (11% does seem rather high)
- The one with lower APR might have a stricter mileage limitation (to keep the resale value of the car higher)

Anyway, post up the details

[DMJ73]

Land Rover Evoque SD4 Coupe Pure - £37 k on the road £7k deposit - £580 a month over 4 years , 10K miles pa - 11% APR
Mercedes C Class Coupe 220 CDI - £36.5K on the road, £3.3k deposit - £339 a month over 3 years , 10k miles pa - 4.8% APR

[simoid]

Is there a final payment thing at the end?

Surely this must be massively different between the two cars if there's a smaller deposit and 12 fewer, SMALLER monthly payments for the Merc...



ETA: have you got something mixed up? The Evoque is £27480 of monthly payments vs £12204 for the Merc

[BE57 TOY]

DMJ73 said:

Land Rover Evoque SD4 Coupe Pure - £37 k on the road £7k deposit - £580 a month over 4 years , 10K miles pa - 11% APR
Mercedes C Class Coupe 220 CDI - £36.5K on the road, £3.3k deposit - £339 a month over 3 years , 10k miles pa - 4.8% APR

What's the balloon at the end of each deal?

[xRIEx]

DMJ73 said:

Land Rover Evoque SD4 Coupe Pure - £37 k on the road £7k deposit - £580 a month over 4 years , 10K miles pa - 11% APR
Mercedes C Class Coupe 220 CDI - £36.5K on the road, £3.3k deposit - £339 a month over 3 years , 10k miles pa - 4.8% APR

Total payable, from those figures:
Evoque - £34,840
C220 - £15,504

What are the final payments, are there any deposit contributions from the manufacturer, option to purchase fees, admin fees, etc. etc.

[Pauly-b]

Mercedes are also putting in around £4k of their own funds as well towards the deposit if I remember correctly - It'll be that and the different balloon payments sizes methinks...

[Pwig]

Ones a subsidised rate, one isnt.

/thread

[uncinquesei]

Pretty obvious really then, MB desperate to push C Classes out LR can't make enough Evoques so why incentivise?

[GlenMH]

And LR can charge what they like as the Evoque is so popular at the moment.

[DMJ73]

Final balloon £15,400 for the Merc
£12,600 for the Evoque

[Deva Link]

shirleynot said:

One is desperate to move cars....the other isn't?

Well, all manaufacturers want to shift cars, it's just that LR doesn't have to try very hard at the moment.

MB is keen to ramp up volume in the UK significantly: http://www.fleetnews.co.uk/news/2012/10/30/insight...

[soxboy]

uncinquesei said:

Pretty obvious really then, MB desperate to push C Classes out LR can't make enough Evoques so why incentivise?

This

Mercedes subsidise their deals far more than any other manufacturer, particularly mainstream stuff like the C class. Land Rover on the other hand don't need to finance as the Evoque is a sales success.

If you really want the Merc go on www.contracthireandleasing.com and see better deals than Mercedes dealers can offer.