Mk5 Mondeo Estate - PCP story with full hindsight
Discussion
Not sure if this is just me, but I'm finding the economics of my Mondeo purchase a bit too good to be true.
I bought a Ford Direct MK5 Mondeo estate almost 3 years ago. It was is a 66 plate fully spec'd car and it was 6 months old with 4,000 miles on it when I bought it. I paid £22K on PCP - £2K deposit, £400 / month and £7.8K MGFV.
It's now 2 months from the end of the PCP, and similar cars are on autotrader for £17K (2 litre petrol turbo). What's happened that's kept the prices of these so high?
I bought a Ford Direct MK5 Mondeo estate almost 3 years ago. It was is a 66 plate fully spec'd car and it was 6 months old with 4,000 miles on it when I bought it. I paid £22K on PCP - £2K deposit, £400 / month and £7.8K MGFV.
It's now 2 months from the end of the PCP, and similar cars are on autotrader for £17K (2 litre petrol turbo). What's happened that's kept the prices of these so high?
Ah, but what do they actually sell for. 
That aside, since 2016, diesel has become the devils fuel for ULEZ. Even areas where people needn't worry about them, the demand for diesel cars has fallen rapidly. The petrol version is ULEZ compliant whereas some diesel cars from that era are not Euro 6.
There were probably very few petrol versions sold new at the time versus diesel versions. Rule of supply and demand for an estate car I suppose. Will they give you that value for another car?
That aside, since 2016, diesel has become the devils fuel for ULEZ. Even areas where people needn't worry about them, the demand for diesel cars has fallen rapidly. The petrol version is ULEZ compliant whereas some diesel cars from that era are not Euro 6.
There were probably very few petrol versions sold new at the time versus diesel versions. Rule of supply and demand for an estate car I suppose. Will they give you that value for another car?
RaymondVanDerDon said:
Are you planning to enter into another pcp or pay the gfv (final payment) and sell it?
The plan is to pay the balloon and keep the car. That's always been the plan.I am just intrigued as to whether or not the car is actually worth (retail) over 2 times the gfv. I would use WBAC as a sanity check, but they're not providing prices at the moment.
£17k for a 2016 Mondeo sounds really high to me. You could definitely get a 320i or an 2.0 TSI A4 for that. A decent estimate of what you'd get part exchange from my experience has been to use we buy any car... but of course they aren't doing valuations at the moment.
Edited by jwilco on Tuesday 14th April 15:08
My car is a Titanium - I think they'd dropped the X-Pack idea by then, but it's got pretty much every option that was available at the time apart from the sunroof. It's got the full "dress up kit", adaptive cruise, sync 3 which gives Android Auto, a heated steering wheel etc etc. It's on approx. 24K miles.
BTW - I'm not claiming that I could sell mine for £17K - that's just a number that I saw a similar age and specification car for sale for with a main dealer.
The main thing that is surprising me is the quite significant gap between what it appears the car is worth and the GFV
BTW - I'm not claiming that I could sell mine for £17K - that's just a number that I saw a similar age and specification car for sale for with a main dealer.
The main thing that is surprising me is the quite significant gap between what it appears the car is worth and the GFV
I'd say that's about right.
You bought the car at 6 months old. Therefore the depreciation previously could have been nearer £30k when brand new.
So say they're worth £13-14k now, they'll lose 2 x months payments before your settlement figure. In 3 years that's about 60% of the value, the curve will then slow massively.
The GFV you've been given isn't at all linked to what they're worth now.
Yours has just been worked on your payments. If you had a lower monthlies, your GFV would go up. If you paid £500 and not £400pm the GFV would probably be in the £5,000's...
You bought the car at 6 months old. Therefore the depreciation previously could have been nearer £30k when brand new.
So say they're worth £13-14k now, they'll lose 2 x months payments before your settlement figure. In 3 years that's about 60% of the value, the curve will then slow massively.
The GFV you've been given isn't at all linked to what they're worth now.
Yours has just been worked on your payments. If you had a lower monthlies, your GFV would go up. If you paid £500 and not £400pm the GFV would probably be in the £5,000's...
I'm looking at a new family car at moment and wavering between buy (PCP etc) and rent (lease).
Just running the numbers on this Mondeo as a real world exercise! So if your balloon is £7.8k then it's a total purchase cost of £23,784
Or as I always do 'what is it a month' it works out at...
£444 month for 3 years driving (including your £2k down) to date if handed back...
... or pay ballon and then sell privately - get £14k (which also means you need a new car!) you have £4k in your pocket. Which would make your motoring monthly £271 for for 3 years motoring...
....or keep it for another 5 years and eventually sell for £4.5k-(<<based on autotrader 2012 Mondeo prices) works out totaL cost of approx. £19,284
So 8 years (96 months) of motoring comes in at £200 a month (obviously this does not include road tax, tyres, maintenance, MOT).
Enjoyable bit of man-car-nerdery - still not sure what to do!!!!???
BTW the above monthly is roughly what I ended up paying for a Jaguar X-type 3.0 estate bought at 4 years old for £6.5k and run for 5 years - that was a total of £254 a month INCLUDING maintenance and tyres TAX etc (clutch some tyres, the odd bit breaking and some DIY paint. plus a juicy road tax! Was actually pretty reliable)
All EE&O are mine!
Just running the numbers on this Mondeo as a real world exercise! So if your balloon is £7.8k then it's a total purchase cost of £23,784
Or as I always do 'what is it a month' it works out at...
£444 month for 3 years driving (including your £2k down) to date if handed back...
... or pay ballon and then sell privately - get £14k (which also means you need a new car!) you have £4k in your pocket. Which would make your motoring monthly £271 for for 3 years motoring...
....or keep it for another 5 years and eventually sell for £4.5k-(<<based on autotrader 2012 Mondeo prices) works out totaL cost of approx. £19,284
So 8 years (96 months) of motoring comes in at £200 a month (obviously this does not include road tax, tyres, maintenance, MOT).
Enjoyable bit of man-car-nerdery - still not sure what to do!!!!???
BTW the above monthly is roughly what I ended up paying for a Jaguar X-type 3.0 estate bought at 4 years old for £6.5k and run for 5 years - that was a total of £254 a month INCLUDING maintenance and tyres TAX etc (clutch some tyres, the odd bit breaking and some DIY paint. plus a juicy road tax! Was actually pretty reliable)
All EE&O are mine!
Edited by hoganscrogan on Wednesday 15th April 16:05
hoganscrogan said:
I'm looking at a new family car at moment and wavering between buy (PCP etc) and rent (lease).
Just running the numbers on this Mondeo as a real world exercise! So if your balloon is £7.8k then it's a total purchase cost of £23,784
Or as I always do 'what is it a month' it works out at...
£444 month for 3 years driving (including your £2k down) to date if handed back...
... or pay ballon and then sell privately - get £14k (which also means you need a new car!) you have £4k in your pocket. Which would make your motoring monthly £271 for for 3 years motoring...
....or keep it for another 5 years and eventually sell for £4.5k-(<<based on autotrader 2012 Mondeo prices) works out totaL cost of approx. £19,284
So 8 years (96 months) of motoring comes in at £200 a month (obviously this does not include road tax, tyres, maintenance, MOT).
Enjoyable bit of man-car-nerdery - still not sure what to do!!!!???
BTW the above monthly is roughly what I ended up paying for a Jaguar X-type 3.0 estate bought at 4 years old for £6.5k and run for 5 years - that was a total of £254 a month INCLUDING maintenance and tyres TAX etc (clutch some tyres, the odd bit breaking and some DIY paint. plus a juicy road tax! Was actually pretty reliable)
All EE&O are mine!
One correction - it would be £6K in my pocket if I got £14K for it in a private sale - assuming you've already accounted for the deposit.Just running the numbers on this Mondeo as a real world exercise! So if your balloon is £7.8k then it's a total purchase cost of £23,784
Or as I always do 'what is it a month' it works out at...
£444 month for 3 years driving (including your £2k down) to date if handed back...
... or pay ballon and then sell privately - get £14k (which also means you need a new car!) you have £4k in your pocket. Which would make your motoring monthly £271 for for 3 years motoring...
....or keep it for another 5 years and eventually sell for £4.5k-(<<based on autotrader 2012 Mondeo prices) works out totaL cost of approx. £19,284
So 8 years (96 months) of motoring comes in at £200 a month (obviously this does not include road tax, tyres, maintenance, MOT).
Enjoyable bit of man-car-nerdery - still not sure what to do!!!!???
BTW the above monthly is roughly what I ended up paying for a Jaguar X-type 3.0 estate bought at 4 years old for £6.5k and run for 5 years - that was a total of £254 a month INCLUDING maintenance and tyres TAX etc (clutch some tyres, the odd bit breaking and some DIY paint. plus a juicy road tax! Was actually pretty reliable)
All EE&O are mine!
Edited by hoganscrogan on Wednesday 15th April 16:05
The other thing to consider, is that this is a superb car. It's fast, it's spacious, it's comfortable. It's effortless to drive, it wafts along, but complies when you push it. It's quiet, it's got pretty much every toy you would ever need - Android Auto, Adaptive Cruise, Heated Steering Wheel, Auto high beam, quickclear windscreen etc etc. Someone earlier in this thread mentioned you could get a 3 series or an A4 for £14K - implying that most people would prefer that. I'm not sure they would. Firstly, the Mondeo is more like a 5 Series or an A6 when it comes to interior space. Secondly, it's a very good looking car. Thirdly, no-one attaches negative stereotypes to Mondeo drivers. I could go on.
However, I think the main point I'm trying to make in this sub-forum is that for the right car taking out PCP on a nearly new model is the way to go.
omniflow said:
One correction - it would be £6K in my pocket if I got £14K for it in a private sale - assuming you've already accounted for the deposit.
The other thing to consider, is that this is a superb car. It's fast, it's spacious, it's comfortable. It's effortless to drive, it wafts along, but complies when you push it. It's quiet, it's got pretty much every toy you would ever need - Android Auto, Adaptive Cruise, Heated Steering Wheel, Auto high beam, quickclear windscreen etc etc. Someone earlier in this thread mentioned you could get a 3 series or an A4 for £14K - implying that most people would prefer that. I'm not sure they would. Firstly, the Mondeo is more like a 5 Series or an A6 when it comes to interior space. Secondly, it's a very good looking car. Thirdly, no-one attaches negative stereotypes to Mondeo drivers. I could go on.
However, I think the main point I'm trying to make in this sub-forum is that for the right car taking out PCP on a nearly new model is the way to go.
Not really, Unless you are getting the new car rates, PCP on used is normally pretty naff. You haven’t made any real money, I you have paid that difference in balloon-value in interest payments. PCP on a new car can be good value but it entirely depends on the deal being offered. The other thing to consider, is that this is a superb car. It's fast, it's spacious, it's comfortable. It's effortless to drive, it wafts along, but complies when you push it. It's quiet, it's got pretty much every toy you would ever need - Android Auto, Adaptive Cruise, Heated Steering Wheel, Auto high beam, quickclear windscreen etc etc. Someone earlier in this thread mentioned you could get a 3 series or an A4 for £14K - implying that most people would prefer that. I'm not sure they would. Firstly, the Mondeo is more like a 5 Series or an A6 when it comes to interior space. Secondly, it's a very good looking car. Thirdly, no-one attaches negative stereotypes to Mondeo drivers. I could go on.
However, I think the main point I'm trying to make in this sub-forum is that for the right car taking out PCP on a nearly new model is the way to go.
omniflow said:
....Someone earlier in this thread mentioned you could get a 3 series or an A4 for £14K - implying that most people would prefer that. I'm not sure they would. Firstly, the Mondeo is more like a 5 Series or an A6 when it comes to interior space. Secondly, it's a very good looking car. Thirdly, no-one attaches negative stereotypes to Mondeo drivers. I could go on.
That wasn't really the point I was making - more that 3 series and A4's (all things being equal) fetch more money, so it was surprising that a Mondeo was listed for so much.I am not part of the anti-PCP brigade.
But, the OP’s example just suggests to me that your monthlies are too high.
With a GFV that low against reality, it tells me that they under-estimated it’s value and charged it into your monthlies.
You haven’t ‘gained’ by having a value higher than the gfv, you’ve lost out by paying too much each month in the first place.
But, the OP’s example just suggests to me that your monthlies are too high.
With a GFV that low against reality, it tells me that they under-estimated it’s value and charged it into your monthlies.
You haven’t ‘gained’ by having a value higher than the gfv, you’ve lost out by paying too much each month in the first place.
Yes. Agreed. I tried to explain that further up.
If 3 identical deals had been signed from the same dealership on 3 Mondeos, but that the buyers had negotiated the finance different, they'd all have different GFV. The OP doesn't seem to realise the GFV is simply the remaining balance of HIS deal and not what Ford thinks the car would be worth.
In reality the payments should have been A LOT less per month to make the car value or GFV around £12k.
Of course they might have asked the OP his plans 3 years ago and he answered he is 100% keeping the car and will buy it and therefore if he could afford maybe £50 more pm now then come 3 years he won't have as much to pay to own it.
In summary nothing at all has happened to Mondeo prices. If you had paid £600pm you would have been at such a high price that it would be like paying it via HP. The GFV would be £0.00 and you'd be here asking why a GFV of £0 and they're being listed for £17k...
If 3 identical deals had been signed from the same dealership on 3 Mondeos, but that the buyers had negotiated the finance different, they'd all have different GFV. The OP doesn't seem to realise the GFV is simply the remaining balance of HIS deal and not what Ford thinks the car would be worth.
In reality the payments should have been A LOT less per month to make the car value or GFV around £12k.
Of course they might have asked the OP his plans 3 years ago and he answered he is 100% keeping the car and will buy it and therefore if he could afford maybe £50 more pm now then come 3 years he won't have as much to pay to own it.
In summary nothing at all has happened to Mondeo prices. If you had paid £600pm you would have been at such a high price that it would be like paying it via HP. The GFV would be £0.00 and you'd be here asking why a GFV of £0 and they're being listed for £17k...
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