MB Finance. Cheers MB (Not).

[Rory]

Of course there are people who don't fully understand PCPs -partly because some people post such inaccurate information about them. But it is not the fault of the product if some people don't take the trouble to find out what the basics of the deal really are.

Considering that you graciously admitted that even you didn't understand (because you were misled by MB) the early termination of PCPs, then I think your comments are a bit rich.

 

[Rory]

Hawk, I've seen several posts about a "PCB" and don't really follow it all, but it sounds for all the world like a lease, with the usual fixed buy out price at the end, if you wish. What is the difference? Just curious.


Cheers

Keith

Excuse me answering.

Are you really in Toronto? Leasing (what we would call Personal Contract Hire - as opposed to Business Leasing which only companies can do) is popular in N America but isn't used much here, although it is gaining some popularity. In the UK if you lease you cannot buy the car at the end of the term - there's some tax reason why not, it has to go back. So you're literally renting the car for the contract period. Usually the deposit is very low (might be 3 payments in advance). Early termination is expensive.

With Personal Contract Purchase, PCP, the car has a fixed residual (GFV - Guaranteed Final Value). At the end of the term you get the option to buy it at that value (to keep or sell privately), part-exchange it for another vehicle or hand the car back and walk away. PCP's were originally intended to be structured so the car was actually worth quite a bit more than the GFV and the difference could be rolled over as a deposit for your next car. In reality, depreciation here is so huge that most cars are only worth about what their GFV is.
Usually there's a chunky deposit with a PCP although cheaper cars are often offered with very low deposits. In the UK, Mercedes often supports PCPs by gifting some of the deposit to the buyer.

We do also have Lease Purchase but that's not widely used - perhaps it's used more by people who are buying pretty expensive cars and who think their stock in life is on the up. LP is pretty much the same as PCP except that you have to buy the car at the end of the period - so the residual risk is yours and not the finance company's. So the residual can be set pretty high which makes the monthly payments lower. LP is a heck of a gamble.

 

[keith100]

Thanks Rory

Yes, I really do live in Toronto, which is why my posts are always late

Keith

 

[hawk20]

Hawk, I've seen several posts about a "PCB" and don't really follow it all, but it sounds for all the world like a lease, with the usual fixed buy out price at the end, if you wish. What is the difference? Just curious.


Cheers

Keith

Got any links so I can check? They keep coming up with new names (MB now call PCPs 'Agility'. God knows why).

 

[keith100]

Well, I'd had a few drinks by then.

 

[Collos]

I would stay where you are you paid well over the odds for the CLK and its worth no more than £10k in the trade there are 2006 coupes retailing at around £8K in the Leeds area I know its the correct time to sell a cabriolet but they have very a limited audience.If you need finance its always better never to link the doner to the product i.e. it would have been better negotiating with your bank from my experience house finance is always expensive because two people want a bite of the cherry .

 

[Xtractorfan]

Really? There's only one similar age and mileage on the MB site at the moment and that's ~ £16K (it's a 240 mines a 320 and mine has higher spec). So given that, i think I paid a fair price.

As for being 'mugged' or 'shafted' again, thank you for your concern but with all the help everyone has given me I will now know what questions to ask when they make me an offer (APR, total amount paid etc). If it doesn't suit, I'll walk.

However, if you know of a better way I can return the car to MB to swap for something easier to get in and out of that doesn't aggravate my back with another £2K and not pay more than £250 a month for the next 2 years, please tell me - it might save me a lot of hassle.

Basically the guys who sold you the car have another overpriced car and that is what you base your observation on...all i'm saying is shop around, talk to other people in the trade see what they think of 'your deal'
If you go back into the lions cage they will bite you again... ask them wjhat they will give you for your car today.. that is its true value to you...not the other one they have sitting priced at 16K.. then find out how much you owe in total to get out of the deal... then if you can sell your car for that amount, then you have a good deal.. please do not take offence ..

 

[hawk20]

Banks and others are often cheaper (e.g. Lombard Direct, Direct Line, AA, Tesco, etc etc). (Go to compare the market.com)

BUT banks don't take your old car in part exchange. And that gives people the hassle of selling their own. Selling for cash to dealers often gives a far worse deal than selling for part ex. Selling privately gets more money, but involves time, effort, hassle.

So trading with a dealer is often the chosen method for many, many buyers.

Before buying you can always get a full valuation from Glass's Guide for only £3.

 

[Seeker_UK]

XTractorfan - TYVM for the clarification. The car I referred to is not with the same dealer therefore it's safe to assume that the going rate for a car of my spec / mileage etc from a franchised dealer is 15-16K. Therefore, I would expect about £12-12.5K trade in from a franchised dealer and that's before they can take something off the screen price and offer a better rate for the finance.

[edit] Just ran this through http://www.wisebuyers.co.uk/ and it came back as £12300 p/ex and that doesn't take into account the spec[/edit]

As it happens, I have been offered £12700 for the car against a £6K Volvo S60 D5 (plan B, buy the volvo, pay off the £3k equity over a year and I'm PCP free). Therefore, i am a little disappointed that MB can only better this by about £100 when I am stacking the car against one for £15K more than the S60.

The bottom line is that at this moment staying with MB will not get me out of the hole I find myself in. Moving to a different marque does. I know MB are a business but by making me go elsewhere means they're losing all my business for the sake of keeping £1000 of interest.

 

[hawk20]

XTractorfan - TYVM for the clarification. The car I referred to is not with the same dealer therefore it's safe to assume that the going rate for a car of my spec / mileage etc from a franchised dealer is 15-16K. Therefore, I would expect about £12-12.5K trade in from a franchised dealer and that's before they can take something off the screen price and offer a better rate for the finance.

[edit] Just ran this through http://www.wisebuyers.co.uk/ and it came back as £12300 p/ex and that doesn't take into account the spec[/edit]

As it happens, I have been offered £12700 for the car against a £6K Volvo S60 D5 (plan B, buy the volvo, pay off the £3k equity over a year and I'm PCP free). Therefore, i am a little disappointed that MB can only better this by about £100 when I am stacking the car against one for £15K more than the S60.

The bottom line is that at this moment staying with MB will not get me out of the hole I find myself in. Moving to a different marque does. I know MB are a business but by making me go elsewhere means they're losing all my business for the sake of keeping £1000 of interest.

All depends whether the Volvo is more or less over-priced than the MB. They can always offer you more if they overcharge for what they are selling.

 

[Seeker_UK]

So a question.

You tend to swap cars every 2 years.....

So, if you wanted a 15K car and could only afford £300 a month with a 3K deposit, would you consider the £12K over 48 months on a loan or, would you save up another 3K deposit and buy it over 36 months?

 

[Rory]

So a question.

You tend to swap cars every 2 years.....

So, if you wanted a 15K car and could only afford £300 a month with a 3K deposit, would you consider the £12K over 48 months on a loan or, would you save up another 3K deposit and buy it over 36 months?

What's your typical annual mileage?

 

[True romance]

Thanks Rory

Yes, I really do live in Toronto, which is why my posts are always late

Keith

Great city, went 2 years back and had a wonderfull time. Wouldn't fancy driving their in the winter!!!

 

[Xtractorfan]

XTractorfan - TYVM for the clarification. The car I referred to is not with the same dealer therefore it's safe to assume that the going rate for a car of my spec / mileage etc from a franchised dealer is 15-16K. Therefore, I would expect about £12-12.5K trade in from a franchised dealer and that's before they can take something off the screen price and offer a better rate for the finance.

[edit] Just ran this through http://www.wisebuyers.co.uk/ and it came back as £12300 p/ex and that doesn't take into account the spec[/edit]

As it happens, I have been offered £12700 for the car against a £6K Volvo S60 D5 (plan B, buy the volvo, pay off the £3k equity over a year and I'm PCP free). Therefore, i am a little disappointed that MB can only better this by about £100 when I am stacking the car against one for £15K more than the S60.

The bottom line is that at this moment staying with MB will not get me out of the hole I find myself in. Moving to a different marque does. I know MB are a business but by making me go elsewhere means they're losing all my business for the sake of keeping £1000 of interest.

Seeker i'm actually glad that you are getting out without costing you money..I hope.. the volvo is a great car ..had a few of them.. and at the money you are talking then hey thats the way to go.. always a chance things will improve and u can be back in mercland soon ..At the moment keeping a rein on your finances is paramount..

 

[hawk20]

Seeker Uk, if your budget won't cover the ML you wish for, here are some thoughts. For your £3,000 deposit and £300 per month, there is a useful new table on the MB website. try this link: -
http://www2.mercedes-benz.co.uk/con...ome/new_cars/offers/price_ladder.html#250-299

Only you can decide what you want but the usury-level interest rates often charged on secondhand cars are part of your problem.

And because the interest rates on new cars are so much lower, your budget would actually buy a brand new B class, automatic, 180cdi. Given your bad back (a problem we share) this car is worth a test drive. It has the high seating position that makes exit and entry so much easier. Set the seat up as high as you can with sensible clearance for your head. Avoid the sport model, or sport suspension as this is harsh and jerky on the spine on awful UK roads.

Buying new you will have 3 years with no repair bills. Brand new tyres etc. And 40 plus to the gallon.And a chance to build up some capital.

The B class is amazingly roomy. Insist on the comfort seats (£80 extra last time I looked ) as this gives height adjustment, tilt adjustment and adjustable lumbar support. They are good seats as big as those in an ML.

I owned the B200cdi auto and really enjoyed it.

The pleasure of new takes some beating too.

If that does not appeal (but drive one before you reject the idea -just avoid sport or larger wheel sizes) then I would look at a PCP on one of the smaller 4x4's. There are many makes. Nissan, Toyota, Honda etc. The Toyota Verso brand new is another possible car within your budget. I drove one last week. Good car. And nice high driving position which will suit your back. Don't pay more than 6-7% APR. (not flat rate interest; ask for the APR). Just say no.

Buying new will give you more car and less interest charges for your money. And less repair and maintenance bills too. Worth pondering.

 

[Rory]

Seeker Uk, if your budget won't cover the ML you wish for, here are some thoughts. For your £3,000 deposit and £300 per month, there is a useful new table on the MB website. try this link: -
http://www2.mercedes-benz.co.uk/con...ome/new_cars/offers/price_ladder.html#250-299

That's interesting - not seen that before, although if ride comfort is an issue he needs to avoid anything that says "Sport". And B Class is noted for poor ride across the range.

I was thinking of that kind of thing though, or even maybe personal leasing. I asked about mileage because if he does a lot of miles then those deals could have high termination charges.

I can't help thinking that he's trying to buy cars that are really more expensive than he wants to pay. £300 would fund a wide range of cars, but not mid range MB. I know people who bought 4-5yr old "expensive" cars as they look like great value and then they go wrong and they can't afford to get it fixed.

 

[Seeker_UK]

What's your typical annual mileage?

Currently 8K but this could go to 12K without much warning.

 

[Seeker_UK]

I can't help thinking that he's trying to buy cars that are really more expensive than he wants to pay. £300 would fund a wide range of cars, but not mid range MB. I know people who bought 4-5yr old "expensive" cars as they look like great value and then they go wrong and they can't afford to get it fixed.

OK. With a 3.5k deposit and £300 a month on HP over 3 years, what would you buy that meets the following criteria:

Must have a soft-ish ride.
Mustn't be too low to the ground.
Has an average mpg >= 30.
Must have cruise and parking sensors.

I hope you can help because "he" is short of ideas.

Oh, and FYI, I've had a shed-load of very expensive cars (in terms of running costs) in my driving career so I know the pitfalls (have an M635csi for a while, they're expensive). My budget accomodates the risk of repair costs for most marques bar Maserati, Ferrari, Porsche etc.

 

[keith100]

Great city, went 2 years back and had a wonderfull time. Wouldn't fancy driving their in the winter!!!

I'm glad you enjoyed your visit. You do get used to the snow pretty quickly,
and the summers make up for it.

Keith

 

[Rory]

OK. With a 3.5k deposit and £300 a month on HP over 3 years, what would you buy that meets the following criteria:

Must have a soft-ish ride.
Mustn't be too low to the ground.
Has an average mpg >= 30.
Must have cruise and parking sensors.

I hope you can help because "he" is short of ideas.

Honda CRV.