Agility finance

[st4]

This apparently is the best deal. He went over few options. Keep in mind I also have to fork out £6500-£8000 cash on top.

C63 will work out cheaper probably

 

[wi-fi]

This apparently is the best deal. He went over few options. Keep in mind I also have to fork out £6500-£8000 cash on top...

Oh well, the more I hear the less I am inclined to proceed. Although I must say the sales exec is very convincing

Stop right here he is not giving you a good advice ,do yourself a favour and please look at the slk 55 amg offer(the current one)and you see what i mean
http://www2.mercedes-benz.co.uk/con...ome/new_cars/offers/amg/slk_55_amg.flash.html

 

[gizze]

Just quickly called my dads partner who bought his wife a new SLK. He said he got 12% discount on a new one, and paid £47,000 for it. He then paid 4.9% apr on it, with £12000 deposit it his figures were...

48 x £408
Balloon of £21000

Over 24 months with a £32k balloon and £13500 deposit it should be £165 a month at 4.9% rather than your quote of £408.
Now wonder they are keen to sign a deal!!!!!

 

[sw20gts]

Stop right here he is not giving you a good advice ,do yourself a favour and please look at the slk 55 amg offer(the current one)and you see what i mean
http://www2.mercedes-benz.co.uk/con...ome/new_cars/offers/amg/slk_55_amg.flash.html

omg! Although it does say "business offer" on the website but it's a better deal definitely! Doesn't make sense why new cars get so much lower APR %.

edit: Although to be fair to him I did say I would like to get the monthly repayments as close to £400 as possible.

 

[sw20gts]

Just quickly called my dads partner who bought his wife a new SLK. He said he got 12% discount on a new one, and paid £47,000 for it. He then paid 4.9% apr on it, with £12000 deposit it his figures were...

48 x £408
Balloon of £21000

Over 24 months with a £32k balloon and £13500 deposit it should be £165 a month at 4.9% rather than your quote of £408.
Now wonder they are keen to sign a deal!!!!!

I think that's because the one I am looking at is a used car @ 11.5% APR?

 

[gizze]

One other thing. One not hire it for 2 years??

£449+vat a month with £2600 deposit.

Stick the £10k you were going to loose in a deposit in your pocket and just enjoy the car for 2 years.

http://www.contracthireandleasing.c...-vehicle-contracts/mercedes-benz/slk/7113696/

 

[gizze]

I think that's because its a used car @ 11.5% APR?

Errr, yeah.

So why pay more for a used car than a new one??

 

[wi-fi]

omg! Although it does say "business offer" on the website but it's a better deal definitely!

There is personal offer too, and by a mile better than what he was offering you do not forget can choose the colour and spec??,even the option to pick it up in Germany if you wish!!

 

[sw20gts]

One other thing. One not hire it for 2 years??

£449+vat a month with £2600 deposit.

Stick the £10k you were going to loose in a deposit in your pocket and just enjoy the car for 2 years.

http://www.contracthireandleasing.c...-vehicle-contracts/mercedes-benz/slk/7113696/

Wow... although it's business users only I can see where you are coming from!

Errr, yeah.

So why pay more for a used car than a new one??

Exactly... I'm glad I've found this forum else I might have found myself in another negative equity situation! I think I will be emailing the sales exec and politely tell him I am not interested to proceed any further.

I should've smelt something fishy when the first "deal" he offered was @ £995/month !

 

[sw20gts]

There is personal offer too, and by a mile better than what he was offering you do not forget can choose the colour and spec??,even the option to pick it up in Germany if you wish!!

Yes, I've clicked on the personal offer. Granted the monthly payment is higher (+£200) but the balloon is lower not to mention the APR... A brand new car with zero owners will definitely be worth more than an approved used one with one owner...

 

[gizze]

But do look at the link I posted, Mercedes UK offer the best deals to other brokers rather than their own dealers for some reason. All very strange but great if you know.

Let us know how you get on mate.

 

[sw20gts]

Hmm, feel pretty bad as we've just spoke hours ago and I gave the go ahead for them to speak with my finance company. Just sent an email showing the link and also saying that the "offer" suddenly didn't seem so interesting now...

I did thank him for his patience and also offered my sincere apologies though. Oh well...

edit: here's the copy of the finance proposal... Do you guys reckon I've been taken for a ride? It's £468 / month not £408... That's £50 different from buying a brand new one!!!
edit2: Just noticed he made a mistake on the year...it's 2012 not 2011!

 

[Rory]

I just paid 4.4% apr with Lombard.

Bearing in mind the flat rate is around half the APR, how do they make money on that? It must be being subsidised somewhere.

 

[Alex M Grieve]

Bearing in mind the flat rate is around half the APR, how do they make money on that? It must be being subsidized somewhere.

Indeed Rory, it is a black art.

OEM dealerships want you to borrow money at 0% APR, whether you need to or not. It is good for the customer, as you spread exactly the same costs as you would have paid for a cash sale, but over a period of time.

It cannot help their cash flow. I do not understand the logic.

 

[Rory]

OEM dealerships want you to borrow money at 0% APR, whether you need to or not. It is good for the customer, as you spread exactly the same costs as you would have paid for a cash sale, but over a period of time.

I would rather have a discount than 0% APR, but I understand why manufacturers do it. It's basically a scam - manufacturers and dealers want everyone to buy on finance.

Lombard must be being subsidised too, by a kick-back from the manufacturer, in order to offer such a low APR.

 

[hawk20]

It is not a scam at all. It is simply good business. What good businesses try to do is to find out what customers want and offer it at attractive prices. PCP's offer a simple way of spreading the cost of car ownership evenly over a three year period. You pay the depreciation and interest on capital month by month as you go along. Very like renting a house instead of buying one.

MB can borrow money at very low rates (much less than most of us can) and they can provide relatively cheap finance to us to help sell cars and keep the wheels of industry turning.

Of course they can offer deals to Lombard and others to help move the metal. Why not?

 

[hawk20]

Back to the OP's problem and the figures shown to us. If you add the depreciation you will be paying (that is price minus the GFV) to the finance charges of well over 7k you will be paying about £25k to do 10k miles over 2 years. You could almost hire a chauffeur driven Rolls for that!

You will be paying £468 per month for 24 months (£11,243 in total) and £13,500 deposit. Wow!

Instead just look at the MB offers on a brand new SLK. Upgrade to Sport and payments from as low as: -
Deposit £3,789 and payments of only £299 per month and you can do 10k per year. Only 4'9% APR.
And lots of spare dosh for wine women and song. Worth a ponder?

 

[sw20gts]

Back to the OP's problem and the figures shown to us. If you add the depreciation you will be paying (that is price minus the GFV) to the finance charges of well over 7k you will be paying about £25k to do 10k miles over 2 years. You could almost hire a chauffeur driven Rolls for that!

You will be paying £468 per month for 24 months (£11,243 in total) and £13,500 deposit. Wow!

Instead just look at the MB offers on a brand new SLK. Upgrade to Sport and payments from as low as: -
Deposit £3,789 and payments of only £299 per month and you can do 10k per year. Only 4'9% APR.
And lots of spare dosh for wine women and song. Worth a ponder?

That's some nice to digest figures there hawk20. I've just got the settlement letter from my finance company and it's around £4000 less than what was used in the proposal. This will mean slightly lower numbers but still from general opinion the APR is just not worth it.

I am not trying to sound like a snob here but I am only interested in the AMG SLK ... I have looked at the brand new SLK55AMG offer at 4.9% which is much better than the "deal" I got but then again I am still not sure about the balloon at the end. Would be nice if I can get a slightly longer term HP deal with low monthly

 

[Nemo20]

As you know what you want, just keep shopping around and number crunching then. There are some great deals around when interest rates are this low, you just have to find them. I'm sure you will be able to get what you want with perseverance.

I just noticed that earlier in the thread you said you didn't want to get into more debt above your existing mortgage and car agreement. What is financing this new car if it's not debt?

 

[sw20gts]

As you know what you want, just keep shopping around and number crunching then. There are some great deals around when interest rates are this low, you just have to find them. I'm sure you will be able to get what you want with perseverance.

I just noticed that earlier in the thread you said you didn't want to get into more debt above your existing mortgage and car agreement. What is financing this new car if it's not debt?

Thanks for the support

Well, I guess I've phrased it wrongly. I just do not want to get into more debt than what I have at the moment. I'm still managing at the moment but of course if there are better deals/options out there I am keen to find out and decide the next move...

As you can see the world of borrowing is indeed a very tricky one sometimes. All the deals and numbers to crunch...