Agility finance

zeeshh

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Update:

MB replaced my 10 plate E250 (approved used on Agility finance) with a 11 plate E250 which has 7-speed gear box and ECO start / stop, no Command though :(

Actually the 10 plate had some coolant leakage issue and went back to MB dealer (Reading) service centre 5 times in 6 weeks, where they replaced the temp sensor, coolant reservior cap, then full reservior replaced etc. etc. but used to see blue coolant spilled all around bottle area every 2nd day or coolant level low warning. They could not trace the root cause, even in 3rd visit did a 149 mile road test, of course with my approval.

Finally, last week I went back to MB approved used centre (Hemel Hempstead) and they were very cooperative and offered me the replacement which was 11 plate with 12K on the clock, 7-speed tiptronics and ECO start/stop. My deposit for the initial Agility deal was kept intact and since this car was £2800 high on price so by adjusting the baloon value to 2K more and lowering the APR to match my current monthly outgoing, I accepted the deal. GAP insurance was transferred to new car, no product fee was taken as well and it's again 36 month period.

So my experience is that dealing with main MB retail approved used cars is quite smooth and Agility scheme is not as bad as some of my friends told me earlier.

Lessons learned:
- When buying approved used Merc, always ask for the previous workshop history of the car, not just the service reports.
- Always research the reputation of the MB dealer you want to book your car in.

cheers....
 

Alex M Grieve

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Update:

MB replaced my 10 plate E250 (approved used on Agility finance) with a 11 plate E250 which has 7-speed gear box and ECO start / stop, no Command though :(

Actually the 10 plate had some coolant leakage issue and went back to MB dealer (Reading) service centre 5 times in 6 weeks, where they replaced the temp sensor, coolant reservior cap, then full reservior replaced etc. etc. but used to see blue coolant spilled all around bottle area every 2nd day or coolant level low warning. They could not trace the root cause, even in 3rd visit did a 149 mile road test, of course with my approval.

Finally, last week I went back to MB approved used centre (Hemel Hempstead) and they were very cooperative and offered me the replacement which was 11 plate with 12K on the clock, 7-speed tiptronics and ECO start/stop. My deposit for the initial Agility deal was kept intact and since this car was £2800 high on price so by adjusting the baloon value to 2K more and lowering the APR to match my current monthly outgoing, I accepted the deal. GAP insurance was transferred to new car, no product fee was taken as well and it's again 36 month period.

So my experience is that dealing with main MB retail approved used cars is quite smooth and Agility scheme is not as bad as some of my friends told me earlier.

Lessons learned:
- When buying approved used Merc, always ask for the previous workshop history of the car, not just the service reports.
- Always research the reputation of the MB dealer you want to book your car in.

cheers....

sounds like a real result - well done. :D
 

zeeshh

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Thanks Alex, it happened for something good. This one is much quiter, 7 speed direcrt select is amazing, mpg gone up and I wish ECO start/stop also work all the time which so far working off and on :)

cheers...
 

Peter De La Mare

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The ECO system needs to meet certain criteria to work. Engine temp and battery voltage. If you're in traffic and the motor is off for 30 seconds often, and you're running the climate and heat or whatever, then the ECO will disable itself until the battery has recouperated.
 

zeeshh

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Thanks Peter and yes went through the user manual and forums and there's discussion going on in the thread "ECO problem - not working", seems like it's not only me who is experiencing this strange behaviour by ECO system.
cheers...
 

hawk20

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It can be tricky to get out of and you may well have to pay the baloon. Check the T&C's.

Always a type of agreement worth avoiding.

I could not disagree more. Easy to get out of. I've done it a few times. All controlled by legislation so fair and reasonable system. Very good way to run a car.

Basically the law requires them to give you a settlement figure to end the agreement and if you look at how it is calculated it is a fair system. You can part ex the car with a dealer who can get the settlement figure for you, give you a part ex price and charge you if there is a difference. Or you can sell privately and pay the settlement figure. The earlier you end the agreement the more likely it is that the settlement figure will be below the part ex figure as cars depreciate a lot in the first year or so. But that would also be true if you bought without a PCP deal and wanted to change early on in the car's life. Mercedes PCP deals on new cars are usually great value (low APR, good guaranteed residual, and a dealer contribution up front). Secondhand cars get charged far higher APRs.
 

zeeshh

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I agree with Hawk20 and this Agility scheme is ok, no catch. However what I've learned in two negotiations within 7 weeks is that MB approved retails used cars centres can offer you a good discount, can bring down the APR and can adjust the baloon value BUT it all depends on you that how slow you go with them while closing the deal. They are there to sell a used car which they cannot afford to keep in their forecourt for a long time ;)
 

Rory

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I could not disagree more.

So much so that you posted almost the same answer as when you originally answered the same poster in Jan 2011 on page 1 of this thread!

A neutral observer might wonder what your motivation is for continually pumping such arrangements, which only look good if the reference point used is the full list price of the car.
 

hawk20

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So much so that you posted almost the same answer as when you originally answered the same poster in Jan 2011 on page 1 of this thread!

A neutral observer might wonder what your motivation is for continually pumping such arrangements, which only look good if the reference point used is the full list price of the car.

Because I and many others find them to be a very sensible way of running a car. Suits many to pay monthly rather than store up all the loss from depreciation into a huge lump.

Not true that only look good by comparison with list price. As many threads have shown, a PCP can be better than other ways of buying, leasing or renting as the APR's from MB are low (often 4.5 tp 6% -try borrowing for cars at less than that), the guaranteed residuals (GFV's are usually excellent) and you often get a hefty discount or dealer contribution up front as well.
 

sw20gts

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Hi all,

I am thinking about moving onto Mercedes ownership and is at early stages of negotiating finance and part exchange details. I am not really familiar with the "Agility" finance options so hopefully someone would offer some advice.

First of all, below are the details (figure might change as depending on finding the exact settlement figure for my existing finance on the car I am trading in)

Car : 2012 SLK55 AMG
Period Of Hire : 24 Months
Total Cash Price + VAT : £50129.00 (sticker price is shown at £48899)
LESS Deposit : £13,500 (subject to my current finance settlement but I think this is a close figure)
Balance financed : £36629
ADD finance charge @ 11.5% APR : £7589
Balance payable : £44218.04
Total amount Payable : £57718.04
Optional Purchase Payment (I would think this is the balloon?) : £32700.00 [Personally I think this is too high? The car is advertised for £38k-ish at the moment]
Annual Mileage : 5000 miles
No of payments : 24/monthly
Payment : £408.40

As I understand it, at the end of term I have the option to hand the keys and walk away or pay the balloon and keep the car. I believe I can also use the GFV as a deposit towards another car, providing I settle the balloon first or if the book price is higher than GFV (not sure if this is correct?).

This suits me personally as find myself changing cars quite often. However, my only worry is that if I cannot afford the £32k one-off payment I will loose all equity and end up with no car...

Some people say a high GFV value is good but I don't see how that can be true? Personally, as the car has a sticker price of £38,900 at the moment I cannot she it being worth a book price of £32k in 2 years time?
 

hawk20

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Hi all,

I am thinking about moving onto Mercedes ownership and is at early stages of negotiating finance and part exchange details. I am not really familiar with the "Agility" finance options so hopefully someone would offer some advice.

First of all, below are the details (figure might change as depending on finding the exact settlement figure for my existing finance on the car I am trading in)

Car : 2012 SLK55 AMG
Period Of Hire : 24 Months
Total Cash Price + VAT : £50129.00 (sticker price is shown at £48899)
LESS Deposit : £13,500 (subject to my current finance settlement but I think this is a close figure)
Balance financed : £36629
ADD finance charge @ 11.5% APR : £7589
Balance payable : £44218.04
Total amount Payable : £57718.04
Optional Purchase Payment (I would think this is the balloon?) : £32700.00 [Personally I think this is too high? The car is advertised for £38k-ish at the moment]
Annual Mileage : 5000 miles
No of payments : 24/monthly
Payment : £408.40

As I understand it, at the end of term I have the option to hand the keys and walk away or pay the balloon and keep the car. I believe I can also use the GFV as a deposit towards another car, providing I settle the balloon first or if the book price is higher than GFV (not sure if this is correct?).

This suits me personally as find myself changing cars quite often. However, my only worry is that if I cannot afford the £32k one-off payment I will loose all equity and end up with no car...

Some people say a high GFV value is good but I don't see how that can be true? Personally, as the car has a sticker price of £38,900 at the moment I cannot she it being worth a book price of £32k in 2 years time?

Nobody should pay 11.5% APR to buy a car with interest rates at an all time low. Look at a new car and you will only pay anything from 0% APR with some makes up to 5% or 6% on most MB models.

At the end of a PCP you may often find that the balance you still owe (the Guaranteed Final Value or Option to Purchase Price as some call it) is close to what the car is worth in part ex. That means you have no equity at the end of the PCP. But that is fine provided you understand that. You are essentially renting the car for 2 or 3 years with an option to purchase at the end. You are paying for the depreciation month by month as it happens and are paying for interest on the capital tied up while it is tied up at the APR rate of interest.

Given your very low mileage, the cost per mile of the PCP you describe is quite horrific. Why not have a look at a new C or E class coupe, or an SLK. Then you will be offered sensible finance at a sensible APR. My advice would be do not accept any loan at over 6% APR. And always check the APR and not the mickey mouse "flat rate" they may try to fool you with. The "flat rate" is normally about half the interest rate you are really paying. The APR is your best guide.
 

sw20gts

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Nobody should pay 11.5% APR to buy a car with interest rates at an all time low. Look at a new car and you will only pay anything from 0% APR with some makes up to 5% or 6% on most MB models.

At the end of a PCP you may often find that the balance you still owe (the Guaranteed Final Value or Option to Purchase Price as some call it) is close to what the car is worth in part ex. That means you have no equity at the end of the PCP. But that is fine provided you understand that. You are essentially renting the car for 2 or 3 years with an option to purchase at the end. You are paying for the depreciation month by month as it happens and are paying for interest on the capital tied up while it is tied up at the APR rate of interest.

Given your very low mileage, the cost per mile of the PCP you describe is quite horrific. Why not have a look at a new C or E class coupe, or an SLK. Then you will be offered sensible finance at a sensible APR. My advice would be do not accept any loan at over 6% APR. And always check the APR and not the mickey mouse "flat rate" they may try to fool you with. The "flat rate" is normally about half the interest rate you are really paying. The APR is your best guide.

Thanks for the helpful info. I am currently paying (on a 5 year term) 13.5%APR ! I might look at options to reduce this but this is a discussion for another thread :D

The sales exec seems very keen to close the deal and I now understand why... He is offering to speak to my finance company to get the best settlement figure and I gave the go ahead. I believe this is will not tie me into anything? i.e only myself can decide that I want to settle my existing finance?
 

hawk20

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Thanks for the helpful info. I am currently paying (on a 5 year term) 13.5%APR ! I might look at options to reduce this but this is a discussion for another thread :D

The sales exec seems very keen to close the deal and I now understand why... He is offering to speak to my finance company to get the best settlement figure and I gave the go ahead. I believe this is will not tie me into anything? i.e only myself can decide that I want to settle my existing finance?

Yes only you can decide to settle. Don't be pressured.
If you look at a new car you will find that the MB offers usually include a "dealers contribution" which on some cars is large enough to almost wipe out the interest you have to pay. And the guaranteed residuals are usually sensible too.

In addition, I have always found that if you press you can get a discount off the new car as well as the dealers contribution. New deals are often first rate value at the present time -especially on models that have been out for a while.

Just have a look at the amazing offers on the MB website on the E class 220cdi AvantGarde where the dealers contribution is aroung £5,000 off the list price and an APR under 6%. Cracking deal.
 

sw20gts

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Yes only you can decide to settle. Don't be pressured.
If you look at a new car you will find that the MB offers usually include a "dealers contribution" which on some cars is large enough to almost wipe out the interest you have to pay. And the guaranteed residuals are usually sensible too.

In addition, I have always found that if you press you can get a discount off the new car as well as the dealers contribution. New deals are often first rate value at the present time -especially on models that have been out for a while.

Just have a look at the amazing offers on the MB website on the E class 220cdi AvantGarde where the dealers contribution is aroung £5,000 off the list price and an APR under 6%. Cracking deal.

Thanks again for the quick reply. I haven't bought a brand new car for ages due to a bad experience I had. I find "nearly new" cars suit my needs fine. The car I am looking at is registered March this year with only 3k miles on it!

No offense intended but personally I am only interested in the SLK55AMG (or something as powerful). This will be my "toy" hence the low annual mileage.

I will await for his final figures after discussing with finance company. Most likely I will not go ahead with the deal since most likely I will end up with no car at hand once the "Agility" plan ends.
 

gizze

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Not read passed 11.5%, but that is criminal.

I just paid 4.4% apr with Lombard.
 

wi-fi

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Hi sw20gts and welcome to the forum,the slk 55 is a beast!!:shock:
Why agility for two years?? .Agility is best worked -out over 3 years;)
 

st4

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PCP rates on used cars are mad, and look at the deposit, massive. I'd want a conventional HP or loan to at least take onwership if five figures are doing down.

Get a new C63, much cheaper.
 

sw20gts

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Hi sw20gts and welcome to the forum,the slk 55 is a beast!!:shock:
Why agility for two years?? .Agility is best worked -out over 3 years;)

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 :D
 

sw20gts

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PCP rates on used cars are mad, and look at the deposit, massive. I'd want a conventional HP or loan to at least take onwership if five figures are doing down.

Get a new C63, much cheaper.

I do not want to get tied into more debt. Already have a mortgage + the finance (@ 13.5% APR :p) on my existing car... Although I am evaluating an option to take out a personal loan to settle my finance....

Surely a new C63 cannot be cheaper!
 

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