MB Finance

[sebcyril]

Why not look at taking the MB finance package, if they offer you a discount for doing so…. you have 14 days in which to pay this off in full with what ever funds you decide on. I did this and saved a few £k

That’s a good idea. Will bare that in mind actually. So I could potentially take the MB finance then use the other lower APR to pay it off within that time frame if no early exit fees apply for the MB finance. Interesting thanks

 

[sonic]

Why not look at taking the MB finance package, if they offer you a discount for doing so…. you have 14 days in which to pay this off in full with what ever funds you decide on. I did this and saved a few £k

My son did exactly that on a new VW Golf R, I think he had 28 days to pay it off with no charges.

 

[MBDevotee]

Legally you have 14 days from the day the finance company and you sign the agreement (that's usually the payout day). Typically the dealer will earn between 5 & 10% of the balance financed as commission, so yeh, there is a big incentive to use this method of paying - cash is not only not king anymore it's their worst possible outcome. There is probably a car finance calculator on their website - so I suggest you put in the deposit you want to pay and see what the payments come out at - then add £1000 to your deposit and see what THOSE payments come out at - that lower figure is then your target payment with the dealer with your original deposit.

The only way they will get to that is to effectively give you £1000 off the car - which if they think they are making £3000 commission they might do...

I would also tell them you are putting in a much smaller deposit than you actually have (but only if you are going to pay it off), as that increases the finance balance and therefore their commission.....

So lets say car was £36k and you were going to put in £15k then they would perhaps earn £2.5k on the finance - but if you were putting in £6k then they might earn £3k commission............

So if you work out what the payments would be with the car at £35k (that's the £1000 less) and the deposit at £6k and stick resolutely to that don't let them push you up on it.... then paid it off within the 14 days using your cash and a personal loan at say 6.9% you'll save a fair bit.

Of course don't mention this is what you are thinking of doing - if they think you will be paying it off they will have their commission clawed back then they won't give you the discount.

 

[DSK]

Thanks for this and sadly I may need to try this but, for me it’s a fvcking ballache as no doubt there would be calls, paperwork, follow ups to do… I mean who has time to do that!

How does this work/change with a p/ex involved!


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[Wearsafoxhat]

Thanks for this and sadly I may need to try this but, for me it’s a fvcking ballache as no doubt there would be calls, paperwork, follow ups to do… I mean who has time to do that!

How does this work/change with a p/ex involved!


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I had no bother but wasn’t p/x ing.. I paid £1k holding deposit, went to see it and decided to take it.
The salesman offered the discount if I were to take the finance package, at the time was 7%. (2019)
Read that I could pay in full within 14 days, drove home, called MB finance the next day and paid it off, easy..

 

[MBDevotee]

Thanks for this and sadly I may need to try this but, for me it’s a fvcking ballache as no doubt there would be calls, paperwork, follow ups to do… I mean who has time to do that!

How does this work/change with a p/ex involved!


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it doesn't

The finance commission is the finance commission - the px is separate completely.

 

[MBDevotee]

The dealer has only 4 sources of income when you buy a car.

1) chassis / metal - you can't influence that - it's their profit margin, it may be large or small.
2) Finance - a biggie - it can genuinely make more money than the car itself - it's not unusual to sell a car at a loss if you're making £3k finance commission
3) Extras - The Supagard / Cosmetic insurance / GAP / Extended warranty etc. Now actually I don't think these are all bad things - some are pretty good - but the margins are good so haggle hard on them.
4) PX - We buy any car and that lot advertise things like "you'll get a better deal on the new car if you sell your px to us" - utter crap. Why on earth would a dealer offer you MORE discount if you take away one of their profit opportunities? but DO get a price from WBAC or whoever so you know what it's truly worth (knock a bit of for any marks etc as they do hit cars hard that aren't perfect)..... If I think I can make £3000 on your px of course I'm going to give you a bit more discount / slightly better price for your px.

But remember, dealers are there to make a profit - make sure you give them things that allow this, but do it in a way that you gain too.

So for example - a warranty can be cancelled in 30 days - so if you want it, take it, if you don't want it, haggle it into the deal as 50% of the cost of it off the car and 50% paid (so if the car is £10,000 and the warranty £1000 then agree £10500 for the car with the warranty, but get the warranty shown on the invoice as £1000 ... then if you cancel it - you get £500 off the car!

Get the best deal you can on the car, get the best deal on the px and get the best deal on the finance - treat all 3 separately AND together... and know your end game - so if you plan on paying off the finance, don't let them drop the rate, get them to discount the car etc etc.

 

[DSK]

Sounds like I may have got a better deal on the w221 had I got finance and then paid it off.

But, certainly, I’ll consider this going forward even though it sounds like an utter ballache as I hate paperwork/admin crap as I have enough of that as it is.


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[MBDevotee]

It's one phone call 2 days after you collect the car with a debit card in your hand - if that saves you £1000 I figure that's worth it lol