PCP...A good deal?

claire_n037

Unfortunately I was recently in a non-fault accident which resulted in my beloved car being written off. I have been offered a price for my vehicle but it is not enough to purchase a car to the same quality.

I am therefore considering buying a car through PCP but am completely new to the concept.

I am looking at buying a Mercedes A-class with a forecourt value of £24,750.

The best quote I have been given so far is for a 36 month PCP deal for £2200 deposit and monthly payments of £325.00 (6.9% APR.)
including 3 years warranty. servicing and road side assistance.

I am just wondering if this is a good deal and how much more I could possibly get off the monthly payments?

Any advice would be appreciated. Thank you in advance....

=rizla=

What is the final payment (bubble payment)?

Spicy_McHaggis

So you're paying almost 14 grand over three years.

As said what's the final payment and what are they claiming the car wil be worth after three years?

loskie

If you must obtain a new car by finance a personal lease may be better value although as with any finance value may not be the correct term

=rizla=

For a very rough guide as to what your car *may* be worth in 3 years look at what 3 y/o A classes in the same level of trim are selling for today.


I'm near the end of a 3 year pcp now with similar numbers to you (all be it 0%apr) our bubble payment is just shy of £8k, but against a new one have been offered (without any haggling) £11.2k . On auto trader they are up for sale at £12-£13. As we like ours (to the point of looking at exactly the same car as a replacement until we had a reality check), and we know the history, and its low miles we plan on keeping it for the foreseeable.

Cornucopia

All other things being equal (which they sometimes aren't) PCPs are usually the most expensive way to buy a new(ish) car.

Also, buying a new car is an expensive way of buying a newish car.

£13900 over three years (£4600 per year) bears that out.

I don't know what derivative you are looking at, but leases on A-classes are around £250 per month (inc vat) on a 6 + 35 basis.

ie. a total cost of £10250 over three years, saving nearly £4000 over your quote.

Other smallish, trendy cars are significantly cheaper. e.g. Citroen DS3 petrol from about £140 inc vat per month on a 6 + 35 basis (6 payments as deposit, and 35 monthly payments).

Seat Ibiza from £125 @ 6 + 35. (That's £5125 all in, compared to £13900).

motorguy

Looks like the residual value is going to be around £12,000

http://www2.mercedes-benz.co.uk/content/unitedkingdom/mpc/mpc_unitedkingdom_website/en/home_mpc/passengercars/home/latest-offers/new-car-offers/a-class/a-class.flash.html

Broadspeed can get you around £1800 off a brand new uk one supplied by a uk dealer, so ask your dealer to price match. If they dont, get it from broadspeed - they'll simply put you in touch with the UK dealer who'll do the deal at that price.

motorguy

Cornucopia wrote: »

All other things being equal (which they sometimes aren't) PCPs are usually the most expensive way to buy a new(ish) car.

Also, buying a new car is an expensive way of buying a newish car.

£13900 over three years (£4600 per year) bears that out.

I don't know what derivative you are looking at, but leases on A-classes are around £250 per month (inc vat) on a 6 + 35 basis.

ie. a total cost of £10250 over three years, saving nearly £4000 over your quote.

Other smallish, trendy cars are significantly cheaper.

Its not a particularly attractive deal as theres no manufacturers deposit contribution to make it more palatable - presumably because at this stage the new A is selling quite well.

claire_n037

=rizla= wrote: »

What is the final payment (bubble payment)?

Optional purchase price £12,525.00 at end of the deal

I'm not very good with all of the technical terms sorry... What does 6 + 36 mean?

Thank you

claire_n037

Spicy_McHaggis wrote: »

So you're paying almost 14 grand over three years.

As said what's the final payment and what are they claiming the car wil be worth after three years?

Guaranteed worth/bubble payment is £12,525.00 after 3 years.


Thanks :-)

Cornucopia

claire_n037 wrote: »

Optional purchase price £12,525.00 at end of the deal

Therefore a total cost for the vehicle is: £26425

I'm not very good with all of the technical terms sorry... What does 6 + 36 mean?

6 payments as a deposit, then 36 monthly payments. (You can get a variety of deal structures e.g. 3+35, 0+48, etc.)

As a general rule, the deposits on leases are less than PCPs, and the payments are less. Since the end-of-lease position is £0 and walk away, there is no mucking around with notional equity built in to the balloon payment, either.