Mercedes PCP

XeonSX

Hello,

I've recently been thinking of getting a new Mercedes. I've never bought a car on finance before so would like some advice.

PCP deals with retailer contributions seem very attractive. I'm thinking of a car around £45k.
With deposit of 10k and retailer contribution of 7k. I'm looking at around £400/month for 3 years.

My question is whether I can easily get this loan approved considering I already have a house mortgage which comes to about 30% of my monthly pay. I don't want to plan this car and then be rejected for car finance.

Please advice, thanks.

jonesMUFCforever

How much would the same car cost if its a 2 year old model??
How much is the balloon payment at the end (my guess £15k)? How will you pay this?
Is the deposit coming from your savings or trade in?
Do you have any savings and do you save on a monthly basis?

Having a nice car is ok if you can afford it keeping up with the Joneses will mean you end up on skid row.

[Deleted User]

Based on the information given, I think it's 50/50.

chanz4

jonesMUFCforever wrote: »

How much would the same car cost if its a 2 year old model??
How much is the balloon payment at the end (my guess £15k)? How will you pay this?
Is the deposit coming from your savings or trade in?
Do you have any savings and do you save on a monthly basis?

Having a nice car is ok if you can afford it keeping up with the Joneses will mean you end up on skid row.

most say on mercedez please note that you will never own this veichle

XeonSX

Considering this E class just got refreshed, I don't know what 2 year depreciation will look like. I'm expecting somewhere in the 40% region. Final payment would be about 18k. So far I'm thinking I'll save up 18k over the next 3 years, but if not just give it back or go for another car. Deposit is saving, not trade in. I've increased in from about 7k to 10k in hope that it lowers risks in application for credit.

XeonSX

please note that you will never own this veichle

I don't understand... how so?

pd52

£10k deposit plus £400 a month for 3 years AND a ballon payment for a car is madness.

XeonSX

pd52 wrote: »

£10k deposit plus £400 a month for 3 years AND a ballon payment for a car is madness.

Just so I'm clear, are you criticizing the cost of a car or a deal that I suggested? Because if it's the deal, it's cheaper to go for it than pay with cash full price.

pd52

XeonSX wrote: »

Just so I'm clear, are you criticizing the cost of a car or a deal that I suggested? Because if it's the deal, it's cheaper to go for it than pay with cash full price.

Wouldn't leasing be cheaper ? http://www.parkers.co.uk/cars/leasing/search/mercedes-benz/e-class/

XeonSX

Good prices on there are for base cars that are already in stock and broker badly wants to lease it as it depreciates quickly. If I try to find exactly what I want it's not going to be cheap. Besides the plan is to keep it after 3 years. Giving it back is a good fail safe in case something unexpected happens.

Oli.s

Big deposits in pcp deals are a bad idea your reducing your monthly payment but will have an 18k bill to pay and no equity to use as a deposit on your next car.
If you have the monthly disposable income to save £500 a month as well as the car payment (you said your going to save 18k over three years) use that to pay a higher monthly payment instead.

Why step father in law took a similar deal to you three years ago. Paid a big deposit on a merc to keep payments down. He's now facing an 18k settlement which mercedez finance won't convert to a further loan, or handing the car back. He's gone from lots of equity in previous cars to having none.