Mercedes PCP

pd52

XeonSX wrote: »

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.

If you do decide to keep it after the warranty runs out after 3 years, hope you've check the cost of repairs . They are huge on Mercs

XeonSX

Oli.s wrote: »

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.

I thought PCP deals don't work that way. There is always a 'guaranteed minimum future value' that I'll have to pay in the end. I can only change it by reducing duration of the deal which will probably adjust with the rate of depreciation. Whether I pay big deposit here and lower monthly payments or the opposite, final payment won't change. The idea behind increasing deposit is to reduce how much I borrow and therefore reduce risk of being rejected for credit.

XeonSX

pd52 wrote: »

If you do decide to keep it after the warranty runs out after 3 years, hope you've check the cost of repairs . They are huge on Mercs

Oh, haven't properly thought of that. Never had a new car, and its sort of the reason why I want it. I was thinking new cars don't go wrong often.

jaydeeuk1

New cars can and do go wrong, often niggling things - thats what the warranty is for. Once that expires you're on your own. If you had £45k in cash, but wanted a PCP to keep your money in an s&s isa, then I'd say yeah, go for it, but tbh it doesn't sound like you can really afford it sorry.
If you're thinking of keeping it anyway, probably cheaper to buy outright than a PCP, unless its 0%

https://www.drivethedeal.com/SpecialOffers.aspx

Theres a £46k e class on there for £35k, saved you £10k straight away.

Lungboy

You can't normally do finance through Drive the Deal.

Pixie5740

Lungboy wrote: »

You can't normally do finance through Drive the Deal.

Yes you can. The prices quoted are based on you using PCP to finance the purchase.

If it's a new car you want OP then I second using Drive the Deal.

racing_blue

You're looking at renting a car for 3 years for about £25,000. After that, you have the option to buy a 3 year old used car.

This being a money saving website, I can't resist pointing out that you'd save fifty monkeys by going straight to step two.

Lungboy

Pixie5740 wrote: »

Yes you can. The prices quoted are based on you using PCP to finance the purchase.

If it's a new car you want OP then I second using Drive the Deal.

Sorry, you're quite right, it's part ex you can't do. No idea what my brain was thinking.

SeanG79

Manufacturers finance is easier to be approved for than a personal loan.

With only a mortgage and no unsecured debt, you will most likely be approved.

foxy-stoat

racing_blue wrote: »

You're looking at renting a car for 3 years for about £25,000. After that, you have the option to buy a 3 year old used car.

This being a money saving website, I can't resist pointing out that you'd save fifty monkeys by going straight to step two.

You can buy 2013 E Classes for less than £15,000 with less than average mileage - do that and see how it goes for a few years.