Insane PCP deals

[panholio]

Current new car deals are absolutely wild. I wonder who is stumping up such high prices, and how many, other than through business leases, cars are really being sold to private punters at these levels:

My one this week is a Stratstone lease offer on an A class, proudly peddled all over social media as a mega offer.

A200 exclusive launch edition hatchback (assume this has had a facelift or something) - a blistering 161bhp tarmac destroyer.

£6798 “advance payment”
£499 per month on a four year deal (mileage very hard to find on their website)

Yep that’s £30,251 to rent an A class for four years.

Anyone seen any worse deals?

Edit to say title should have said PCP/ Lease deals.

Edited by panholio on Tuesday 16th May 10:10

[skinnyman]

I bought a new Golf back in 2018, so I'm still on their mailing list, I was invited to a 'sales event' a while ago, their prices have gotten out of hand.

The Mk8 Golf R (with decent wheels & blue paint) is just £10k deposit & £550/mth, total payable £55k.

Now I understand it was back in 2016, but I remember when R's were £2k down & £200/mth.

[Dan W.]

panholio said:

Current new car deals are absolutely wild. I wonder who is stumping up such high prices, and how many, other than through business leases, cars are really being sold to private punters at these levels:

My one this week is a Stratstone lease offer on an A class, proudly peddled all over social media as a mega offer.

A200 exclusive launch edition hatchback (assume this has had a facelift or something) - a blistering 161bhp tarmac destroyer.

£6798 “advance payment”
£499 per month on a four year deal (mileage very hard to find on their website)

Yep that’s £30,251 to rent an A class for four years.

Anyone seen any worse deals?

Edit to say title should have said PCP/ Lease deals.

Edited by panholio on Tuesday 16th May 10:10

Might be something to do with Mercedes agency model i guess. not good for the consumer i feel.

[blueg33]

Not all deals are insane. You basically pay for the depreciation in advance, plus the interest, you would get the depreciation anyway.

I have just decided against a PCP on my wife's new car because I could get 0% interest if I stump up 50% deposit. But the PCP wasn't outlandish at £700 per month for a £56k car.

The danger IMO is high balloons and the risk of negative equity if you have to leave the deal early

[PistonTim]

Mercedes lease deals are generally absolutely terrible - still see plenty around though!

[resolve10]

I've noticed this too - the interest rates that used to hover around 3-5% for new cars is now typically up to 9-10% which makes a huge difference. Coupled with a pessimistic Guaranteed Future Value due to uncertainty around ICE/EV values, it makes for some eye watering deals like the Mercedes one quoted above.

Having said that, some manufacturers/dealers are starting to incentivise again now supply is returning to something resembling normal. My local Ford is offering the below on a new Puma ST, which seems like a bargain compared to the above figures!

List price: £31,045
Discount: £1,950
Total price: £29,095

£3000 deposit
£308 p/m (36 months)
3.9% APR
6000 miles P/A

[Chamon_Lee]

blueg33 said:

Not all deals are insane. You basically pay for the depreciation in advance, plus the interest, you would get the depreciation anyway.

I have just decided against a PCP on my wife's new car because I could get 0% interest if I stump up 50% deposit. But the PCP wasn't outlandish at £700 per month for a £56k car.

The danger IMO is high balloons and the risk of negative equity if you have to leave the deal early

This is the problem I have with comments like the above: “your basically paying for the depreciation in advance” , based on every thread now depreciation is minimal now so surely pcp deals should be bonkers cheap. You can’t have it both ways. All these comments seem to be is individuals ways of justifying a purchase or not to purchase something.

Regardless car prices have got out of hand and pcp deals are even worse

[panholio]

How about this stunner. A BMW 118i M Sport (absolute rocket).

4 year PCP
8000 miles.
£1k down
£399 per month!

I paid (considerably) less than that for an M140i in 2017.

[blueg33]

Chamon_Lee said:

blueg33 said:

Not all deals are insane. You basically pay for the depreciation in advance, plus the interest, you would get the depreciation anyway.

I have just decided against a PCP on my wife's new car because I could get 0% interest if I stump up 50% deposit. But the PCP wasn't outlandish at £700 per month for a £56k car.

The danger IMO is high balloons and the risk of negative equity if you have to leave the deal early

This is the problem I have with comments like the above: “your basically paying for the depreciation in advance” , based on every thread now depreciation is minimal now so surely pcp deals should be bonkers cheap. You can’t have it both ways. All these comments seem to be is individuals ways of justifying a purchase or not to purchase something.

Regardless car prices have got out of hand and pcp deals are even worse

Depreciation isn't bonkers low on a new car - the first 6-12 months are a big hit, on a £50k car depending on make and model it can easily be £10-12k. On an Alfa is probably £20k over that period (its why I bought my alfa when it was 18 months old. My wifes Volvo lost about £10k in year 1)

[JackJarvis]

panholio said:

Current new car deals are absolutely wild. I wonder who is stumping up such high prices, and how many, other than through business leases, cars are really being sold to private punters at these levels:

My one this week is a Stratstone lease offer on an A class, proudly peddled all over social media as a mega offer.

A200 exclusive launch edition hatchback (assume this has had a facelift or something) - a blistering 161bhp tarmac destroyer.

£6798 “advance payment”
£499 per month on a four year deal (mileage very hard to find on their website)

Yep that’s £30,251 to rent an A class for four years.

Anyone seen any worse deals?

Edit to say title should have said PCP/ Lease deals.

Edited by panholio on Tuesday 16th May 10:10

I saw this one on facebook and did a double take. Even if that price was for 2 cars, it wouldn't seem cheap.

I leased a new E class in 2018 for a LOT less than that.

[CG2020UK]

It’s absolutely bonkers at the moment.

By the end of they year it will be dealers and manufacturers looking for sympathy in the papers about economic hardship and what not,

Since COVID it’s been an absolute mess and personally hope common sense prevails and the markets correct themselves as soon as possible.

[Honourable Dead Snark]

Does make me wonder if I should extend the lease of my Leon Cupra 290 for 6 months which is only £250 (even though it will mean an additional service and 2 front tyres) as there’s nothing that really compares for similar money.

It’s either that or buy something ste with cash.

[GreatGranny]

Honourable Dead Snark said:

Does make me wonder if I should extend the lease of my Leon Cupra 290 for 6 months which is only £250 (even though it will mean an additional service and 2 front tyres) as there’s nothing that really compares for similar money.

It’s either that or buy something ste with cash.

Definitely extend for £250 pcm.

Service can be non main dealer so less than £200 and 2 tyres £300 max?

Well worth it IMO.

You'll struggle to get an Up! for that money at the moment

[McLarenLad]

I suspect things will come full circle in a couple of years.

Don't forget, we've been living in an artificially low-credit world since 2008. Now, holding cash/assets is the new norm.

With borrowing just too painful, people will resort to buying second-hand. Demand will outstrip supply soon enough in the used car world, and the new-car sales industry will start to suffer. Then, offers will start to fall to entice.

That's my theory anyways. I'm no economist.

[Rob2005uk]

It's madness at the moment. A few years ago it was common to have like £200/£250 deposit and the same per month for a PCP. These days you'd struggle to get a bus pass for that price

[Downward]

Honourable Dead Snark said:

Does make me wonder if I should extend the lease of my Leon Cupra 290 for 6 months which is only £250 (even though it will mean an additional service and 2 front tyres) as there’s nothing that really compares for similar money.

It’s either that or buy something ste with cash.

Done ours for a year and it’s £65 a month less.
New Cupra is £500 a month as is the Born.

[skinnyman]

Currently paying £195/mth for an Abarth 595, given the current climate I think I'll be extending that as long as possible

[andymc]

hence very few 23 plate cars

[panholio]

Today's deal of the day (sorry another Merc)

E 200 AMG Line Night Edition Premium Plus Saloon

48 Monthly payments of* £718.84

On the road price £53,730.00

Customer Deposit £9,402.75

Annual Mileage 10,000 miles

I mean who wouldn't want to drop £10k and then £720 a month for four years on an E200!!!!!!!

[Powerkiter]

I got sent one the other day for an Audi RS4 Avant, £7,065 down then monthly payments of £785. That's only for 5,000mpa though! 4 year deal.

A lot of money but a lot of car for it!