GLC at end of PCP
Discussion
yellowbentines said:
Hi Andrew, is it on a Mercedes Benz finance agreement? If so they'll extend it by a year if the inlaws like the car and want a hassle free option.
You're still here :OIt's on MB finance but the problem with extending is that they are overpaying so another year of that would mean they are paying more than the value of the car.
When you say they're overpaying, do you mean they are paying more than the required amount each month? Is this with a view to paying off capital quicker and keeping the car long term?
When I extended mine they offered a lower rate of interest than the original agreement, so my payments actually dropped which was nice for keeping the same car and signing a bit of paper. It also meant at the end of the extension, as the depreciation curve had levelled out, the car was then actually worth the balloon payment/GFV rather than being in negative equity.
ETA I have also handed a car back to MB finance at the end of a PCP if that's a consideration. They're notorious for sending out silly invoices for every little mark once they've inspected it, I just wrote a letter referring to the industry standards for wear and tear (the car was fine) and they zeroed the lot.
Edited by yellowbentines on Wednesday 9th May 13:08
yellowbentines said:
When you say they're overpaying, do you mean they are paying more than the required amount each month? Is this with a view to paying off capital quicker and keeping the car long term?
When I extended mine they offered a lower rate of interest than the original agreement, so my payments actually dropped which was nice for keeping the same car and signing a bit of paper. It also meant at the end of the extension, as the depreciation curve had levelled out, the car was then actually worth the balloon payment/GFV rather than being in negative equity.
ETA I have also handed a car back to MB finance at the end of a PCP if that's a consideration. They're notorious for sending out silly invoices for every little mark once they've inspected it, I just wrote a letter referring to the industry standards for wear and tear (the car was fine) and they zeroed the lot.
Overpaying as in, the deal wasn't great, not actually putting in more than the original monthlies. Their price to buy the car at the end is £24,600 but the cars are retailing at about £29,500 just now. If they just hand the car back at the end of the term then they have lost a chunk of cash through paying too much over the first three years. If they keep the car then they have quite an early build that's now out of warranty.
Edited by yellowbentines on Wednesday 9th May 13:08
Andrew[MG said:
Their price to buy the car at the end is £24,600 but the cars are retailing at about £29,500 just now. If they just hand the car back at the end of the term then they have lost a chunk of cash through paying too much over the first three years.
It must be one of the very first GLCs - where are you seeing £29,500? They're retailing from £25K now and there's still 6 months to go.Have they had issues with it munching tyres?
Sheepshanks said:
It must be one of the very first GLCs - where are you seeing £29,500? They're retailing from £25K now and there's still 6 months to go.
Have they had issues with it munching tyres?
Theirs has only done around 16k (don't ask!) but it does need a new set of boots. It does have the crabbing issueHave they had issues with it munching tyres?
It's AMG Line with Premium Plus - I didn't see any of the same spec for £25k but do appreciate that its got 6 months to go.
Still not sure it's a good idea to purchase it...more of a gut feeling.
Andrew[MG] said:
Still not sure it's a good idea to purchase it...more of a gut feeling.
It doesn't strike me as a good idea to hose £700/mth at a car to do 500 miles per month in, but that's another discussion!I don't know what the "smart" answer is - probably leasing would be better, or hanging on to theirs and putting a Mercedes warranty and ServiceCare plan on it. Of course it'll still be depreciating but (hopefully) somewhat slower than it is now.
I've held on to the C270Cdi Estate I bought at 5mths old in early 2005. I started off doing a lot of miles but then my job changed and it only does about 8K/yr. I had the now defunct MB ServicePlus scheme (covered servicing and repairs) until it was 6yrs old then used a WarrantyDirect warranty. Mine had the advantage of only needing to be serviced every 2yrs, but they're annual now.
Of course if they've got more money than they know what to do with and they and want a new car then they should do that.
Andrew[MG] said:
My inlaws are coming to the end of their GLC pcp deal in November (£3000 down and 35 @ £625) with an option to purchase of £24,500. I'm not 100% sure that it's a good idea to buy such an early car (65 plate) so what are the other options that don't involve a big loss on the deal?
£26500 for a GLC over 3 years? Did they not think that was a lot at the time?
They have paid £21,750 so far, Merc apr on these was at 5.9% so they must be at the 50% mark already surely? They could throw the keys back.
Do they want to keep it?
Paying it off now might be the best option if they do. A car they know, low miles, nice spec. etc.
To be honest the original deal being a bit bad it is skewing things now.
That should have been £150 a month cheaper if they had negotiated better.
No point rolling it over.
They could finance that at around 3% apr with Hitachi Capital or similar.
Mind you, if the balloon is £26500 and they have 6 months left it must mean that car would be £31k to settle now?
You could buy a new GLC250 with prem pack for around £35k, that would make more sense that buying one coming up to 3 years old and out of warranty for only 10% or so less.
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