Agility - car's value at end of lease

[andyjenkins]

All,
I'm just 14 months into a 36 month Agility contract. I paid a deposit of some £4k for the car. When I hand the car back, there's a "future guaranteed value".

If I want another (MB) car, I'm told I can use (if any) equity in this current car as deposit. Does the Agility plan, try to make sure that there is equity in the car ? Or is the plan designed so that the value after 3 years is exactly that of the balance - ie if I want another car in identical circumstances, I have to put £4k deposit again?

Andy

 

[The _Don]

I think most people on this scheme get hit with a very low valuation end of term.

 

[Rory]

The dealer *should* be keen to do what it takes to get you into a new Agility contract - the whole point of these schemes is to get people into a routine of changing their cars every 3 years.

It's a disaster on several levels if you hand the car back and walk away - Mercedes doesn't get to build and sell a new car, the dealer network doesn't get a saleable used car to make money on, and the finance arm doesn't get to make money on the loan.

 

[LTD]

Maybe best to pop into your dealer and have a chat ?

After all, last thing he wants is you with an undervalued car that you are happy with and prepared to settle out on independent finance.

That way Mercedes get nothing .........

 

[Rory]

Sorry - I meant it's a disaster for MB if you pay the GFV and keep the car.

 

[andyjenkins]

I think most people on this scheme get hit with a very low valuation end of term.

Surely that's better for the consumer? If the car is worth £20k on the market, and MK say its only worth £15, then I'm perfectly prepared to buy the car for £15k and trade it in elsewhere for £20.

I did similar on the wife's Pug 106. Balloon payment at end was £2k, and Alfa offered £3k for it. No brainer really.

 

[rhud]

Can work both ways. After 3 years my A Class minimum guaranteed future value is higher than trade-in value. Hence I am handing the car back to MB Finance and starting again.

 

[fuzzer]

best way to look at it is the 4k you put in subsidised your 36 payments by x amount per month and don't excpect it back. Any money you get back is a bonus. There is only a certain amount of money in a deal and any money that is there is just subsidising your trade in. With no trade in after handing the car back you will be able to negociate upwards of 8% discount easilly making your 4k back. Its a game. play them at it. Any dealer who won't go to 8% or more walk away.

Its just basically a personal lease with the option to buy the car back or get out of it early ( try getting out of contract purchace early with your shirt intact)

 

[gIzzE]

14 months ago Mercedes was in financial meltdown, and they were doing silly deals to shift metal, they were giving sky high buy backs to get people to bite.
New C180K auto estate for £239 a month through contract hire shows just how high the buy backs were.
So you may have sweet FA in it, however, you may have bought yours just after the cars were cleared and at that point Mercedes were setting residuals extremely low to make sure they were not upside down with people handing keys back at the end of the term. They were over £9,000,000 short 18 months ago with this at one point, in other words the cars out there were worth £9m less than they had guaranteed on them, but used prices have gone from an all time low to an all time high in less than a year.

Why not post the model, mileage you will have done and what your balloon is? Then we can all have a guess at where you'll be.

 

[andyjenkins]

Why not post the model, mileage you will have done and what your balloon is? Then we can all have a guess at where you'll be.

Why not .. I'm game. Fantasy See How Bad Deal I've Got ;o).

Car : C250 CDI Blue Efficiency Sport Estate, Calcite White
Options : Panoramic Roof, COMAND, 18" AMG Wheels, Intelligent Light System (Bi-Xenons), Sport Mode, Agility Package.
Price (including options) £33,958.57
Deposit : £4000
Balance £29,958,57

After 3 years, 15k per year, the optional purchase payment is £16,775.

If I remember, I'll update this thread in 24 months time with a dealer valuation of my car ... will pop around Audi/BMW/Lexus etc ... see how their prices vary ).

So - let the ball roll. How much do we think the above car will be worth in Aug/Sept/Oct 2013, with 45k on the clock.

Not really a true comparison, but to buy the above spec'ed car now, list price is around £37k. Not an exact like for like because some things have changed (like 3 year COMAND updates FOC now, whereas I don't have that). But close enough. Don't make a blind bit of difference for the value of my car though; except to reduce it I expect ;o)

 

[gIzzE]

Sounds like a nice spec.

It is auto I take it??

45k miles at 3 years it will probably retail at £22k ish??

So a trade in value of around £18k maybe??

 

[DJM]

£22k in 3 years?...That sounds quite high to me???

 

[Deleted member 37751]

Found this.... http://www.autotrader.co.uk/classif.../postcode/dn25nx/radius/1500/page/3?logcode=p
I know its not exactly the same, but it does give a good idea, I think

 

[gIzzE]

£22k in 3 years?...That sounds quite high to me???

Yeah I reckon it will retail for around £21950, however, the facelift will be about in large amounts and the new C will probably have been shown by then as it launches for MY2014 I think.
So maybe more like £18950? That would mean a trade in of around £16k.

 

[andyjenkins]

22k sounds unrealistic. I made an off the cuff enquiry about upgrading to a E250 Coupe, and the dealer valued the car last month (1 year old, 15k on the clock) at 24k.

At that rate, I can't see it having a trade in value anywhere near the balloon payment!

 

[Deleted member 37751]

You will do well to get anywhere near £15k trade-in. Retail about £17k.
But to be fair, a lot can happen between now and then in the car market. Example- 2 years ago a 2004 discovery tdv6 hse was selling at about £12-13k. Even now that car would still command the same price.

 

[gIzzE]

I'm not sure, try and find a 2007 E220cdi sport estate with comand now for that money, they are still commanding above £22k. That is now 3 years old.

I don't think you can gamble on future values at the moment, used cars are at an all time high value wise, but that won't last for too much longer as they start to shift more and more new metal again.

I think you need to aware you will probably walk away empty handed and have to start over.

One thing to bear in mind is if Mercedes is setting the residuals at £17k or 50% of actual purchase price, then that is probably what they will be commanding in 3 years.

 

[Deleted member 37751]

He has a C-Class though?
Here is an E320 CDi Sport Estate with command 45k, which will always be worth more than the comparitive C- Class
Mercedes E320 Estate CDI Sport Auto Estate (Sat Nav) on eBay (end time 18-Nov-10 02:21:02 GMT)

 

[gIzzE]

I meant C250cdi sport, and bigger cars tend to loose more money, a C250cdi sport with the toys is always going to appeal to more than the E Class.

Same with the other marques, 530d is £45k new and the 330d is £32k new, but at 3 years old there is more like £2-3k in it. A4 vs A6, A4 3.0tdi is £33k and A6 is £41k but at 3 years the A4 tends to be worth the same.

Plus you are looking at an old model E Class, the prices dropped like a stone over the last 6 months, no where near as desirable as the new C Sport for most buyers out there.

 

[DJM]

I'm sure the future value of my new c class is only around 17k...maybe slightly less? Although it's not a major consideration of mine really. All new cars will lose serious amounts of cash but at least you're the only owner !