Agility final payment

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tiger

Active Member
Joined
Nov 27, 2009
Messages
128
Location
Sunny Scotland
Car
2009 C220 CDI Sport Estate
Hi,

My current car is coming to the end of its agility agreement. It give me the option to pay £14k and keep, or hand back. Now i have been looking at new cars but as yet have not seen something to snap up. On doing this i have been getting part x prices for approx £13k, which puts me in negative equity.

Has anyone ever tried phoning merc and putting in an offer below the GFV? If i could get it for less then i would be tempted to keep.

I have tried doing deals to remove the negative equity on a new car, but a couple of dealer have said they cant due to being MB finance...which i think is a load of rubbish.

Any help or advice greatly appreciated.
 
I think you'll find it's a fixed contract and no negotiable after the fact.

Of course, they could "find" the £1000 against a new purchase but getting the negative equity simply wiped is not going to happen.
 
If you're being bid a grand less than it costs you to hand it back to Mercedes, why not simply hand it back?
 
This isn't really a case of negative equity at all. The Agility contract provides you with a notional minimum guaranteed future value (MGFV), and that is used as a benchmark on which to base the deposit and monthly instalments that you've already paid. If the MGFV had been, say, £12,000 instead of £14,000, you wouldn't consider yourself to be in negative equity, but you'd have actually paid the extra £2,000 somewhere along the line (either in higher deposit or higher monthly payments).

As SPX has said, If MB are effectively offering you £14,000 for the car and you can only get £13,000 for it elsewhere...
 
Yeah, its more of a case of i have owned the car from 6 months old, and i know its history. Not sure if i want to sign up to another 3 year deal(unless a very attractive deal comes my way)

Maybe im getting to grippy to splash out on a new motor.....
 
If its been a good car for you, why not buy it from Mercedes?
 
just my thinking that if i overpay for it..i would be aswell putting the money towards a new car.....decisions decisions
 
Have you discussed your next car with them yet? You might be surprised at their offer.
 
Now i have been looking at new cars but as yet have not seen something to snap up. On doing this i have been getting part x prices for approx £13k, which puts me in negative equity.

Are you looking at brand-new this time (I see you got your current car at 6mths old)?

Even if the p/x value matched the GFV there's still nothing in it for you, it only starts to be useful if the p/x is more than the GFV.

Apparently cars are never sold to current "owners" at lower than GFV - One explanation I've read is there's some tax reason for this, but I thought that only applied to leasing. When the market was on its backside late 2007/8 it was mentioned in forums that BMW was doing deals with people whose cars had GFVs way more than they were worth.
 
Mocas is correct in what they say, the finance company underwrote the amount, and that's what you signed up to..if the current value was 19K.....obviously there be no issues

What to consider is If you buy it , someone has it on their "books" as an depreciating asset to have an amount write off against tax ,that's not too important in the case of an individual but is in a company

your contract gave the terms reasonably clearly,, ie 14K at the end and you keep it or hand it back....that's it ( that not withstand the trawling through the contract and seeing if a negotiation can be found)
A contract is (in this case) between two parties, and a bargain was struck

However
There is nothing to stop the owner(finance company)selling the vehicle after the termination of the contract at whatever figure they choose, you can then buy yhe vehicle from that person at again whatever level they choose ie they buy it for 10k and you buy it from them at 11k

In a previous life I as part of the job bought vehicles and only ever leased one, I had no faith in the vehicle hence it was leased, it was actually exceptional and at the termination I bought it from the dealer who had bought it from the manufacturer

Terminal balloon payment are In my opinion "none to clever" interest on that outstanding through out the period( OK it might be at a different rate)
 
I think I am pleased that I actually own my car and paid for it in full at the time of purchase. The above stuff sounds complicated and gives me a headache...........
 
this is quite current, when I used to buy vehicles, the finance I got was based on the libor rate, i was paying 1.5% below the base rate, that went south in 2001/2
 
Have you discussed your next car with them yet? You might be surprised at their offer.

I have discussed new and nearly new cars with the same dealer, but the figures are not that different. I might give the finance company a call and see if anything can be done. If the deal had terminated in spring, then i would have just used my bike for a few months until i got the deal i wanted, but with being winter....im a solar powered biker!!

Thanks for all the resposes so far.
 
I know how you feel and I've been in your position many times in the past. I personally would never pay the final payment if the car is not value for money, I would simply hand it back and walk away.

There are some amazing deals around at the moment on new cars.
 
If you hand the car back the finance organisation will then sell the car, in all probability for less than you would be willing to pay.

I seems strange, but they do appear to decide to do this rather than take a better offer from you.

I suppose you have to decide what the car is worth to you. You know how reliable it is, you can get any faults fixed ( assuming it's still under warranty). It might be worth a bit over what you would pay for an equivalent used car with the uncertainty that can bring.

If you're looking at a new car just hand it back, get it 'prepped' first to avoid any condition charges.
 
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I seems strange, but they do appear to decide to do this rather than take a better offer from you.

Their product is finance. If they sell you the car they lose all the future profit, hence they make it unattractive.

If the car is sold to a dealer, the next punter will be sold finance...Happy Days...
 
The returned cars are graded, valeted and then sold to the dealers in closed auctions. As DM says if the cars go to MB dealers it is likely MB Finance will get to finance them again.

If you call MBF and ask them what sort of deal you would get to buy the car from them and finance the outstanding 14k they will want to talk.. for anything else they will just suggest you hand it back. Cant blame them - this is how the prestige pcp model works - no difference from BMW Audi or Jag.

My question to you is if dealers are offering 13k for it it will hit their forecourt at 16995... so is you buying it from MB at 14k really that bad a deal..? px price is always lower than sell - dont get caught up in chasing rainbows.....
 
If you hand the car back the finance organisation will then sell the car, in all probability for less than you would be willing to pay.

I seems strange, but they do appear to decide to do this rather than take a better offer from you.

I suppose you have to decide what the car is worth to you. You know how reliable it is, you can get any faults fixed ( assuming it's still under warranty). It might be worth a bit over what you would pay for an equivalent used car with the uncertainty that can bring.

If you're looking at a new car just hand it back, get it 'prepped' first to avoid any condition charges.


you mention getting it prepped, are there any companies that specilise in this, or is it just a good clean and hand back?
 
you only need to prep it if it is below par... i.e. bald tyres, no mot, damage to bodywork/interior/windscreen.

If the car is well looked after you should have little issue.
 

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