apr rates for used approved mb

[pagzzy]

hi guys i was wondering what apr rates are you getting for a used mercedes on their pcp plan. i gather this will depend on the car and the dealer but it would be nice to know a rough guidance...

i have been given an apr of 11.7% which i think is way too high

thanks in advance

 

[gIzzE]

Christ on a bike!!!

You want to be around half that.

If you have sourced a car give Gareth at Bespoke a call.

Advice & Coaching | Bespoke Automotive Consulting

 

[jaymanek]

In the used car market, APR's between 9-14% are typical depending on the term.

Approved used and New MB's are usually a LOT less as they are subsidised by Mercedes Benz Financial... They basically make very little on the finance to be able to sell more cars.

 

[SmartMAC]

hi guys i was wondering what apr rates are you getting for a used mercedes on their pcp plan. i gather this will depend on the car and the dealer but it would be nice to know a rough guidance...

i have been given an apr of 11.7% which i think is way too high

thanks in advance

Too high and a little irrelevant. When I got my c class coupe, I told them I could get a 6.1% APR from my bank so I did my calculations accordingly. The sales man kept talking about the monthly repayment so I gave him the one I had calculated based on 6.1% and he matched it. I did this after negotiating the price of the car and the p/x so the calculation was based on the exchange cost only.

Some people have reported APRs of less than 5% from Mercedes so if you don't ask, you don't get.

 

[Deleted member 6183]

You shouldn't need to pay much over 6% APR, be careful about dealers who might quote you something like 6% finance (trying to make you think that this is APR when in fact it is the flat rate which would = around 12% APR).

 

[pagzzy]

thanks for the feedback... i am going to try again i am getting a rate of 8%

 

[pagzzy]

i cant imagine a 6% apr rate as banks are lending at the 8-9 % for personal loans ?

 

[Deleted member 6183]

i cant imagine a 6% apr rate as banks are lending at the 8-9 % for personal loans ?

Well, it's up to you but I would be looking at Sainsbury's Bank or Derbyshire Building Society for 6% and if they don't appeal you could try M&S Tesco or HSBC.

 

[Aoraki]

I've just bought a new car and a new van, both with some finance on. It's not what APR you can get, but what the monthly payment is. On the van, the dealer was quoting £230 per month (HSBC), I went to my bank's finance arm (Lombard) and the montly payment was £180, I don't know the APR but I do know there will be an extra £50 in the kitty at months end!

 

[gIzzE]

It will be cheaper because the apr is lower.

Or, it might be cheaper because the final payment is cheaper.

Either way, apr is the true cost of borrowing money.




And remember, with Lombard there is no GFV, you have to pay the balloon.
So, you could end up owing £15k on a van worth £5k. There is no throwing the keys back, so APR is everything.

 

[pagzzy]

hmmm mercedes set their aprs high i just gave them the above information.. and what do you know we can work something out ... i have an apr of about 7% i suppose not the lowest but i was happy with that...

thanks guys

 

[Aoraki]

It will be cheaper because the apr is lower.

Or, it might be cheaper because the final payment is cheaper.

Either way, apr is the true cost of borrowing money.




And remember, with Lombard there is no GFV, you have to pay the balloon.
So, you could end up owing £15k on a van worth £5k. There is no throwing the keys back, so APR is everything.

Monthly payment is what matters to me, lower the better! There is no balloon and I'll end up owning the van outright in four years. 48 monthly payments, over £2k saved. You have to shop around

 

[mightymouse]

Mine was around 8.3% and I decided against it

 

[c_200k]

Funnily i'v just been on the phone to a couple of MB dealers

first one offered 9.9% apr second one thought he could take the piss and offered 13.9%apr, i told him where to go

so going to go back to first dealer and try 6% and drop the price by £2k

 

[grober]

Last sales guy I spoke to was recommending buying any new car on finance currently even if you had the cash money to buy outright. He said that even by taking part finance you benefited from the support given by MB finance to the deal. Minimum amount to borrow was £3000 to qualify for the support. After 3 months you could pay off the amount outstanding having paid a mere 3 months interest on £3,000 and benefited from an input of £4,500 on the deal. Sounded too good to be true to be honest but who knows would there be hidden costs or unforseen snags on title to the car??

 

[gIzzE]

No, it is often the case that manufacturer support is often best when combined with finance, and it is all about playing them at their own game.

 

[c_200k]

right guys best i'v got from merc is 9.2apr but i can get 7.6apr from lombard

so should i go with merc or lombard, i'm kinda siding with merc even though its bit dearer

 

[gIzzE]

Why?

Why do you want to pay more money with Merc?

Also, is it a variable rate with Lombard?

You can ask for this, they will give you a slightly lower rate, and then all interest is calculated daily, so if you want to settle early you simply only ever pay the interest on the money you have borrowed so far.
Mercedes front load it and then give you a discount, Lombard is the same with a fixed rate option. Be careful. Borrow £25k on a variable and settle after 12 months and you will owe around £16k on a typical 36 month 30% balloon term, however, on a fixed rate after 12 months you would still owe around £22k with a discount of around £2k, so you will not have paid anything off.

What amount are you borrowing?
What term are you borrowing over?
Is there a balloon at the end?
Will you definitely see the term out? If not then a fixed apr rate that is 6% now could end up being the equivilent of 25% apr if you want out early.

All this needs to be considered, without it I don't know if your deal is good or not, or more to the point whether it is right for you. A deal at 10% apr might be better than one at 5% apr if you want to be able to swap cars early for example.