End of PCP

[Was1]

So my 3 year PCP ends in June on my 2013 face lifted e220cdi amg sport. I was hoping to get something out of it to put towards a new merc however after speaking to the dealer it apparently has no equity in it and is well below the balloon payment. This has totally peeed me off! Has anyone had this issue and also has anyone seen any good deals out there on pcp or leasing which maybe a better option?

 

[TKvS]

May I ask, what is PCP.......?

 

[Peter DLM]

Deals listed here.

Best Lease Car Deals Available? (Vol II) - Page 297 - General Gassing - PistonHeads

Lease car deals (list only - no discussion thread) - Page 1 - General Gassing - PistonHeads

 

[Paddcomp]

KG Vehicle Leasing have some old model E Class on good deals, 3+23 so you won't need a big deposit.

 

[Deleted member 6183]

May I ask, what is PCP.......?

Angel dust to you sir.

 

[Peterr_ibg]

No equity probably should be expected. High Balloon means less to borrow, which in turn means lower monthly payments.

Careful with Lease as opposed to PCP as Lease doesn't suit everyone. Usually with a PCP you will always have the option to settle the finance and sell the car ( useful if your circumstances change such as redundancy, new job etc) with Lease or Contract Hire if you want to end the contract early it can be very expensive.

 

[TKvS]

Angel dust to you sir.

Wow. ..I'm impressed.it's not like you to be funny

 

[Deleted member 6183]

Wow. ..I'm impressed.it's like you to be funny

I know.

 

[Abb]

May I ask, what is PCP.......?

Its Personal Contract Purchase/Plan, a method of financing a vehicle using monthly payments over a period time, with an option of paying off the balance at the end of the term or handing it back and starting all over again.

Which is my understanding anyway, but having never done it I cannot be 100%.

 

[kasper]

I have just payed off my pcp at a loss to myself it was a case of which is the best evil keep paying monthly and a balloon payment and end up with nothing or suffer the loss and move on.if you intend to keep the car then yes to pcp if not lease or go to the bank

 

[Piff]

So my 3 year PCP ends in June on my 2013 face lifted e220cdi amg sport. I was hoping to get something out of it to put towards a new merc however after speaking to the dealer it apparently has no equity in it and is well below the balloon payment. This has totally peeed me off! Has anyone had this issue and also has anyone seen any good deals out there on pcp or leasing which maybe a better option?

Ours went back today. Similar to you the balloon payment was way higher than the value of the car.
At the beginning we queried the high final value but the dealer assured us that the residuals looked very good for the diesel SLK.
But, it was a good deal we had with low monthly payments and a low initial deposit.
Seems they need to get their sums worked out better as they ought to be getting us back in the showroom at the end of 3 years to trade in.

 

[S205-FTW]

MB are notorious for giving inflated GMFV figures. It keeps the cost down for the punter for deposit and monthly payments during the term but no good if you want to buy at the end as you will have to make up the difference if you want to keep.

Land Rover on the other hand have higher payments but usually end up offering more than the GFMV at the end of the term.

If you handed it back, it'll likely be with an MB dealer on their approved used inventory at a nice chunk above the GMFV as soon as they can wash and vacuum it.

 

[Piff]

MB are notorious for giving inflated GMFV figures. It keeps the cost down for the punter for deposit and monthly payments during the term but no good if you want to buy at the end as you will have to make up the difference if you want to keep.

Land Rover on the other hand have higher payments but usually end up offering more than the GFMV at the end of the term.

If you handed it back, it'll likely be with an MB dealer on their approved used inventory at a nice chunk above the GMFV as soon as they can wash and vacuum it.

Not mine - it needs a full re-spray first.
I've just looked at MB used cars within 50 mile radius of here for similar cars currently on the forecourts - the first 3 similar cars are being retailed at £17,800 to £18,480. The balloon payment on mine was £20,750

 

[PenelopePitstop]

At the beginning we queried the high final value but the dealer assured us that the residuals looked very good for the diesel SLK.

SLK diesel was dropping like a stone from the beginning due to subsidised leasing deals.

 

[gIzzE]

I have just payed off my pcp at a loss to myself it was a case of which is the best evil keep paying monthly and a balloon payment and end up with nothing or suffer the loss and move on.if you intend to keep the car then yes to pcp if not lease or go to the bank

Was the hit you took a lot less than the monthly remaining payments?
What I mean, was it not financially sensible to carry on with it and throw the keys back at the end or when you got to the 50% point?

 

[TheFoX]

Bought a CLK on PCP with a guaranteed return value of £18,000. A month or two before the contract was due to end, wanted to part ex it for an SLK, and they offered me £15,000 part ex.

Needless to say, I waited another couple of months then handed the car back.

I now pay outright, or arrange full finance if the car is one I intend to keep.

 

[gIzzE]

Nothing wrong with PCP, just only put £500-1000 down and know you will probably loose it.

 

[Was1]

Thanks everyone. Gonna have a think and look at all the options. Don't really fancy whacking another large deposit down...best deal I've seen actually is on the new 2016 golf r on a lease...interesting

 

[SamW]

Don't be annoyed about high balloon and the subsequent negative equity.

As already mentioned, if the residual was £2000 less (meaning possible equity) you would have paid approx £60 more pm for the benefit of that.

Deposits just reduce monthly payment and nothing else.

 

[SamW]

Also, be careful of leases.

They look attractive if you're doing very low miles but have never worked for me.