Has it ever been cheaper to drive a Mercedes?

[ChuckyYeager]

I saw an advert in City A.M this morning for the all new Focus Titanium X on a lease deal for £260/ month over 35 months + a £6000 advance rental payment. I believe a lease deal means you cant own the car at the end. It didnt give the engine size but its probably a 2 Litre diesel. It comes with 9000 miles per annum allowance and it is on a non maintained basis (you do the servicing yourself).

I think this is extremely expensive because it costs only £500 more per year to drive my brand new W212 200CGI. I also have a 12000 miles per annum allowance and the option to buy the car at the end not to mention the long list of extras that come as standard on an E class, heated seats, active park assist (this was specifically mentioned in the Focus advert as a benefit), parking sensors, Xenon + DRL e.t.c. I must mention that I bought my car when VAT was 15% and at the height of the recession.

I can remember a friend of mine bought a brand new poverty spec CLK200 K cabriolet in 2004 for £42,000 and it came with a tape deck although he negotiated with the dealer to reftrofit a Mercedes SatNav system. His monthly payments were like £800 through Capital finance as he had a really poor credit score.

Has it ever been cheaper to drive a Mercedes?

 

[Red C220]

Cars in the UK in general are very cheap, we are the envy of mainland Europe and we're only able to maintain these levels due to the steering wheel being on the right.

If you compare the same spec car in Sterling to it's cost in Euros in Germany, it's an eye opener.

Many Europeans import new from other EU and non EU countries, particualrly Denmark.

Denmark is an anomaly, it has new car tax of 180% to 200% for domestic registrations, as a result it has the lowest list prices in Europe. So many Europeans buy new in Denmark and export, therefore circumventing the domestic car tax.

Second hand cars in the UK are extremely cheap.

Really, do you ever remember seeing so many £50k to £60k cars on the road?

My wifes parents live on a local authority estate, most of it now private, but some still council housing.

There are cars parked on the drives of some of the council houses that are "worth" as much as the house.

We embraced renting and hiring vehicles in this country and the manufacturers who have always enjoyed strong residuals rejoiced in this new fashion.

As you've pointed out, you can lease a Mercedes for the cost of a Ford Focus, where's the downside?

(This is a C63 comment free zone - it's been done to death, we get it, now leave it).

 

[Mike Walker]

I agree wholeheartedly I think.

 

[Red C220]

I will add to this, as it's bound to come up.

Leasing, contract hire, PCP, Personal contract hire etc etc are all finances designed to make the dealers and manufacturers money. The product itself, the car, in most cases (Porsche being a notable exception) are pretty much sold at cost or close to cost. The money is made in the lending.

There is an argument that contract hire can be cheaper than even buying outright and if you find the right deal then there's no argument.

However, on the whole, these finances exist so the average member of the public can buy a product that they would otherwise not be able to afford.

(This is still a C63 free thread!).

 

[snoop51]

Denmark is an anomaly, it has new car tax of 180% to 200% for domestic registrations, as a result it has the lowest list prices in Europe. So many Europeans buy new in Denmark and export, therefore circumventing the domestic car tax.

Indeed, a Danish work colleague of mine 2 years ago bought a new diesel Skoda Superb, equivalent price paid in £ .....£50k. We proceeded to write this at the top of a whiteboard with the caption "What car would you buy with £50k in UK" He saw the list after a few days and was green, poor sod.

 

[GP801]

I asked several dealers about getting a LHD car new to take to Italy as prices here are so much better than mainland europe. Even though it would have stayed UK registered none of them would entertain the idea. In the end bought a 124 which was a much better idea.
My brother used to work for a mainstream main dealer. There is virtually no profit in selling new cars. Its the paint protection, finance, gap insurance and servicing that bring in the money. I suspect this is part of the reason labour rates are so high here in the UK. Local main dealer in Italy charges 60 euros/hour.

 

[Deleted member 37751]

I would really love to know how much it actually costs to make a Mercedes or any other car for that matter.

Not taking into account all of the bumpf (marketing etc) if they market a W212 E350 CDi at say £40k, using an educated guess, I'd say it costs about £15k to manufacture.

 

[GP801]

Presumably they dont cost vast amounts to make compared to retail cost. Manufacturers with a few notable exceptions seem to make money. Even in Denmark I dont think they are selling them at a loss even with the low pre tax prices