Help me with my PCP options

[GDAWG10]

Hi guys,

Just running the figures on a used C Class coupe I purchased from MB in April 2015. I put down a big deposit with low monthly payments with an option to purchase at the end of it. I've just got an early settlement figure which is obviously less than the value of the car due to the big deposit and also with a rebate figure which deducts a lot of the interest payable.

I'd be better off long term if I can find the settlement figure now to avoid the interest but also dependent on what I can sell it for. I wouldn't settle it now to keep it but I would possibly settle it to then sell it and try and accrue some money back at this stage. Also I would be keen to hear what you think it could be worth at the end of the deal and if there would be any positive equity and whether you would then trade it in to MB as a p/x or keep it for another three years or so after the PCP is settled. As much as saving on the interest, I'm trying to figure out whether I would attract a better deal on selling the car now vs May 2019

These are the figures:

2012 C180 C Class Coupe - 16,000 miles
Total Cash Price: £15,450
Deposit: £6500
Monthly repayments (36 months-APR:9.9%): £161
Total amount payable: £17,491 - Interest - £2031
GFV: £5175

Early Settlement:
Balance outstanding: £9701
Settlement Amount: £8399 (Including rebate amount of £1311)

Webuyanycar valuation right now: £11,420

 

[HumberMart]

Hi guys, Just running the figures on a used C Class coupe I purchased from MB in April 2015. I put down a big deposit with low monthly payments with an option to purchase at the end of it. I've just got an early settlement figure which is obviously less than the value of the car due to the big deposit and also with a rebate figure which deducts a lot of the interest payable. I'd be better off long term if I can find the settlement figure now to avoid the interest but also dependent on what I can sell it for. I wouldn't settle it now to keep it but I would possibly settle it to then sell it and try and accrue some money back at this stage. Also I would be keen to hear what you think it could be worth at the end of the deal and if there would be any positive equity and whether you would then trade it in to MB as a p/x or keep it for another three years or so after the PCP is settled. As much as saving on the interest, I'm trying to figure out whether I would attract a better deal on selling the car now vs May 2019 These are the figures: 2012 C180 C Class Coupe - 16,000 miles Total Cash Price: £15,450 Deposit: £6500 Monthly repayments (36 months-APR:9.9%): £161 Total amount payable: £17,491 - Interest - £2031 Early Settlement: Balance outstanding: £9701 Settlement Amount: £8399 (Including rebate amount of £1311) Webuyanycar valuation: £11,420

What was the GFV after 3 years?

At 9.9% you'd likely be best to settle.

But the low monthly payments mean you will prob have no equity if you keep it 3 years and you'd lose the benefit of the GFV is you settled.

 

[GDAWG10]

What was the GFV after 3 years?

At 9.9% you'd likely be best to settle.

But the low monthly payments mean you will prob have no equity if you keep it 3 years and you'd lose the benefit of the GFV is you settled.

Sorry forgot to include that (edited now), GFV is: £5175.

 

[HumberMart]

Sorry forgot to include that (edited now), GFV is: £5175.

On that value, I'd settle now if you can fund it at a much lower rate than 9.9.

I'd doubt your car will be worth less than £5175 after 3 years (assuming it met the criteria and mileage for a no cost return to MBFS)

 

[S205-FTW]

MB PCP on used cars tends to be a total rip off in terms of APR.

9.9% APR when the base rate is 0.25% is seriously challenging Wonga for mark up.

Some cheaper rates here if you want to get a personal loan:
Cheap personal loans: from 2.9% up to £15k

 

[markjay]

...Webuyanycar valuation right now: £11,420

They will pay this price IF the paintwork and bumpers are in pristine condition (no stonrchips or scratches, nothing touched up etc), and the wheels are in as-new condition (no kerbing marks). Been there....

 

[GDAWG10]

Thanks.

I may have an option of settling earlier at a cheaper APR probably around half which could/would save me around half of the remaining interest but I need to look into it.

If that's not possible, once I reach the end of the agreement I'm not sure what I am going to do. It's still some time away but because of the large deposit of £6500 I am sure that affects the GFV/option to purchase amount which is quite low at £5175 especially because the mileage will remain low. The plan was always to purchase at the end and keep it for longer but if it's worth more than the GFV or I can sell for more i.e £7000 then it may make sense to buy and then sell or use the positive equity i.e £2000 as part of a new deposit.

So many different ways of wording things and options but it looks like at the end of the day it's all practically the same and whatever you do when leasing/financing you will always end up out of pocket, what I am trying to do is figure out the best time to purchase, keep (for how long) or sell.

Now my dad's car is a different story. He financed a new Ford Focus on 0% finance from Ford on a PCP deal and has gone way over his mileage allowance. He did this on purpose because he intended to purchase the car at the end but after seeing and driving my car he realised he would prefer a used newish MB rather than a new Focus. So he doesn't want to buy to be left with a car he doesn't want, and he can't hand it back because of the mileage charge, but I believe he wants to terminate early by getting a settlement fee, hoping to get a PX amount from a dealer for the settlement fee, and essentially transferring the finance to a new deal with MB. If you don't have any experience in this area it can be a bit confusing!

 

[HumberMart]

Thanks. I may have an option of settling earlier at a cheaper APR probably around half which could/would save me around half of the remaining interest but I need to look into it. If that's not possible, once I reach the end of the agreement I'm not sure what I am going to do. It's still some time away but because of the large deposit of £6500 I am sure that affects the GFV/option to purchase amount which is quite low at £5175 especially because the mileage will remain low. The plan was always to purchase at the end and keep it for longer but if it's worth more than the GFV or I can sell for more i.e £7000 then it may make sense to buy and then sell or use the positive equity i.e £2000 as part of a new deposit. So many different ways of wording things and options but it looks like at the end of the day it's all practically the same and whatever you do when leasing/financing you will always end up out of pocket, what I am trying to do is figure out the best time to purchase, keep (for how long) or sell. Now my dad's car is a different story. He financed a new Ford Focus on 0% finance from Ford on a PCP deal and has gone way over his mileage allowance. He did this on purpose because he intended to purchase the car at the end but after seeing and driving my car he realised he would prefer a used newish MB rather than a new Focus. So he doesn't want to buy to be left with a car he doesn't want, and he can't hand it back because of the mileage charge, but I believe he wants to terminate early by getting a settlement fee, hoping to get a PX amount from a dealer for the settlement fee, and essentially transferring the finance to a new deal with MB. If you don't have any experience in this area it can be a bit confusing!

It is possible to 'voluntarily terminate ' (VT) a PCP contract after you've paid at least 50%, and not pay for excess mileage.

It's a bit of a minefield and some finance companies are getting more aggressive regarding this potential saving, but still something to consider.

Typically MBFS are the most aggressive it seems, yet Audi don't seem bothered to chase for it (according to other forums)

I'm not sure if Ford chase the mileage after VT.

 

[flowrider]

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