How to Buy a Gas Guzzler

[Dieselman]

Cheer up. It pays you to take the minmum deposit on the E class offers becuase you can invest the money at a higher rate than they are charging you to borrow from them.:bannana:

But is that rate ony effective at the figures as shown or can you achieve a better discount and still have the same rate.?
If not it's not a good deal at all.

Why do you say cheer up.? Just because I question your reasoning doesn't make me unhappy. :bannana:

 

[mw_C32]

Glad to have been of help. Enjoy the fabulous car.
And if the part ex value of your 6.3 litre beastie is more than the guaranteed 58% residual they have offered you in two years time, I'll buy you a good lunch. Even Rory one too.

That Sir is something I will look forward to very much. I hope it's not a virtual one.....

Mark.

 

[Rory]

And surely the PCP person with a brain can start planning his next purchase (or to keep what he has) a month or two in advance.

A month or two is nothing like enough if you want / need a factory order car. And then you're stuck, as the offers run for a quarter, so you're likely to need to order in the prior quarter.

The current E Class offer says the car must be registered by 30th Sept. In practice, what you're probably going to have to take whatever's already available in the network.

 

[st4]

But is that rate ony effective at the figures as shown or can you achieve a better discount and still have the same rate.?
If not it's not a good deal at all.

I can see where your coming from, borrow less but repay @ higher interest rate. My suggestion is there is only one way to find out as it involves calling MB $tealership.

Becasue you can achieve a higher return on your cash in a high savings a/c, why would you want to reduce the principle sum borrowed, unless that is your haggling on the price of the car, which you'd be a fool not too.

 

[hawk20]

But is that rate ony effective at the figures as shown or can you achieve a better discount and still have the same rate.?
If not it's not a good deal at all.
.

It is a good deal even if you get no more discount. But, in fact, as I posted earlier, the retailer's contribution actually comes from MB. So you can haggle more. I did on my two A's. So did my daughter on an earlier offer. And, yes, we got the same APR as the offer -just a lower price or more extras.

 

[hawk20]

A month or two is nothing like enough if you want / need a factory order car. And then you're stuck, as the offers run for a quarter, so you're likely to need to order in the prior quarter.

The current E Class offer says the car must be registered by 30th Sept. In practice, what you're probably going to have to take whatever's already available in the network.

Dear Rory. Always half empty isn't it?

 

[Dieselman]

Becasue you can achieve a higher return on your cash in a high savings a/c, why would you want to reduce the principle sum borrowed, unless that is your haggling on the price of the car, which you'd be a fool not too.

How much of the value of loan can be invested at an ongoing higher rate for the full duration of the loan, and can that be invested without any charges which would reduce the effectivenss of the income?

Lets take a loan of say £25,000.

 

[hawk20]

How much of the value of loan can be invested at an ongoing higher rate for the full duration of the loan, and can that be invested without any charges which would reduce the effectivenss of the income?

Lets take a loan of say £25,000.

I have set it all out in detail in earlier postings.

Must go now but will await Rory's reply tommorrow to posting 180 with interest.

 

[Dieselman]

It is a good deal even if you get no more discount. But, in fact, as I posted earlier, the retailer's contribution actually comes from MB. So you can haggle more. I did on my two A's. So did my daughter on an earlier offer. And, yes, we got the same APR as the offer -just a lower price or more extras.

Ok.

I think Rory's point is that you may have been able to drive a lower price by having external finance, thus overal would pay less irrespective of the APR.

Do you think that would be possible and if so, would this still be a good deal.?

 

[st4]

How much of the value of loan can be invested at an ongoing higher rate for the full duration of the loan, and can that be invested without any charges which would reduce the effectivenss of the income?

Lets take a loan of say £25,000.

I have set it all out in detail in earlier postings.

Must go now but will await Rory's reply tommorrow to posting 180 with interest.

I was about to get out MS excel and tap away for hours.

 

[Rory]

Dear Rory. Always half empty isn't it?

Who would buy an E200CDi Avantgarde without leather (or any other option)? So in practice, that offer is available on some random stock cars that are orphans.

http://mbclub.co.uk/forums/showthread.php?p=607708

 

[hawk20]

Ok.

I think Rory's point is that you may have been able to drive a lower price by having external finance, thus overal would pay less irrespective of the APR.

Do you think that would be possible and if so, would this still be a good deal.?

Fine if he can come up with an external deal offering a lower APR or higher GFV or a bigger discount or all of these, it may be worth considering. But just asserting that it might exist does not make it so. Till he finds a better deal, I think the MB deal looks pretty damn good.

I have personally not seen any HP deals or PCP deals on an E class available anywhere at less than 4.6%. Have you?

 

[st4]

Who would buy an E200CDi Avantgarde without leather (or any other option)? So in practice, that offer is available on some random stock cars that are orphans.

http://mbclub.co.uk/forums/showthread.php?p=607708

I did, all mine has is AG spec + pre-wire and its ace.

 

[st4]

I have personally not seen any HP deals or PCP deals on an E class available anywhere at less than 4.6%. Have you?

The sting in the tail might be here:

Who would buy an E200CDi Avantgarde without leather (or any other option)? So in practice, that offer is available on some random stock cars that are orphans.

http://mbclub.co.uk/forums/showthread.php?p=607708

 

[Rory]

OK Rory. You keep making wild assertions. Let's see some proof. Let us see some full details of the Personal Lease you recommend people to take instead of a PCP. For a private buyer please.

I didn't recommend personal leasing, I merely said it's a way of amortising the vehicle cost over 3 years.

Then get some real details of a real HP deal on an E220cdiAvantgarde just like the MB offer. And show us you have a link or some fiirm evidence of an HP deal at less than the 4.6% APR MB are offering on the PCP. And make sure you get at least as much discount. Then you can say the PCP is not a good one.

I think you're missing the point, but I accept that you're possibly double bluffing us.

However, the deposit support that MB is offering is easily available as straight discount from any of the online car brokers (Drive the Deal etc) and isn't limited to stock cars. The PCP finance APR that MB is offering is probably unbeatable, but it has to be, as MB needs to control the deal otherwise the PCP trap doesn't work as intended.

 

[Rory]

Phew!

Go to work for 1 day and come back to all these posts....

Better than watching the lympits i suppose...

I agree with all that Hawk has said regarding PCP, so I am going with this deal as well as the loan which I will invest at a better return than the loan interest and offset the increased interest on the PCP.

So you're going to borrow the deposit for the PCP? Gulp! I guess that's what they called highly leveraged!

Presumably you're doing something more adventurous on the investment front than sticking the money in the bank if you can get a return at better than the deposit loan's APR?

Thus I will have covered myself against heavy depreciation and still have the money at the end of the term to buy the car should I wish to. :bannana:

M.

Well, you'll still have the money if you're not drawing on it to pay off the loan for the deposit. But unless you can get an exceptional return then it's near enough a zero sum game.

However some can make better use of cash than spending it on a car. Up until a few months ago, some people would see £20K as a deposit on a £200K buy to let, which they could then get a 90% mortgage on and rent it out to students for £1500/mth. But that's a bit tricky at the moment.

 

[mw_C32]

Rory,

Your right I do tend to be a bit risky with my invetments, some I loose (mainly when I buy a car) some I win.

Eg. Five or so weeks ago Barratt Homes shares were at 40p, I bought £25000 (my car deposit) worth at 60p, very highly risky!!! I'm ready to pull my money and pay for this car, check them out....look under BDEV, very rare for this kind of opportunity!!! Maybe next week their back to 40p....

One thing I don't do is borrow money I havent initially got in the first place with one exception and thats my mortgage. I do not increase borrowings on it so it gets paid off over the term left.

Having said that I have a offset tracker mortgage so any money I have spare can offset this at the full interest rate on the mortgage without tax penalties, so straight away I can get the equivalent of a net interest rate paid daily of 6% on ony cash I have in my current account which incidentally I do not see as it offsetts the mortgage interest so I pay it quicker etc.etc...

As for your buy to let remark, yes that is possibly something I will do soon with the extra cash I have if I go for the loans etc, just waiting for the right moment to buy a couple of houses, it wont be long now, just waiting for the right moment, I also know a lot of people very cash rich circling the property market at the moment too.

M.

PS. no financial advice is given or intended in this statement, I do what I like with my money, it's up to you what you do with yours....

 

[st4]

Rory,

Your right I do tend to be a bit risky with my invetments, some I loose (mainly when I buy a car) some I win.

Eg. Five or so weeks ago Barratt Homes shares were at 40p, I bought £25000 (my car deposit) worth at 60p, very highly risky!!! I'm ready to pull my money and pay for this car, check them out....look under BDEV, very rare for this kind of opportunity!!! Maybe next week their back to 40p....


M.

Hi,

Would you not have been better buying shares in a few other companies to spread the risk a bit better. Unless you are a very wealthy chap thats an awful lot of money to risk on one investment.

 

[mw_C32]

Hi,

Would you not have been better buying shares in a few other companies to spread the risk a bit better. Unless you are a very wealthy chap thats an awful lot of money to risk on one investment.

You are right. The "buzz" was uncomfortable to say the least and not something I intend doing too often.

M.

 

[Bobby Dazzler]

A four-fold rise no doubt eased the discomfort though. Good call.

PS Sell, sell, sell!!