How to Buy a Gas Guzzler

[Dieselman]

And for those pondering a gas guzzler, given the posting on how hard big cars are to sell, I thought some might be interested that there are some risk free ways of owning these attractive beasts without suffering the savage depreciation that some have had.

I agree with you here, but do the 'unwanted' guzzlers enjoy the same low PCP rates.?

Salesman love PCP because they make money from selling finance and as with most direct sale situations the product doesn't matter anymore, the Salesman is just selling finance with any product attached.

 

[Dieselman]

The BMW must have been good enough to walk back into.

He obviously thought the MB was better as he had a CLK on order..

 

[mw_C32]

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.

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.

 

[st4]

He obviously thought the MB was better as he had a CLK on order..

Well he should have waited for that rather than be lured into another BMW. Whilst the CLK was probably the no1 choice, the BMW couldn't have been that bad otherwise he wouldn't have bought it (I assume on another PCP)

Its that thing with PCP too, once the agreement is up you have a short time frame (1 month IIRC) to

1. get another car and hand the other one back
2. make the GMFV payment (known as the balloon) and keep the car
3. hand the car back and do nout-and be carless.

This short time frame when action like the above must be taken must be salesmans dream as the buyer is @ their mercy.

Its not like an HP, agreement ends and the salesman tells you that your car you ordered isn't available for another 2 months, no sweat, I've got this one fully paid up, I'll just wait. That is not there with PCP.

 

[hawk20]

I agree with you here, but do the 'unwanted' guzzlers enjoy the same low PCP rates.?

Salesman love PCP because they make money from selling finance and as with most direct sale situations the product doesn't matter anymore, the Salesman is just selling finance with any product attached.

All dealers are not part of some capitalist plot. Salesmen love selling cars. What a surprise. The business finance guy likes to sell you a finance deal. Why? That is how he makes his living. Like hairdressers cut hair and roadsweepers sweep roads.

The issue for the customer is whether the product on offer is a good deal for him/her. And as *** wisely says: caveat emptor.

And yes the ML is currently on offer at under 6% as is the S class 320cdi. And E320cdi. Etc.

 

[hawk20]

Its not like an HP, agreement ends and the salesman tells you that your car you ordered isn't available for another 2 months, no sweat, I've got this one fully paid up, I'll just wait. That is not there with PCP.

No nor is the hassle of having to sell the old car which the dealer may not want.

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. I am sure I will be trying everything around for months beforehand. Great fun.

 

[st4]

All dealers are not part of some capitalist plot. Salesmen love selling cars. What a surprise. The business finance guy likes to sell you a finance deal. Why? That is how he makes his living. Like hairdressers cut hair and roadsweepers sweep roads.

The issue for the customer is whether the product on offer is a good deal for him/her. And as *** wisely says: caveat emptor.

And yes the ML is currently on offer at under 6% as is the S class 320cdi. And E320cdi. Etc.

See that E class deal, because of the pig ugly W212 folk will buy the last of the good looking ones in droves

 

[st4]

No nor is the hassle of having to sell the old car which the dealer may not want.

Spot on, especially if your the owner of an ML500 or something similar. If I had HP'd one of those 3 years ago vs a PCP I'd be kicking myself.

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). I am sure I will be trying everything around for months beforehand. Great fun.

You would think so, and a salesman would love it as you could play one marque's $tealler against the others with negotiating a fresh PCP deal all over again. I know of someone who did this very well....

 

[hawk20]

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.

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.

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.

 

[Dieselman]

All dealers are not part of some capitalist plot. Salesmen love selling cars. What a surprise. The business finance guy likes to sell you a finance deal. Why? That is how he makes his living. Like hairdressers cut hair and roadsweepers sweep roads.

So are you saying a dealer salesman doesn't care whether a buyer takes finaince out or not, they just get paid on the actual sale of the car.?

I think you are mistaken, they care very much because they get paid on the finance deal.

 

[hawk20]

So are you saying a dealer salesman doesn't care whether a buyer takes finaince out or not, they just get paid on the actual sale of the car.?

I think you are mistaken, they care very much because they get paid on the finance deal.

I think I am saying I don't care what he cares about. His job is to sell well, mine is to buy well.

I am glad they make a real effort to sell cars. It's more fun that way.
And that dealers go out of their way to bring finance deals to people's attention. The more information the better.

And I accept they wouldn't do it if they didn't make money from it. That is the free market economy which I generally approve of.

 

[st4]

So are you saying a dealer salesman doesn't care whether a buyer takes finaince out or not, they just get paid on the actual sale of the car.?

I think you are mistaken, they care very much because they get paid on the finance deal.

100% right. I think its a commission based on the interest rate @ which the loan in levied (I know thats how mine was structured).

My best advice is not to change your car very regularly, then your not subject to a) depreciation as often b) hard sell salesman.

 

[hawk20]

100% right. I think its a commission based on the interest rate @ which the loan in levied (I know thats how mine was structured).

.

Well they won't get much commission then on the 4.6% APR deals on the E class!

 

[st4]

Well they won't get much commission then on the 4.6% APR deals on the E class!

They'll be some from of incentive for them, but @ that rate who cares :bannana:

 

[Dieselman]

They will depending on the value of the amount borrowed, which is why they want you to take the option with the minimum deposit.

To this end the PCP helps them, irrespective of whether it's the best option for the cusomer, which in your case it may be because you are financially savvy, but in others it may well not be as they have to borrow the full value everytime.

 

[hawk20]

They'll be some from of incentive for them, but @ that rate who cares :bannana:

Exactly. Who cares if they make a few bob. We all try to don't we?
Has no effect on whether or not we have negotiated a good deal does it?

 

[Rory]

If Rory cannot see that a discount of nearly 10% off a new E class (more if you haggle), and finance at under 5%, with a guaranteed residual of about 50% of the price you pay, if he cannot see that is a good deal, well, I am amazed. (But then of course he regularly contradicts himself by saying these deals are heavily subsidised!)

I can see that it's a deal - what I don't agree with is that it's a good deal.

You're doing it again - you're reference the PCP deal against E Class's list price, but they're available with huge discounts. HP is also available at low rates - when I bought my C Class for cash, the dealer dropped their HP rate over and over again to try to get me to take finance. He eventually showed me computer screen that showed their margin as zero - they allegedly were prepared to offer me finance at "cost" price. Dream on.

 

[hawk20]

They will depending on the value of the amount borrowed, which is why they want you to take the option with the minimum deposit.

To this end the PCP helps them, irrespective of whether it's the best option for the cusomer, which in your case it may be because you are financially savvy, but in others it may well not be as they have to borrow the full value everytime.

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:

 

[mw_C32]

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. I am sure I will be trying everything around for months beforehand. Great fun.

+1

M.

 

[hawk20]

I can see that it's a deal - what I don't agree with is that it's a good deal.

You're doing it again - you're reference the PCP deal against E Class's list price, but they're available with huge discounts. HP is also available at low rates - when I bought my C Class for cash, the dealer dropped their HP rate over and over again to try to get me to take finance. He eventually showed me computer screen that showed their margin as zero - they allegedly were prepared to offer me finance at "cost" price. Dream on.

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.

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.