magic money tree

nick mercedes

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I keep getting spam and ads about PCP deals.

Todays:

"Mercedes-Benz C Class Diesel Cabriolet C220d AMG Line 2dr Auto"

£249 a month.

£42510 if you want to buy it

But, the rentals and deposit only add up to £9570, leaving £32940, at the end of the contract it will be off to the auction and bring in perhaps £20k?

So who sponsored the missing £10k?

And why?
 
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Not enough detail on the deal to answer.

How many monthly rentals up front?
How many monthly payments?
Inc VAT?
 
D

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So who sponsored the missing £10k?

And why?

A culmination of inflated MRP & Finance commission.

Why? To shift cars? :dk:

Deal is 3+36 and plus Vat. I would say.
 
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Dryce

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But, the rentals and deposit only add up to £9570, leaving £32940, at the end of the contract it will be off to the auction and bring in perhaps £20k?

So who sponsored the missing £10k?

And why?

The why (part 1) is to shift metal.

The who or how is based on the fiction that a 4pot 2 litre C class is worth anything like 42K on list.

The why (part 2) is to structure a cheap deal to maintain the fiction of the headline list price.

Meanwhile the journalists will tell you in almost every review that MBs have good deprecation. That £42K down to £33K doesn't look so bad over 2 years .....

So you create a deal to maintain the fiction of the list price which then maintains the fiction of apparent depreciation.

And the other thing to note - it's a deal on a diesel. I was looking at the weekend at AU cars and loads of nearly new diesels.

So the 'magic money tree' may be as simple as clearing UK diesel stock - and the sponsorship as such is just about cutting losses.
 

Harrythedog

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Don't know the answer but I'll have a shot in the dark and say neither MB or the Leasing Co will be losing out!
 
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nick mercedes

nick mercedes

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The why (part 1) is to shift metal.

The who or how is based on the fiction that a 4pot 2 litre C class is worth anything like 42K on list.

To be fair it's a 2 door cabrio one, so nicer than your average C.

It's just when you add it all up there always seems to be a missing £10k, I should imagine it's the same with Jaguars Audis BMWs as well.

Inflated prices or cars being dumped below cost to keep factories busy?
 
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To be fair it's a 2 door cabrio one, so nicer than your average C.

It's just when you add it all up there always seems to be a missing £10k, I should imagine it's the same with Jaguars Audis BMWs as well.

Inflated prices or cars being dumped below cost to keep factories busy?

Come on Nick. Post the link. :thumb:
 
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So yes, it's plus vat. Still a decent deal at £300pm. Although 8k miles isn't much.
 
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nick mercedes

nick mercedes

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So yes, it's plus vat. Still a decent deal at £300pm. Although 8k miles isn't much.

It's not the deal, so much as the rentals and the realistic auction value of the car being far less than it's retail price.

I just wondered who it was who was making up the shortfall?
 

MancMike

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So when you hand over your 9 month's initial rental of 2.2k, you're paid up for 9 months, then paying the standard monthly cost for the remainder of the deal before handing the car back?
 

Dryce

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To be fair it's a 2 door cabrio one, so nicer than your average C.

But £42K for a 4 pot diesel in a C class?

I think £32K when I see the car.

It's just when you add it all up there always seems to be a missing £10k, I should imagine it's the same with Jaguars Audis BMWs as well.

Inflated prices or cars being dumped below cost to keep factories busy?

So IMO really a £32K car being dropped to £22K over two years.

But MB won't care if it's a '£42K' car dropped to '£32K' (but what does a 2 year car with this spec actually sell at - I'm guessing well below £32K because you can buy AU ones not far of £32K with current plates).

So the numbers are an invention.

Question is whether £10K for the car over 2 years is worth it to the customer or not. The £42K and £32K are irrelevant to the deal other than to make it look better than it might otherwise be or maintain apparent pricing.
 
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So when you hand over your 9 month's initial rental of 2.2k, you're paid up for 9 months, then paying the standard monthly cost for the remainder of the deal before handing the car back?

No Mike. The 9 months is the deposit which is taken as your first payment. Then 23 payments of £249.99+vat.
 

Dryce

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No Mike. The 9 months is the deposit which is taken as your first payment. Then 23 payments of £249.99+vat.

There may also be an additional admin fee with some suppliers.

The whole thing is weird - expressing the initial deposit as a multiple of the rental seems to be an industry convention to hide the deposit and focus on the monthly price.
 

zipdip

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Nick you are bad man you have got this poor old pensioner looking at leasing deals,I agree with you there is money missing somewhere,looking at a estate car not a merc cannot afford that but a jap estate for £80 a week that includes the car insurance and tax of £30 a year,very tempting.
 

MancMike

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So in January you take this deal and hand over 2.2k as an initial payment, which is said to be 9 months' payment, but then in February you start paying the regular amount of 250 quid?
 

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