magic money tree

Page may contain affiliate links. Please see terms for details.

nick mercedes

MB Enthusiast
Joined
Jan 8, 2003
Messages
7,106
Location
far far away
Car
Ford Expedition
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?
 
Not enough detail on the deal to answer.

How many monthly rentals up front?
How many monthly payments?
Inc VAT?
 
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.
 
Last edited by a moderator:
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.
 
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!
 
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?
 
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:
 
So yes, it's plus vat. Still a decent deal at £300pm. Although 8k miles isn't much.
 
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?
 
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?
 
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.
 
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.
 
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.
 
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.
 
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?
 

Users who are viewing this thread

Back
Top Bottom