Mercedes 0% finance

[tylerdurden]

Was a a dealer this week and noted 0% on new S class. I found that quite surprising to be honest.

Do they often have 0% deals?

Is this a function of "end of line"? Or something often seen on the big cars?

 

[Red C220]

It's another marketing ploy, but it will pretty much be on list price.

When we bought our SL we were offered 0% finance, however if we chose to take it we lost the £10,000 "manufacturer Support" being offered for the regular finance, so the 0% actually worked out more.

In the end we got the dealer to match Orange Wheels price which was cheaper than anything MB were offering at the time.

 

[tylerdurden]

No, it's 0% with a hefty dealer contribution for the S.

The carwow price is less but I'm sure that includes the zero %

 

[Red C220]

Cheaper than this?

No one pays List for an S Class, I don't even know why they bother with list prices any more. It would actually be much healthier if they behaved like Porsche, this is the price, take it or leave it.

Residuals would therefore likely be much higher and the monthly cost (which is how most of these are bought) would remain the same.

The trouble is, they're all at it, it's now normal so on the whole list prices are meaningless for anything other than tax bands.

 

[Red C220]

How about a new SL400:-

 

[tylerdurden]

Bizzare business model isn't it.

Wonder if the new 40k lux VED rate might make them reprice in the 35-48k sector

 

[Red C220]

Frankly I think the VED rate effect is oversated. If you're comfortable buying a £40K + car the VED is pretty much irrelevant unless it becomes punitive, which it isn't even at the new rate.

 

[wemorgan]

Most cars aren't bought, but increasingly leased. The VED is then bundled into the monthly lease price. The extra £25/month is just a sting in the tail.

 

[JBD]

You get 0% and manufacturer support in both S Class and SL, though it's no cheaper per month than when there was an APR


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[gr1nch]

The S-class Orange Wheels price is about the same as Mercedes offer on their website, when finance is taken. It gets interesting when MB dealerships are seeking to discount further, eg via CarWow. Personally I didn't have a local dealer as we are between places, but if I did, then the advice on this forum about taking your best quote into them, to see if they'll match, seems with doing.
If some marque dealerships don't have discounting as mentioned, is that imposed by the marque? If so, I thought that was not permissible any more (similar to the overturning of that practice with books, perfume)

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[wemorgan]

PCP is all smoke and mirrors, it's too difficult for customers to know exactly what the deal is.

 

[JBD]

PCP is all smoke and mirrors, it's too difficult for customers to know exactly what the deal is.

With the monthly cost, APR, deposit, sale price and total amount payable on a quote, I'm not sure how you can see it as smoke and mirrors. It's just a hire purchase agreement with a balloon payment


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[Bobby Dazzler]

Maybe I'm a simple man taking a simple view, but when I compare deals I look at the total cost of financing the car (i.e. not servicing, etc) over the period I intend to run the car, by simply adding up all the costs, and assuming I "exit" at that point (i.e. sell or hand the keys back).

That way, the actual part-exchange valuation, future value at the end of the term, discount on list price, manufacturer/dealer/finance incentives, interest rate or APR, and other charges really don't matter. I can then way up the total cost against the flexibility offered during or at the end of the term, and make a decision.

With one exception, I've chosen to buy cars with my debit card, but that's never been because it's cheapest, it's been for flexibility (which in my experience costs more when changing cars regularly, but less when changing cars less frequently).

The one time I leased it was because it was much cheaper to lease than own that car for a short period of time - on that occasion cost was more important than flexibility because I knew I wanted the car for two years only.

/BoreMode

 

[Deleted member 113659]

Can't argue with that Bobby.

I like to change every 2 or 3 years so leasing suits me. Also I'm never really fussy about the make or model. This flexibility allows to pick out the best/cheapest leasing deals at the time. If you want a particular car then sometimes the deal isn't great.

There's a great deal on just now on S5 Sportback but we're not due to change until March next year. (I must stop looking. )

 

[wemorgan]

With the monthly cost, APR, deposit, sale price and total amount payable on a quote, I'm not sure how you can see it as smoke and mirrors. It's just a hire purchase agreement with a balloon payment


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I recommend you read one of the many finance threads on PistonHeads to show how many people fail to understand PCP. The enticement of equity or even being able to transfer the full deposit on to the next PCP is just one example. Also bundling LifeShine, GAP, wheel insurance into a finance package with at times uncompetitive APR is another.

Not a dig at you personally but an observation of the industry as a whole.

PCH by comparison is so much more straightforward.

 

[Deleted member 6183]

With the monthly cost, APR, deposit, sale price and total amount payable on a quote, I'm not sure how you can see it as smoke and mirrors. It's just a hire purchase agreement with a balloon payment


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You know when you have a customer with you and you ask them about any finance on their part-ex?

Don't you notice that they can only tell you how much a month it costs and very little else?

 

[tylerdurden]

In reference to S class, will this discontinue as soon as old stock has gone?

What kind of APR would one guess on an order of the facelift later this year?

Basically if you want an S, is waiting for facelift honing to cost more.

 

[JBD]

I recommend you read one of the many finance threads on PistonHeads to show how many people fail to understand PCP. The enticement of equity or even being able to transfer the full deposit on to the next PCP is just one example. Also bundling LifeShine, GAP, wheel insurance into a finance package with at times uncompetitive APR is another.



Not a dig at you personally but an observation of the industry as a whole.



PCH by comparison is so much more straightforward.

I see no benefit in a PCH over a PCP unless you can get one cheaper than the other. It's inflexible and very difficult to get out of if you have changes in circumstance


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[Bobby Dazzler]

Also bundling LifeShine, GAP, wheel insurance into a finance package with at times uncompetitive APR is another.

Not a dig at you personally but an observation of the industry as a whole.

And paying interest compounds the impact of the often expensive insurance products. My brother in law just bought a brand new SQ5+ and bought the GAP insurance from the dealer: £895 for 3 years, which is more than three times more than it would have cost from ALA Pistonheads

 

[Deleted member 6183]

I see no benefit in a PCH over a PCP unless you can get one cheaper than the other. It's inflexible and very difficult to get out of if you have changes in circumstance


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To you're punters this sounds like 'blah,blah, PCP, blah, blah, PHP, why use your own money? Finance is the best. Be like all of our customers.

Smoke and mirrors.

Tell me that you've never been on a training course where smoke and mirrors wasn't mentioned.