New C-class - Please advise me :)

[MidnightMerc]

Hi All,

My first post. Hoping that I can get some advice from the fantastic community on here.

I’ve been making some initial enquiries about a new Mercedes C200 Sport - Premium Plus Auto with metallic paint. I took the car for a quick test drive today at my local dealer and it drives beautifully.

There is a really good PCP offer advertised on the MB website at the moment: 4.9% APR (4.3% fixed) and a £3573 deposit contribution (finance must be approved by end of March and the car registered by end of June).

I have also spoken to Drive the Deal and they offer a total discount of £6228 (inclusive of above mentioned contribution). That brings the model+spec mentioned above down from £34202 (list) to £27976! I am really tempted to put down a £3500 deposit and go with it on a 48 month PCP.

My questions:

1. I have never bought a new Mercedes before, is this a really good deal?

2. What is the maximum negative equity I am likely to have on the above spec car on 48 month PCP if I go with Drive the Deal and a £3500 deposit – I’ve made a quick estimate, but not sure if I’m accurate?

3. Does adding the Premium Plus pack to the Sport make a big difference to the car and its residual value?

4. Should I order privacy glass? I only ask because so many new cars seem to have it. I’m not really bothered about it – just thinking in terms of residual value.

5. I currently have a PCP underway (now in slight positive equity) on a Civic. I would settle this and privately sell my Civic prior to starting the MB PCP. However, will having a PCP on my credit file currently reduce my chances of getting MB finance approval?

Any other advice to a newbie would be appreciated.

Thank you in advance J

 

[HumberMart]

Hi All, My first post. Hoping that I can get some advice from the fantastic community on here. I’ve been making some initial enquiries about a new Mercedes C200 Sport - Premium Plus Auto with metallic paint. I took the car for a quick test drive today at my local dealer and it drives beautifully. There is a really good PCP offer advertised on the MB website at the moment: 4.9% APR (4.3% fixed) and a £3573 deposit contribution (finance must be approved by end of March and the car registered by end of June). I have also spoken to Drive the Deal and they offer a total discount of £6228 (inclusive of above mentioned contribution). That brings the model+spec mentioned above down from £34202 (list) to £27976! I am really tempted to put down a £3500 deposit and go with it on a 48 month PCP. My questions: 1. I have never bought a new Mercedes before, is this a really good deal? 2. What is the maximum negative equity I am likely to have on the above spec car on 48 month PCP if I go with Drive the Deal and a £3500 deposit – I’ve made a quick estimate, but not sure if I’m accurate? 3. Does adding the Premium Plus pack to the Sport make a big difference to the car and its residual value? 4. Should I order privacy glass? I only ask because so many new cars seem to have it. I’m not really bothered about it – just thinking in terms of residual value. 5. I currently have a PCP underway (now in slight positive equity) on a Civic. I would settle this and privately sell my Civic prior to starting the MB PCP. However, will having a PCP on my credit file currently reduce my chances of getting MB finance approval? Any other advice to a newbie would be appreciated. Thank you in advance J

1. Within a few quid, the best real world deal you can get.

2. You may suffer negative equity in the first year or so, but not more than £3k or so I'd guess.

3. Peanuts if you did a CBA or ROI analysis.

4. Only spec options if you want them, not if you think the next owner wants them.

5. No, it will only enhance your credit rating.

 

[MidnightMerc]

Thank you for your quick reply and for answering my questions.

I did feel that it was a very good deal.

I drive about 4-5k miles/yr so it's the petrol version I got this quote on. The PCP mileage allowance was for 10k miles though, that's the minimum they do.

I was very impressed with the new C-Class, it's a beautiful car. The version I test drove today was a diesel, they did not have a petrol version, but I think I would be happy to proceed now.

I'll give it some final thought this weekend.

 

[Roger Bill]

Hi MidnightMerc

That is one heck of a good deal. I ordered my C200 Premium Plus Sport just before Xmas and only managed to get about 10% discount from a local MB dealer which was in line with the best internet prices I could find at that time. (I'm assuming the Drive the Deal quote was for a new car rather than an ex-demo or pre-registered car?)

I now only do around 10,000 miles pa so like you I opted for petrol rather than diesel which, having had test drives in both, I much prefer for the noise, vibration and harshness benefits.

If you have time, I'd suggest taking a test drive in C Class with Airmatic air suspension. It's an option which divides opinion but I thought it really improved both handling and comfort. My car isn't due until May/June so only time will tell whether this and the other options I've ordered will prove worthwhile!

 

[MidnightMerc]

Morning Roger,

Yes, this is for a new factory order.

MB finance require that the car be registered by 30 June (finance approved by 30 March). I was told factory orders are taking 3-4 months at the moment. Drive the Deal said I should be okay if I order in the next couple of weeks.

Agreed, I think the petrol will be nice and smooth - more so than the diesel unit I tested yesterday, some reviews have said the diesel could be more refined. With my low miles it was never a consideration anyway.

I am debating between the Premium and Premium Plus packs at the moment. This and the metallic paint would be the only options I would spec.

How is MB reliability these days? I know it used to be legendary in years gone by.

 

[tylerdurden]

If you can afford it go more as much spec as you'll enjoy.

Tell me; is the DTD price the same in terms of monthy payment and balloon payment? Or a are the monthly payments and balloon less.

I'm one of those peeps who always buys cars with cash in full but damn your deal looks a corker.

 

[MidnightMerc]

The final balloon payment on the above mentioned spec quoted to me by DTD was the same as that quoted by my local MD dealer, so I assume this must be fixed by MB finance, in this case it was £13625. DTD monthly payments were quoted as £295 on a 48 month agreement. My local dealer's quoted monthly payments were higher because they could not match the DTD discount.

I have not placed an order yet.

I popped into my local dealer again yesterday to have another quick look at the C-Class they have in the showroom and I am really not keen on the standard 'Artico leather', it felt artificial and plastic like. I could really tell the difference when getting back into my car which has genuine leather. Leather seats are lovely and very important to me. If I go ahead I will need to add these to the quote and that adds another £711 going via DTD.

I'm now thinking of dropping from Premium Plus to Premium, while I love the idea of a larger screen and surround sound system, comfortable genuine leather seats are more important to me.

 

[Chrishazle]

Hope you're thinking of heated leather seats - we have them in our S204, wonderful in this cold weather. Leather seats in the 968 are not heated - so I get moans from the nearside!

 

[Robfen100]

£3,500 deposit is your money that is not guaranteed to be there at end of PCP?

Lots of debate on here about having any equity left in the car at the end of PCP term, search this forum for some good information.

My worry about PCP is putting in too much deposit because often it's all gone come around time for the next deal.

New model though, so all about residual value?

 

[MidnightMerc]

Chrishazle, the C-Class Sport trim and above come with heated seats as standard and these become fully electrically adjustable with specification of the Premium or Premium Plus packs. You then need to pay extra to upgrade to genuine leather.

Robfem, I never plan on having any positive equity at the end of a PCP, although there will likely be a little, especially if you are well under the mileage allowance and have really taken care of the car. This will not be much at trade price though, a few hundred at best? I think you can prob. maximise that by clearing the balloon and selling the car privately at the end.

More deposit means paying less interest. however, as you say the general advice is to put in as little as possible as you should not bank on having positive equity at the end of the agreement.

I'm not an expert, so if I've said anything wrong here, please do correct me.

 

[Robfen100]

No, I'm no expert on PCP at all!

Glad you are well informed about the trade off between deposit and monthly payments.

I'm on 25th month of 3 yr PCP and have got the itch to change car but know I should wait a few more months before coming into break even ( I hope)

Back to your question...the real leather will possibly not be as well reflected in future value, sadly. Whereas the premium plus will a bit better but a matter of opinion I suppose. Of I'm searching for cars, I always want command for example

Surely your dealership will guide you regarding spec vs future value

Of course if it's a PCP contract for you, does it matter what the future value is if you've accepted potential minimal equity - more important you love car for the time you have it

 

[MidnightMerc]

Yes, it's a shame that genuine leather does not increase the residual value much, I find this quite strange as I think it is a very desirable feature.

What is command?

 

[Chrishazle]

COckpit MANagement and Display system. Integrates radio, CD, Nav, telephone etc into the centre screen.

 

[MidnightMerc]

Thanks Chrishazle, that makes sense...it sounds like something that should be in an aeroplane though!

 

[MidnightMerc]

Guys, any idea on a nice colour for the C-Class?

I was going to go for Tenorite Grey - it's quite dark though. I am now considering Palladium Silver and Diamond Silver. The Diamond Silver has a blueish look to it, not sure what to make of it - I think I like it.

I will accompany it with black leather.

 

[Markjames]

Guys, any idea on a nice colour for the C-Class?

I was going to go for Tenorite Grey - it's quite dark though. I am now considering Palladium Silver and Diamond Silver. The Diamond Silver has a blueish look to it, not sure what to make of it - I think I like it.

I will accompany it with black leather.

Personally I think the w204 looked best in palladium but I'm not convinced the 205 suits silvers or grays. The best ones I have seen have been black or white with the amg pack wheels.

 

[JJR1]

Tenorite Grey is a fabulous looking colour on the C class. Unfortunately for me I got a cheap lease deal on a C250amg and the only colour available was black.

Collect the 2nd March :bannana:

 

[MidnightMerc]

I was pretty much settled on Tenorite grey until I saw the beautiful colour in this video review: https://www.youtube.com/watch?v=GC3_WCg0kfU

 

[Giantvanman]

I didn't really pay much attention to this thread when it started. The debate about PCP is interesting. From a personal point of view, it is a case of whether you want to rent a car or own it. Whether you want to change cars regularly/often or happy to keep them.

With PCP, AKAIK, the car has monetary value from which is deducted the minimum end of term value. What is left is 'finance'. Whether a large amount is put down (lessening monthly payments) or a small amount is put down (increasing month payments), the end result is the same; to actually own the car, you have to pay the balloon/end of term amount.

At any stage through the contract up to and including the end, if the actual value of the car is greater than the finance owed (ballon plus outstanding monthly payments), the difference is the only equity you will have. Sometimes it is better to change the car early, for example, if an especially good deal is made at the outset.

The interesting thing about things like PCP and Hire Purchase is that when doing the arithmetic, the amount paid in total is quite close if the balloon payment is made.

All said and done, I choose to own, not rent.

 

[MidnightMerc]

Giantvanman, you're absolutely right.

Having the final balloon payment simply reduces the monthly payments, the interest is calculated over the whole amount borrowed (value of car minus deposit) just as it is in HP.

One advantage of PCP is that should there be a drastic problem in the market and the value of the car plummets, then you are shielded from that loss as you can hand back the car at the end of the agreement with no further financial loss. Hopefully this should not happen though, although I understand that it has in the past. Either way, you should not plan on having any positive equity, if you happen to have some, great, that's a bonus.

At the end of a PCP agreement, if you want to keep the car and the car's market value is as it should be, you can just pay the balloon, some may need to get another loan to help do this, at which point it is the same as getting a loan to finance any used car, the only difference here is that it is a car you have used since new.

In an ideal world, HP may be better (aside from the market value risk), but not everyone can afford the significantly higher monthly payments. PCP followed by some re-financing may allow some to spread the cost in the long term. Of course, this will be more expensive overall in terms of interest, but this is to be expected. However, in reality most will just jump in and do it again.

Of course, the sensible thing will always be to buy a used car and run it for as long as possible and if you want 'new' one, buy one that is a year old. However, many want to drive a new car and that's fine.

However, in the case of the current offers on the C-Class, it may actually be more cost effective to buy a new one...than a year old one (from the approved scheme at least), I've seen some used ones that are more expensive than the new one I am considering!