New C220 on PCP -what do you think?

[solartravels]

Hi,

I am coming out of my company car scheme and I am looking at leasing and PCP. I have leased cars personally in the past and I would generally say they are good. However I've had an offer from a broker for a new C220 Saloon AMG Line Auto with Premium Pack and met paint:
Price: 29950
Deposit 1500
36 months @ 417.00
GFV/Final payment 17100
Mileage 15k miles per annum. 4.9% APR.

This seems to be very similar to lease deal offerings. I would prefer to have PCP I think, as I have more control over when I dispose of the car. I realise that there is probably not going to be any equity left at the end.

I would welcome your feedback - I am new to MB and may just be tempted to sign on the dotted line.

 

[frostbite]

Hi, I sell bikes and often on PCPs. The final payment and GFV are usually very close. The GFV (and thus the final payment) are calculated by CAP, who publish those little green books that sales people thumb through when working out the value of your trade in/part exchange.
The GFV is the absolute minimum value of your car at the end of the loan term and is there to safeguard you in the event of the market collapsing and your car being worthless; you'll still get enough to cover the final payment and not be left hung out to dry by the vagaries of the economy and market.
In reality, your car should be worth the final payment plus about 20% - enough for another deposit and therefore another PCP for another (similar) new car at roughly the same monthly payment.
It must be borne in mind that too big a deposit (your's here is fine) can result in pain at the end of the term, as to have similar monthly payments next time round, a similar deposit has to be found. If your first deposit is your old car - say 50% of the new one, then you'd need 50% equity in your car at the end of the term, which is unlikely, so you'd have to find more money to put in or face much bigger monthlies.
4.9% at the moment is pretty good.
If you're not happy with the mileage limit, most finance companies (e.g Blackhorse) will increase it, but it may shrink your GFV and thus increase your monthlies.
If you are part-exing a car that is worth more then 20-25% the value of your new one, then be wary of a sales person who uses the full value of your car. Ideally they'll take enough from your part -ex to cover 20-25% the give you cash back or accessories etc with the remaining value. E.g new car at £30,000; part-ex value £15,000. Use £7,500 deposit and have £7,500 cash back.
Clear as mud?

 

[Vazza]

I can't imagine a dealer give you cashback when you part exchange your car as part of a PCP deal...does that actually happen?

 

[Sp!ke]

I haven't checked but £417 seems a little steep for a C220 - have you shopped around?

What does drive the deal come up with?

 

[st13phil]

I can't imagine a dealer give you cashback when you part exchange your car as part of a PCP deal...does that actually happen?

Yes. And why shouldn't it?