Interesting offer in my local rag last night:
MB E-Class 220CDI Avantgade Auto
Cost £33k
Customer deposit of £5k
MB "donation" of £3k
£319 a month for 36 months
Final to pay £16k
Now £319 a month for a new E class sounds good. Deposit isn't too high. But the final payment of £16k looks a bit high to me.
Will my MB dealer be prepared to give me £16k trade-in come 3 years old, let alone £20k to go some way to recoup the initial deposit of £5k.
Thoughts?
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Afraid I don't understand the question. If you want to keep the car you pay the £16k, otherwise you give it back. I doubt you could sell it on for more than £16k - if that's what you mean?
Bascially the deal gives you use of an E-class for three years for about £16k. Whether or not you think that's a good deal is a personal issue I guess.
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I don't think the figures are going to work for you, quite! I have just had a look for a 3 year old Merc on Autotrader and one something near to the spec you metion is going out of the showroom at about the price you are looking for on a trade-in.
tinyurl.com/25ys7p
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I guess it is a PCP type deal. Normally these deals give you a final payment figure lower than the trade-in value so you have something towards your next car (suppose the dealer wants to keep you happy and keep going to them for a new car every 3 years). So your final payment may be £6k but the car will be worth at least £9k trade-in so you have a £3k deposit.
However this MB deal seems to have a large final payment - £16k and all data I look at says the E class will be worth about 45% after 3 years meaning about £14k and you have to pay back £16k or return the car and walk away.
So it is £319 a month, plus your £5k deposit which equals £139 a month over 36 months.
Just seems a costly way to do things. But then the car is £33k....
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to recoup the initial deposit of £5k.
You're not meant to recoup the deposit.
The deal could be constructed so that that you would have a better chance of getting it back by increasing the monthly payments and decreasing the final value.
What's happening with this offer is that you and MB contribute £8K, so the car really only costs £25K. All you've got to do is pay interest on the £16K that you're deferring for 3 yrs, plus repay the £9K difference over 3 yrs.
In effect, you're renting the car for 3 yrs for £458/mth. At the end of it you'll likely walk away with nothing.
I wish we could get the kind of deals in the UK that are available in the US, they do personal leasing very cheaply there by setting stupidly high residual values.
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I wish we could get the kind of deals in the UK that are available in the US, they do personal leasing very cheaply there by setting stupidly high residual values.
Please note that the USA List Price in $ is probably less than the list price in £ in the UK
I looked at a Subaru Outback on the USA Site - $24000 got you a mid spec one - £25K here
Honda leasing on an Accord Coupe was $250 per month - the list price for a 3 ltr Engine Accord Coupe was about £11,000 + Taxes IIRC
Leasing is purely a money transaction - half the cost of the car halves the leasing cost and as most US manufacturers are trying to get rid of stock BIG discounts + Zero % interest on the already low price makes our prices look very silly.
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Please note that the USA List Price in $ is probably less than the list price in £ in the UK
Merc's aren't though - an E350 is $60K. Of course there's no tax in those prices, that varies state to state, so if you added our VAT (not MB's fault) then you're at $70K, divide by 1.85 and you're over £38K.
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