Our first Mercedes...vroom vroom!

PCP Plan explained

As a married couple without children, limited responsibilities and two disposable incomes, we're in the unique position to splash out from time to time. I wanted to share my experience of financing a new car and describe what a PCP (personal contract plan) is for those in the market.

I couldn't resist the screen saver! haha

I would encourage everyone to do their research and find a vehicle that suits you. Personal circumstances, preferences and requirements are different for everyone so define your deal breakers at en early start so you know where you stand.

For us, we narrowed it down to Mercedes, BMW and Audi. After countless hours online, watching hundreds of videos and subsequently visiting several car dealerships, we made the decision to finance a Mercedes from MSL Cork Mercedes-Benz. Our decision was made on the following; a reputable brand that would hold its value if wanting to sell privately, a vehicle that exudes luxury and offered the right tech spec for us geeks and as a vehicle that was spacious and comfortable (for two people on the taller side). #nohobbitshere #firstworldproblems

From the moment I contacted MSL Cork to the day we collected our 2018 Merc, the experience with the sales team was absolutely flawless. The customer service element was a high point and as two novices in the vehicle market, we really welcomed this. Our representative was approachable, professional and experienced. The vestiges of 'greasy car salesman' days are over.... or at least, at MSL Cork!

We talked about our incomes, expenditures and what we were willing to spend every month. My husband is realistic, practical and savvy when it comes to financials. I am not! #shopaholic #monthtomonth

We discussed our options and queried PCP (personal contract plan). Our representative was well versed in this area and broke it down into three parts.

1. The deposit (typically 10-30% of the cash price) - We used the cash from our previous car towards the deposit.

2. The monthly repayments (usually 24, 36 or 48 payments). Our term was for 36 months.

3. The final lump sum payment which is called the Guaranteed Minimum Future Value. This final payment is the cost to own the car at the end of the contract. At the end of the contract you can either - a) pay the GMFV and keep the car, b) part exchange as a deposit on your next car or c) return the car and owe no more.

It's important to note that the PCP loan is not through the car dealership but through a registered bank. We also liked the idea that should we decide to pay the final lump sum at end of the contract, we have the option of selling the Mercedes privately and making a profit. Not sure if we'll go down this route but it's nice to have the option.

Mileage is important and this will be discussed during your conversations with the dealership. Be honest and realistic with your mileage expectations as this could impact your equity once your term has ended.

The PCP Plan was flexible, suited our needs and more importantly, our financial situation. It might not be for everyone but it certainly was for us! #vroom #mercedes #sorrynotsorry

MM x