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Sign up with GoogleAgility finance from merc
- Thread starter aomar296
- Start date
It's just a residual deal with a guaranteed buy back.
You choose the deposit amount.
Term is 36months.
You choose a maximum kilometers per year you will cover.
You take Merc insurance.
You service at Merc.
You get a guaranteed buy back value and an installment value.
Then 3 years later they do a valuation of the car and if the value is less than the GFV then it is considered to be the GFV. If it's higher than the GFV then you get the higher value.
At this point you either
1. hand the keys back and walk away,
2. take a new car on agility again or
3. keep the 3year old car and structure a deal to pay off the rest off the debt.
There will be penalties if you trash the car, obviously.
It's aim is to have you driving a new Merc every 3 years.
Your monthly instalment will be lower than if you took regular finance and you would get a new car every 3 years. The problem is you never actually own the car, you are more or less renting it's use. So before you retire one day you need to switch to regular financing.
You choose the deposit amount.
Term is 36months.
You choose a maximum kilometers per year you will cover.
You take Merc insurance.
You service at Merc.
You get a guaranteed buy back value and an installment value.
Then 3 years later they do a valuation of the car and if the value is less than the GFV then it is considered to be the GFV. If it's higher than the GFV then you get the higher value.
At this point you either
1. hand the keys back and walk away,
2. take a new car on agility again or
3. keep the 3year old car and structure a deal to pay off the rest off the debt.
There will be penalties if you trash the car, obviously.
It's aim is to have you driving a new Merc every 3 years.
Your monthly instalment will be lower than if you took regular finance and you would get a new car every 3 years. The problem is you never actually own the car, you are more or less renting it's use. So before you retire one day you need to switch to regular financing.
New Merc only.
It's a product to boost new car sales. To incentivise the 3year buying cycle.
No. It's guaranteed. Mercedes finance takes the hit and they buy it back at the price you agreed to at the begining, the GFV. So you are square.
If the valuation is higher. Then you have a bit of deposit to work with for the next car.
I see. They incentivise the first buyer who usually take the biggest knock wrt depreciation.
purpleonlineadmin
Senior Member
- Joined
- Jan 20, 2010
- Messages
- 563
DanH covered it down to the T! It is a pretty simple financing model. You pay for mileage used + period agreed, take it back, get another!
No actual ownership, but great for car allowances (I'm gettin mine on the deal cos it is part of my remuneration package)!
People in general should remember, when you do finance a car traditionally, you don't actually own it until you have paid up the final instalment. Unless you are buying a car cash, you never really own any car you pay for, if you are comfortable with this, good to go.
If you want ownership and modifications etc, go traditional and wait for the financed period to end to do your thing.
No actual ownership, but great for car allowances (I'm gettin mine on the deal cos it is part of my remuneration package)!
People in general should remember, when you do finance a car traditionally, you don't actually own it until you have paid up the final instalment. Unless you are buying a car cash, you never really own any car you pay for, if you are comfortable with this, good to go.
If you want ownership and modifications etc, go traditional and wait for the financed period to end to do your thing.
purpleonlineadmin
Senior Member
- Joined
- Jan 20, 2010
- Messages
- 563
Correct. But remember, you have a mileage limit. Mercedes have a 20 000 kms per annum limit, BMW I think have 15 000 kms per annum limit. You go over, you pay penalties.
purpleonlineadmin
Senior Member
- Joined
- Jan 20, 2010
- Messages
- 563
Note @ Ahmedomar. I'm going to be brutally honest about these and give you pros and cons.
Pros:
-You pay lower vehicle instalments
-You own a brand new car every contractual period (usually 3 years)
-You never have to deal with maintenance costs. Just changing tyres and filling up petrol
Cons:
-You throwing a large deposit down the drain because you won't own the car (they usually request +10%, on a Merc that can be R37 000 up).
-You won't own the car (unless you refinance, which means you pay waaay more than you did initially).
-You need to save up for your next deposit right away, basically voiding the pros of lower instalments. You will never be guaranteed you would get a higher value than the GFV.
-You are tied in to one brand (I'm a Mercedes-Benz fanboy so I'm happy dying in a Merc
)
-Once the Premium Drive runs out (if you go traditional route), you need to extend or bear the brunt of maintenance costs. Premium German cars are not cheap to maintain contrary to all the DIY advice you will get. You save on labour? Even the cheapest parts (excluding general stuff like spark plugs, air filters etc) will set you back a few thousand.
One of my father's cars is a C220 CDi, his last service and minor fix on some part set him back around R7k, and that was lowish to midrange. If you get off lightly you will spend R3-5k, R2k if you source your own parts. If you save a lot, you can easily offset those... then the tyres (usually 17 inch runflats, which go around R1.8k a tyre) which will eat away at those savings.
So see what makes you comfortable! Not everyone wants to be fixing their car every single year (me), or dealing with things that can be a massive inconvenience financially right now. Long term car? Traditional financing. Short term car? Agility.
Pros:
-You pay lower vehicle instalments
-You own a brand new car every contractual period (usually 3 years)
-You never have to deal with maintenance costs. Just changing tyres and filling up petrol
Cons:
-You throwing a large deposit down the drain because you won't own the car (they usually request +10%, on a Merc that can be R37 000 up).
-You won't own the car (unless you refinance, which means you pay waaay more than you did initially).
-You need to save up for your next deposit right away, basically voiding the pros of lower instalments. You will never be guaranteed you would get a higher value than the GFV.
-You are tied in to one brand (I'm a Mercedes-Benz fanboy so I'm happy dying in a Merc
)-Once the Premium Drive runs out (if you go traditional route), you need to extend or bear the brunt of maintenance costs. Premium German cars are not cheap to maintain contrary to all the DIY advice you will get. You save on labour? Even the cheapest parts (excluding general stuff like spark plugs, air filters etc) will set you back a few thousand.
One of my father's cars is a C220 CDi, his last service and minor fix on some part set him back around R7k, and that was lowish to midrange. If you get off lightly you will spend R3-5k, R2k if you source your own parts. If you save a lot, you can easily offset those... then the tyres (usually 17 inch runflats, which go around R1.8k a tyre) which will eat away at those savings.
So see what makes you comfortable! Not everyone wants to be fixing their car every single year (me), or dealing with things that can be a massive inconvenience financially right now. Long term car? Traditional financing. Short term car? Agility.