Talk Morgan Forums Community The Malvern Arms 0% Finance for a new Plus Four!

So MMC have just started advertising 0% finance, for a new Plus Four!

Thoughts?

Bud
4/4 - Stanley

Good way to entice buyers and boost sales. Interest free loan that gives the option to balance your cash/cash flow. It might tip buyers on the cusp.

Love (not) the advance purchase option…no monthly payments at all; just pay 50% up front and then hand it back in 2 years time , but sorry, no change given !

I have tried to get my head around this but my brain exploded
The "life of contract" mileage for the Advance Payment Plan (and hand the car back after 24 months) is a nominal 10,000 so that's a base rate of £3.60 a mile, plus fuel, tax and insurance. And general maintenance costs.
My current Mog annual usage is a lot less than 5K miles, about half that in fact. So suppose I was to use the car for typical bimbles around the New Forest of around 30 miles, I could be spending over £200 a trip. Surely that can't be right, or have I screwed-up on the man-maths ?

One of the few lessons racing has taught me is .... "If you're enjoying it don't look at the numbers!!" 😁

K

If the car is only worth 50% after 2 years, as you may opt not to pay the optional payment and presumably hand it back, under those circumstances it does not bode well for the projected residual values going forward.

Conversely, from a (possibly prospective in a couple of years' time) buyer's perspective, what happens to those cars that get "handed back" after 24 months ? Presumaby MMC makes them available to the second owner at some kind of tasty price?

I think that after two years the cars will want to be sold for more than just 50%. I don't know whether it will work out that way. But half the price of a Morgan for just two years on loan? What should the residual value be if you want to keep the car forever after two years?

There certainly will be what used to be referred to as 'a bit or turn' differential between what the seller will see and buyer will pay for the same car, with mark ups on used car selling prices. Even so, not a good deal in my books, and may impact residual values for other cars. Could be good news for used car buyers, but an expensive toy for 2 years of new ownership under this scheme.

If we're talking say, 40 grand for two years? Just buy a Trad for 40 grand and keep it.

What am I missing?