A big thank you to one of our leading Mercedes suppliers for visiting the CarLease UK team in this luxury performance car, the Mercedes C43 Coupe.
Without doubt Mercedes have produced a leading product which offers both performance and a degree of affordability (both in purchase cost/running cost).
For those looking into this proposition think of it as the conduit between the C300 petrol and the C63 AMG. While the market is relatively small for this type of car, it is nevertheless particularly competitive amongst the class-leaders. With the BMW M3 and BMW M4 plus the Audi RS3 and RS5 models, personal and business customers are truly spoiled for choice. It’s almost impossible to choose between them!
So you should buy a new performance car instead of leasing one? This is a relatively common question from our customers, as they are given opinions online, by friends/family and the dealerships they visit. This often provides confusion about exactly how each finance product operates and what advantages/disadvantages they offer. For those looking to purchase a car, the most common form of finance on a new car is a personal contract purchase (PCP).
This operates, in practice, quite closely to a contract hire arrangement with a couple of small differences –
1) the road fund licence is included for year 1 only; and
2) there is a guaranteed future value/balloon at the contract end.
So a PCP is about making money on a car? This is the biggest misnomer about the product and unbelievably most customers seem to think that the PCP is some form of investment which will generate a considerable profit at the contract end. In most cases, this couldn’t be any further from the truth.
To be clear, a car (unless it is an antique) is a depreciating asset and it is not designed to produce an income for the driver.
Whether you PCP/contract hire/hire purchase it, the same can be said; it is simply about choosing a cost-effective product and one which meets your needs and requirements. For a performance car, like a C43, you have to consider whether you want to keep it long-term or whether you want to use and return it.
If it is the former, a PCP will allow you to do this as you can arrange the contract for 2/3/4 years and purchase the vehicle by paying the GFV at the contract end.
So why all the fuss about a PCP? The main issues arise where customers “work to a payment”. By which we mean the customer tells the dealership/broker that they need to pay £x per month and then the sales representative arranges the contract to suit this – i.e. term and mileage. The issue is that the term may be too long or the mileage may be too low; this can lead to a case where the vehicle is over-mileage or the customer may be tied into the car for longer than they need.
With a PCP if your car is not worth the GFV, you end up in a situation known as negative equity – should you simply return the car, you will pay excess mileage
There is not an issue with PCP as a product (this is something we use frequently). The key focus with a PCP arrangement is to accurately set your contract. With contract hire, we also state that customer should set the term/mileage to what they require as opposed to meeting a “headline rental”.
If you cannot afford the rental based on your needs/requirements, you are looking at the wrong car and this is not an affordable proposition.
In contrast to a PCP, contract hire is about using a vehicle for a fixed term and then return it. This is not a purchase-style product and should not be used for those customers needing a purchase or long-term solution.
Where contract hire works well with performance vehicles is that it enables a customer to use a luxury vehicle for a cost-effective price (most of the enhanced deals are on contract hire only) and offers no risk of deprecation. If the car falls in market valuation, which can happen with a performance car, this is a risk the finance company absorbs. At the end of the contract the customer simply returns everything.
So while there is no right/wrong answer to leasing or PCP’ing a performance car, what we do stress is that customers think carefully about each product before making a decision.
The monthly price is just one consideration – make sure you consider the other factors too.
In terms of the car shown here, the Mercedes-Benz C CLASS AMG COUPE C43 4Matic Premium Plus 2dr 9G-Tronic, this is based on the following configuration:
· Polar white – Solid Paint
· Artico leather/Microfibre Dinamica – Black with red stitching
· 19″ AMG multi spoke alloy wheels painted in black with run flat tyres
As standard the car includes artico leather, 18” alloy wheels, AMG sport seats, green tinted glass, rain sensing wipers, adaptive brake system, brake calipers with AMG lettering, electronic stability control, hill hold control, hill start assist, sports braking system, AMG floormats, AMG ride control, Bluetooth, active park assist, attention assist, collision prevention assist, cruise control, DYNAMIC select, surround camera system, stop/start system, 12.3” instrument display, COMAND online, smartphone integration with Apple Carplay, wireless charging, auto dimming mirrors, electric adjustable/heated door mirrors, artico leather dashboard, Burmester sound system, DAB radio, AMG performance exhaust system, panoramic glass sunroof, adaptive brake lights, LED indicators/running lights/tail lights, multi-beam LED headlights, climate control, 3-spoke flat bottom steering wheel, illuminated glovebox, sports pedals, steering wheel controls/gearshift paddles, ambient lighting, seat comfort package, storage pack, red seat belts, warning triangle and first aid kit, electrically adjustable seats, 40/20/40 split folding seats, keyless entry and keyless start, heated front seats and alarm system and immobiliser.
In terms of the additional packages, if you are looking at a C43 to lease, you have the option of adding:
1. The Premium Package – ambient lighting, COMAND online system, mid-range sound system, multibeam LED and wireless charging; or
2. The Premium Plus Package – in addition to the above, you benefit from the 12.3” instrument cluster, 360 degree camera, Burmester surround sound system, keyless-go package and the panoramic glass sunroof.
On the technical-side company car and business drivers can note the P11d at £55,990 and CO2 at 217g/km. The 2996CC 9 speed petrol engine delivers 29.7 combined MPG (EC), 28.5 combined MPG (WLTP), 390ps and 0-62 times of 4.7 seconds. Service intervals on a C43 are every 12 months or 15,500 miles, whichever lands sooner.
Find the webs best deals on the Mercedes C-Class AMG C43 @CarLease UK – be sure to check out some other performance cars below…