News : MG’s finance deals appeal

Carole Nash Classic Insurance Specialists

Is the MG6 a worthy British car of the year for 2012?
MG6 can be yours for £249 per month...

MG Motor UK has announced a new finance package for the MG6 series, finally moving closer to a competitive deal for many buyers.

The offer, which runs until 31 March 2012, bundles a low deposit and a low 3.7% APR together with a five-year deal, to place the MG6 GT S at £249/month. In combination with the 5,4,3,2,1 package, also extended to March 2012, this goes some way towards offsetting the car’s higher VED rating due to the 1.8 Turbo Petrol engine and offers a warranty for the life of the finance package.

This is an outright finance purchase, and not a PCP with residual.

The finance is provided by GMAC – the finance company that underwrites promotions from GM companies such as Vauxhall, Chevrolet and Saab, founded by GM in 1919 and renamed Ally Financial in 2010. This hints at a closer working relationship with GM from MG UK’s SAIC parent company, and a serious intent from MG when the MG 5, 3 and MG 6 diesel hit the UK market.

Richard Kilpatrick

Obsessed with cars since 1976 apparently!

Latest posts by Richard Kilpatrick (see all)

48 Comments

  1. It’s very unusual for finance companies to lead with traditional finance, rather than PCP offerings. I wonder why they aren’t offering to underwrite a “guaranteed minimum future value”for the MG?

  2. Actually, at this end of the market – private, not fleet, possibly older demographic,outright purchase is preferred.

  3. That’s a damn good deal for a brand new car, whatever you think of the MG6 (personally I like it).  If I was in the market for a new or nearly new motor, I’d be tempted.

  4. I think it’s removing one of the “reasons why not” in the rationalisation process, definitely. I’d consider it if I were looking for that class of car, partly because I do make emotional decisions where cars are concerned, so brand identity and “personality” are important.

  5. At last they’re getting serious!
    In a wild dream, I have MG building up quickly & then after many moons they start having bad times at home. A British investor buys the UK/Europe interests & makes a success of it. They relaunch as MG-R…
    I know it’s a global market these days & badges mean nothing to supposed country of origin. But if I took a poll, I’m sure most of us would like the concept, even if commercial reality is the new MG-R would have to tie in with a bigger player for economies of scale.
     
     

  6. Given their website currently shows an error
    The process cannot access the file ‘\\FileShare\Content\Sites\mg.co.uk\wwwroot\App_Data\umbraco.config’ because it is being used by another process.”
    (not cool to expose errors to the Interweb chaps) I suspect again No.
     

  7. Great news for buying public, if I could I take it up for MG6. It would be nice if they offered this much earlier. Regards Mark

  8. @6 I would love to see MG as a successful British-owned operation but please God not a return of MGR and their embarrassing amateurism. The global car market has changed beyond recognition and amazingly, after the comedy of errors that was BL, Rootes, Chrysler UK etc., we have a very successful British motor manufacturing industry that’s foreign owned.

  9. I think I am one of the few who actually likes the 6. They look good and they’re good to drive. Anything that makes them a better buying proposition, like this deal, is to be welcomed.

  10. Yep, the arrival of a diesel engine should also make a big difference in the current UK market.
    Derek (who’s also wondering why he’s banned from posting in the forums these days – tried ages ago, thought it was a temp fault, but every time I come back it’s the same? I always thought I was a well behaved, if only occasional poster?)

  11. @Derek

    You’re not banned from the forum! The forum’s actually closed and has been for a while. It’s been replaced by the ‘Ask AROnline’ area on the left, which is accessed from the menu on the left.

  12. Thanks Keith – the ‘ask AROnline’ bit is the part I mean! It says e.g. ‘You cannot create new topics at this time.’ Might be some sort of configuration issue then! – I’ll email (Brian Gunn?) about it,then, rather than go any more off topic here!

  13. Re; Do you have a site login?

    Thanks.

    I do, I think – is that the WordPress login? It says ‘Howdy Derek’ at the top right of the page.

    I’ve sent this as an email, too, in case you want to reply that way!

    Derek

  14. Not a bad deal I suppose but the depreciation is so heavy on any new car that you still lose money to a varying degree.  I’m lucky enough to be able to pay cash / part exchange for all my cars (usually 1 year old at purchase). 

  15. My work car, run on a car allowance is 4 years old in a month, and my allowance works out at  £250 a month, plus running costs. I had to get a new one by March 1st.

     I pick up my Chevrolet on Monday night.

    Sorry MG,you lost a sale by 10 days. Why on earth did you not try harder sooner?

  16. How low is the low deposit? Have a look on any number of similar deals, including Mercedes who will sell you the latest C Class for not much more than this.

  17. @Paul, and how much would your balloon payment be? You can barely get a Citroen C3 for this price/spec on 0%. The MG is a far better deal. 
    @JoeStrong – shame! Chevrolet wouldn’t have been my choice I have to say… 

  18. James:

    List Price: £27,840.00
    Dealer deposit contribution (i.e. “discount”): £4,551.96
    Customer deposit: £3,229.00
    Monthly Payment: £299.00 x 36
    Balloon payment – £15K

    APR 5.17%

    Unsurprisingly, a more expensive car, costs more. And you will be in a position of negative equity on that car when it’s 3 years old – should you wish to get out of a chain of owning Mercedes cars. 

  19. The above picture again makes it hard to believe – (i) the incredibly low sales and (ii) the large amount of negative comment. Good God! It’s an appealing car.  It also has a uniqueness, not just deriving from its current rarity but also from its style, its feel.

  20. The point is, this deal is nowhere near as spectacular as it might look and to move this car it needs to be truly spectacular. It cant be cheap enough. Given the low headline monthly payments and no balloon figure it must be spread over at least 5 years. Try and get out of this after 3 years and see how much negative equity you have!

  21. Paul: It’s spread out over five, as clearly stated! Nothing hidden. It’s a lower APR, and as a full finance package on the whole you can terminate after half-way through (obviously I haven’t seen the contract) – which you cannot do with a PCP as you never reach halfway; that’s how the MGFVs are used.

    You’re buying all of a 15K car over 5 years with 3.7% APR, rather than half a car for more than half the cost of the car over 3 years at 5.71% APR. How is that a better deal?

  22. The trouble is, after 5 years, the trade in value will be around £2500. That is the major downside to this deal. The 6 has already proven it has poor residuals, which is another thing to put off buyers. Diesels & self shifters will increase sales, especially in the private market. They also need the self shifter in the range ASAP so they can get the Mobility clientèle onboard too.

  23. Hi
    Just looking at the figures for Richard Kilpatrick.
    YOu are quoting
    List Price: £27,840.00
    Yeah, what is this for? are you talking about a Mercedes or MG?
    MG6 list price is 15.5k- 18/19k approx..I think.
    etc…..
    (Dealer deposit contribution (i.e. “discount”): £4,551.96
    Customer deposit: £3,229.00
    Monthly Payment: £299.00 x 36
    Balloon payment – £15K)
    I saw that MG motor had a 5 year deal paying 299pm – around about 18k in total for a 15.5k car.. Just tell me what is that going to be worth after 5 years, if we say for example- 3 years GMFV approx 40-50% being generous!!!
    These MG6 cars are no Mercedes, I reckon their secondhand value will be pretty dire in 3- 5 years time.
     

  24. by the time you have paid for it and in five years time the car will be virtually worth nowt ,itheres virtually no interst in the petrol version of the 6 and i dont think the 6 diesel will be that popular either .big risk unless you have money to burn ,sayiny that current climate i would imagine the same for a lot of other car manufacturers

  25. Jamie: You saw that MG have a deal for £249/month with a 10% deposit.

    The car is £15,500, the total amount payable including the “arrangement fees” is £16,678. The deal includes four years’ VED – £630 – and 5 month’s fuel at £564.70. It also includes an extended warranty, which would usually cost about £700 typically.

    This is all before any haggling with the dealer. Frankly, I’d expect to be trading in a total wreck and getting that deposit.

    And this stuff about residuals – I don’t think any one can predict, but I’d like to point at that unloved little baby of the Rover world, the Streetwise. Back in 2005, I was looking for a car with my dad, post MGR’s collapse. He wanted small and urban-friendly, and gave the Streetwise a good hard look – that car was £8295 for a pre-registered one, a veritable bargain had MGR not folded. I did my sums, and said we’d pay £7200, assuming a total loss on the car over three years.

    They refused, he bought an A-class, the car was still on sale 8 months later at £6295. However, in 2010, I thought a Streetwise might make a nice car for town running about. They were surprisingly pricey. Even now, 2 years later, when these cars are 7 years old, they’re £3K for a good one with history.

    There’s only a couple of hundred quid between the Streetwise and that firm favourite, the Ford Fiesta.

    A nice clean ZS, 7 years old? £3K again, though there are some dogs for much less.

    So Marty, yes – the trade in value MAY be only £2500 after five years. So what? My 50,000 mile 2004 Suzuki Ignis Sport – list price then £9,999 – was only worth £2000 in 2008 when I got it. That’s what I paid – I expect the trader I got it from paid less than that. 2004 prices aren’t equal to 2012; as I’ve said before, list prices are one thing, and buying prices are another. Until someone’s been in and haggled over an MG6 properly we don’t know – on list price, the MG6 is NOT a bad deal.

    I think that the amount of doom-and-gloom about this is ridiculous. Contact Hiring a car of the spec and size of the MG6 costs more, and if you don’t need to change after three years, then unlike the contract hire car – which you hand back with no value after three years of your £250 – stick it out for another two years of the same car, and you you get your at least £3K car to keep.

    From a new perspective, cars ARE worth nowt very quickly. I honestly think half the car users in the UK have absolutely no idea how much a car really costs. It’s why bangernomics makes sense.

    MG have come up with a good package to sell the car. They need to market it in a clever way – a bit like Peugeot’s “Just add fuel” package (maybe trade the free fuel for free servicing for 5 years).

    The diesel is needed, we all know that. 

  26. It is a great deal, and surprise surprise the deals finish the day before MG has its first BTCC race at Brands Hatch, i think they should continue it for another couple of months to capitalise on great TV coverage with a great package of offers and hopefully the sales will come pouring in

  27. why people go on about what the car is worth after five years is beyond me,for example i used to look after a elderly gents S350 CDI merc,optioned up he paid the best part of £68.000 new in 2008 its now on a pitch at £17k -ok its not in the merc network,they offered less  and it only had 64k on the clock,so who takes the biggest pill?never mind the cars its the bread im on about what a lot of money to lose in three and abit short years,but the next owner will do cartwheels -spin the wheel take the deal,we are all adults its no different from any other car most prices are inflated for the second hand market or dealer pitches the real world is the auction floor.

  28. Spot on Francis, no one seriously buys a new car as an investment. it is a depreciating asset, with the sole purpose of transportation. That said, whilst I hear positives about the 6, I still think it is a little to expensive to achieve the task in front of it, i.e. establishing a foot hold in the UK market. A couple of grand less would make no difference to SAIC, but the world of difference to sales.

    Personally I am not keen on the 6, but this sort of finance deal together with keener pricing could even tempt me into parting with my hard earned.

  29. Francis: I’m still remembering the one moment of joy my C6 gave me near the end of my time with it. I’d been to look at the new XJ, fell for it pretty quickly and I haven’t driven one yet – but they’re not cheap!

    Anyway, I had my C6 for 2 1/2 years. List price was £39K for the one I had (lounge pack seats, top-spec, only missing the sunroof), but I paid in real terms £24K for it as an ex-demo with 15 miles on the clock. With a 5 year warranty. And fuel, mats, mud flaps, boot mat, etc.

    So as far as I’m concerned, that’s what a C6 cost then. There were plenty in the system, after all, as it was an unsaleable thing. The near-£40K price was a myth, it didn’t exist, no-one was paying that.

    When I wanted shot of it, it was worth £12,500-14K – trade, £12K, £14.5K was what I was going to sell it for before the buyer’s wife vetoed it. I consider it a lucky escape, I’d have taken a Signum in PX.

    So, my costs to run the C6, over 2 1/2 years and 22K miles? £12K. More than I like to pay for a car normally, but less than if I’d contract hired (they were £499-649 ex VAT/month at the time. I guess someone thought they were paying £40K).

    Where the XJ comes into this was looking at used ones. I found the £60K spec I liked, 10 months old, with 10,000 miles on it.

    £45K.

    £15,000 for 10 months and 10,000 miles (and the rest, for dealer margin). Sure, it retains a more impressive percentage of value on list price, but sheesh,  that’s a lot of money – and the C6 and XJ are not as far off in terms of their economy, performance and comfort (build quality and dealer service though, the XJ wins by miles).

    Percentages are for businesses and finance firms. Cash spent over the lifetime of the car is for real people. £15K total loss over 5 years, if that’s what it comes to, isn’t that bad for a new car. It’s only £3K per year – I’ve run “acceptable used cars” that have comfortably cost double that in real money spent, just in depreciation and maintenance (and most easily match it for a 5-7 year old car – £1500 depreciation, £1500 maintenance on worn out parts. I’ve owned 130-odd cars and worked out I have ‘lost’ over £150K in the 20 years I have been driving) – people financing cars through those car supermarkets, where they end up being charged £200/month for four-year old ex-lease cars with short warranties and approaching that time of life when massive repair bills loom (bearings, bushes and brakes) would be MUCH better taking up the MG6 (or any other new car on cheap finance with manufacturer warranty, frankly).

    People with cash to spend win, of course, but for many people a car isn’t a lump sum, it’s a monthly expense. 

  30. @40 you may think im mad but on looks alone id have a C6 over the XF but when i saw the new XJ i think its absolutely stunning,yet still somehow reminds me of the original?! to me,its a shame the C6 wasnt a huge success over here,maybe a bit slack at the tiller and so on i believe a lot of them were indeed dealer registered/demo cars.They were different from everything else and that appealed to me.

  31. I keep meaning to do a proper C6 article, but in essence:

    Stunning exterior
    So-so interior – taste, I suppose, but too many PSA plastics, no fixed-hub wheel
    Detached and unsatisfying steering
    Annoyingly obstructive autobox
    Lovely engine
    Annoying ride quality (kinda what you don’t want in your DS/CX/XM follow up!)
    Weirdly central driving position for the width of the car – too much space to door/side, cramped in middle, obstructive A-pillar as a result

    But most of all…

    Useless, incompetent, surly, unhelpful, disappointing, frustrating, expensive, occasionally dishonest dealers!

    Had the first suspension failure been dealt with quickly, I might still have the car now.  

  32. @43 ive yet to come accross a psa dealer that are none of the above,and if and when i look forward to the article.

  33. I agree with you Richard about the PSA dealerships. All of the above in Plymouth! Glad I drive a Renault and a Rover, though the Renault dealership has gone from being family owned now to on of 12 marques on one site (under the old and current Ford Dealership) hmmm.

  34. My Local Citroen dealer is good, but then they were previously Rover’s Dealer of the year god knows how many times running.

  35. Didn’t MGR investigate a possible deal with Proton and the Gen 2? Whenever I see a Gen 2, I think “could have made a nice replacement 45” – with a new interior, anyway.

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