Considering swapping MG4 for an MGS5 - Test Drive Thoughts.

[Loveclose]

I’m in a similar situation, with my loan amounts creeping up gradually over three or four PCP contracts, and now the residual value of my MG4 has nose dived!! I’m around 4.5k negative equity which I don’t see ever being resolved, which effectively puts 4.5k extra on any negotiated deal I make on a new purchase.

I can’t imagine a dealer wanting the car returned after three years with that amount of loss to sustain, so I’m hoping that deals will be significantly more negotiable at the end of the PCP deal than during……

That said, I really like the look of the S5 so I’m doing some ‘feasibility studies’……like you do…..

Every time I use the ‘feasibility study’ phrase at home, my wife of 40yrs rolls her eyes……

 

[Anon70]

now the residual value of my MG4

This is where someone selling a PCP agreement should be VERY clear on wording. It is not a residual value but it is a balloon payment or amount left on the finance agreement.

The future market value of a car can never be accurately predicted at the time of purchase.

The first car I bought on a PCP agreement was a Ford Ka (1st generation) at the end of the agreement the car was in negative equity so I just gave it back to the dealer and walked away so they could resolve the financial differences with Ford Finance.

 

[tsedge]

This is where someone selling a PCP agreement should be VERY clear on wording. It is not a residual value but it is a balloon payment or amount left on the finance agreement.

The future market value of a car can never be accurately predicted at the time of purchase.

The first car I bought on a PCP agreement was a Ford Ka (1st generation) at the end of the agreement the car was in negative equity so I just gave it back to the dealer and walked away so they could resolve the financial differences with Ford Finance.

I believe that the MG finance given by Santander isn't even a PCP agreement, it is essentially a loan with a large final payment, which has caused problems for people wanting to terminate early. It certainly wasn't made clear to me that this was the case (a new PCP scandal!?) - although I never have intended to terminate early, so it doesn't affect me.

Nothing stops people offering to buy their car back below the MGFV, but also the finance company may simply decide to put it through auction and not negotiate with their customers, even if they could get more by doing so.

 

[NickHeynes]

Don't forget that as long as you've paid off 50% or more of the total loan (inc the balloon)you can hand the car back ,subject to fair wear and tear. It might affect your credit rating a little.
This is something I'm considering , not because I don't like the car, just that there are better options available to me now than there were three yrs ago.

I've just checked and I'm around £2500 away from the 50% mark. So another 6mths should do it

 

[tsedge]

Don't forget that as long as you've paid off 50% or more of the total loan (inc the balloon)you can hand the car back ,subject to fair wear and tear. It might affect your credit rating a little.
This is something I'm considering , not because I don't like the car, just that there are better options available to me now than there were three yrs ago.

I've just checked and I'm around £2500 away from the 50% mark. So another 6mths should do it

It shouldn't affect your credit rating, but it will appear in your credit file, so future lenders may decline credit (of any type) if they see you have done this before.

 

[NickHeynes]

It shouldn't affect your credit rating, but it will appear in your credit file, so future lenders may decline credit (of any type) if they see you have done this before.

Hopefully , at age 61 with a credit score of 99 ( you can't get to 100 apparently) and no history of terminating early it shouldn't have an adverse effect. If it looks likely that it will I'll see the pcp out.

 

[tsedge]

Hopefully , at age 61 with a credit score of 99 ( you can't get to 100 apparently) and no history of terminating early it shouldn't have an adverse effect. If it looks likely that it will I'll see the pcp out.

I have no idea how likely this is to cause a problem, it may not at all, but this is the information I can find about it. I would imagine if it causes a problem, it would be most likely to be with a future car finance agreement.

 

[RCK49]

So - our MG4 Trophy Phase2 is out of PCP in a few months, and at the moment running at an equity loss.
Our original plan was to "hand it back" for the FGMV, and then pick up a discounted ER (in Orange! which is the lesser of colour evils for the missus) on a new PCP at 0% for 36 months.

However the plan was scuppered on Saturday when we went to discuss our options, as a new shiny MGS5 was on the tarmac and available to look around and test drive.

I have to say, initial impressions are great.
Electric boot with swipey foot is good, but the opening/closing alarm isn't.
Under boot floor area to store cables
No Frunk... although the space seems to be there for someone to design something under the top plastic cover.
Styling is less sharp, and that hopefully fewer divots for crap to build up in.
Higher riding car, and no huge sill to step over/avoid is also refreshing.
The Infotainment is a lot more responsive, it remembers things, and things it does not remember can be assigned to save button.
Interior is a lot more welcoming, and generally preferred the seat comfort on an hour drive, apart from a slightly lacking thigh support.
Physical HVAC buttons!
A larger centre screen is good.
Driving screen seemed to be less informative.
Lots more dings, bongs, and warnings (didn't find all of the options on the test drive, but sure they are there somewhere to disable)
Same battery and motor as the 4LR, but somewhere in the bumf it says the battery is better - didn't notice, but for a larger car, the mi/kWh was on par with the 4, so shouldn't be worse than the smaller model.

Overall, it's seriously made us consider changing model.
The 4ER is the approximately the same price as the S5LR - so comes down to more range in a known entity, or same range in what seems to fix all the problems of the earlier model.

Decisions decisions! And one I need to make before the end of the month to be able to hit delivery times and not be without a car for too long.

We needed to downsize from a RAV 4 (wifes decision) and I thought she would go for the MG4 but no, she preferred the MGS5. Getting out of back seats was harder in the 4.

Yes. you can disable the annoying speed warnings.

 

[jasonh]

I've just about gone through the voluntery termination process with Santander. It is very simple, but don't expect much 2 way communication with them. Just online chat bots and a few text messages.
There is a t present a 6 week delay before it finally completes.
However once you fill in the form to declare, there is 2 weeks where you have to either drop it off, or arrange a pickup (£70 fee).
They did try and make me drop it off at manheim Washington. However I live 2 minutes from Leeds manheim???
Called manheim and they were great in sorting it out, the handover was simple enough.

So if anyone wants a grade1, red mg4 it's in auction today.

I just couldn't resist the deals on new mgs5.

 

[jasonh]

Regarding the change in user experiences from the 4 to the s5, it is a different beast considering it's based on a 4.
Haven't used it to its full degree yet, but it is definitely a more plush interior with a much airy feel with the grey colour scheme. The seats have lumber, but could still do with more side support imo.
The screen, infotainment and switchgear is an upgrade with nice touchy feely to it(screen is massive, but doesn't switch light and dark modes automatically)
There are many more warning sounds and events which can be tricky to identify, but they are infinitely user configurable. So I will gradually filter these to what I need/want.
The differences in the ride and handling are is where I find the most different to the 4. There is a very refined feel to the ride, as potholes etc are coped with very well. Motorway speeds are also quieter still from the 4.
There is a slight wafting feel when travelling, and not the directness and feel of the 4.
The handling is very good when you consider it is an suv style car, I would compare to previous bmw's. The 4 was very good I thought in handling, and will miss the smaller cars ability to feedback and change direction quickly.
The throttle response is also more muted than the 4 in standard mode. However it is good in sport mode, and more of a stepped change when switching between modes.

I haven't done much on the motorway, so can't comment on cruise control lka and lja etc.

Oh and I've had a change from red colour to silver (if the s5 had a nicer pearlescent white?)

 

[NickHeynes]

I've just about gone through the voluntery termination process with Santander. It is very simple, but don't expect much 2 way communication with them. Just online chat bots and a few text messages.
There is a t present a 6 week delay before it finally completes.
However once you fill in the form to declare, there is 2 weeks where you have to either drop it off, or arrange a pickup (£70 fee).
They did try and make me drop it off at manheim Washington. However I live 2 minutes from Leeds manheim???
Called manheim and they were great in sorting it out, the handover was simple enough.

So if anyone wants a grade1, red mg4 it's in auction today.

I just couldn't resist the deals on new mgs5.

I'm thinking of doing the same thing in November when I hit the required percentage paid on my PCP . I'm a little concerned that my credit score might be affected but it sounds like you've had no issue.