Goodbye to my MG4, a cautionary tale

[Tony60]

So, coming up to two years after buying my MG4 long range, registered November 2023, bought from Arnold Clark on PCP 0% finance. Overall I've been happy with the car, nice to drive and decent range, there have been a few niggles though. The original app was very flakey and inconsistent, although the recent replacement app works a bit better for charging. The tyre pressure warning light is a nuisance, always coming on when the car is cold which has me constantly checking the pressure. The infotainment screen is inconsistent especially using Android Auto and the DAB radio signal is awful. As I say, I've been generally happy with the car's overall drive and performance, the niggles are easy to live with.

My biggest disappointment is learning that the settlement figure after 25 months is around £2400 more than the car is now worth, despite it only having 8,300 miles on the clock and me putting in over £8000 deposit. I probably would have considered keeping hold of the car but I don't really want to pay £15,900 settlement for a car that's only worth £13,500. Lesson learnt is don't buy brand new electric cars at the moment as the depreciation is way too high. I've just sourced a Ford Explorer Long range, registered Aug 2024 with 230 miles on the clock, it has £2000 worth of driver assist extras on and would normally retail for around £47K. Cost to me is £29K for what is almost a brand new car, driven as a demonstrator. Still will be quite sad to see my little MG4 been driven away by the finance company next month.

 

[GaryMG4]

I guess that's the problem with PCP, you end up with trying to justify £8k deposit + £16k settlement plus £? monthly payments. I paid £20k (plus £11k part ex) for mine in May 23 and have done 19k miles. I still like the car, had the same niggles but the car is mine, I don't need to change it or sell it so it is still worth exactly one car to me as it was when I drove it off the forecourt.

 

[old fisherman]

PCPs are not a good deal for the user, great for the finance company. Pay something now, and gamble on the price a few years down the line.

 

[Bam Bam]

I've just sourced a Ford Explorer Long range, registered Aug 2024 with 230 miles on the clock, it has £2000 worth of driver assist extras on and would normally retail for around £47K. Cost to me is £29K for what is almost a brand new car, driven as a demonstrator. Still will be quite sad to see my little MG4 been driven away by the finance company next month.

Sounds like a great deal.

Though it has been sitting around for over a year. Was it the static car in the dealership? Hopefully they left the battery at around 40-60% during all that time.

 

[Chrisdriving]

This is why I lease, I hope the monthly payments (carrot) were very low for 8k in and still 16k to buy it.
Have an X Power on a 2 year lease, the whole lease cost is well under 8k in the first place then you can buy car At its actual value not some inflated price.
Know someone who recently got an Explorer and they really like it, seems a great choice.

 

[Tony60]

Sounds like a great deal.

Though it has been sitting around for over a year. Was it the static car in the dealership? Hopefully they left the battery at around 40-60% during all that time.

The battery was a concern for me actually Bam Bam. I've been assured by Arnold Clark that the car has been through regular charging cycles and comes with a ten year guarantee, the battery will be fully tested prior to handover. I've done a little bit of research on electric car production and discovered that brand new cars can be sitting in an outdoor storage facility, post manufacture, for sometimes up to two years before delivery. I'm confident it should be ok and feel assured with the warranty .

 

[Ferretusmaximus]

The battery was a concern for me actually Bam Bam. I've been assured by Arnold Clark that the car has been through regular charging cycles and comes with a ten year guarantee, the battery will be fully tested prior to handover. I've done a little bit of research on electric car production and discovered that brand new cars can be sitting in an outdoor storage facility, post manufacture, for sometimes up to two years before delivery. I'm confident it should be ok and feel assured with the warranty .

That's the ridiculousness (?) of registration plates, you can effectively put a 25 plate on a 23 car because it works from date of registration rather than manufacture (and can cause a lot of confusion with faults affecting cars manufactured during a specific period). Not sure how manufacturers and dealers might interpret the battery guarantee - from date of manufacture or registration? Given the laziness of some dealers you might also get given a "new" car with 2 year old software on it.

 

[gary333]

That's the ridiculousness (?) of registration plates, you can effectively put a 25 plate on a 23 car because it works from date of registration rather than manufacture (and can cause a lot of confusion with faults affecting cars manufactured during a specific period). Not sure how manufacturers and dealers might interpret the battery guarantee - from date of manufacture or registration? Given the laziness of some dealers you might also get given a "new" car with 2 year old software on it.

Warranty is from the date of registration. My April 2025 MG4 was manufactured in November 2023.

 

[tsedge]

Leasing is definitely better value at the moment, if you aren't fussy about a specific car/spec/colour combo. BUT, the one thing with leases is that they can be more difficult to terminate early if your circumstances change.

 

[tsedge]

The battery was a concern for me actually Bam Bam. I've been assured by Arnold Clark that the car has been through regular charging cycles and comes with a ten year guarantee, the battery will be fully tested prior to handover. I've done a little bit of research on electric car production and discovered that brand new cars can be sitting in an outdoor storage facility, post manufacture, for sometimes up to two years before delivery. I'm confident it should be ok and feel assured with the warranty .

I think two years standing for new cars is highly unusual now, it probably was the case during the supply-chain crisis. More typically these days it is a few weeks to a few months, depending on shipping and port/transporter delays.

 

[Tony60]

I think two years standing for new cars is highly unusual now, it probably was the case during the supply-chain crisis. More typically these days it is a few weeks to a few months, depending on shipping and port/transporter delays.

I think you're right tsedge, think it was happening when the semiconductors were scarse. In the replies I noticed someone had their MG4 manufactured in 2023 and registered in 2025. The Explorer is built on VWi4 with their battery tech so that's giving me a bit more confidence in quality and reliability of the battery technology.

 

[Rolfe]

Mine was only three months from the date of manufacture when I took delivery in early 2023. But I've heard of people being sold phase 1 cars as "new" long after the phase 2 cars were out.

 

[JonnyG]

...........My biggest disappointment is learning that the settlement figure after 25 months is around £2400 more than the car is now worth..........

I'm in a similar position but see it as a positive as the finance company will be taking the hit for some of the depreciation. My final balloon payment to keep my car is £20,200 but if I were to keep it it would only be worth £17400 according to WBAC and CarWow. So obviously like you I am far better off returning the car.

I disagree slightly that PCP is a "gamble" as everything is laid out and fixed at the outset in a full contract and you have better consumer rights than buying outright as you can appeal to the financial ombudsman to redress problems with the car. Indeed @case dismissed has just done this succesfully with his vibrating Xpower.

The £25,000 saved on buying the car outright initially could also have been wisely invested and over the last 2 years increased in value by around 30% or more (although it has been a particularly good two years for the stockmarket)

My Xpower is being collected in the next week and needless to say my next EV is a good value 2 year lease deal !.

 

[NikLiverpool]

So, coming up to two years after buying my MG4 long range, registered November 2023, bought from Arnold Clark on PCP 0% finance. Overall I've been happy with the car, nice to drive and decent range, there have been a few niggles though. The original app was very flakey and inconsistent, although the recent replacement app works a bit better for charging. The tyre pressure warning light is a nuisance, always coming on when the car is cold which has me constantly checking the pressure. The infotainment screen is inconsistent especially using Android Auto and the DAB radio signal is awful. As I say, I've been generally happy with the car's overall drive and performance, the niggles are easy to live with.

My biggest disappointment is learning that the settlement figure after 25 months is around £2400 more than the car is now worth, despite it only having 8,300 miles on the clock and me putting in over £8000 deposit. I probably would have considered keeping hold of the car but I don't really want to pay £15,900 settlement for a car that's only worth £13,500. Lesson learnt is don't buy brand new electric cars at the moment as the depreciation is way too high. I've just sourced a Ford Explorer Long range, registered Aug 2024 with 230 miles on the clock, it has £2000 worth of driver assist extras on and would normally retail for around £47K. Cost to me is £29K for what is almost a brand new car, driven as a demonstrator. Still will be quite sad to see my little MG4 been driven away by the finance company next month.

Not surprised by this.
2 years for a PCP deal is not great to be honest. You are taking a massive hit on the depreciation curve during the first 2 years of ownership.
Another way of looking into this is that you don't have to pay back anything. The finance company is taking the hit instead of you.
Also when the time comes to change your Explorer you will take another hit on its value.

Majority of cars are depreciating assets...We just try to take as less hit as possible.

For me at the moment (going for an IM6) PCP was the cheapest option I could find since work does not offer salary sacrifice schemes....
It is the only way of having an EV under warranty. I would never keep one outside. My Model3 went out of it last year and got hit twice this year with repairs totalling £3k....
Lessons learned.

 

[morleym2002]

So, coming up to two years after buying my MG4 long range, registered November 2023, bought from Arnold Clark on PCP 0% finance. Overall I've been happy with the car, nice to drive and decent range, there have been a few niggles though. The original app was very flakey and inconsistent, although the recent replacement app works a bit better for charging. The tyre pressure warning light is a nuisance, always coming on when the car is cold which has me constantly checking the pressure. The infotainment screen is inconsistent especially using Android Auto and the DAB radio signal is awful. As I say, I've been generally happy with the car's overall drive and performance, the niggles are easy to live with.

My biggest disappointment is learning that the settlement figure after 25 months is around £2400 more than the car is now worth, despite it only having 8,300 miles on the clock and me putting in over £8000 deposit. I probably would have considered keeping hold of the car but I don't really want to pay £15,900 settlement for a car that's only worth £13,500. Lesson learnt is don't buy brand new electric cars at the moment as the depreciation is way too high. I've just sourced a Ford Explorer Long range, registered Aug 2024 with 230 miles on the clock, it has £2000 worth of driver assist extras on and would normally retail for around £47K. Cost to me is £29K for what is almost a brand new car, driven as a demonstrator. Still will be quite sad to see my little MG4 been driven away by the finance company next month.

I did exactly the same as you 8k deposit with £127/month interest free PCP. My quote on valuation after 2 years was 12K. I have purchased a MG S5 long range trophy for £23999 that I think is a reasonable price and will not hurt so much with depreciation.

 

[Charlie the coach]

So, coming up to two years after buying my MG4 long range, registered November 2023, bought from Arnold Clark on PCP 0% finance. Overall I've been happy with the car, nice to drive and decent range, there have been a few niggles though. The original app was very flakey and inconsistent, although the recent replacement app works a bit better for charging. The tyre pressure warning light is a nuisance, always coming on when the car is cold which has me constantly checking the pressure. The infotainment screen is inconsistent especially using Android Auto and the DAB radio signal is awful. As I say, I've been generally happy with the car's overall drive and performance, the niggles are easy to live with.

My biggest disappointment is learning that the settlement figure after 25 months is around £2400 more than the car is now worth, despite it only having 8,300 miles on the clock and me putting in over £8000 deposit. I probably would have considered keeping hold of the car but I don't really want to pay £15,900 settlement for a car that's only worth £13,500. Lesson learnt is don't buy brand new electric cars at the moment as the depreciation is way too high. I've just sourced a Ford Explorer Long range, registered Aug 2024 with 230 miles on the clock, it has £2000 worth of driver assist extras on and would normally retail for around £47K. Cost to me is £29K for what is almost a brand new car, driven as a demonstrator. Still will be quite sad to see my little MG4 been driven away by the finance company next month.

I have a similar story though 17,000 on clock. Bought MG4 Trophy LR Nov 2023, settlement figure £19,589.65, trade in value now £14,050. Negative equity of £5539, and a balance to pay in 2027 of £14,500.
My previous car was an MG HS electric Hybrid which after two years and similar mileage gave me £3500 towards the new MG4.
I noticed on my settlement quote that there was also the option of voluntary surrender for £5462.
I have gone for that option and went for a leasing agreement via my business for a 2025 Skoda Enyaq sport line 85x for a £2150 (+vat) deposit and 24 payments of £302 (+vat).
I agree with other replies, in the days of ultra high depreciation of EV's, PCP is dead in the water. Leasing means you know exactly what you are paying and the leasing company takes the gamble on the residual value.
I loved my MG4, but I now look forward to my new Enyaq.

 

[NikLiverpool]

A bit of unequal comparison this though. Business lease or salary sacrifice schemes will always be cheaper compared to PCP. (Till government changes the rules).
Private lease can be quite more expensive compared to PCP. Also any manufacturer contributions do not apply.
As for any negative equity I can't see the problem.
Hand the car back and walk away. Same with a lease.

 

[tsedge]

According to DefinitelyNotAGuru, leasing is often the cheapest option...even taking into account what you could earn with your capital, if you had the cash but opted to finance.

He has a spreadsheet to back up what he is saying. Keen to know what people think, do you agree or disagree with him?

 

[Chrisdriving]

Agree with him but as always you have to hunt for the deals.
Also had my X power 5 weeks almost before i paid a penny to them.

 

[JonnyG]

Yes, I agree with him but as @Chrisdriving says above you need to find a good lease deal and do your own spreadsheet!!

I guess you could disagree if your intention is to keep the car well over the 3 years but then there are unknown MOT and repair costs etc.