July MGS5 deals

[tsedge]

I think this is the problem with PCP. The dealer I sold my Kona to made £3k gross mark up after my trade in so add 3k to the trade value and your at £11,500 giving a retail not far off your balance. I guess it depends if you want to keep the car or not as it has a known history with you from new. I think in 3- 4 years it will be interesting to see what EV residuals are, in theory by 2029 there will be more demand for second hand EVs which may help residuals.

Dealers have a lot of costs used cars need to cover including premises, staff, marketing, VAT on all sales, inspection, servicing and correction of dents, scratches, scuffed wheels, new tyres, valeting etc...

The net profit with your Kona will be a small fraction of £3k. Even that figure assumes the new buyer didn't negotiate a discount.

Then, they are on the hook for some of problems (outside warranty) that might happen in the first 6 months after it is sold to another owner, so another significant fraction will be set aside to cover these possible expenses.

They will probably end up with a profit of £1-1.5k. There has to be enough profit to justify taking used cars in, or dealers wouldn't have any incentive to deal in them, so this is reasonable.

Residuals in my view are likely to continue to stay low as huge numbers of EVs are coming off-lease/contract in the next year (particularly Motability and corporate fleets) and supply will outstrip demand.

Government mandates will continue to drive supply higher ahead of demand, which will keep values depressed. EV production costs continue to drop as manufacturers adapt, so lower new prices will continue to put used prices under pressure.

Eventually people will realise what amazing value used EVs are and used prices will stabilise - but I don't see them rising at all for years - probably after a lot of makers have gone bust and been consolidated and the marketplace stabilises.

 

[sammoj]

Dealers have a lot of costs used cars need to cover including premises, staff, marketing, VAT on all sales, inspection, servicing and correction of dents, scratches, scuffed wheels, new tyres, valeting etc...

The net profit with your Kona will be a small fraction of £3k. Even that figure assumes the new buyer didn't negotiate a discount.

Then, they are on the hook for some of problems (outside warranty) that might happen in the first 6 months after it is sold to another owner, so another significant fraction will be set aside to cover these possible expenses.

They will probably end up with a profit of £1-1.5k. There has to be enough profit to justify taking used cars in, or dealers wouldn't have any incentive to deal in them, so this is reasonable.

Residuals in my view are likely to continue to stay low as huge numbers of EVs are coming off-lease/contract in the next year (particularly Motability and corporate fleets) and supply will outstrip demand.

Government mandates will continue to drive supply higher ahead of demand, which will keep values depressed. EV production costs continue to drop as manufacturers adapt, so lower new prices will continue to put used prices under pressure.

Eventually people will realise what amazing value used EVs are and used prices will stabilise - but I don't see them rising at all for years - probably after a lot of makers have gone bust and been consolidated and the marketplace stabilises.

I wasn't complaining about the 3k gross margin, I appreciate they need to make a good margin and the car could be on the lot for a while too and depreciate further. In the case of my Kona they got lucky as it sold in 3 days and had 18 months Hyundai warranty left so they should have made a good margin and that was probably factored into the trade in price they gave me which was fair I think.

The old Crystal ball is never reliable with GFVs but with new car discounts of 10k from MG that won't be helping either.

My point was that if my vehicle is worth £9k trade in but the price of buying one from the forecourt that is similar age/mileage/spec its £11,500 I would still be paying the £12k GFV if I was happy to keep it say 3 years more until the end of warranty. Its a known quantity in terms of care and maintenance. Obviously if I could get Santander to budge on it like Nissan did when I purchased my Leaf at the end of PCP for £2k less than the GFV that would be a bonus and certainly worth a go.

Everybody has different circumstances, mine are I want to keep regular outgoings low as I am retired and have fixed income so wouldn't want to move from a £120 a month PCP to say £300 at the end of the term so my thoughts at the moment are to keep the car for at least 7 years if not longer.

J

 

[tsedge]

I wasn't complaining about the 3k gross margin, I appreciate they need to make a good margin and the car could be on the lot for a while too and depreciate further. In the case of my Kona they got lucky as it sold in 3 days and had 18 months Hyundai warranty left so they should have made a good margin and that was probably factored into the trade in price they gave me which was fair I think.

Ah, I see. Thanks for explaining.

The old Crystal ball is never reliable with GFVs but with new car discounts of 10k from MG that won't be helping either.

Agreed.

My point was that if my vehicle is worth £9k trade in but the price of buying one from the forecourt that is similar age/mileage/spec its £11,500 I would still be paying the £12k GFV if I was happy to keep it say 3 years more until the end of warranty. Its a known quantity in terms of care and maintenance. Obviously if I could get Santander to budge on it like Nissan did when I purchased my Leaf at the end of PCP for £2k less than the GFV that would be a bonus and certainly worth a go.

Yes, that's a good point, people trust the car they know and are willing to pay a premium to keep it, but not any amount.

Santander should be more flexible, they gain little by just putting the cars through auction when they could make more privately.

Everybody has different circumstances, mine are I want to keep regular outgoings low as I am retired and have fixed income so wouldn't want to move from a £120 a month PCP to say £300 at the end of the term so my thoughts at the moment are to keep the car for at least 7 years if not longer.

That makes sense. We'd probably keep our MG4 beyond the term too if it made financial sense.

 

[James Dean Driving School]

Hi I'm new here.
I just bought the MGS5 SE standard range in grey after trading in my 17,500 mile 2yr old ZS excite 1.5. I managed to get £1000 over settlement on my previous car with 0% on PCP with 10,000pa @ £260 a month with £500 deposit. Hopefully that looks a reasonable deal and px was better than expected.
Only issue is I haven't driven the SE as they only had trophys in stock.

 

[salty]

Hi I'm new here.
I just bought the MGS5 SE standard range in grey after trading in my 17,500 mile 2yr old ZS excite 1.5. I managed to get £1000 over settlement on my previous car with 0% on PCP with 10,000pa @ £260 a month with £500 deposit. Hopefully that looks a reasonable deal and px was better than expected.
Only issue is I haven't driven the SE as they only had trophys in stock.

To the forum.

 

[5teep]

Hi I'm new here.
I just bought the MGS5 SE standard range in grey after trading in my 17,500 mile 2yr old ZS excite 1.5. I managed to get £1000 over settlement on my previous car with 0% on PCP with 10,000pa @ £260 a month with £500 deposit. Hopefully that looks a reasonable deal and px was better than expected.
Only issue is I haven't driven the SE as they only had trophys in stock.

The Trophy has some features that you'll want, but you can 'add' many of them yourself.

 

[TimothyN]

I’m really glad I went for the Trophy. You get quite a package of technology for a relatively modest investment.

They also seem, from comments on here, to be the more popular choice, by a margin, and that could impact resale value for the base model?

 

[salty]

I’m really glad I went for the Trophy. You get quite a package of technology for a relatively modest investment.

They also seem, from comments on here, to be the more popular choice, by a margin, and that could impact resale value for the base model?

Agree. Though "experts" say go for the better value, cheapest of the range. But personally I always go for the top model of the range. If the X Power didn't exist, it would've been the ER Trophy for me.
But once I knew about the X Power, it was a no brainer for me, personally. But definitely each to their own.

 

[tsedge]

I’m really glad I went for the Trophy. You get quite a package of technology for a relatively modest investment.

Yes, if you motivator is "what do I get for my money" rather than how much you are paying, this makes sense.

However, the SE is a lot cheaper and if you want the best value in terms of price, it is hard to beat.

They also seem, from comments on here, to be the more popular choice, by a margin, and that could impact resale value for the base model?

Trophy is indeed more popular than SE in the UK (as was the case for the MG4). However, there are plenty of both so I doubt it makes much difference to residuals.

 

[Knuttt]

But, if you could get a really good deal on a pre registered S5 as I did, £24125 in silver, but I had to pay cash.
If YOU could get one of these deals, using a bank loan may be a cheaper option than full price with zero % PCP.

I did look at that but the bank loans work out at higher monthly payments for longer typically.
Picking up the car next Saturday so all good

 

[Knuttt]

I did think about keeping the MG5 as we really need an estate but ultimately it felt old compared to the newer cars - I’d have bit their hand off for a new facelift version but there are none available now and I wanted something more modern.
Hopefully there will be more estates available in the future that are reasonably priced.

 

[Bam Bam]

I did think about keeping the MG5 as we really need an estate but ultimately it felt old compared to the newer cars - I’d have bit their hand off for a new facelift version but there are none available now and I wanted something more modern.
Hopefully there will be more estates available in the future that are reasonably priced.

Sad that estates don't seem to be fashionable any more. All about the blobby SUVs.

A few EV estates still out there but they certainly aren't reasonably priced, except perhaps the Leapmotor C10.

 

[Knuttt]

Sad that estates don't seem to be fashionable any more. All about the blobby SUVs.

A few EV estates still out there but they certainly aren't reasonably priced, except perhaps the Leapmotor C10.

I was very tempted by the C10 until I found out they’d launched the 2026 model back in May (in China) this year with double the charge speed, more power and a whole bunch of other refinements.
It’s not available over here yet but if the price stays the same it will take some beating.

 

[5teep]

I came across it too in my researching but the major failing from my point of view is that the nearest dealer is hundreds of miles away from me. Easy to buy the car but servicing would be horrendous.

/edit I just checked and there is now a local dealer...

 

[Bam Bam]

I was very tempted by the C10 until I found out they’d launched the 2026 model back in May (in China) this year with double the charge speed, more power and a whole bunch of other refinements.
It’s not available over here yet but if the price stays the same it will take some beating.

Yes the charging speed is surprisingly low given that it has a huge battery.

[edit - not as low as I remembered though, at about 84kw max, 70kw average]

Sounds like an updated version could be a real contender.