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It would appear that BMW are offering it with zero options on Select for £374 a month with a deposit of £4600 and an optional final payment of £14k. This works out at 4.9% APR.
BMW and M Power Owners
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It would appear that BMW are offering it with zero options on Select for £374 a month with a deposit of £4600 and an optional final payment of £14k. This works out at 4.9% APR.
[TW]Fox;23564044 said:HP doesn't have a mileage limit and the final payment is typically very small. As a result you will find it no cheaper -infact its usually more expensive because traditionally the APR will be higher - than a bank loan. If you have found a product where the monthly payments are lower but there is a significant 'Optional Final Payment' then this is a PCP product (BMW call it 'Select').
Essentially, you rent the car from BMW -it isn't your car. At the end of the agreement you simply hand the car back and walk away with nothing to show for it, or alternatively you can purchase the vehicle by paying the Optional Final Payment, which you could also finance if you wanted. PCP agreements will have mileage limits because the deal is structured based on how much the car is worth to the lender at the end of the agreement, and the mileage directly affects this.
I'm going to be a bit controversial here but IMHO the entire point in a PCP is to enable people to buy cars they couldn't otherwise afford. IMHO it's not a sensible way to buy the car, you end up swapping short term higher expenses for a solution that, over the longer term, is more expensive.
With HP the lender again owns the car until you make the final payment, but there is no big payment at the end and the final payment is similar to your normal monthly payments. Once you've made the last payment you then own the car. But you may as well borrow from the bank unless you get a killer rate on a HP - then its your car and the monthly payments are no different. However, one thing HP offers you that a bank loan doesn't is the ability to borrow huge amounts of money with a crappy credit rating. As the lending is secured on the car its more secure for the lender than a bank loan therefore they are more inclined to offer credit to people who shouldn't be buying expen.. no err, people with lower credit ratings
If you want to borrow money to buy a car it is my opinion that the best way to do this is to get as much deposit as you can and use a bank loan to pay the rest. That way its your carf and you are not simply driving around in somebody elses car just so you can keep the monthly payments at a level you can afford. This is just my opinion and I'm sure I'll get flamed by a bunch of PCP holders who strongly disagree with me, but hey
Sometimes there are exceptions. Some dealers/manufacturers will offer 0% or a low APR on some of these products in order to shift cars which otherwise are not selling, or in order to get rid of a load of new stock safe in the knowledge it'll come back in 2 years as quality used stock they can then re-sell. But make sure you do a full analysis on the total ownership costs of any of these deals and don't forget - dealers will quote you FLAT RATE to make it seem good value. Ignore flat rate. APR is the only rate that matters and is typically about twice the flat rate.
Spot on. PCP isn't always bad, just do the sums and select the one which makes the most sense and that you can afford.
Don't be fooled into thinking lower monthly payments = better, as there's likely to be a big one at the end.
Thanks guys appreciate the advice. I think you have covered my concerns with the Hire purchase. Really not a fan of not owning a car.
And as for having to hand it back if i can't pay a final payment of around 12k is a big no no for me. I would also need to put money away each month to save this £12000 so that effectively increase my monthly payments to well over £400 (A lot of money for a depreciating piece of metal)
with a £7000 deposit the car would have cost £348 a month at 4.9% APR. The cost of the car been around £33000 with a few extras.
I shall wait for a few months and more than likely pick up a second hand one with minimal mileage and good spec for sub £30000.
I shall save a larger deposit and go down the loan route I think. Do not want to go over £350 a month though. I am 25 in April also and there seems to be a decrease of around £500 on insurance for the year!!! Another reason to hang fire for now!!
And as for having to hand it back if i can't pay a final payment of around 12k is a big no no for me. I would also need to put money away each month to save this £12000 so that effectively increase my monthly payments to well over £400 (A lot of money for a depreciating piece of metal)
with a £7000 deposit the car would have cost £348 a month at 4.9% APR. The cost of the car been around £33000 with a few extras.
I shall wait for a few months and more than likely pick up a second hand one with minimal mileage and good spec for sub £30000.
I shall save a larger deposit and go down the loan route I think. Do not want to go over £350 a month though. I am 25 in April also and there seems to be a decrease of around £500 on insurance for the year!!! Another reason to hang fire for now!!
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I'm swaying towards the automatic 8 speed version also. Esoril blue looks stunning though I must admit.
Do you own the M135i yourself?
yep 3dr manual, done 1800 miles in it now, even allowing for the sampled engine noise fed thru speakers it is a superb package and healthy discounts should still be available [10% is pretty commonplace on the forums I frequent]
It's gone up now, it used to be about £40 a month but i think it's now the wrong side of £50.
I've just ordered an M135i.
Although I doubt Fox will believe a word I say so I'll do a thread when it's delivered with pics
Can you blame me? But I suspect that there might finally be some truth in this one and you've finally gone out and actually bought a car, about time given you've been talking about buying a hot hatch for about 7 years now. Heck the amount of time you've been thinking about it you could have saved up the cash even if you were on minimum wage so I hope it's a cash buy too after all that
I honestly don't blame you one bit! I wish I could go back and have a word with my younger self.
It's not a cash buy but I put down a large deposit and I thought 4.9% APR was very reasonable. They also knocked a fair chunk off the OTR. If you're going to give me the 'New Car' talk go ahead but even you must know the M135i is far from the worst possible new car purchase. In fact if anything BMW have priced it around £5k below what it should be!
It's not a cash buy but I put down a large deposit and I thought 4.9% APR was very reasonable. They also knocked a fair chunk off the OTR. If you're going to give me the 'New Car' talk go ahead but even you must know the M135i is far from the worst possible new car purchase. In fact if anything BMW have priced it around £5k below what it should be!
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Ohh FFS I've lost the key to my E60, no idea where it's gone as I'm training it to London daily I haven't used it in a week.
Have the spare and BMW want £140 inc for a new one, looked at the spare and the dealer keyring is threaded through the main bit of the key where as the one I was using was threaded though the blade now all I have left is the blade.
Driving it today wondered why on earth it was on R1 my wife must have driven it last time with those keys, the hour bong is on and the shift up and down arrows and numbers are back on, just gotta figure out how to turn that little lot off.
Have the spare and BMW want £140 inc for a new one, looked at the spare and the dealer keyring is threaded through the main bit of the key where as the one I was using was threaded though the blade now all I have left is the blade.
Driving it today wondered why on earth it was on R1 my wife must have driven it last time with those keys, the hour bong is on and the shift up and down arrows and numbers are back on, just gotta figure out how to turn that little lot off.
I honestly don't blame you one bit! I wish I could go back and have a word with my younger self.
It's not a cash buy but I put down a large deposit and I thought 4.9% APR was very reasonable. They also knocked a fair chunk off the OTR. If you're going to give me the 'New Car' talk go ahead but even you must know the M135i is far from the worst possible new car purchase. In fact if anything BMW have priced it around £5k below what it should be!
It is a bargain for what it is, I agree. Just hope you've gone for the correct options, no tomtom stuck on the dash
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http://bank.marksandspencer.com/banking/car-buying-plan/overview/
Another possible way of reducing monthly payments but without such a significant balloon payment to find (or refinance at the end).
Another possible way of reducing monthly payments but without such a significant balloon payment to find (or refinance at the end).
[TW]Fox;23565846 said:
I'd say the smaller car that you can actually throw about a bit is going to be more of an event than a mega barge that would usually be used to bully everyone out of the overtaking lane of a motorway.
(I'm looking to get an M5 next after 2 years of M3, but It would be a whole different drive to me e.g. no more sideways roundabout action).