New car / Finance question

Akagi · 12 Apr 2016 at 14:53

Finance = Deposit, pay monthly contributions over a flexible term to allow smaller contributions over a longer period, then you can either hand the car back or pay a baloon payment to own it

Lease = deposit, monthly contributions over a fixed term (usually 2 - 4 years), hand the car back

Someone will correct me if I'm wrong on some detail or other. Essentially one is to borrow, one is a different way to buy.

Eliot · 12 Apr 2016 at 14:56

Acme said:
Finance = Deposit, pay monthly contributions over an (I think) flexible term, then you can either hand the car back or pay a baloon payment to own it

Lease = deposit, monthly contributions over a fixed term, hand the car back

Ah in that case I think I meant finance.

I need to get saving then.

Or buy a 14k car..

LiE · 12 Apr 2016 at 14:58

Acme said:
Finance = Deposit, pay monthly contributions over an (I think) flexible term, then you can either hand the car back or pay a baloon payment to own itk

Finance is just another way of saying 'to borrow money' to pay for the car. For example dealer Finance will spread the cost of the car (minus deposits) over a fixed term and add interest. At the end you own the car.

Akagi · 12 Apr 2016 at 14:59

LiE said:
Finance is just another way of saying 'to borrow money' to pay for the car. For example dealer Finance will spread the cost of the car (minus deposits) over a fixed term and add interest. At the end you own the car.

Right.

squerble · 12 Apr 2016 at 15:00

Also bear in mind, there's two/three things that will come under "finance".

You can:
- get your own personal loan for the amount you want to spend. You'll get a bit more wiggle room for a "cash purchase" from dealers/garages.
- get hire-purchase finance. This will cover the outstanding cost minus a deposit. You own the car after completing the finance term.
- get a PCP finance deal. This is deposit, monthly costs, then a final balloon payment/hand-back the car at the end.

Dealers will offer the second and third options, although some won't do PCP on a used car. They'll also have hilarious APRs on their own finance, which is why you'll get pointed (rightly so) by most members here to look at personal financing.

Akagi · 12 Apr 2016 at 15:01

PCP is the one I was thinking of.

LiE · 12 Apr 2016 at 15:03

Eliot said:
Ah in that case I think I meant finance.

I need to get saving then.

Or buy a 14k car..

From your list you could afford an E46 M3 or 135i.

Eliot · 12 Apr 2016 at 15:18

LiE said:
From your list you could afford an E46 M3 or 135i.

Perhaps I should look around then,

I was scared off the E46 yesterday when I saw people were asking 13k for 2003 SMG coupes..... When my brother bought a low mileage (v good condition 2002 manual) for like 9k a year or so ago

LiE · 12 Apr 2016 at 15:28

Eliot said:
Perhaps I should look around then,

I was scared off the E46 yesterday when I saw people were asking 13k for 2003 SMG coupes..... When my brother bought a low mileage (v good condition 2002 manual) for like 9k a year or so ago

Good examples are holding value well, this shouldn't put you off if you're interested. The fact it is holding value should be a bonus if you sell on in the future.

2004 Manual Coupe would be my pick.

Edit:
Like this - http://www.autotrader.co.uk/classif...y-type=coupe&search-target=usedcars&logcode=p

Eliot · 12 Apr 2016 at 16:38

Nice!
If it had Black leather I'd be all over it (If the subframe checked out)

LiE · 12 Apr 2016 at 16:51

Black is far too boring

I'm sure red is more desirable too.

Akagi · 12 Apr 2016 at 16:51

How can you say no to red leather!? :eek:

Eliot · 12 Apr 2016 at 16:58

Acme said:
How can you say no to red leather!?

It's OK I suppose actually.

Hmm.

DereksDontRun · 12 Apr 2016 at 17:12

I'm getting a M135i myself and when I was looking at the numbers 300/month gets:

1) 4 year pcp with 8k miles 1k down is 300/month for base spec, 5k down is a v well spec'd one for 300/month.

after 4 years I think it's about 15k to buy the car to keep it - or just keep paying that 300/month and see if you can get together another deposit to get another new one, rinse and repeat...

2) to buy/finance - ~300/month will get you about 14k loan over 4 years, so you'll need to find about 15-16k for a deposit to buy a well spec'd M135i.

for 135i (and possibly the 235 and the others) check www.coast2coastcars.co.uk/ for an idea of real BMW new car prices instead of the rrp.

Check the babybmw website for TRL in the sponsors section (presently at the Heathrow dealer - he seems to be able to offer new cars are prices slightly cheaper than coast2coast, so well worth a chat to get some real world prices, especially as it's in London...).

peige · 12 Apr 2016 at 17:22

For reference, a baseline new M135 can be had on pcp for 1500 deposit and 300pcm on 8k miles.

/edit. As above!

Eliot · 13 Apr 2016 at 17:00

peige said:
For reference, a baseline new M135 can be had on pcp for 1500 deposit and 300pcm on 8k miles.

/edit. As above!

Ah.

So perhaps I can get in one then..... Are the deals on the seocnd hand ones not as good as that?
I would have thought that means 1500 deposit and <240 a month no? Or does it not work like that?

LiE · 13 Apr 2016 at 17:03

The difference is with PCP you are essentially hiring the car. You had a set amount of mileage you can do per year, anymore and you will be charged a pence per mile rate. At the end you hand it back, and you're back to paying another deposit on another new car.

You can't get a PCP on a 2nd hand car, so you'll need to pay for it using a bank loan + deposit as mentioned earlier.

iaind · 13 Apr 2016 at 17:06

LiE said:
The difference is with PCP you are essentially hiring the car. You had a set amount of mileage you can do per year, anymore and you will be charged a pence per mile rate. At the end you hand it back, and you're back to paying another deposit on another new car.

You can't get a PCP on a 2nd hand car, so you'll need to pay for it using a bank loan + deposit as mentioned earlier.

Think you're getting mixed up

A PCH is a hire like you suggest, where you can only hand it back

On a PCP you can hand it back, buy it or use the equity and sell it/trade it in at the end (or midway through)

You can get a PCP on a 2nd hand car (I've had one) although rates are not that great unless you haggle and are lucky

Eliot · 29 Apr 2016 at 18:40

So I just looked at one finally
It was a used one, £22500, Decent spec, Sport Auto with the Large Nav (pro?) screen etc (no HKs though)
Best they would do (After much pacing around in the office on their part) was 299 a Month, 4k deposit! (based on 8k mileage/48months)
(Not anywhere near as good as some of the above new!)

Anyway..
The car I like, but in the moment I forgot to try sport, Does it make the steering feel less over assisted?

It is fast, but I was surprised how smooth it can make 0-60 in 4.9?!
In some ways my Gti-6 "feels" faster which is very odd, found it hard to stick to the limit so it must have been the refinement...

[TW]Fox · 29 Apr 2016 at 18:52

Eliot said:
So I just looked at one finally
It was a used one, £22500, Decent spec, Sport Auto with the Large Nav (pro?) screen etc (no HKs though)
Best they would do (After much pacing around in the office on their part) was 299 a Month, 4k deposit! (based on 8k mileage/48months)
(Not anywhere near as good as some of the above new!)

And already you are in the trap of the PCP. 299 a month and 4k deposit means nothing without knowing what the GFV is. It sounds like an incredibly poor deal if it's a PCP - that's £18k in finance to not own a £22k car?