This isn't a good thing though is it? It just means you borrow more, pay more interest are in negative equity immediately. Small deposits are bad and if you cant afford a deposit bigger than 500 quid then perhaps a brand new BMW isn't the smartest choice
Totally - I guess it's neither good nor bad, but it would ultimately depend on the circumstance of the individual.
Almost all new cars are in negative equity immediately anyway, even with 10-15% deposits, and the interest cost difference of borrowing 4.9% on the reduced deposit would be minor over the 48 month term on, say, a 120i or a Mini Cooper (I appreciate it would rack up considerably on an M5, or if you were keen to put down many thousands of £'s).
Horses for courses.
I agree that if you
can't put more than £500 down on a new BMW you probably should consider not financing yourself up in that manner, but it doesn't mean that you shouldn't go that route if you can afford to pay more, you might fancy keeping the cash in the bank, or putting it on a house extension, etc. etc.