Haggling with BMW Car Dealership

[[TW]Fox]

They are not as expensive as you'd think - £38k will get you the same model and spec as the OP on an 18 plate, which is about £62k list.

Which is actually a lot of money for an 18 month old slightly posher E Class. A newer BMW 6 Series costs less and is arguably a better car. Neither car looks particularly attractive, mind, but such is the way with modern cars it seems.

 

[Journey]

Which is actually a lot of money for an 18 month old slightly posher E Class. A newer BMW 6 Series costs less and is arguably a better car. Neither car looks particularly attractive, mind, but such is the way with modern cars it seems.

I was merely quoting the person who said the car must have been much more expensive than the 320i M SPort with a few options, it wasn't. I didn't mention the looks or whether it was a good car, that is for the individual to decide.

 

[Deleted member 209350]

PCP is a fools game.

Your best bet would be to take out a loan from somewhere like Sainsbury's or Tesco for the price of the car (36k in your case) use it to cash buy the car, and then repay the loan with a low interest rate. Sainsbury's/Tesco loans only charge about 2% interest, ofc it varies but its much better than falling for the pcp scam that dealerships offer.

 

[[TW]Fox]

PCP is a fools game.

Your best bet would be to take out a loan from somewhere like Sainsbury's or Tesco for the price of the car (36k in your case) use it to cash buy the car, and then repay the loan with a low interest rate. Sainsbury's/Tesco loans only charge about 2% interest, ofc it varies but its much better than falling for the pcp scam that dealerships offer.

2% interest on a 36 grand loan from Tesco?

What?

 

[Uncle_Gravy]

How reliable is sainsburys and tesco's with the interest rate? When i applied for my loan for my current car through my bank, quoted interest rate on the calculator was something like 6.9%, after having a chat with an advisor it was considerably higher even though i've had previous loans which never had a missed payment.

2% interest on a 36 grand loan from Tesco?

What?

checking sainsbury's their Representative APR is 2.9% which i doubt anyone would ever get.

Ah 6.7% for a 30k loan through sainsburys​

 

[Bounce]

How reliable is sainsburys and tesco's with the interest rate? When i applied for my loan for my current car through my bank, quoted interest rate on the calculator was something like 6.9%, after having a chat with an advisor it was considerably higher even though i've had previous loans which never had a missed payment.

checking sainsbury's their Representative APR is 2.9% which i doubt anyone would ever get.

Ah 6.7% for a 30k loan through sainsburys​

As you say not very reliable.

 

[Deleted member 209350]

2% interest on a 36 grand loan from Tesco?

What?

Havent checked, but a friend of mine managed to get a 20k loan from sainsburys for about 4%, it obviously varies from person to person though.

 

[Bounce]

As for haggling prices on a new car, its not going to happen. Profit margins on cars are wafer thin iv heard the average is between 1-2%.

 

[Deleted member 209350]

How reliable is sainsburys and tesco's with the interest rate? When i applied for my loan for my current car through my bank, quoted interest rate on the calculator was something like 6.9%, after having a chat with an advisor it was considerably higher even though i've had previous loans which never had a missed payment.

checking sainsbury's their Representative APR is 2.9% which i doubt anyone would ever get.

Ah 6.7% for a 30k loan through sainsburys​

Yeah it varies from person to person. Either way, paying the car off in a few years with 6.7% interest is still much better than doing PCP. At least this way you will be able to sell the car whenever you want, and recoup a lot of the funds for it.

 

[Bounce]

Yeah it varies from person to person. Either way, paying the car off in a few years with 6.7% interest is still much better than doing PCP. At least this way you will be able to sell the car whenever you want, and recoup a lot of the funds for it.

Yes it would be more beneficial to him financially doing it this way but its more hassle and you will have that big burden of a loan.

 

[SDK^]

Yeah it varies from person to person. Either way, paying the car off in a few years with 6.7% interest is still much better than doing PCP. At least this way you will be able to sell the car whenever you want, and recoup a lot of the funds for it.

That selling process you mentioned. It’s not quite as simple and easy as you make out.

 

[Deleted member 209350]

Yes it would be more beneficial to him financially doing it this way but its more hassle and you will have that big burden of a loan.

That selling process you mentioned. It’s not quite as simple and easy as you make out.

I guess thats a valid point. I was speaking purely from a financial POV that its better this way. Of course factoring in other stuff like actually selling the vehicle etc etc, it may be harder.

 

[Mercenary Keyboard Warrior]

How reliable is sainsburys and tesco's with the interest rate? When i applied for my loan for my current car through my bank, quoted interest rate on the calculator was something like 6.9%, after having a chat with an advisor it was considerably higher even though i've had previous loans which never had a missed payment.

checking sainsbury's their Representative APR is 2.9% which i doubt anyone would ever get.

Ah 6.7% for a 30k loan through sainsburys​

2.9% representative means more than half should be able to get it
"However, from 1 February 2011, this calculation changed. The BSI reports that: “The Representative APR must reflect at least 51% of business expected to result from the advertisement. The standard information must be representative of agreements to which the Representative APR applies."
So their criteria needs to allow that many to be able to get it

 

[Mercenary Keyboard Warrior]

Yeah it varies from person to person. Either way, paying the car off in a few years with 6.7% interest is still much better than doing PCP. At least this way you will be able to sell the car whenever you want, and recoup a lot of the funds for it.

Far from this clear. Often manufacturer PCP loan % is in the same territory as personal loans, if not they often offer discount to in effect offset it.
Audi gave me £4k on top of dealer discount if i took PCP, dont want PCP, sure you can have the dealer discount but not the £4k deposit contribution.
The £4k was pretty similar to the total amount of interest over the term.

What i did was actually take the PCP, withdraw from the agreement, and take a loan out at half the APR. As this was below (well below) my investment returns I am happy to have the loan, but that besides the point.

So I got £4k to take the PCP, then withdrew, and kept the £4k. I will pay just under £2k interest over a longer period with the loan, which I can pay off in part or full at any time.

PCP vs loan is a far from simple equation. When i was looking for example Ford were giving 0% PCP. Not much discount comparatively, but then you tend to get better or same on a PCP as opposed to cash (source of cash doesn't matter to the dealer)

When looking at loan rates they tend to be that small or large loans come with higher rates. Middle of the range type unsecured amounts tend to be best. £10-25k or so, and often middleish type terms, 3-5 years.
Its quite often better to take a larger and or longer loan out then pay some back if its more than you need. On consumer loans now they cannot penalise you for doing this

 

[[TW]Fox]

Havent checked

So you made it up? Why?

 

[HoneyBadger]

That CLS is a beaut! Enjoy! Far better than BMW offering IMO.

 

[jamoor]

Today I made my second visit to the local BMW garage, having been invited back after previously walking out after being shown their extortionate PCP and PCH deals compared to what is available online.

Second meeting was slightly more productive - we identified a 320i M Sport with a few options, coming to about £36,000 OTR price. I was keen that any agreement had 10,000 miles and minimal deposit from me (in this case £2000), ideally for a 36 month period.

After lots of back and forth between the room we were in and the back office, he came out with a PCP deal of £460 per month, 10k miles, 48 month on the car, colour and spec that I was after. Interest rate was 4.9%.

I told him this was more than I was prepared to pay each month and asked him to get closer to 400 to compare with what I was seeing online. Out comes the Sales Manager who shook my hand and said it is his very best price and there is absolutely nothing he can do. I shake his hand again, thank them both for their time and walk out.

My situation is that I do actually really like the car and would be disappointed to lose what is essentially not a terrible offer (I don't think?!). I'm by no means an expert car buyer but was practicing my tough negotiator routine.

Do you think they will get back in touch with me with a better offer or have I got to make an awkward phone call? My view is that if they reduced the 4.9% interest we would be looking at a much more palatable quote.

I really can't see a use case for the BMW.

You should look into a model 3 as you will save £1500 a year in fuel and won't have to waste time servicing it either.

 

[xs2man]

As for haggling prices on a new car, its not going to happen. Profit margins on cars are wafer thin iv heard the average is between 1-2%.

Nope. Many new cars you can make massive savings on by haggling. I got about £11k (~20%) off my brand new 530d through haggling.

 

[wndsr]

That CLS is a beaut! Enjoy! Far better than BMW offering IMO.

Thank you

Regarding the debate around PCP/Personal Loans that seems to have erupted, sure, there probably are better deals out there, but quite frankly I have absolutely zero interest in ever owning the car, have no interest in having to sell it on when I'm done with it. I've always believed as long as you plan for all the things that PCP (or leasing, or any other financial decision) involves, then it's not a problem. Sometimes I go to Sainsburys which is an equal distance to Aldi for the same (overpriced) product because it's much easier to get a parking space.

 

[ShivP]

arguably a better car.

U having a laugh?