BMW and M Power Owners
- Thread starter panthro
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![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Soldato
Considering hire purchase with a £700 deposit (minimum it lets me put in) makes it £17k payable over 4 years, PCP must be more than that 
Surely it would be useful to request peoples thoughts before putting down the deposit?
Surely it would be useful to request peoples thoughts before putting down the deposit?
In fairness those rates are all negotiable, but PCP is typically really poor as the buyer is limited in financing choice if that's the only way they can own the car. Suspect it's around 6-7% which will make a significant difference vs personal loan given the sums involved
Caporegime
Surely a bank loan is always the cheapest way to finance a car (as long as you have a decent credit rating)? Interest rates are peanuts these days.
Regarding the car, it's beige
But seriously, is there nothing with Pro Nav?
My credit rating isn't good unfortunately, I struggle to get anything better than high teens APR in credit cards etc.
The car is more gold in the flesh than beige.
Not bothered at all about pro nav tbh.
[TW]Fox;30471362 said:
The balloon payment is £5500 at the end of the term, the point being I'm not intending to keep it more than two years, after chatting to Knights finance bod he was emphasising to me the crux of a pcp is to change the car half way through the term....
TBH, it's a refundable deposit, nothing set in stone nor signed, tbh I'm probably going to can the idea unless there's a better way of doing it.
Be very careful - the only way you are likely to have enough in a 4 year PCP to get out halfway through the term is to have put quite a bit down up front....Which you haven't. You can end the agreement halfway through total payments, but that includes your balloon payment at the end in terms of total sum loaned so you'll be nowhere near that in two years.
Their job is to get you into a car not to give sound financial advice so have a proper think about it all yourself before committing to something silly.
Key things are what the car is worth to you tomorrow if you need to get rid of it ( a whole lot less than £14k) and how much you'll be commited to in total vs the best price you could get for the car if for some reason you had to move it on
Their job is to get you into a car not to give sound financial advice so have a proper think about it all yourself before committing to something silly.
Key things are what the car is worth to you tomorrow if you need to get rid of it ( a whole lot less than £14k) and how much you'll be commited to in total vs the best price you could get for the car if for some reason you had to move it on
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Why would you even use credit cards to borrow money?
Have you investigated car loans at all? If not, I strongly suggest you do..
All credit cards are high teens (or higher). Look for an unsecured personal loan.
Surely a secured loan (using the car) will give a lower interest rate?
It might if the OP otherwise can't usually access decent rates on unsecured loans. I think the main issue with secured lending on cars is it tends to be specialist and linked to the individual dealerships or organisations like black horse who won't have brilliant rates - but it really does depend on personal circumstance
Caporegime
Thanks, sound advice.
No. I mean I can't get the nice credit card offers (single figure percentages) that my other half can,her credit rating is better than mine.Why would you even use credit cards to borrow money?
Have you investigated car loans at all? If not, I strongly suggest you do..
I've looked but I can't get anywhere near the 3% my other half can on personal loans, I've not looked in any great detail at car loans in general tbh.
Think I'll probably just can the idea, seems a daft one.
Soldato
Try Zopa, I couldn't get under 10% from any bank or supermarket loan but got 5% from them.
Im sure the finance guy was telling you to change cars halfway through the term for your benefit, not because he'll be able to roll your negative equity into a 50% more expensive monthly deal down the line
Im sure the finance guy was telling you to change cars halfway through the term for your benefit, not because he'll be able to roll your negative equity into a 50% more expensive monthly deal down the line
CC APR is always stupidly high, I wouldn't worry too much about that!
Can the idea of a poor spec, gold 320d yes, but have a proper look at car loans.
You might be pleasantly surprised..
Caporegime
Aye, the 320 idea is duly binned, I'll look at loans but given I can't even get an overdraft from my bank(!) I doubt a reasonable rate loan is likely...
+1 for Zopa. I got 3.3% APR from them by doing a soft search through clearscore.com. Car Finance 24/7 offered me something daft like 10% APR via the same credit matching search.
Soldato
my car loan was with Zopa too. Can't remember the exact rate, somewhere around 4% but better rate than anywhere else 
Soldato
I got a good deal on a loan through Ratesetter. They were more competitive than anyone else's best offers.
Also with a loan sometimes the trick to get a good interest rate is to borrow more than you need to (e.g. you might get a better rate with a £7.5k loan than a £5k loan), then just pay back the difference between what you need vs what you borrowed almost immediately.
As for buying on a credit card sometimes you can get some very good introductory offers like 0% on purchases for 24 months. If you can get a good enough credit limit it's absolutely the BEST way to buy something like this, even if you've got the cash to spend instead.
Also with a loan sometimes the trick to get a good interest rate is to borrow more than you need to (e.g. you might get a better rate with a £7.5k loan than a £5k loan), then just pay back the difference between what you need vs what you borrowed almost immediately.
As for buying on a credit card sometimes you can get some very good introductory offers like 0% on purchases for 24 months. If you can get a good enough credit limit it's absolutely the BEST way to buy something like this, even if you've got the cash to spend instead.
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Caporegime
Had a look with my other half last night, amazing how by borrowing say £1 more than a specific amount (which puts you into a lower interest rate) saves so much!
Food for thought certainly.
Soldato
