BMW and M Power Owners

Nope, got a message on my phone - Mondial had spoken with my dealership, work will be authorised and carried out at no cost to me. To be fair I'd moaned at the dealer, BMW UK on twitter and the insurance company, but it worked!

Need to get them to refund me the diagnostic fee and the cost of having my coil springs replaced at my local Indie - worth a try!
 
ok, so I have the following deal on the table from the local BMW dealership

BMW M140i 5dr Auto (Black)
Driver Comfort Package
Privacy Glass
BMW Loudspeaker
Heated Seats

£1,000 deposit
£320 a month for 4 Years (PCP)

I'm haggling a bit more

:edit: Don't know what's going on at the BMW dealers, but they are trying to give the M140i away at the minute. Had another dealer come in with a better offer. They'll be paying me to buy it at this rate.
 
Last edited:
glen8 said:
ok, so I have the following deal on the table from the local BMW dealership

BMW M140i 5dr Auto (Black)
Driver Comfort Package
Privacy Glass
BMW Loudspeaker
Heated Seats

£1,000 deposit
£320 a month for 4 Years (PCP)

I'm haggling a bit more

:edit: Don't know what's going on at the BMW dealers, but they are trying to give the M140i away at the minute. Had another dealer come in with a better offer. They'll be paying me to buy it at this rate.
Click to expand...

One key piece of information missing there :p What's the GFV/Final Payment?
 
Yeah £28k was what coast2coast offered, bmw website was 36k lol

sounds like a pretty good deal to be honest

oh forgot to say, they are also paying off £800 on my current car finance
 
glen8 said:
ok, so I have the following deal on the table from the local BMW dealership

BMW M140i 5dr Auto (Black)
Driver Comfort Package
Privacy Glass
BMW Loudspeaker
Heated Seats

£1,000 deposit
£320 a month for 4 Years (PCP)

I'm haggling a bit more

:edit: Don't know what's going on at the BMW dealers, but they are trying to give the M140i away at the minute. Had another dealer come in with a better offer. They'll be paying me to buy it at this rate.
Click to expand...

This isn't specifically aimed at you but I'm just using yours as an example for me help better understand. As I have no clue when it comes to PCP / leases etc.

I assume that car is worth circa 28k?

On PCP you'll pay a total of 16.3k to drive that for 4 years.

If you bought the car using cash / personal loan, after 4 years based on the M135i prices it'll be worth about 18k. So it cost you 10k to drive it for 4 years. (Adjust this figure to include interest of the personal loan so it won't be exactly 10k)

So you end up paying about 6k more (depending on interest rate). So is the only reason you'd use PCP is if you couldn't get your own loan? Is there ever a situation where you'd end up being better off using a PCP or lease instead of personal finance?
 
That 6k difference doesn't include interest payable on a loan, which should be a similar amount assuming you're borrowing at around 3-4%. It also doesn't take into account that in both scenarios, should you part ex the car - it's worth the same regardless. So if it's worth 16k part ex, on a personal loan it'll 'cost' you £12k + interest. On a PCP it'll cost you £16.3K less ~£2k difference between the GFV and what you got part ex.
 
Most personal loans won't exceed £25k, so unless you have a decent chunk to put down you may not be able to afford the car with a personal loan. Also often the sweet spot for interest rate, depending upon your circumstances, is often in the £7.5-£15k range, so you may well end up paying a higher interest rate for a large personal loan. It's also worth mentioning that a lot of these deals are only offered when taking out the manufacturer's finance with often comes with a sizeable deposit contribution.

Another point to consider is that the monthly payments on a £25k loan over 5 years, even assuming you can get the best rates, will be ~£450, almost 50% more than the PCP payments. This may be unaffordable for some.
 
The point is though, on a new car if you're borrowing money (Loan, PCP, HP) the costs should even out. Where they differ is what happens at the end, and how the borrowing is structured. With a loan, you can sell the car whenever - with a PCP or HP the money is secured against the car and you need to clear it before you sell (or get the new buyer to clear it).

A better way to see the costs is to look at it from the point of view of total cost of borrowing and depreciation. If you're borrowing money on a new car, you're paying interest on the depreciation. Whereas if you're a cash buyer, you're only losing the depreciation alone.
 
Coast2Coast Price : £28,717

Deposit £1,000
47 Payments of £333.43 = £15,671.21
GFV £14,178.35

Total Paid on PCP at 3.4% apr = £30,449.56

Versus

Deposit £1,217
Tesco Loan of £27,500 over 4 Years
48 Monthly Payments £652.19

Total Paid on Loan at 6.7% apr = £31,305.12 (even those with 900+ credit scores like me will find it hard to get a £27,500 loan at 6.7%)
Total overall = £32,522.12

Now obviously there are pros and cons for each way of financing. The PCP has lower monthly payments, an upfront GFV and usually
at the end of the term you have a little bit of equity to use for your next deposit. Plus you have options such as giving the car back
throughout the term based on the level of equity either negatively or otherwise. The cons are, if you wish to keep the car you either
have to pay the GFV in cash, or refinance it at the time. If you chose to finance the remainder, then you are paying for your car over
many years, plus interest on the final value price.
 
Last edited:
glen8 said:
Coast2Coast Price : £28,717

Deposit £1,000
47 Payments of £333.43 = £15,671.21
GFV £14,178.35

Total Paid on PCP at 3.4% apr = £30,449.56

Versus

Deposit £1,217
Tesco Loan of £27,500 over 4 Years
48 Monthly Payments £652.19

Total Paid on Loan at 6.7% apr = £31,305.12 (even those with 900+ credit scores like me will find it hard to get a £27,500 loan at 6.7%)
Total overall = £32,522.12

Now obviously there are pros and cons for each way of financing. The PCP has lower monthly payments, an upfront GFV and usually
at the end of the term you have a little bit of equity to use for your next deposit. Plus you have options such as giving the car back
throughout the term based on the level of equity either negatively or otherwise. The cons are, if you wish to keep the car you either
have to pay the GFV in cash, or refinance it at the time. If you chose to finance the remainder, then you are paying for your car over
many years, plus interest on the final value price.
Click to expand...

You're being offered 3.4% APR on PCP? Who by? And 6.7% on a loan? That's not a good deal.
 
glen8 said:
everyone is offering 3.4% pcp on the m140i till march 1st. It's a BMW offer.

If you can secure a £27,500 loan at 6.7% let me know!
Click to expand...

I see, that's a much better deal than BMW's regular finance offers. When I bought my M135i in April '15 is was 5.9% for PCP.

I recently borrowed £20k at 3.2%, and rates are slightly better now (typically by 0.1-0.3%).

First Direct will currently loan >£25k to current account holders at as low as 3.3%, and their maximum personal loan is £50k!

<£25k loans can be had at as little at 2.9%. Spend 4 months saving what your repayments on a £27.5k loan would be and get a much better deal on a lower amount!
 
When I applied for those loans, I usually got rejected. An hour later I'd get a call offering me it at 8.7%. Reading on forums such as money supermarket it's a common thing.
I'm a good earner with a great credit score.

5.9% pcp is still pretty good to be fair. My friend took out a pcp on the default 10% ouch!
 
Yeah when I got my 530d, the original rate for the PCP was 7.8% but managed to get it down to 4.8% which was the rate they had for a current new car promotion. Was pleased with that.
 
You must log in or register to reply here.
Back
Top Bottom