If you don't have the cash to buy it, the cost to borrow and pay off the finance is going to be less then refinancing it and having the same issue in another 4 years. Although you might be paying more per month, but, it's more than likely going to be cheaper than getting a new car.
BMW and M Power Owners
- Thread starter panthro
- Start date
Well if you buy the car, in 4 years time you will still have a car. That's the key difference.
£800 a month for 4 years (minus 5k equity) is also a lot more than £15k (+interest).
You also have the flexibility of changing cars in those 4 years if you wanted.
Last edited:
Soldato
- Joined
- 17 Sep 2006
- Posts
- 4,289
- Location
- Gloucestershire
New monthly on the 140 would be 390. Up from 347.
Is that with BMW using the 6k equity for a deposit?
Last edited:
Soldato
- Joined
- 17 Sep 2006
- Posts
- 4,289
- Location
- Gloucestershire
No deposit. That's just what the new 4 year term would be. I'd own the car at the end.
Soldato
- Joined
- 17 Sep 2006
- Posts
- 4,289
- Location
- Gloucestershire
Well 4 years of 390 is £18700.
So paying 14700 seems a better option.
So paying 14700 seems a better option.
BMW offered you a loan? Or you worked it out yourself.
I incorrectly assumed it was a PCP you mentioned on a new car, which would have a deposit.
If he keeps the car he doesn't also get the equity (at least as cash).
Last edited:
Yeh, it sounds like BMW are offering a loan. APR doesn't sound great if it is £390 a month for 4 years.
Then again I don't know what personal loan rates are these days. Low single digit loans are probably gone now.
Options on the table as I see them:
Pay the balloon off now - £14,700 and own the car now. If you need/want a loan to do this, as above, seems to be achievable at about £340pm for 4 years, total payable about £16,320.
Refinance another 4 years with BMW - £390pm for 4 years, own the car in 4 years time, total payable £18,700.
Chop it in for a new car - £6,000 of equity to use as a deposit, £LOL per month for a mid range model. (and probably wait 9000 years for the new car to get built, get into an argument with dealer because they want to revalue your equity when the new car eventually turns up and your 140i has devalued in the mean time
)
Pay the balloon off now - £14,700 and own the car now. If you need/want a loan to do this, as above, seems to be achievable at about £340pm for 4 years, total payable about £16,320.
Refinance another 4 years with BMW - £390pm for 4 years, own the car in 4 years time, total payable £18,700.
Chop it in for a new car - £6,000 of equity to use as a deposit, £LOL per month for a mid range model. (and probably wait 9000 years for the new car to get built, get into an argument with dealer because they want to revalue your equity when the new car eventually turns up and your 140i has devalued in the mean time
)Deleted User 298457
Deleted User 298457
Still probably 3x lower than usual car finance rubbish.
The only thing to consider is the state of your credit. The BMW loan will be secured against the car, and thus may be easier to achieve. The bank loan route will be unsecured so will have a higher degree of scrutiny against your credit record.
Try Tesco or Sainsburys.
Last edited by a moderator:
About 5% - not as bad as I thought it'd be.
I think I'd do the balloon payment and keep the car - but then I doubt I would ever finance a car with anything other than a personal loan in the first place.
Last edited:
5% APR? or 5% fixed interest rate?
They are very different, and the second is misleading. It is illegal to only quote the latter.
£14700 loan at 5% APR is not £390 a month for 4 years.
Not saying go with barclays but here is their calculator
Loan calculator | Loan repayments calculator | Barclays
Use our loan calculator to find out how much you could borrow, and what your repayments and interest rates could be.
Last edited:
APR on competitive personal loans.5% APR? or 5% fixed interest rate?
They are very different, and the second is misleading. It is illegal to only quote the latter.
£14700 loan at 5% APR is not £390 a month for 4 years.
Not saying go with barclays but here is their calculator
Loan calculator | Loan repayments calculator | Barclays
Use our loan calculator to find out how much you could borrow, and what your repayments and interest rates could be.www.barclays.co.uk
Last edited:
Ah, I mistook you for the original poster.
Soldato
- Joined
- 17 Sep 2006
- Posts
- 4,289
- Location
- Gloucestershire
Thanks all again.
The dealer (Cotswold BMW) managed to get a 230i in thundernight purple for me to drive for a few hours yesterday.
I actually liked it more than I thought. The 240i has 245hp, so not quite at 140i power but it felt punchy enough.
It also felt a bit snapper in handling, I guess due to the lighter engine up front.
I was also pleasantly surprised by the new iDrive system. There are a few instances where you have to touch the screen as there are no longer buttons (heated seats, AC etc). Not as bad as I initially thought.
Not sure whether to just go for it as I doubt I'll be in this position again.
But it's £600 a month.
The dealer (Cotswold BMW) managed to get a 230i in thundernight purple for me to drive for a few hours yesterday.
I actually liked it more than I thought. The 240i has 245hp, so not quite at 140i power but it felt punchy enough.
It also felt a bit snapper in handling, I guess due to the lighter engine up front.
I was also pleasantly surprised by the new iDrive system. There are a few instances where you have to touch the screen as there are no longer buttons (heated seats, AC etc). Not as bad as I initially thought.
Not sure whether to just go for it as I doubt I'll be in this position again.
But it's £600 a month.
Deleted User 298457
Deleted User 298457
What is good about this position? You have a subjectively better, nearly new car, that you are swapping for a different car at more cost per month.
Has anyone on here recently placed an order for an M3 Touring and if so what's your lead time looking like at the moment? Looking to upgrade both mine and my wife's car next year, while she wants a convertible, I still need some practicality in order to shift a family of four around, so boot space is a must and I'm currently spoiled by the cavern that is the boot space of an Octavia vRS (which I managed to fit 6 suitcases into in the Summer!)
Whilst I haven't gone as far yet as taking the luggage around dealerships (but will do that when the cash is actually available to put down on a car), the M3 Touring does appeal, but the local Dealer says they have a lead time of 18 months
Whilst I haven't gone as far yet as taking the luggage around dealerships (but will do that when the cash is actually available to put down on a car), the M3 Touring does appeal, but the local Dealer says they have a lead time of 18 months
Which is a lot of money for a 2 series.
Or spend £350 a month and keep your current car, and pocket the £12k saved (assuming £600 is for 4 years) as otherwise you're going to be in the same position in the future and you'll be looking at £800 a month to step into the newest version of what you have.