Jcw mini worth less than pcp final payment half term?
Discussion
Turbo-Dan said:
Yeah maybe they can be, but at the time it worked out a good deal, mrs had a twingo 133 cup that we traded in, and walked out with a couple of k in our pocket, the twingo needed some work to the tune of 1k, and we had just bought our house. So that was win win for us really, I would dread to think how much a lease would be on a monthly basis on a niche car like this too, I would expect it to be double what we pay monthly now. Looking at it this way I have got a bit of a bargain, as mini/Bmw haven't valued it correctly I dare say my monthlys would have been higher if they would have predicted the depreciation correctly. Is this right?
Au contraire. Lease prices are usually comparable to or less than PCP cost, even with the larger deposit often put into a PCP.I'd only go for a PCP if I really needed the option to exit early, or I was certain the car would retain more than its predicted future value.
When I leased a Merc E220 I paid £750 deposit and £280 a month for 3 years. Closest the Merc dealers could get on PCP required a £6000 deposit and £500 a month. At the end of the 3 years the car was worth much less than Merc had predicted for the PCP, so any equity would have been gone too.
I like the certainty of leasing. The fixed period means it stops me changing my car too regularly, as that gets very expensive. And it is a fixed cost. With PCP it isn't uncommon to find you have no equity at the end of the agreement anyway, or that any equity you have is less than the additional cost above the price of a lease.
Not quite, the finance has to be paid off of course to transfer ownership, but nothing to stop the buyer paying off the finance house directly.
Technically, you wouldn't really hit any problems selling the car and immediately paying off the finance with the proceeds. From the buyers perspective this isn't great as they have no guarantee you will pay off the finance.
Technically, you wouldn't really hit any problems selling the car and immediately paying off the finance with the proceeds. From the buyers perspective this isn't great as they have no guarantee you will pay off the finance.
spookly said:
Au contraire. Lease prices are usually comparable to or less than PCP cost, even with the larger deposit often put into a PCP.
I'd only go for a PCP if I really needed the option to exit early, or I was certain the car would retain more than its predicted future value.
When I leased a Merc E220 I paid £750 deposit and £280 a month for 3 years. Closest the Merc dealers could get on PCP required a £6000 deposit and £500 a month. At the end of the 3 years the car was worth much less than Merc had predicted for the PCP, so any equity would have been gone too.
I like the certainty of leasing. The fixed period means it stops me changing my car too regularly, as that gets very expensive. And it is a fixed cost. With PCP it isn't uncommon to find you have no equity at the end of the agreement anyway, or that any equity you have is less than the additional cost above the price of a lease.
That sounds a good deal, I do look at leading too and will on my next car (hopefully m140i) however lease deals were just not even close to comptetive with the pcp deals Bmw are offering at the moment for that particular car. Plus you are tied for the term with a lease, on pcp I can v/t once I pay half total amount payable with no adverse effects. I suppose one of the benefits of pcp and leasing is not much of a risk factor, you pay your money and unless you want out early it's fixed, either with gfv or your payment term.I'd only go for a PCP if I really needed the option to exit early, or I was certain the car would retain more than its predicted future value.
When I leased a Merc E220 I paid £750 deposit and £280 a month for 3 years. Closest the Merc dealers could get on PCP required a £6000 deposit and £500 a month. At the end of the 3 years the car was worth much less than Merc had predicted for the PCP, so any equity would have been gone too.
I like the certainty of leasing. The fixed period means it stops me changing my car too regularly, as that gets very expensive. And it is a fixed cost. With PCP it isn't uncommon to find you have no equity at the end of the agreement anyway, or that any equity you have is less than the additional cost above the price of a lease.
rsbmw said:
Not quite, the finance has to be paid off of course to transfer ownership, but nothing to stop the buyer paying off the finance house directly.
Technically, you wouldn't really hit any problems selling the car and immediately paying off the finance with the proceeds. From the buyers perspective this isn't great as they have no guarantee you will pay off the finance.
Exactly this, speaking to Bmw finance today they said the buyer could even just pay them for the car, get confirmation of payment and I give them the keys. As long as the finance is paid in full.Technically, you wouldn't really hit any problems selling the car and immediately paying off the finance with the proceeds. From the buyers perspective this isn't great as they have no guarantee you will pay off the finance.
There have been a few similar questions recently as posed by the OP where people are looking to get out of either lease or PCP agreements early due to changing circumstances or getting caught up in the latest shiny thing craze. I suspect this will continue to gather pace as people have got buyers fever in the dealer and signed up to something that they maybe haven't fully thought through.
Where you have absolute certainty a lease works great, where you need some flexibility a PCP works well but they are not to be taken lightly as per any other significant financial commitment.
Where you have absolute certainty a lease works great, where you need some flexibility a PCP works well but they are not to be taken lightly as per any other significant financial commitment.
I have been attracted to leasing, very nearly got a fiesta st-3 when they first came out, I was wondering however what are the mileage overrun charges like? At the moment I'm over by 8k miles on my car, but it's only 3.6p per mile, so less than £300 total.
When the dealer asked what mileage we did, I said 12k, Bmw put is down for 8k which made a considerable difference to the monthly payments, so the £300 mileage payment at the end won't actually cost as much if we just contracted 12k miles
When the dealer asked what mileage we did, I said 12k, Bmw put is down for 8k which made a considerable difference to the monthly payments, so the £300 mileage payment at the end won't actually cost as much if we just contracted 12k miles
Turbo-Dan said:
I have been attracted to leasing, very nearly got a fiesta st-3 when they first came out, I was wondering however what are the mileage overrun charges like? At the moment I'm over by 8k miles on my car, but it's only 3.6p per mile, so less than £300 total.
When the dealer asked what mileage we did, I said 12k, Bmw put is down for 8k which made a considerable difference to the monthly payments, so the £300 mileage payment at the end won't actually cost as much if we just contracted 12k miles
It always varies. Depends who's doing the backing. It can range from 3p-12ppm normally. About 6-8 is the norm.When the dealer asked what mileage we did, I said 12k, Bmw put is down for 8k which made a considerable difference to the monthly payments, so the £300 mileage payment at the end won't actually cost as much if we just contracted 12k miles
Jonno02 said:
PCP is never good. It seems good going into a deal, but if you want out before the 4 year term? Be prepared to find a LOT of cash. If you get the itch every few years, lease.
Depends on how you play it. Take a PCP and get the deposit contribution, withdraw from the finance deal and replace with cash or cheaper finance, ideally 0% credit card. Pay back as it suits you.Turbo-Dan said:
I have been attracted to leasing, very nearly got a fiesta st-3 when they first came out, I was wondering however what are the mileage overrun charges like? At the moment I'm over by 8k miles on my car, but it's only 3.6p per mile, so less than £300 total.
When the dealer asked what mileage we did, I said 12k, Bmw put is down for 8k which made a considerable difference to the monthly payments, so the £300 mileage payment at the end won't actually cost as much if we just contracted 12k miles
You may want to check in the contract to see if there is a maximum excess mileage allowance as I know with my VW I was only allowed 10% excess mileage of the agreed terms mileage. When the dealer asked what mileage we did, I said 12k, Bmw put is down for 8k which made a considerable difference to the monthly payments, so the £300 mileage payment at the end won't actually cost as much if we just contracted 12k miles
For example my mileage allowance was 20k over 24 months, so I was only allowed 2k miles excess at 6p per mile. Any more additional miles after that and the rate rose considerably (I think double the rate but cannot remember exactly).
It still may work out cheaper to just pay off the excess mileage charges but it's worth checking up on it as you may have larger charges than you initially thought.
truck71 said:
Depends on how you play it. Take a PCP and get the deposit contribution, withdraw from the finance deal and replace with cash or cheaper finance, ideally 0% credit card. Pay back as it suits you.
Absolutely. Brilliant option if you A)have the cash and B) want to keep the car. Good lease deals are generally cheaper for people who get bored of cars after a few years because they're ordered in bulk for discounts and normally will have manufacturers backing a promotion. That said, sometimes manufacturers offer 0% and through brokers you can get some tasty PCP deals.
Thanks for that I will double check about mileage caps, don't think I actually have one in the contract I had a good read not so long ago, but will double check. I'm in quite a good position as the mini doesn't get used as much these days, and is more of a weekend car than anything as I have a diesel smoker for work commuting. So the excess mileage should even put towards the end.
Edited as I read something wrong in an above comment, so my reply would have made no sense
Edited as I read something wrong in an above comment, so my reply would have made no sense
Edited by Turbo-Dan on Monday 20th February 15:52
Turbo-Dan said:
spookly said:
Au contraire. Lease prices are usually comparable to or less than PCP cost, even with the larger deposit often put into a PCP.
I'd only go for a PCP if I really needed the option to exit early, or I was certain the car would retain more than its predicted future value.
When I leased a Merc E220 I paid £750 deposit and £280 a month for 3 years. Closest the Merc dealers could get on PCP required a £6000 deposit and £500 a month. At the end of the 3 years the car was worth much less than Merc had predicted for the PCP, so any equity would have been gone too.
I like the certainty of leasing. The fixed period means it stops me changing my car too regularly, as that gets very expensive. And it is a fixed cost. With PCP it isn't uncommon to find you have no equity at the end of the agreement anyway, or that any equity you have is less than the additional cost above the price of a lease.
That sounds a good deal, I do look at leading too and will on my next car (hopefully m140i) however lease deals were just not even close to comptetive with the pcp deals Bmw are offering at the moment for that particular car. Plus you are tied for the term with a lease, on pcp I can v/t once I pay half total amount payable with no adverse effects. I suppose one of the benefits of pcp and leasing is not much of a risk factor, you pay your money and unless you want out early it's fixed, either with gfv or your payment term.I'd only go for a PCP if I really needed the option to exit early, or I was certain the car would retain more than its predicted future value.
When I leased a Merc E220 I paid £750 deposit and £280 a month for 3 years. Closest the Merc dealers could get on PCP required a £6000 deposit and £500 a month. At the end of the 3 years the car was worth much less than Merc had predicted for the PCP, so any equity would have been gone too.
I like the certainty of leasing. The fixed period means it stops me changing my car too regularly, as that gets very expensive. And it is a fixed cost. With PCP it isn't uncommon to find you have no equity at the end of the agreement anyway, or that any equity you have is less than the additional cost above the price of a lease.
Autoebid.com are showing target discounts on a base model BMW 140i 5dr manual of 21.1%. So priced at £25,836 against a retail price of £32,735... a saving of £6899.
Are BMW offering a near £7000 discount/contribution on that deal?
Even if you are going the cash or PCP route it is always worth looking at what brokers can do, just to see what kind of discount against retail price should be possible.
For your Mini.... Mini 3dr JCW Chilli/Tech 9+23 lease 10k miles/year - £261.90/month
spookly said:
Turbo-Dan said:
spookly said:
Au contraire. Lease prices are usually comparable to or less than PCP cost, even with the larger deposit often put into a PCP.
I'd only go for a PCP if I really needed the option to exit early, or I was certain the car would retain more than its predicted future value.
When I leased a Merc E220 I paid £750 deposit and £280 a month for 3 years. Closest the Merc dealers could get on PCP required a £6000 deposit and £500 a month. At the end of the 3 years the car was worth much less than Merc had predicted for the PCP, so any equity would have been gone too.
I like the certainty of leasing. The fixed period means it stops me changing my car too regularly, as that gets very expensive. And it is a fixed cost. With PCP it isn't uncommon to find you have no equity at the end of the agreement anyway, or that any equity you have is less than the additional cost above the price of a lease.
That sounds a good deal, I do look at leading too and will on my next car (hopefully m140i) however lease deals were just not even close to comptetive with the pcp deals Bmw are offering at the moment for that particular car. Plus you are tied for the term with a lease, on pcp I can v/t once I pay half total amount payable with no adverse effects. I suppose one of the benefits of pcp and leasing is not much of a risk factor, you pay your money and unless you want out early it's fixed, either with gfv or your payment term.I'd only go for a PCP if I really needed the option to exit early, or I was certain the car would retain more than its predicted future value.
When I leased a Merc E220 I paid £750 deposit and £280 a month for 3 years. Closest the Merc dealers could get on PCP required a £6000 deposit and £500 a month. At the end of the 3 years the car was worth much less than Merc had predicted for the PCP, so any equity would have been gone too.
I like the certainty of leasing. The fixed period means it stops me changing my car too regularly, as that gets very expensive. And it is a fixed cost. With PCP it isn't uncommon to find you have no equity at the end of the agreement anyway, or that any equity you have is less than the additional cost above the price of a lease.
Autoebid.com are showing target discounts on a base model BMW 140i 5dr manual of 21.1%. So priced at £25,836 against a retail price of £32,735... a saving of £6899.
Are BMW offering a near £7000 discount/contribution on that deal?
Even if you are going the cash or PCP route it is always worth looking at what brokers can do, just to see what kind of discount against retail price should be possible.
For your Mini.... Mini 3dr JCW Chilli/Tech 9+23 lease 10k miles/year - £261.90/month
Weren't people getting silly cheap m135i on lease not so long ago? Are these sorts of deals around at the moment?
OP - we are in a similar situation with my wife's 116i Sport. Just under 3 years into a 4 year PCP deal and we are being offered pretty much the final MGFV, so looking at £2k deficit.
The best option all round is just to Voluntarily Terminate the car if you really want to get out of it. For us, this is at month 41 of our agreement (August), so we have to wait until then. You can work out the VT point by taking 50% of the total cost of the car (the amount 'borrowed', which includes the final payment(). We missed out on a really decent deal on a new car as I wasn't prepared to have them stick £2k of negative equity onto the new one.
Just be patient, deals come and go all the time.
It's inevitable that as new cars get bigger and bigger discounts, the PCP deals become less attractive on a shorter term as the final payment gets affected. BMW are one of the worst at this, they discount so heavily now that their future values on PCP are continually dropping each quarter.
The best option all round is just to Voluntarily Terminate the car if you really want to get out of it. For us, this is at month 41 of our agreement (August), so we have to wait until then. You can work out the VT point by taking 50% of the total cost of the car (the amount 'borrowed', which includes the final payment(). We missed out on a really decent deal on a new car as I wasn't prepared to have them stick £2k of negative equity onto the new one.
Just be patient, deals come and go all the time.
It's inevitable that as new cars get bigger and bigger discounts, the PCP deals become less attractive on a shorter term as the final payment gets affected. BMW are one of the worst at this, they discount so heavily now that their future values on PCP are continually dropping each quarter.
Turbo-Dan said:
spookly said:
Turbo-Dan said:
spookly said:
Au contraire. Lease prices are usually comparable to or less than PCP cost, even with the larger deposit often put into a PCP.
I'd only go for a PCP if I really needed the option to exit early, or I was certain the car would retain more than its predicted future value.
When I leased a Merc E220 I paid £750 deposit and £280 a month for 3 years. Closest the Merc dealers could get on PCP required a £6000 deposit and £500 a month. At the end of the 3 years the car was worth much less than Merc had predicted for the PCP, so any equity would have been gone too.
I like the certainty of leasing. The fixed period means it stops me changing my car too regularly, as that gets very expensive. And it is a fixed cost. With PCP it isn't uncommon to find you have no equity at the end of the agreement anyway, or that any equity you have is less than the additional cost above the price of a lease.
That sounds a good deal, I do look at leading too and will on my next car (hopefully m140i) however lease deals were just not even close to comptetive with the pcp deals Bmw are offering at the moment for that particular car. Plus you are tied for the term with a lease, on pcp I can v/t once I pay half total amount payable with no adverse effects. I suppose one of the benefits of pcp and leasing is not much of a risk factor, you pay your money and unless you want out early it's fixed, either with gfv or your payment term.I'd only go for a PCP if I really needed the option to exit early, or I was certain the car would retain more than its predicted future value.
When I leased a Merc E220 I paid £750 deposit and £280 a month for 3 years. Closest the Merc dealers could get on PCP required a £6000 deposit and £500 a month. At the end of the 3 years the car was worth much less than Merc had predicted for the PCP, so any equity would have been gone too.
I like the certainty of leasing. The fixed period means it stops me changing my car too regularly, as that gets very expensive. And it is a fixed cost. With PCP it isn't uncommon to find you have no equity at the end of the agreement anyway, or that any equity you have is less than the additional cost above the price of a lease.
Autoebid.com are showing target discounts on a base model BMW 140i 5dr manual of 21.1%. So priced at £25,836 against a retail price of £32,735... a saving of £6899.
Are BMW offering a near £7000 discount/contribution on that deal?
Even if you are going the cash or PCP route it is always worth looking at what brokers can do, just to see what kind of discount against retail price should be possible.
For your Mini.... Mini 3dr JCW Chilli/Tech 9+23 lease 10k miles/year - £261.90/month
Weren't people getting silly cheap m135i on lease not so long ago? Are these sorts of deals around at the moment?
My Golf R Estate was on one of the limited special deals through VW. They'd have only been making those lease offers to cover a fixed amount of unsold factory production slots - when they are gone they are gone. They put them out as leases, because making the same discounts on purchase could affect the future sales prices in dealerships.
Jefferson Steelflex said:
OP - we are in a similar situation with my wife's 116i Sport. Just under 3 years into a 4 year PCP deal and we are being offered pretty much the final MGFV, so looking at £2k deficit.
The best option all round is just to Voluntarily Terminate the car if you really want to get out of it. For us, this is at month 41 of our agreement (August), so we have to wait until then. You can work out the VT point by taking 50% of the total cost of the car (the amount 'borrowed', which includes the final payment(). We missed out on a really decent deal on a new car as I wasn't prepared to have them stick £2k of negative equity onto the new one.
Just be patient, deals come and go all the time.
It's inevitable that as new cars get bigger and bigger discounts, the PCP deals become less attractive on a shorter term as the final payment gets affected. BMW are one of the worst at this, they discount so heavily now that their future values on PCP are continually dropping each quarter.
This is what they tried doing, he wanted to hide near 4K in the new deal, spoken to him this morning and questioned it and basically he was going to use the discount money to pay the negative in the old deal, and giving less discount on the new. Not really worth it and I will be doing the same as you waiting until next April to VT. hopefully by then as others below have advised Bmw may be looking to shift a few on lease deals! The best option all round is just to Voluntarily Terminate the car if you really want to get out of it. For us, this is at month 41 of our agreement (August), so we have to wait until then. You can work out the VT point by taking 50% of the total cost of the car (the amount 'borrowed', which includes the final payment(). We missed out on a really decent deal on a new car as I wasn't prepared to have them stick £2k of negative equity onto the new one.
Just be patient, deals come and go all the time.
It's inevitable that as new cars get bigger and bigger discounts, the PCP deals become less attractive on a shorter term as the final payment gets affected. BMW are one of the worst at this, they discount so heavily now that their future values on PCP are continually dropping each quarter.
Thanks everyone for your help, when I bought the mini I wasn't aware of this part of the forums but I will 100% be looking for good deals via the knowledgable people on here! And obviously putting back where I can help in other places.
Thanks guys and gals
Gassing Station | Car Buying | Top of Page | What's New | My Stuff