Typical HP Interest Rates From BMW

[Tim330]

I've been quoted some prices on a pcp deal via email. I'm going into a dealers at the weekend to talk further. If I opted instead for HP over 4 years instead of a pcp deal what sort of interest rate could I expect?
The car with options is around 35k, £15k deposit inc px so about £20k to finance.

[mattman]

have you checked personal leasing as an option before signing? am currently looking at new cars at present and leasing seems to be a more affordable option - less deposit and some good deals out there.

I'm working on the theory that i'll give the car back at the end of the PCP anyway so no matter which way I go I'm effectively renting the car anyway

there is a thread in General gassing on good lease deals if that is an option for you

[Wills2]

If it's a new car then they should be able to get to around 5% if it's second hand then the rates won't be brilliant and you'd be better off getting a personal loan from your bank I would expect.

[Tim330]

It would be for a new car, a M235i.

I need to establish if the discount offered only applied to a pcp or if it would apply to HP as well.

I haven't seen the leasing thread. Can you link it here please?

[gizlaroc]

On a new car you should get 4.9%.

However, be careful, if you get 4.9% on a pcp and their usual 9-12% on a HP then go for the PCP.


£35k with £15 down is....

HP 12% £526 a month.

PCP at 4.9% with a £1k balloon at the end is £440 a month.

Don't go paying an extra £3200 just to avoid PCP.

[gizlaroc]

You can contract hire an M235i for £400 a month doing 10k miles a year, that is with £3000 deposit, those figures are including vat.

Do you really want to throw £15,000 at one as a deposit?

[gizlaroc]

BMW are getting stricter about their rates at the moment, some deals on certain models, but in general their rates are not great.

I just got figures from three different dealers on X3's, borrowing roughly £23k with a £12k balloon and they were all near £400 a month, same borrowing from Lombard was a smidge over £300 a month.

[Tim330]

gizlaroc said:

You can contract hire an M235i for £400 a month doing 10k miles a year, that is with £3000 deposit, those figures are including vat.

Do you really want to throw £15,000 at one as a deposit?

Do you have a link to that contract hire? It's cheaper than any I have seen.

Once I've been into the dealer I'll make a spreadsheet with all the options before deciding.

[gizlaroc]

Tim330 said:

Do you have a link to that contract hire? It's cheaper than any I have seen.

Once I've been into the dealer I'll make a spreadsheet with all the options before deciding.

There are shedloads at £340+vat a month on www.contracthireandleasing.com