Used car sale - free stuff?
Discussion
daemon said:
Yes, however the total cost to own is £18,500
The cost to own is such an naive way to look at the purchase. Its moronic using a PCP if you want to OWN the car at the end... what you own is something worth £X which owes £X. And if you're saving up over the 4 years to make that final payment, you'd be better off paying larger monthly payments and using an HP... like for like, you'll pay less interest and own the car for less.Referring back to the Haliwell Jones deal I posted ( www.halliwelljones.co.uk/bmw/offers/bmw-118d-sport... ) ... the total cost of ownership over 48 months is as follows..
£3,000 deposit
47 x £219
= £13,293
In most PCP cases, the car is worth thereabouts what the Optional Final Payment, so in this case the £9,500 you owe at the end is cancelled out by the fact you are sitting on an asset worth £9,500.
The used car OP has purchased... the total cost of ownership over 48 months is as follows..
£3,000 deposit
47 x £217
= £13,199
As with the new car, we can assume that the car will be worth about £5,000 at the end which will cancel out the £5k debt it owes.
But once you factor in the 3 MOT's the used car will require, breakdown cover, worse fuel economy, ocassional breakdown etc... the new car is cheaper. And you can add a £425 service pack to the New car which takes care of all routine servicing FOC for 5yrs/50,000miles
2p.
AOK said:
The cost to own is such an naive way to look at the purchase. Its moronic using a PCP if you want to OWN the car at the end... what you own is something worth £X which owes £X. And if you're saving up over the 4 years to make that final payment, you'd be better off paying larger monthly payments and using an HP... like for like, you'll pay less interest and own the car for less.
Referring back to the Haliwell Jones deal I posted ( www.halliwelljones.co.uk/bmw/offers/bmw-118d-sport... ) ... the total cost of ownership over 48 months is as follows..
£3,000 deposit
47 x £219
= £13,293
In most PCP cases, the car is worth thereabouts what the Optional Final Payment, so in this case the £9,500 you owe at the end is cancelled out by the fact you are sitting on an asset worth £9,500.
The used car OP has purchased... the total cost of ownership over 48 months is as follows..
£3,000 deposit
47 x £217
= £13,199
As with the new car, we can assume that the car will be worth about £5,000 at the end which will cancel out the £5k debt it owes.
But once you factor in the 3 MOT's the used car will require, breakdown cover, worse fuel economy, ocassional breakdown etc... the new car is cheaper. And you can add a £425 service pack to the New car which takes care of all routine servicing FOC for 5yrs/50,000miles
2p.
do you think should go ahead with the purchase?Referring back to the Haliwell Jones deal I posted ( www.halliwelljones.co.uk/bmw/offers/bmw-118d-sport... ) ... the total cost of ownership over 48 months is as follows..
£3,000 deposit
47 x £219
= £13,293
In most PCP cases, the car is worth thereabouts what the Optional Final Payment, so in this case the £9,500 you owe at the end is cancelled out by the fact you are sitting on an asset worth £9,500.
The used car OP has purchased... the total cost of ownership over 48 months is as follows..
£3,000 deposit
47 x £217
= £13,199
As with the new car, we can assume that the car will be worth about £5,000 at the end which will cancel out the £5k debt it owes.
But once you factor in the 3 MOT's the used car will require, breakdown cover, worse fuel economy, ocassional breakdown etc... the new car is cheaper. And you can add a £425 service pack to the New car which takes care of all routine servicing FOC for 5yrs/50,000miles
2p.
AOK said:
I'm not qualified to give financial advice. But re-read my last post and see what sounds more attractive to you.
If you don't understand or can't decide, just crack on and buy the used car buddy. Someone needs to buy it!
I do understand it, but im getting a mixture of reviews. I have several people telling me the car is a bargain you got it for a good price get it. Then I have other people saying no dont etc lol the stress!If you don't understand or can't decide, just crack on and buy the used car buddy. Someone needs to buy it!
hassom said:
I do understand it, but im getting a mixture of reviews. I have several people telling me the car is a bargain you got it for a good price get it. Then I have other people saying no dont etc lol the stress!
OP...I'm sure the £16,500 is a good deal, especially if this is confirmed by lots of people telling you this. Unfortunately though, the problem is it sounds like you don't have £16,500 to hand to buy it and take advantage of this 'good' deal you've managed to find. This sucks, (tell me about it!). As such, in your excitement to buy this car and take advantage of this good deal you are taking this good deal, and financing it. The end result of this 'financing' is a £3,000 deposit, £217pm for 4 years and little/nothing to show for it at the end.
Now, that's great. Its the car you wanted and you can (hopefully) afford the payments. But... that finance deal (in my opinion) doesn't compare very favorably when you find out you can get a new car on exactly the same parameters (£3,000 deposit, £219pm for 4 years and little/nothing to show for it at the end).
This will be my last post on this thread, but good luck with everything and go with what you think is best.
AOK said:
OP...
I'm sure the £16,500 is a good deal, especially if this is confirmed by lots of people telling you this. Unfortunately though, the problem is it sounds like you don't have £16,500 to hand to buy it and take advantage of this 'good' deal you've managed to find. This sucks, (tell me about it!). As such, in your excitement to buy this car and take advantage of this good deal you are taking this good deal, and financing it. The end result of this 'financing' is a £3,000 deposit, £217pm for 4 years and little/nothing to show for it at the end.
Now, that's great. Its the car you wanted and you can (hopefully) afford the payments. But... that finance deal (in my opinion) doesn't compare very favorably when you find out you can get a new car on exactly the same parameters (£3,000 deposit, £219pm for 4 years and little/nothing to show for it at the end).
This will be my last post on this thread, but good luck with everything and go with what you think is best.
Thanks mate for your comments I am taking them all inI'm sure the £16,500 is a good deal, especially if this is confirmed by lots of people telling you this. Unfortunately though, the problem is it sounds like you don't have £16,500 to hand to buy it and take advantage of this 'good' deal you've managed to find. This sucks, (tell me about it!). As such, in your excitement to buy this car and take advantage of this good deal you are taking this good deal, and financing it. The end result of this 'financing' is a £3,000 deposit, £217pm for 4 years and little/nothing to show for it at the end.
Now, that's great. Its the car you wanted and you can (hopefully) afford the payments. But... that finance deal (in my opinion) doesn't compare very favorably when you find out you can get a new car on exactly the same parameters (£3,000 deposit, £219pm for 4 years and little/nothing to show for it at the end).
This will be my last post on this thread, but good luck with everything and go with what you think is best.
AOK said:
daemon said:
Yes, however the total cost to own is £18,500
The cost to own is such an naive way to look at the purchase. Its moronic using a PCP if you want to OWN the car at the end... Paying back £15,500 on a loan of £13,500 off-the-top-of-my-head sounds reasonable for a PCP deal - THATS why i asked.
If the residual was £10,000 then the cost to own would be £23,500 which would suggest a VERY high interest rate.
Also, the O/P had put the following :-
hassom said:
£217per month
4 year lease
3 k deposit
total 16500
The total ISNT £16,500 hence why i reiterated the actual TOTAL4 year lease
3 k deposit
total 16500
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