BMW HP and Contribution Advice

[razor11]

Mrs is about to buy a new BMW 4 series convertible. She's been offered Hire Purchase at 2.9% APR and a £2k deposit contribution. Alternatively, she could afford to buy outright.

Having never taken out HP, grateful for a couple of questions answered:

1. If she takes the minimum HP loan amount to secure the deposit contribution, any idea when she can pay off the owed HP balance? Any early repayment penalties to pay? (I cannot work it out from their website).

2. Is a £2k contribution the normal amount?

3. Any general thoughts on whether you'd HP if you could buy outright.

Much appreciated.

[apotts]

Is that just 2k off list price?

https://broadspeed.com/new_cars/BMW/4-Series/Choos...

[Pioneer]

3. Will the monthly depreciation be more than the monthly payments? I always look at the total overall cost to buy, run and sell. The gamble is how accurate your guess at a return is when you come to sell. The GFV that BMW give is a good figure to work with. If the money can't work harder elsewhere I would normally buy outright, unless it was something like a 7 where they depreciate so fast. Then leasing is a no-brainer.

[eztiger328]

razor11 said:

Mrs is about to buy a new BMW 4 series convertible. She's been offered Hire Purchase at 2.9% APR and a £2k deposit contribution. Alternatively, she could afford to buy outright.

Having never taken out HP, grateful for a couple of questions answered:

1. If she takes the minimum HP loan amount to secure the deposit contribution, any idea when she can pay off the owed HP balance? Any early repayment penalties to pay? (I cannot work it out from their website).

2. Is a £2k contribution the normal amount?

3. Any general thoughts on whether you'd HP if you could buy outright.

Much appreciated.

Hi I'm in a similar position to you (new to HP aswell) but i'm looking at a 15 plate delivery miles M135i.

With regard to:

1. You can request a settlement figure any time you want though apparently dealers like you to wait a few months so they dont lose their commission. Repayment penalties are now capped as far as I'm aware though i don't know the specifics regarding BMW finance as i haven't ventured that far yet. From research i think its capped at 2 months or 1% of the outstanding balance. There may also be an admin charge aswell.

2. From looking at sites such as Coast 2 Coast £2k seems a bit low, maybe that's due to the lower APR on the finance?


3. I could buy the car I want outright however that would mean I'd have to raid my life savings and tie it up in the car which is something I'm not really keen on doing. If I do buy the car I'll save up around 50% of the price over the next 6 months of earnings and then take the rest on 48 month finance. This would leave my savings intact and leave me with a small monthly payment which wont prevent me saving up the remaining balance and ending the finance 12 months down the line saving me 3 years of interest.

[ratty6464]

Just use finance to get the best deal possible on list price, then clear the balance during the 14 day cooling off period if your aim is to own it outright.

[razor11]

Thanks all, appreciate the insights and advice.

Deal done: 435d Convertible with ALL bells and whistles. LCI car.

Happy with the price and HP deal (which, as suggested, we can pay off if we choose later).

...oh, and car had to be in my name for finance reasons, so in theory, I could get to drive it.....fat chance!

Cheers

Now she just has to be patient until end-May forecast delivery.....