M4 CP. Settling a PCP the day after taking it out
Discussion
Superlightdaa said:
tuffer said:
It will lose a s
t tonne of money. So despite the initial saving you will still lose a load in depreciation.
Thanks for the advice, but when does a car not lose money. If the GFMV of the car is comparable with the PCP quote then I won't lose the st tonne of money. So despite the initial saving you will still lose a load in depreciation.t tonne of money as you say. Oh and the sky might also fall in, I better have a contingency plan for that one too.OP - would love to hear about the deal you got?
Been looking at used M4's (outright purchase also) and having seen a couple I am wanting to increase budget to a CP. I then come on here and see this deal and now I am thinking whether my dealer would be keen to offer something similar!
Can you give us more info on the car and the deal? I can only assume that for such a vast discount off the RRP the car is specced right up?
Been looking at used M4's (outright purchase also) and having seen a couple I am wanting to increase budget to a CP. I then come on here and see this deal and now I am thinking whether my dealer would be keen to offer something similar!
Can you give us more info on the car and the deal? I can only assume that for such a vast discount off the RRP the car is specced right up?
Pioneer said:
My FA told me to run any loan for min. 3 mths before settling as it can adversely effect my credit rating. I'm a landlord so I have a lot of mortgages, had 999 with Experian for ages now so not sure how much truth is in it. I've taken finance and settled almost immediately with various products just to get a deal and have had no issues.
The simple reason for him saying this is TO GET HIS COMMISSION .dogz said:
Credit scores peddled by Experian, equifax and call credit are a misnomer. What a lender is looking for is evidence that you can manage your credit obligations well.
Each lender will have their own scorecard based on a variety of factors and based on the type of business they want to write. Paying off a loan early may detract some lenders but I’m betting not many if any at all. I’d not get hung up on maintaining a 999 score with Experian or whichever credit reference agency. What matter is paying your obligations on time. Having accounts for many years will the same provider will help this
If it was me I’d take the deal and pay it off as soon as I could. It will not impact your score adversely and I’d say the person saying to stick it out for 3 months is misinformed and actually wrong
^^^^Each lender will have their own scorecard based on a variety of factors and based on the type of business they want to write. Paying off a loan early may detract some lenders but I’m betting not many if any at all. I’d not get hung up on maintaining a 999 score with Experian or whichever credit reference agency. What matter is paying your obligations on time. Having accounts for many years will the same provider will help this
If it was me I’d take the deal and pay it off as soon as I could. It will not impact your score adversely and I’d say the person saying to stick it out for 3 months is misinformed and actually wrong
This.
Most sensible thing I’ve read on here in ages. I’ve worked in retail banking for 27 years, couldn’t agree more with Dogz advice.
Commission hungry sales people are are thing of the past, most financial advice is and has been for a long time fee based.
Persistency is recorded by the FCA so anybody selling a medium term finance agreement that was cancelled after 3 months would be unlikely to stay in the job if it was done repeatedly.
Think about it, it's also unlikely he would keep any commission on a 3,4 or 5 year finance agreement if it were cancelled after only 3 or 4 months. Have some more
Maybe the FA is just giving his client free good advice?
Finally, the suggestion (in CAPITALS) is it's Ok to waste a finance guys time by asking him to set up finance that is not intended to be kept. Anybody who has worked on a commission basis will know how tough it can be, perhaps not you
Persistency is recorded by the FCA so anybody selling a medium term finance agreement that was cancelled after 3 months would be unlikely to stay in the job if it was done repeatedly.
Think about it, it's also unlikely he would keep any commission on a 3,4 or 5 year finance agreement if it were cancelled after only 3 or 4 months. Have some more
Maybe the FA is just giving his client free good advice?Finally, the suggestion (in CAPITALS) is it's Ok to waste a finance guys time by asking him to set up finance that is not intended to be kept. Anybody who has worked on a commission basis will know how tough it can be, perhaps not you
Stever said:
Commission hungry sales people are are thing of the past, most financial advice is and has been for a long time fee based.
Persistency is recorded by the FCA so anybody selling a medium term finance agreement that was cancelled after 3 months would be unlikely to stay in the job if it was done repeatedly.
Think about it, it's also unlikely he would keep any commission on a 3,4 or 5 year finance agreement if it were cancelled after only 3 or 4 months. Have some more Maybe the FA is just giving his client free good advice?
Finally, the suggestion (in CAPITALS) is it's Ok to waste a finance guys time by asking him to set up finance that is not intended to be kept. Anybody who has worked on a commission basis will know how tough it can be, perhaps not you
We as in "Car buyers", want the most we can screw out of these stealers, IF setting up a finance deal which nets us another 5K so be it,and paying off early, I could care less.Persistency is recorded by the FCA so anybody selling a medium term finance agreement that was cancelled after 3 months would be unlikely to stay in the job if it was done repeatedly.
Think about it, it's also unlikely he would keep any commission on a 3,4 or 5 year finance agreement if it were cancelled after only 3 or 4 months. Have some more
Maybe the FA is just giving his client free good advice?Finally, the suggestion (in CAPITALS) is it's Ok to waste a finance guys time by asking him to set up finance that is not intended to be kept. Anybody who has worked on a commission basis will know how tough it can be, perhaps not you
Stever said:
Commission hungry sales people are are thing of the past, most financial advice is and has been for a long time fee based.
Persistency is recorded by the FCA so anybody selling a medium term finance agreement that was cancelled after 3 months would be unlikely to stay in the job if it was done repeatedly.
Think about it, it's also unlikely he would keep any commission on a 3,4 or 5 year finance agreement if it were cancelled after only 3 or 4 months. Have some more Maybe the FA is just giving his client free good advice?
Finally, the suggestion (in CAPITALS) is it's Ok to waste a finance guys time by asking him to set up finance that is not intended to be kept. Anybody who has worked on a commission basis will know how tough it can be, perhaps not you
not long ago a dealer asked me to finance £5k of a car so that they met their finance target, he gave me a big discount and they got their bonuses. I then paid it off a couple of weeks later.Persistency is recorded by the FCA so anybody selling a medium term finance agreement that was cancelled after 3 months would be unlikely to stay in the job if it was done repeatedly.
Think about it, it's also unlikely he would keep any commission on a 3,4 or 5 year finance agreement if it were cancelled after only 3 or 4 months. Have some more
Maybe the FA is just giving his client free good advice?Finally, the suggestion (in CAPITALS) is it's Ok to waste a finance guys time by asking him to set up finance that is not intended to be kept. Anybody who has worked on a commission basis will know how tough it can be, perhaps not you
Stever said:
Commission hungry sales people are are thing of the past, most financial advice is and has been for a long time fee based.
Persistency is recorded by the FCA so anybody selling a medium term finance agreement that was cancelled after 3 months would be unlikely to stay in the job if it was done repeatedly.
Think about it, it's also unlikely he would keep any commission on a 3,4 or 5 year finance agreement if it were cancelled after only 3 or 4 months. Have some more Maybe the FA is just giving his client free good advice?
Finally, the suggestion (in CAPITALS) is it's Ok to waste a finance guys time by asking him to set up finance that is not intended to be kept. Anybody who has worked on a commission basis will know how tough it can be, perhaps not you
Whilst I agree with the above I wonder why BMW would give £5k off for the op taking the finance and not clawback money from the sales guy or dealer, it would make no financial sense. I get that they need a cooling off period but that would normally claw back from the seller to stop mis-selling.Persistency is recorded by the FCA so anybody selling a medium term finance agreement that was cancelled after 3 months would be unlikely to stay in the job if it was done repeatedly.
Think about it, it's also unlikely he would keep any commission on a 3,4 or 5 year finance agreement if it were cancelled after only 3 or 4 months. Have some more
Maybe the FA is just giving his client free good advice?Finally, the suggestion (in CAPITALS) is it's Ok to waste a finance guys time by asking him to set up finance that is not intended to be kept. Anybody who has worked on a commission basis will know how tough it can be, perhaps not you
Caddyshack said:
Whilst I agree with the above I wonder why BMW would give £5k off for the op taking the finance and not clawback money from the sales guy or dealer, it would make no financial sense. I get that they need a cooling off period but that would normally claw back from the seller to stop mis-selling.
it is odd I agree but i suspect it is part of a dealers internal loss leader accounting that they manage to offset against another expected income stream maybe future servicing and warranty work?I just dislike time wasters who couldn't care less about anyone else
Caddyshack said:
Whilst I agree with the above I wonder why BMW would give £5k off for the op taking the finance and not clawback money from the sales guy or dealer, it would make no financial sense.
It might just be a numbers game. A salesman for another brand suggested we took the PCP for the £2K contribution, and then immediately pay it off. Asked him how that makes sense and he said many people who say they're going to pay it off never do. We bought a Honda a while ago - good discounted price but an additional £500 if we took the 0% APR PCP. Salesman told us they want people on the PCP conveyor belt.
Sheepshanks said:
Caddyshack said:
Whilst I agree with the above I wonder why BMW would give £5k off for the op taking the finance and not clawback money from the sales guy or dealer, it would make no financial sense.
It might just be a numbers game. A salesman for another brand suggested we took the PCP for the £2K contribution, and then immediately pay it off. Asked him how that makes sense and he said many people who say they're going to pay it off never do. We bought a Honda a while ago - good discounted price but an additional £500 if we took the 0% APR PCP. Salesman told us they want people on the PCP conveyor belt.
Caddyshack said:
Yeah, that was my guess...people say one thing and then do another?
I forgot to say how cynical the Honda one was - 0% PCP over 2 years, with £500 for taking it. So what wouldn't you? 18mths later they call and can "get us into a new car for the same monthly payment". Took a LOT of questions before the salesman would admit if was over 3 years. And he really did not want to give the GFV - he couldn't understand why I'd want to know as "no-one pays the GFV".
This is the whole point of PCP. Erode any equity the customer has in their car, confuse them with deposits and GFV, get them to focus on the monthlies and make the actual market value of the car a secondary concern.
The whole thing is so lucrative that there are big bonuses every month and if you can catch them at the end of the period they will do stupid discounts on invoice value to hit their finance targets.
For everyone sticking in and getting a good deal on an M car they will have pumped out twenty two litre diesels to people who think they’ve done great getting a grand off list price or a 2% drop on their finance.
The whole thing is so lucrative that there are big bonuses every month and if you can catch them at the end of the period they will do stupid discounts on invoice value to hit their finance targets.
For everyone sticking in and getting a good deal on an M car they will have pumped out twenty two litre diesels to people who think they’ve done great getting a grand off list price or a 2% drop on their finance.
Gassing Station | M Power | Top of Page | What's New | My Stuff