BMW Select HP

[ChrisOB1]

Hi PH Masses, I needed a fairly quick answer on this so apologies Mods for it not being in the BMW section.

Im looking at getting a 335d coupe, 2008, 38k on the clock. On forecourt for £21k. As I have a car allowance from work I am looking at the BMW select finance package. Basically BMW guarantee a price for the car after four years which is about £7k. This becomes either the final balloon or you hand the car back. I am putting down £3k. The monthly payments over 4 years are £430 (approx).

My question is: is this a good deal, anybody know how much I could push BM on this for a better deal and also is the guarantee price set by BM and not the dealership as claimed.

Not dealt with Financing before so want to make sure im not getting done! Also please dont shout at me for getting a diesel I will be doing a lot of miles but enjoy a good jaunt at the weekend this seems to fit the bill on both counts but happy to also hear alternatives….

Many Thanks

[Fox-]

You are effectively borrowing £11,000 (£21000 - £7000 balloon - £3000 deposit) yet over the 4 years you will pay back a staggering £20,000.

That is so bad a deal I don't even know where to start. I'd be expecting monthly payments closer to £250ish with that sort of baloon and deposit surely?

Why not borrow £18,000 from your bank over the 5 years @ £330ish a month, difference being at the end you'll own the car outright? Or at the end of year 4 you'll owe far far less than the cars value?

Edited by Fox- on Wednesday 6th October 22:36

[edo]

So keeping the car will cost you over £30k. Just leasing it will cost you £23,600, and nothing to show for it. Seems a st deal to me.

[frosted]

Did the op misplaced the calculator ?
Seriously now , you should pay around 550 -650per month to buy it out right in 3 years

[edo]

Lets say you borrow the 18k shortfall from a bank. This would cost (according to moneysupermarket.com) around £442 PM - so £21k (i.e. the finance costs you 3k). You still put down £3k, and after 4 years, you have spent £24k instead of THIRTY, and the car is YOURS with no balloon, to sell.

[ChrisOB1]

Thanks Fox I agree its a sh!t deal, hence the post, i prob phrased it wrong whilst speed typing, suppose I really wanted to know if people have used the example you have highlighted to get bm to flex? The bank was the next port of call but felt if it could all be arranged in house it would save time & effort on my part... i.e get it all sorted in house drive the car away at the weekend....

[edo]

ChrisOB1 said:

Thanks Fox I agree its a sh!t deal, hence the post, i prob phrased it wrong whilst speed typing, suppose I really wanted to know if people have used the example you have highlighted to get bm to flex? The bank was the next port of call but felt if it could all be arranged in house it would save time & effort on my part... i.e get it all sorted in house drive the car away at the weekend....

Show them the moneysupermarket deal and ask them to match it. They will.

If not - get the loan, and buy a car privately - like:

http://www.autotrader.co.uk/classified/advert/2010...

[frosted]

I found it very hard to get a bank loan , my gf tried to get one for me and she couldn't do it either ( she has never been late with anything in her life )

I had to get through blackhorse , which is costing me about 2k extra over 3 years

[rallycross]

Those figures are eyewatering and at the end of it you have nothing to show for it.

I'd just use the £3k deposit top it up with a small loand and buy something cheaper car and run it for a while eg

http://www.pistonheads.com/sales/2043596.htm

[homerjay]

ChrisOB1 said:

Hi PH Masses, I needed a fairly quick answer on this so apologies Mods for it not being in the BMW section.

Im looking at getting a 335d coupe, 2008, 38k on the clock. On forecourt for £21k. As I have a car allowance from work I am looking at the BMW select finance package. Basically BMW guarantee a price for the car after four years which is about £7k. This becomes either the final balloon or you hand the car back. I am putting down £3k. The monthly payments over 4 years are £430 (approx).

My question is: is this a good deal, anybody know how much I could push BM on this for a better deal and also is the guarantee price set by BM and not the dealership as claimed.

Not dealt with Financing before so want to make sure im not getting done! Also please dont shout at me for getting a diesel I will be doing a lot of miles but enjoy a good jaunt at the weekend this seems to fit the bill on both counts but happy to also hear alternatives….

Many Thanks

without reading other replies that seem expensive.

whats the rate, i had problem negotating rates with bmw, because they are apparantly limited to what the computer tells them.

i bought 08 123d for 19250 with 500 deposit, 11k (i think) GFV then 375pm at 9.8%ish over 36months

i think what fukcin you over here is the GFV.

and i only went ahead because the car was like new, with 4k on the clock and most extras.




and i tried to buy a 335i a few months later for around 22k iirc and he came back with a similar deal to yours (without deposit) and just would not drop below £460 no matter how hard i pushed, so i walked.

Edited by homerjay on Thursday 7th October 09:52

[MarJay]

Well I've just taken out BMW select on a 130i, and I put down £2500, and am paying back (including the balloon) the asking price of the car. This means its going to cost me £2500 for the loan.

This was a much better deal than the first BMW select quote I had which had higher monthly payments and a much larger deposit. I'd suggest going to a different dealer and asking them, as the finance quotes appear to be variable.

I looked at a loan and could *just* about get a loan for the same monthly payment for 10k (putting down a much larger deposit) but the APR was a lot greater than what the BMW select worked out to be, and it was over a much longer period of time.

Its not the best value PCP finance deal in the world, but as I said it appears to vary from dealer to dealer and (for me) it worked out better than a loan.

[missing the VR6]

On a PCP you don't have nothing to show at the end as long as you stick within the mileage constraints and the condition of the car is commesurate with the age and mileage you should find there's some equity as long as you PX or sell back to the dealer as opposed to just handing the car back and walking away.
Might be worth asking the dealer for a Hire Purchas quote.

[matc]

OP can you re-check the figures, if you post the exact ones I can work out the finance rate they're charging you. Based on what you've put at the moment it makes it 10% flat (19.8% APR) which is ridiculous!

[ChrisOB1]

Hi Guys thanks for your feedback I had a fun afternoon at the dealership and I have to be fair to them when I went back and said they have to work a lot harder for my business they did. We finally settled on the following deal:

BMW 335d £21500 (08reg) (was up at £22500 so got them down as well)

Deposit paid £1,750
4 years monthly payments £365 a month
Guaranteed balloon £6500 or PX price. (PX price would obviously be increased if it was worth more which it will be!)

Total price paid over four years £25,770 (& i Own the car)

This also includes maintenance till Dec 2013 (free servicing)
18 Months warranty
New Mats and Road Tax (12 months)

I looked at personal loans and some were about £1000 cheaper but big early redemption penalties where as with BM no early redemption charges.

I pick the car up on Sunday wipeeeee!

(Now i am sure some will think I have been shafted but seriously trying to get finance at present is v v v difficult! and the APR's are rubbish) Even when quoted 7.5% when you get into it it goes up!!) Therefore hoping I got a good deal.........

[Wills2]

What APR is that?

I've used select before on a Z4 and it cost me the list price on the car i.e it was up at 39k and cost me 39k, so I paid 3-4k on interest over 3 years.

From what I understand BMW purchase there own money from the markets to finance the select programme (I could be wrong but read back in 2008 that they were)

With the 1 year LIBOR at .78% the banks and finance companies are taking the P*ss at the moment.

[matc]

ChrisOB1 said:

Hi Guys thanks for your feedback I had a fun afternoon at the dealership and I have to be fair to them when I went back and said they have to work a lot harder for my business they did. We finally settled on the following deal:

BMW 335d £21500 (08reg) (was up at £22500 so got them down as well)

Deposit paid £1,750
4 years monthly payments £365 a month
Guaranteed balloon £6500 or PX price. (PX price would obviously be increased if it was worth more which it will be!)

Total price paid over four years £25,770 (& i Own the car)

This also includes maintenance till Dec 2013 (free servicing)
18 Months warranty
New Mats and Road Tax (12 months)

I looked at personal loans and some were about £1000 cheaper but big early redemption penalties where as with BM no early redemption charges.

I pick the car up on Sunday wipeeeee!

(Now i am sure some will think I have been shafted but seriously trying to get finance at present is v v v difficult! and the APR's are rubbish) Even when quoted 7.5% when you get into it it goes up!!) Therefore hoping I got a good deal.........

Congrats, looks like a good deal to me; works out sub 10% APR on my calculator at work.

[homerjay]

matc said:

ChrisOB1 said:

Hi Guys thanks for your feedback I had a fun afternoon at the dealership and I have to be fair to them when I went back and said they have to work a lot harder for my business they did. We finally settled on the following deal:

BMW 335d £21500 (08reg) (was up at £22500 so got them down as well)

Deposit paid £1,750
4 years monthly payments £365 a month
Guaranteed balloon £6500 or PX price. (PX price would obviously be increased if it was worth more which it will be!)

Total price paid over four years £25,770 (& i Own the car)

This also includes maintenance till Dec 2013 (free servicing)
18 Months warranty
New Mats and Road Tax (12 months)

I looked at personal loans and some were about £1000 cheaper but big early redemption penalties where as with BM no early redemption charges.

I pick the car up on Sunday wipeeeee!

(Now i am sure some will think I have been shafted but seriously trying to get finance at present is v v v difficult! and the APR's are rubbish) Even when quoted 7.5% when you get into it it goes up!!) Therefore hoping I got a good deal.........

Congrats, looks like a good deal to me; works out sub 10% APR on my calculator at work.

i still believe 10% is high, but is it even possible to get much lower on used car finance

[missing the VR6]

Don't forget with dealer finance the APR's are higher due to the fee's, set up fee and option to purchase fee. As a consequence you do get a regulated agreement which gives you more protection, as opposed to a bank loan which wouldn't.

[homerjay]

they usually give the apr before and after the fees don't they? Just to confuse matters.

So you think ooh a got a good deal, they add the fees then ohh no I didn't get a great deal.

[homerjay]

ive just be checking out bmw auc cars and the finance rates seem to have gone through the roof!

anything from 13.5% to 15.9%!

wtf is going on?

as far as im concerned it need to be single figures.