Stick or twist - M240i or M135i

[NickM240i]

Hi guys, long term lurker but first time poster.

Currently I have an m240i, job changed shortly after purchasing so have somewhat exceeded the mileage - currently on 67,000 versus a pro data 42,000.

PCP is due to finish in December, GFV is a little over £14k. Current WBAC / Trade in value is £13,500, perhaps impacted by Covid 19 but can’t see it getting much better over the next 6 months. Car has been great, nice place to munch up the miles and average MPG is 30, includes all types of roads, spirited driving and more relaxed.

Options are to VT the car, pay the £2500 excess miles fee and save the monthly PCP cost - barely driven 100 miles since lockdown and a recent ankle injury means I won’t be driving for the next two months in any case. The VT cost works out to be the same as the monthly payments remaining. Going forwards, I expect my mileage to drop as my employer is embracing the technology so less expectation of face to face client meetings.

My thoughts to VT now are mainly around not driving it for another couple of months. I assume I am likely to be stung with excess mileage even if trading in at the end of the agreement? Assume the value will be the GFV minus the impact of the excess miles?

BMW got in touch about changing cars and can get a factory order m135i, with the plus pack, delivered in September for less than the monthly I’m paying now with a small deposit £1100.

The above only works if VT’ing the current car as want to avoid the £3.5k being wrapped up in to the new deal.

Part of me thinks just VT the car now, pay the excess mileage and enjoy a few months of no payments and then see if deals improve once the true extent of Covid Is felt and the pent up demand subsides?

Apologies for rambling but no mates to discuss the above with over a pint!!

[JackReacher]

The other option is to find out the settlement cost now and sell privately for around that figure, may give you something back or at least lose you less than the VT charges. It does involve the hassle of a private sale, but ive just sold my m240i without issue. Personally, I'd keep the m240i if you are happy with it over a new m135i. Will cost you less to own with reduced depreciation.

[NickM240i]

Thanks, that does make sense. Even as typing the original post, can’t help but think I’m getting myself tied into another long term agreement at probably the wrong time.
Had a quick look at AT, no harm in trying a used sale to minimise the loss.

Left field option, ever heard of a manufacturer accepting less than the GFV as settlement at the end of the term? That would be tempting...

[06andiano]

Possibly accept lower but would be rare, most are paper pushers and you'd be lucky to get onto someone who could negotiate that for you. I would definitely go for the option of handing it back at the end as VT seems to make no sense in your position as it doesn't offer you a saving or buying the car outright with negotiation. You've paid for all that depreciation why not enjoy the car now for very low cost!

[NickM240i]

Good advice - does seem I would be getting rid at the peak of the depreciation curve. If I do hand back at the end, I will still be over the mileage allowance but potentially the depreciation curve might have narrowed.

Thanks for your help

[ZX10R NIN]

If you have the time then I'd try to sell their are people out there buying plus you'll sell yours for more than the GFV.

[stuart_83]

Is it easy enough to sell a car on PCP to a private buyer?

In the same position at the moment with mine - looking at VTing in September when I hit the 50% point, but looking at the market at the moment I could quite easily get enough to pay it off and have a few £k towards my next car.

Also looked at an M135i, but oddly the insurance is ridiculous, double that of my current 440i.

[JackReacher]

I've just sold my m240i privately which was on PCP, and pocketed about £1.5k out of it. My advice would be price it competitively, as there are quite a few out there. It needs to be £1-2k cheaper than a main dealer price. Also be aware, that from paying off the finance it can take 2 days to get confirmation from BMW that it has been paid off. My buyer didn't want to pay off my finance without having the car (fair enough), so we agreed a price, then I paid off the finance with cash I had, waited for confirmation from BMW and then provided that to the buyer who transferred the money. There are risks with that approach, like a buyer pulling out after you have paid it off, but you should be able to find another buyer.