Discussion
I currently have one of the cheap 840i Gran Coupes on lease which is due to head back to the lease co some time in Dec. I understand how the leasing side of things works and how to use it to my advantage. As a result I've enjoyed a couple of great cars for relatively little outlay over the last 5 years.
Unfortunately there aren't any compelling lease deals on anything remotely interesting around (that's been the case for a while) probably thanks to supply constraint on new vehicles keeping prices buoyant - so I'm looking at buying something either outright or, more likely, putting a chunk down plus either personal loan or potentially PCPing something.
I know nothing about what makes a good PCP deal, the pros/cons etc - please could someone educate me a bit before I end up sat in front of a shiny-suited salesperson trying to bamboozle me with numbers...?
As an example, I'm considering something like this 840i convertbile which is up for £50k:
Now even I know 11.9% is clearly a pretty s
t interest rate - are dealers likely to be negotiable on rates etc?
I've put the 'deposit' at £20k (which was the max it would allow me to put in) and that makes a couple of grand difference to the interest on the whole deal. I'd probably want to swap out of it after the 48 months, if not a little earlier so am unlikely to make the final purchase fee. An AUC BMW will come with a full warranty for a year anyway but I'd probably pay to maintain that for peace of mind so long-term running costs over the 48 months shouldn't have any nasty surprises, it should just be the usual consumables.
On the unsecured loan route - I get decent rates for up to £22k (pre-approved @ 2.8%) but anything around £25k+ jumps to rates approaching 9-10% now which is less appealing and means I'd either end up putting in more from savings than I really want to, or looking at a cheaper car (which isn't the end of the world). Of course the benefit of the loan route is that I'd own the car outright at the end of it.
I'd just like to understand the PCP side and what makes it a good or bad deal before making any decision as to whether it's a route that'd be right for me.
Unfortunately there aren't any compelling lease deals on anything remotely interesting around (that's been the case for a while) probably thanks to supply constraint on new vehicles keeping prices buoyant - so I'm looking at buying something either outright or, more likely, putting a chunk down plus either personal loan or potentially PCPing something.
I know nothing about what makes a good PCP deal, the pros/cons etc - please could someone educate me a bit before I end up sat in front of a shiny-suited salesperson trying to bamboozle me with numbers...?
As an example, I'm considering something like this 840i convertbile which is up for £50k:
Now even I know 11.9% is clearly a pretty s
t interest rate - are dealers likely to be negotiable on rates etc?I've put the 'deposit' at £20k (which was the max it would allow me to put in) and that makes a couple of grand difference to the interest on the whole deal. I'd probably want to swap out of it after the 48 months, if not a little earlier so am unlikely to make the final purchase fee. An AUC BMW will come with a full warranty for a year anyway but I'd probably pay to maintain that for peace of mind so long-term running costs over the 48 months shouldn't have any nasty surprises, it should just be the usual consumables.
On the unsecured loan route - I get decent rates for up to £22k (pre-approved @ 2.8%) but anything around £25k+ jumps to rates approaching 9-10% now which is less appealing and means I'd either end up putting in more from savings than I really want to, or looking at a cheaper car (which isn't the end of the world). Of course the benefit of the loan route is that I'd own the car outright at the end of it.
I'd just like to understand the PCP side and what makes it a good or bad deal before making any decision as to whether it's a route that'd be right for me.
Funk said:
I currently have one of the cheap 840i Gran Coupes on lease which is due to head back to the lease co some time in Dec. I understand how the leasing side of things works and how to use it to my advantage. As a result I've enjoyed a couple of great cars for relatively little outlay over the last 5 years.
Unfortunately there aren't any compelling lease deals on anything remotely interesting around (that's been the case for a while) probably thanks to supply constraint on new vehicles keeping prices buoyant - so I'm looking at buying something either outright or, more likely, putting a chunk down plus either personal loan or potentially PCPing something.
I know nothing about what makes a good PCP deal, the pros/cons etc - please could someone educate me a bit before I end up sat in front of a shiny-suited salesperson trying to bamboozle me with numbers...?
As an example, I'm considering something like this 840i convertbile which is up for £50k:
Now even I know 11.9% is clearly a pretty st interest rate - are dealers likely to be negotiable on rates etc?
I've put the 'deposit' at £20k (which was the max it would allow me to put in) and that makes a couple of grand difference to the interest on the whole deal. I'd probably want to swap out of it after the 48 months, if not a little earlier so am unlikely to make the final purchase fee. An AUC BMW will come with a full warranty for a year anyway but I'd probably pay to maintain that for peace of mind so long-term running costs over the 48 months shouldn't have any nasty surprises, it should just be the usual consumables.
On the unsecured loan route - I get decent rates for up to £22k (pre-approved @ 2.8%) but anything around £25k+ jumps to rates approaching 9-10% now which is less appealing and means I'd either end up putting in more from savings than I really want to, or looking at a cheaper car (which isn't the end of the world). Of course the benefit of the loan route is that I'd own the car outright at the end of it.
I'd just like to understand the PCP side and what makes it a good or bad deal before making any decision as to whether it's a route that'd be right for me.
There might be "some" negotiation in that rate, or the dealership may be able to source a cheaper finance company OR you could find one yourself? Theres various companies do it if you google.Unfortunately there aren't any compelling lease deals on anything remotely interesting around (that's been the case for a while) probably thanks to supply constraint on new vehicles keeping prices buoyant - so I'm looking at buying something either outright or, more likely, putting a chunk down plus either personal loan or potentially PCPing something.
I know nothing about what makes a good PCP deal, the pros/cons etc - please could someone educate me a bit before I end up sat in front of a shiny-suited salesperson trying to bamboozle me with numbers...?
As an example, I'm considering something like this 840i convertbile which is up for £50k:
Now even I know 11.9% is clearly a pretty s
t interest rate - are dealers likely to be negotiable on rates etc?I've put the 'deposit' at £20k (which was the max it would allow me to put in) and that makes a couple of grand difference to the interest on the whole deal. I'd probably want to swap out of it after the 48 months, if not a little earlier so am unlikely to make the final purchase fee. An AUC BMW will come with a full warranty for a year anyway but I'd probably pay to maintain that for peace of mind so long-term running costs over the 48 months shouldn't have any nasty surprises, it should just be the usual consumables.
On the unsecured loan route - I get decent rates for up to £22k (pre-approved @ 2.8%) but anything around £25k+ jumps to rates approaching 9-10% now which is less appealing and means I'd either end up putting in more from savings than I really want to, or looking at a cheaper car (which isn't the end of the world). Of course the benefit of the loan route is that I'd own the car outright at the end of it.
I'd just like to understand the PCP side and what makes it a good or bad deal before making any decision as to whether it's a route that'd be right for me.
Cheap loan plus your deposit would be the best way to get in to the car you want.
But, as has been said, £20K+ would get you something very interesting for outright cash. You could put that as a separate thread and see what people suggest. ZX10RNIN usually comes along with some great options, as do many others.
So, in that example you are :-
For a £50k car
Paying £20k deposit
£459 per month for 48 months, or £22k
So we are at £42k and 4 years down and you don’t own the car.
You now need to pay a further £20k to own it.
Or put if another way the monthly rental is £875.00 for a car that your don’t own, assuming you hand back at the end.
And if you decide to buy it at the end for £20k, that will be the ox value, so no gain (possibly)
Funk.
Use the £20k and buy a car outright.
For a £50k car
Paying £20k deposit
£459 per month for 48 months, or £22k
So we are at £42k and 4 years down and you don’t own the car.
You now need to pay a further £20k to own it.
Or put if another way the monthly rental is £875.00 for a car that your don’t own, assuming you hand back at the end.
And if you decide to buy it at the end for £20k, that will be the ox value, so no gain (possibly)
Funk.
Use the £20k and buy a car outright.
Forget PCP in your situation. Put the max cash in, take the dealer finance if they offer a contribution (discount) whatever the interest rate, pay off the dealer finance with a personal loan with a duration that meets your monthly payment preference. You own the car from day one and can sell it whenever you want without having to consider mileage or the odd cat scratch 
Generally, these days there is no negotiation on interest rate with dealers
The FCA (or whatever they were/are now) decided that the best way to stop *some* people being screwed over by high interest rates was to ensure that *everyone* got screwed over by high interest rates
Find your own finance in your example. Personal loans remain relatively cheap for now, so add the deposit you have to the biggest loan you can stomach and buy something at that price.
The FCA (or whatever they were/are now) decided that the best way to stop *some* people being screwed over by high interest rates was to ensure that *everyone* got screwed over by high interest rates
Find your own finance in your example. Personal loans remain relatively cheap for now, so add the deposit you have to the biggest loan you can stomach and buy something at that price.
Thanks all. I'll take a look at proper funding such as Oracle; I'd only really looked at a couple of examples on Clearscore/Experian to get an idea on rates etc.
I don't really want to put too much more in out of savings though, perhaps I'll revise the cars I'm thinking about a bit. £35-40k gets me into a nice M4...
I don't really want to put too much more in out of savings though, perhaps I'll revise the cars I'm thinking about a bit. £35-40k gets me into a nice M4...
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