Finance %

[simkin911]

Just returned a lease at Xmas time and I’d been looking at options over recent months - to buy outright, use finance but also had looked around for another lease. At the local BMW dealer I’ve watched as some new car stock has sat around for literally months. Finance deals seemed to be model specific and ranging from 3.9% to 4.9% and 5.9-6.9% etc. Now seems to be 9.9% across the board. Audi seems to be 10%+ based on DriveTheDeal - previously 6-7%.

Do the finance houses change % monthly or whatever? If cars sitting around for months at 3.9% go unsold, 9.9% won’t help. Question is for my interest only. However, 9.9% for BMW seems more akin than to used car finance.

[SteveR1979]

Things have changed.

The rates you're seeing are the new norm.

They just add another year to the term to hide it

[Wills2]

BMW AUC finance has always been expensive no change there.

[cossy400]

Wills2 said:

BMW AUC finance has always been expensive no change there.

THIS.

When we financed our X3 he asked whether we d need finance and id already got a quote from the bank, told him this and he said ill not bother trying then.

So they know they are not in the ballpark, but then thats begs the question to me anyway why arent they trying to compete?

[Dingu]

cossy400 said:

THIS.

When we financed our X3 he asked whether we d need finance and id already got a quote from the bank, told him this and he said ill not bother trying then.

So they know they are not in the ballpark, but then thats begs the question to me anyway why arent they trying to compete?

Just because you have the knowledge to seek a better rate doesn’t mean everyone does.

They’ll sell loads at 9%. Why compete with the rate you got and take a bath on the profit of all the sales they already have to gain a small amount of additional business?

[wyson]

What are their deposit contributions like? GFV? There are 3 parts to this equation.

[simkin911]

As an example, for an x3. Pre NY, this was 5.9%.

[Wills2]

cossy400 said:

Wills2 said:

BMW AUC finance has always been expensive no change there.

THIS.

When we financed our X3 he asked whether we d need finance and id already got a quote from the bank, told him this and he said ill not bother trying then.

So they know they are not in the ballpark, but then that begs the question to me anyway why aren't they trying to compete?

Yeah they have always been around 9-10% I think some are as high as 13-14% now, I did ask the sales manager at my local BMW dealer that question but he just used to say it's better to find the cash from elsewhere than finance a used car from us (never understood it myself) but it does make the new cars look more appealing on the lower APRs

[skyebear]

Looking at various BMWs since December and their rates on new cars have been 8.9 - 9.9% with used ranging from 9.9 - 13.9%. They were offering promos on their electric range (new cars) at 7.9% but that was as low as I saw.

[simkin911]

Strange. I saw 3.9% for M235i, 4.9% on outgoing X3 and also 5.9% on 3 Series Touring. All new.

[simkin911]

This was 24th Nov.

[bankerscum]

I'd get the bus before paying 9.9% as for 13%, dream on.

[Edible Roadkill]

simkin911 said:

As an example, for an x3. Pre NY, this was 5.9%.

Is that £14k of interest payments lol that’s mental, if people happy to pay that then I guess there’s no reason for them not to charge it.

[basherX]

Edible Roadkill said:

simkin911 said:

As an example, for an x3. Pre NY, this was 5.9%.

Is that £14k of interest payments lol that’s mental, if people happy to pay that then I guess there’s no reason for them not to charge it.

So the OTR is £53k and under this deal you put up £45k and after 4 years they’ll deign to sell it to you for a further £22k?

Wow.

[skyebear]

Same X3 deal today.

[GG89]

simkin911 said:

As an example, for an x3. Pre NY, this was 5.9%.

Horrendous deal in my opinion.

[Deep Thought]

simkin911 said:

Just returned a lease at Xmas time and I’d been looking at options over recent months - to buy outright, use finance but also had looked around for another lease. At the local BMW dealer I’ve watched as some new car stock has sat around for literally months. Finance deals seemed to be model specific and ranging from 3.9% to 4.9% and 5.9-6.9% etc. Now seems to be 9.9% across the board. Audi seems to be 10%+ based on DriveTheDeal - previously 6-7%.

Do the finance houses change % monthly or whatever? If cars sitting around for months at 3.9% go unsold, 9.9% won’t help. Question is for my interest only. However, 9.9% for BMW seems more akin than to used car finance.

Really?

Practically all of the offers across their range are 3.9% to 5.9%?

https://offers.bmw.co.uk/

[Deep Thought]

Wills2 said:

BMW AUC finance has always been expensive no change there.

He was referencing new though. Yes, AUC finance has been silly high for a long time. Its not hard to pay £10K in interested charges on a relatively modest used BMW.

[Jamescrs]

Bought my last two cars from BMW as AUC from main dealers and on each occasion I’ve arranged my own finance in advance with bank loans. The dealers have never bothered to try selling me finance as they know they can’t compete.

I wonder if they can sell the rates to someone with a less than perfect credit rating as the finance is secured against the car as an asset?

[Wills2]

Deep Thought said:

Wills2 said:

BMW AUC finance has always been expensive no change there.

He was referencing new though. Yes, AUC finance has been silly high for a long time. Its not hard to pay £10K in interested charges on a relatively modest used BMW.

His APRs bore no relation to the vast amount of current deals on almost all the new cars, current rates are from 3.9% to 5.9% inc M cars so I presumed he must have got confused and meant AUC.

Good job you arrived to save the day.