BMW finance.....

[W12GT]

Has anyone noticed that BMW are no longer offering good PCP rates? I’ve called about a few i8’s I’ve been interested in. Thing is the numbers just don’t stack up anymore. Last time I bought a used BMW I got 5.9%, however as soon as the lockdown started to ease BMW Alphera have set 8.9% is the absolute lowest they will give.

I just don’t want to buy a car with battery outright as who know what it will be worth in 2 years time!

The dealers I have spoken to have said it is absolutely killing them and have got customers walking away left right and centre.

So other than absolute greed what could be the driver for this? Are they trying to shift a huge stockpile of new cars that are sitting around and keep the factories going? I understand they are offering 0.0%-2.9% on new cars.

That said the dealers are going to have to significantly reduce their screen prices to get people taking on finance again.

[Geffg]

Having exactly the same myself with Bmw. Last one I got they done a good rate and willing to negotiate a deal, now none seem to be able to do any deals at all. Low price on px and not shifting much on apr.
Been looking at Lloyd’s as they do pcp finance at 4.5%.

[W12GT]

BMW just don’t seem to care about their franchises or customers anymore. I’m beginning to wonder if they are actually either in trouble or have so much banked that they just don’t give a hoot. Also is it because of Brexit - encouragement to buy new cars ie generate cash for BMW central rather than used at local level?

The dealers are not happy about it - to a point they have suggested I go to a bank to do PCP - that’s desperate and I wonder if they can go to other finance houses to source competitive funding?

[blacksun80]

They have 2.9% deals on M cars up to 18 months...

[Pioneer]

At those rates, cash is your best option! If you're going for one 2+ years old I'd say an i8 is a fairly good call depreciation wise. Unique car, prod. has stopped and battery has a 10yr warranty. Always going to be fairly desirable, limited prod. run to the norm etc.

[frazzle76]

I got a great deal on a used 6 series - but it was the screen price rather than pcp.

[mike9009]

Demand for second hand cars has increased dramatically post lockdown.

Perhaps driving the finance and prices upwards....

[as7920]

Compare BMW used APR to Audi, Jaguar and Mercedes new APR. Not much difference.

[W12GT]

as7920 said:

Compare BMW used APR to Audi, Jaguar and Mercedes new APR. Not much difference.

Yes so they are racketeering....

Jaguar have always been ridiculously expensive to finance as they depreciate so quickly so that can almost be discounted.

[Sir_Dave]

W12GT said:

Has anyone noticed that BMW are no longer offering good PCP rates? I’ve called about a few i8’s I’ve been interested in. Thing is the numbers just don’t stack up anymore. Last time I bought a used BMW I got 5.9%, however as soon as the lockdown started to ease BMW Alphera have set 8.9% is the absolute lowest they will give.

Just go aftermarket, plenty of brokers that will offer far less than 8.9%
The issue at the moment is that the future values/balloons have dropped massively.
My funders will only go to 80% of CAP Clean at the moment for example, where it used to be 90-95% depending on brand.

Edited by Sir_Dave on Monday 3rd August 10:45

[DiamondLights]

a lot of this comes down to FCA requirements on treating customers fairly.

They can't give some bloke in Stoke a 2.5% PCP rate and charge someone in London a 7% rate easily anymore, otherwise the FCA come down on them.