BMW Financial Services - Part Exchanging
Discussion
Hi,
I hope I dont sound too naive here but looking for some direction.
I have a 09 118D M Sport which I bought 6 months old - in May(ish this year). It is my first car and love it. I bnought the car on BMW Select which is HP agreement.
In the agreement it states that in one year you can hand the car back as long as you pay the outstanding amount of finance, similarly in 2, 4. I also know about the thirds and half rule on a HP agreement.
If I was to part-exchange the car in one year, for A 123 (ideally) would I have to buy the new car and then settle finance on the old one, two agreements, or can it be a sort of amended agreement, where the part exchange price comes of the new car price and any difference is paid at that point before agreeing a new agreement? (If you can follow my logic)
I have got a new job and I am hammering the miles well above the agreement, I phoned to change the average mileage per year, but there was a big amendment fee, so felt if I could part exchange, and get another car, and put a higher mileage on this one, rather than be putting off a big payment of milage in a few years down the road. And hopefully the insurance costs will have came down due to hopefully having some no claims bonus.
I bought the car for £16995 - and looking at part exchange prices for an 18 month 118d M Sport, was coming in at around 14.5-15K - which is more than my outstanding finance (except over mileage payment and im sure some fees).
Thanks,
I hope I dont sound too naive here but looking for some direction.
I have a 09 118D M Sport which I bought 6 months old - in May(ish this year). It is my first car and love it. I bnought the car on BMW Select which is HP agreement.
In the agreement it states that in one year you can hand the car back as long as you pay the outstanding amount of finance, similarly in 2, 4. I also know about the thirds and half rule on a HP agreement.
If I was to part-exchange the car in one year, for A 123 (ideally) would I have to buy the new car and then settle finance on the old one, two agreements, or can it be a sort of amended agreement, where the part exchange price comes of the new car price and any difference is paid at that point before agreeing a new agreement? (If you can follow my logic)
I have got a new job and I am hammering the miles well above the agreement, I phoned to change the average mileage per year, but there was a big amendment fee, so felt if I could part exchange, and get another car, and put a higher mileage on this one, rather than be putting off a big payment of milage in a few years down the road. And hopefully the insurance costs will have came down due to hopefully having some no claims bonus.
I bought the car for £16995 - and looking at part exchange prices for an 18 month 118d M Sport, was coming in at around 14.5-15K - which is more than my outstanding finance (except over mileage payment and im sure some fees).
Thanks,
It's very straight forward really...
- Go and negotiate PX price for your car against a new one.
- Get settlement figure from finance co.
- Subtract settlement figure from PX figure, this is your remaining equity.
- Use remaining equity as deposit for next car.
The dealer you px the car to will sort out the existing finance settlement too.
- Go and negotiate PX price for your car against a new one.
- Get settlement figure from finance co.
- Subtract settlement figure from PX figure, this is your remaining equity.
- Use remaining equity as deposit for next car.
The dealer you px the car to will sort out the existing finance settlement too.
Thanks for the replies,
Thought it was that simple but concerned as it was a hire purchase you owned it to someone else and the dealer wouldn't be able to do anything and all that.
Yeah, I'm doing more miles than my agreement and will have an excess mileage to pay for; bit would rather get a new agreement with a new car and a higher mileage than keep existing car and make a change to mileage, as costs a fair bit to change your agreement.
I was only thinking about this now as a service is coming up and didn't know to buy 5 year or just pay as you go with the service; so will pay for a service and will part exchange in 9 months.
Thought it was that simple but concerned as it was a hire purchase you owned it to someone else and the dealer wouldn't be able to do anything and all that.
Yeah, I'm doing more miles than my agreement and will have an excess mileage to pay for; bit would rather get a new agreement with a new car and a higher mileage than keep existing car and make a change to mileage, as costs a fair bit to change your agreement.
I was only thinking about this now as a service is coming up and didn't know to buy 5 year or just pay as you go with the service; so will pay for a service and will part exchange in 9 months.
sinizter said:
Yes. Or you could put a little more money in and increase the deposit.
This. 
Always try and keep ahead of the depreciation/total amount of debt IMO. It just gives you the freedom to sell the car and walk away no matter what and without f
king your credit rating. I'd want to put at least 20% deposit into a car thats £15k.
Not sure I've understood what you mean with the service options?
Yeah,
Would ideally wanting to be putting a lump down, so that im ahead in car value against the finance value.
I am due a service on the car as its around 18000 miles, went to see what needed done and said that it needs £200ish worth of service just now, or could buy 5 years service for £610.
If I would not be able to part exchange easily in 1 year I would maybe think about keeping the car the length of the agreement and as such would be better value to buy the service pack.
If I pay for this service - the next one it needs is in another 18000 miles, so I shouldnt reach that for another 2 calender years - based upon my current driving (I know it can change being condition based) so would not bother buying the service pack as wouldnt get value out of it
Would ideally wanting to be putting a lump down, so that im ahead in car value against the finance value.
I am due a service on the car as its around 18000 miles, went to see what needed done and said that it needs £200ish worth of service just now, or could buy 5 years service for £610.
If I would not be able to part exchange easily in 1 year I would maybe think about keeping the car the length of the agreement and as such would be better value to buy the service pack.
If I pay for this service - the next one it needs is in another 18000 miles, so I shouldnt reach that for another 2 calender years - based upon my current driving (I know it can change being condition based) so would not bother buying the service pack as wouldnt get value out of it
eco21 said:
Yeah,
Would ideally wanting to be putting a lump down, so that im ahead in car value against the finance value.
I am due a service on the car as its around 18000 miles, went to see what needed done and said that it needs £200ish worth of service just now, or could buy 5 years service for £610.
If I would not be able to part exchange easily in 1 year I would maybe think about keeping the car the length of the agreement and as such would be better value to buy the service pack.
If I pay for this service - the next one it needs is in another 18000 miles, so I shouldnt reach that for another 2 calender years - based upon my current driving (I know it can change being condition based) so would not bother buying the service pack as wouldnt get value out of it
So you are doing approx 9k per year and it's service intervals are 18k miles (thus every 2 years.) I'd just get it done now for the £200 and then worry about the rest as and when. Would ideally wanting to be putting a lump down, so that im ahead in car value against the finance value.
I am due a service on the car as its around 18000 miles, went to see what needed done and said that it needs £200ish worth of service just now, or could buy 5 years service for £610.
If I would not be able to part exchange easily in 1 year I would maybe think about keeping the car the length of the agreement and as such would be better value to buy the service pack.
If I pay for this service - the next one it needs is in another 18000 miles, so I shouldnt reach that for another 2 calender years - based upon my current driving (I know it can change being condition based) so would not bother buying the service pack as wouldnt get value out of it
eco21 said:
Also,
If you take the car to a different dealer than the one you purchased from - can they see the price you paid as its AUC
Price you paid should be totally irrelevant. If you take the car to a different dealer than the one you purchased from - can they see the price you paid as its AUC
Hi Eco my wife is just about to order a new scirroco 170td on her company car scheme, however im trying to steer her toward a 118d M Sport coupe as I think its a more rounded package...
she is limited on cost on her comp car plan so couldnt go for a 120d M Sport as it would be too expensive...I was hoping that you could give me some insight into what you think of your car good and bad....she does around 20k miles per year mixture of motorway and town...
Sorry I know its off topic but ive struggled to find anyone to converse with regarding the 118d
she is limited on cost on her comp car plan so couldnt go for a 120d M Sport as it would be too expensive...I was hoping that you could give me some insight into what you think of your car good and bad....she does around 20k miles per year mixture of motorway and town...
Sorry I know its off topic but ive struggled to find anyone to converse with regarding the 118d
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