BMW Finance - changing cars mid-term?

[MagicalTrevor]

Bought our car (120D M Sport) around 6 months ago and we took out the BMW Finance at a bargain 4.99% over 5 years. We're not tied into the full 5 years and we're perfectly happy with the finance agreement.

Which leads to my next question.
I'm putting 16000 miles on the car every just on work, never mind the 9000 miles I'll probably put on it through private miles. For this reason I'm considering buying a motorway hack to cope with the 70miles a day commute and then buy something more fun & special for the weekend.

I've not called BMW finance yet (but can do) but I'd to know if they will let me change the car for something else (non-BMW) or will I have to settle the existing finance before arranging alternative finance at, presumably, a higher rate?

We got a particularly good deal on the car and judging by the Glass' guide figure it's barely lost anything in the 6 months.

Thanks for any advice.

[E30M3SE]

You can trade the car in for another car at any dealers.

Value of vehicle minus settlement figure being the available amount plus what you put in as deposit/proceeds against another car.

The finacce will be linked to the car so will need to be settled first if you wis to sell the car.

[MagicalTrevor]

E30M3SE said:

You can trade the car in for another car at any dealers.

Value of vehicle minus settlement figure being the available amount plus what you put in as deposit/proceeds against another car.

The finacce will be linked to the car so will need to be settled first if you wis to sell the car.

So I can trade the car at any dealer and still retain the decent finance rate? Or do I effectively settle the finance but then have to get finance again at whatever rate it now available?

Ideally I want to keep the 4.99% APR as it's pretty impossible to get anything like that now.

[Soovy]

MagicalTrevor said:

E30M3SE said:

You can trade the car in for another car at any dealers.

Value of vehicle minus settlement figure being the available amount plus what you put in as deposit/proceeds against another car.

The finacce will be linked to the car so will need to be settled first if you wis to sell the car.

So I can trade the car at any dealer and still retain the decent finance rate? Or do I effectively settle the finance but then have to get finance again at whatever rate it now available?

Ideally I want to keep the 4.99% APR as it's pretty impossible to get anything like that now.

You can change the car any time, but you will have to apply for new finance.

You won't get that rate again.


And your car is probably worth a LOT less than you owe, you'll have to pay the shortfall (unless you paid a decent deposit).

Edited by Soovy on Tuesday 12th October 13:36

[MagicalTrevor]

Soovy said:

MagicalTrevor said:

E30M3SE said:

You can trade the car in for another car at any dealers.

Value of vehicle minus settlement figure being the available amount plus what you put in as deposit/proceeds against another car.

The finacce will be linked to the car so will need to be settled first if you wis to sell the car.

So I can trade the car at any dealer and still retain the decent finance rate? Or do I effectively settle the finance but then have to get finance again at whatever rate it now available?

Ideally I want to keep the 4.99% APR as it's pretty impossible to get anything like that now.

You can change the car any time, but you will have to apply for new finance.

You won't get that rate again.

Hmm, I hoped you weren't going to say that

[Soovy]

MagicalTrevor said:

Soovy said:

MagicalTrevor said:

E30M3SE said:

You can trade the car in for another car at any dealers.

Value of vehicle minus settlement figure being the available amount plus what you put in as deposit/proceeds against another car.

The finacce will be linked to the car so will need to be settled first if you wis to sell the car.

So I can trade the car at any dealer and still retain the decent finance rate? Or do I effectively settle the finance but then have to get finance again at whatever rate it now available?

Ideally I want to keep the 4.99% APR as it's pretty impossible to get anything like that now.

You can change the car any time, but you will have to apply for new finance.

You won't get that rate again.

Hmm, I hoped you weren't going to say that

Sorry.

If you trade your existing car in, then the BMW dealer will settle the existing agreement and a new one will be entered into.

[pattyg]

Be prepared for a REAL shock when you get a value on your 120D at a dealer. Glass's Guide prices are a little optimistic to say the least.

[Sticks.]

Slightly o/t but FWIW I took out finance on my 120D in 07 at a special offer 'flat rate' of 3.5% which I assumed to be the APR. It wasn't, APR was 8.5%. Perhaps I was naive, but it was my 3rd BMW from them and I didn't expect them to be less than straightforward. They also said there was no penalty for cancelling. There was.

Note to self, trust no one, check small-print.

[MagicalTrevor]

pattyg said:

Be prepared for a REAL shock when you get a value on your 120D at a dealer. Glass's Guide prices are a little optimistic to say the least.

I always thought the dealers used Glass's guide? Where's the best place to get an accurate valuation?

[playerone]

MagicalTrevor said:

pattyg said:

Be prepared for a REAL shock when you get a value on your 120D at a dealer. Glass's Guide prices are a little optimistic to say the least.

I always thought the dealers used Glass's guide? Where's the best place to get an accurate valuation?

They do. and CAP, Autotrader, auctions, other trade buyers etc etc. The guides are just that, a guide.

An "accurate" valuation depends on what its against and how much the dealer can make or trade the car for.

Funnily the public's favourite guide is Parkers because it gives fairytale valuations.....

[Bumble SV]

Sticks. said:

Slightly o/t but FWIW I took out finance on my 120D in 07 at a special offer 'flat rate' of 3.5% which I assumed to be the APR. It wasn't, APR was 8.5%. Perhaps I was naive, but it was my 3rd BMW from them and I didn't expect them to be less than straightforward. They also said there was no penalty for cancelling. There was.

Note to self, trust no one, check small-print.

I had a similar experience of being told by a dealer that the rate was something like 3.49% - I then did my own calculations and couldn't get anywhere near that rate with the given monthly payment details and balloon payment etc.

When I challenged the numbers and said it didn't add up, they told me it did. I subsequently discovered from digging into their calcs that they do not deduct the monthly payments from the amount you effectively borrow from them until the last period. Therefore they charge interest on the cost of the car (net of deposit) for the entire lease period. In my example, the APR was above 8%.

It is therefore essential to make absolutely certain that they sign in blood that the rate provided is the APR - they are likely to brush this off though from my experience as it varies depending on circumstances and they need to generate the formal paperwork to give you this which takes time.

[MagicalTrevor]

Thanks for all your help chaps.

I think I will contact BMW Finance and find out the lay of the land. I really like the car but I'm putting far too many miles on it. I'm now rather suspicious of the rate...

I've looked other loans and the monthly payments are fine so we may look to change to a £1.5k mile muncher plus an Elise or TVR.

[Sticks.]

Bumble SV said:

Sticks. said:

Slightly o/t but FWIW I took out finance on my 120D in 07 at a special offer 'flat rate' of 3.5% which I assumed to be the APR. It wasn't, APR was 8.5%. Perhaps I was naive, but it was my 3rd BMW from them and I didn't expect them to be less than straightforward. They also said there was no penalty for cancelling. There was.

Note to self, trust no one, check small-print.

I had a similar experience of being told by a dealer that the rate was something like 3.49% - I then did my own calculations and couldn't get anywhere near that rate with the given monthly payment details and balloon payment etc.

When I challenged the numbers and said it didn't add up, they told me it did. I subsequently discovered from digging into their calcs that they do not deduct the monthly payments from the amount you effectively borrow from them until the last period. Therefore they charge interest on the cost of the car (net of deposit) for the entire lease period. In my example, the APR was above 8%.

It is therefore essential to make absolutely certain that they sign in blood that the rate provided is the APR - they are likely to brush this off though from my experience as it varies depending on circumstances and they need to generate the formal paperwork to give you this which takes time.

Thanks, don't feel I was quite so naive now. Stealers indeed.

[Bumble SV]

MagicalTrevor said:

Thanks for all your help chaps.

I think I will contact BMW Finance and find out the lay of the land. I really like the car but I'm putting far too many miles on it. I'm now rather suspicious of the rate...

I've looked other loans and the monthly payments are fine so we may look to change to a £1.5k mile muncher plus an Elise or TVR.

If you like it, I'd keep it - the amounts you'll lose on the buy/sell spread across the 3 cars are not likely to be that different are they?! That said, if you are after an excuse to buy the Elise, then I agree, swap the car

[andy665]

"Stealers" being misleaing on rates - I would challenge that

The terms and conditions are not there just to fill blank space on the agreement, if a finance document is signed without reading and asking any questions that you feel need clarification then its the purchasers fault

[Sticks.]

If the dealer says 'it's a flat rate of 3.5% and I say 'Ok I can get better than that keeping my money in the bank, otherwise I wouldn't bother' and they say nothing, then that's not being fully honest, imo. If I wanted to have to check every detail and line of smallprint I could go to a back-stret dealer, but I expext BMW dealers to behave better. Incorrectly, obviously.

Just my opinion.

[Welshbeef]

Your going to tale a bath on doing what you suggest

Worth finding out to confirm that fact to you but highly unlikely to be worth it. In future may I suggest buying a car on a credit card life of balance tfr ie capital one doing 6.95% life of balance you pay it off as quickly as you like you change your car whenever you like.
If you like fixed terms why not just take the comp car totally hassle free.

[Sticks.]

Yes, it wasn't worth the bother. Nor was the 120d come to that

[MagicalTrevor]

Sticks. said:

If the dealer says 'it's a flat rate of 3.5% and I say 'Ok I can get better than that keeping my money in the bank, otherwise I wouldn't bother' and they say nothing, then that's not being fully honest, imo. If I wanted to have to check every detail and line of smallprint I could go to a back-stret dealer, but I expext BMW dealers to behave better. Incorrectly, obviously.

Just my opinion.

I agree, the dealer should be capable of correctly explaining the finance and yes I also accept that one should read the paperwork but its rather a lot to take i .

Well we've had a read through the paperwork tonight and it seems that the despite the dealer selling us the car based on being able to change it 'should circumstances change', that doesn't appear to be the case. The penalties seem strangely high should we want to do this and not what we wanted when we explained what we wanted to them.

I know people are going to say "you should have read the small print" but it's not some cowboy outfit selling dodgy finance packages, it's a BMW dealer selling a proper finance package.

We'll have to call the finance company tomorrow to find out what's what.

I feel a bit mislead and too trusting :-(

[Welshbeef]

So you have nearly two years remaining that's not long at all especially as what your after.

You could easily buy that special weekend car now why wait?

Either way lesson learnt. I sat there Reading mine in detail took best part of 20 mins sales lady was evidently not impressed nor was my wife for the reasons it's main dealer they are not cowboys etc. Makes not a jot of difference it's a contract your committing yourself to so know your position.

Some say you can hand your car back once 50% of the term has passed without anything more tp pay but they exclude the spanking your credit score takes for best part of ten years making future credit lines quite difficult