BMW Finance

[CSLchappie]

Has anyone got a ballpark figure in regards to a good, current APR figure on a lease purchase plan with BMW finance? If it makes any difference the figures would be c30k over 48/60 months, their example online quotes flitter between 11-13% but I've already got a deal in place that's a few percent lower than that and was wondering if I can push for something similar / better.

[martin mrt]

Doubt it very much they weren't very competitive when I got my 330d and wanted all manner of unnecessary paperwork from me, at the time an existing customer

[tonylal]

Most of our pcp deals give an effective 11-12% APR at present.
Their are some BMW subsidised deals showing 5.9-6.9% APR but these
are on base models like the 318i.
Also extending beyond 48 months tends to add another .25% flat to most
quotes as the finance company raise there base rate to hedge their bets
due to the rate being fixed for the term.

[gizlaroc]

I couldn't get BMW to come near my offer of 6.7% when I bought something earlier in the year, and I was already with them so you would have thought they would want to keep the business, but they said it was impossible, but the broker I used had 5 offers on the table. The one we used was Alphera, who is BMW finance!!

It does make me wonder if the dealers sometimes cut their nose off??

[FesterNath]

Isn't it better in every way to borrow on a mortgage arrangement with a bank, and avoid finance deals altogether?

[Kudos]

gizlaroc said:

The one we used was Alphera, who is BMW finance!!

It does make me wonder if the dealers sometimes cut their nose off??

Just got a quote off them - 11%!

[Kudos]

FesterNath said:

Isn't it better in every way to borrow on a mortgage arrangement with a bank, and avoid finance deals altogether?

NO! cheaper from a headline point of view e.g. 3-4% APR, but bear in mind fees etc, plus you repay over a longer period so does cost more. Also, should the worse happen you have put the house on the line.

I'd get finance sorted elsewhere and perhaps get price from the likes of Broadspeed on the motor

[FesterNath]

Kudos said:

FesterNath said:

Isn't it better in every way to borrow on a mortgage arrangement with a bank, and avoid finance deals altogether?

NO! cheaper from a headline point of view e.g. 3-4% APR, but bear in mind fees etc, plus you repay over a longer period so does cost more. Also, should the worse happen you have put the house on the line.

I'd get finance sorted elsewhere and perhaps get price from the likes of Broadspeed on the motor

Have to disagree with that. I looked at BMW Finance earlier in the year. Broadly speaking the payments over 3 years with BMW were the same as what I set up with a mortgage; the difference was with BMW they got the car at the end, and with the mortgage loan, I did.

Are you really saying that it is cheaper to finance a depreciating asset (ie car) than it is to borrow against property?

[richterswil]

FesterNath said:

Kudos said:

FesterNath said:

Isn't it better in every way to borrow on a mortgage arrangement with a bank, and avoid finance deals altogether?

NO! cheaper from a headline point of view e.g. 3-4% APR, but bear in mind fees etc, plus you repay over a longer period so does cost more. Also, should the worse happen you have put the house on the line.

I'd get finance sorted elsewhere and perhaps get price from the likes of Broadspeed on the motor

Have to disagree with that. I looked at BMW Finance earlier in the year. Broadly speaking the payments over 3 years with BMW were the same as what I set up with a mortgage; the difference was with BMW they got the car at the end, and with the mortgage loan, I did.

Are you really saying that it is cheaper to finance a depreciating asset (ie car) than it is to borrow against property?

What I think Kudos is (quite rightly) saying is that one has to be careful comparing interest rates on car finance deals to those on a mortgage. Mortgage interest rates may well be lower but the whole loan cost may be significantly more if say the mortgage loan is paid over 15 years versus say 4 years.

If your point is that one should only borrow money for investment purposes (i.e. depreciating assets like most cars should not be financed at all) then it is a whole different discussion and one which can only be decided by individuals based on their personal needs and wants.

[FesterNath]

richterswil said:

FesterNath said:

Kudos said:

FesterNath said:

Isn't it better in every way to borrow on a mortgage arrangement with a bank, and avoid finance deals altogether?

NO! cheaper from a headline point of view e.g. 3-4% APR, but bear in mind fees etc, plus you repay over a longer period so does cost more. Also, should the worse happen you have put the house on the line.

I'd get finance sorted elsewhere and perhaps get price from the likes of Broadspeed on the motor

Have to disagree with that. I looked at BMW Finance earlier in the year. Broadly speaking the payments over 3 years with BMW were the same as what I set up with a mortgage; the difference was with BMW they got the car at the end, and with the mortgage loan, I did.

Are you really saying that it is cheaper to finance a depreciating asset (ie car) than it is to borrow against property?

What I think Kudos is (quite rightly) saying is that one has to be careful comparing interest rates on car finance deals to those on a mortgage. Mortgage interest rates may well be lower but the whole loan cost may be significantly more if say the mortgage loan is paid over 15 years versus say 4 years.

If your point is that one should only borrow money for investment purposes (i.e. depreciating assets like most cars should not be financed at all) then it is a whole different discussion and one which can only be decided by individuals based on their personal needs and wants.

If you compare different terms it's not really a valid comparison. And I'm not saying don't borrow for anything other than an investment.

But I think you would have to have an awful mortgage deal for it to be more expensive than BMW Finance; their rates are like that you would get with a credit card. One final point: there are plenty of mortgages that allow you to pay back as quickly as you like that are cheap to arrange. Mine was £200 to set up...

[Kudos]

FesterNath said:

richterswil said:

FesterNath said:

Kudos said:

FesterNath said:

Isn't it better in every way to borrow on a mortgage arrangement with a bank, and avoid finance deals altogether?

NO! cheaper from a headline point of view e.g. 3-4% APR, but bear in mind fees etc, plus you repay over a longer period so does cost more. Also, should the worse happen you have put the house on the line.

I'd get finance sorted elsewhere and perhaps get price from the likes of Broadspeed on the motor

Have to disagree with that. I looked at BMW Finance earlier in the year. Broadly speaking the payments over 3 years with BMW were the same as what I set up with a mortgage; the difference was with BMW they got the car at the end, and with the mortgage loan, I did.

Are you really saying that it is cheaper to finance a depreciating asset (ie car) than it is to borrow against property?

What I think Kudos is (quite rightly) saying is that one has to be careful comparing interest rates on car finance deals to those on a mortgage. Mortgage interest rates may well be lower but the whole loan cost may be significantly more if say the mortgage loan is paid over 15 years versus say 4 years.

If your point is that one should only borrow money for investment purposes (i.e. depreciating assets like most cars should not be financed at all) then it is a whole different discussion and one which can only be decided by individuals based on their personal needs and wants.

If you compare different terms it's not really a valid comparison. And I'm not saying don't borrow for anything other than an investment.

But I think you would have to have an awful mortgage deal for it to be more expensive than BMW Finance; their rates are like that you would get with a credit card. One final point: there are plenty of mortgages that allow you to pay back as quickly as you like that are cheap to arrange. Mine was £200 to set up...

My main point was as follows - if you take out car finance and the worst happens, you'll lose the car. Put it on your mortgage you are potentially putting your home on the line.

Obviosuly everyone says it won't happen, but I'm afraid it does.