F90 M5 Competition
Discussion
Nice dilemma to have and echo the sensible comments made so far. But just to add a few more thoughts into the mix......
Don’t forget that pre-reg cars will only have the balance of their warranty.
When I bought my current car (M6GC) I had similar debate with myself about 1 yr old car with low miles vs a pre-reg vs an unregistered car. As I was quite fussy about some of the spec and colours there weren’t a vast number of cars to choose from - and some of the pre-reg options were nearly a year old.
Also, if you are planning to keep for only two or three years, an older car might also suffer an additional chunk of depreciation at the back end compared to a new car. To state the obvious, this becomes less of an issue the longer you keep the car.
Don’t forget that pre-reg cars will only have the balance of their warranty.
When I bought my current car (M6GC) I had similar debate with myself about 1 yr old car with low miles vs a pre-reg vs an unregistered car. As I was quite fussy about some of the spec and colours there weren’t a vast number of cars to choose from - and some of the pre-reg options were nearly a year old.
Also, if you are planning to keep for only two or three years, an older car might also suffer an additional chunk of depreciation at the back end compared to a new car. To state the obvious, this becomes less of an issue the longer you keep the car.
Max Maxasson said:
Myself....I think the current massive discounts on M5s are going to be fairly short lived.
Once the excess stock of standard M5s (around 45 cars) has washed through the system then prices should settle down a little.
Reminds me a bit when BMW had to dump a load of new unreg E90 M3 saloons fairly cheaply. Once they were sold prices went back to normal.
If there is anyone with half a brain at the importer, they ought to cut back on the total number of M cars they factory order that aren't pre-sold until the market settles after Brexit.
They might have their dedicated line. I don’t know, but if so they can’t stop making themOnce the excess stock of standard M5s (around 45 cars) has washed through the system then prices should settle down a little.
Reminds me a bit when BMW had to dump a load of new unreg E90 M3 saloons fairly cheaply. Once they were sold prices went back to normal.
If there is anyone with half a brain at the importer, they ought to cut back on the total number of M cars they factory order that aren't pre-sold until the market settles after Brexit.
pjv997 said:
Nice dilemma to have and echo the sensible comments made so far. But just to add a few more thoughts into the mix......
Don’t forget that pre-reg cars will only have the balance of their warranty.
When I bought my current car (M6GC) I had similar debate with myself about 1 yr old car with low miles vs a pre-reg vs an unregistered car. As I was quite fussy about some of the spec and colours there weren’t a vast number of cars to choose from - and some of the pre-reg options were nearly a year old.
Also, if you are planning to keep for only two or three years, an older car might also suffer an additional chunk of depreciation at the back end compared to a new car. To state the obvious, this becomes less of an issue the longer you keep the car.
Thanks PJV997, I actually hadn’t thought at all about the warranty on a Pre-Reg definitely worth thinking about. Not sure on length but expect 2-3yrs before swapping. I guess if it’s a 6 mth pre-reg I’d have 30 months motoring with the car in warranty. Don’t forget that pre-reg cars will only have the balance of their warranty.
When I bought my current car (M6GC) I had similar debate with myself about 1 yr old car with low miles vs a pre-reg vs an unregistered car. As I was quite fussy about some of the spec and colours there weren’t a vast number of cars to choose from - and some of the pre-reg options were nearly a year old.
Also, if you are planning to keep for only two or three years, an older car might also suffer an additional chunk of depreciation at the back end compared to a new car. To state the obvious, this becomes less of an issue the longer you keep the car.
Also question for anyone else too. How accurate are BMW finances FMV estimates?
With a cash pre-Reg buy is it safe to assume ~ same value when the car is 48mths old or does the BMW finance FMV have a history of being generous?
Just trying to close off as much as I can before heading to the dealers.
Thanks for the help, all been very useful.
Burwood said:
They might have their dedicated line. I don’t know, but if so they can’t stop making them
Part of the problem is that production line volumes are set many months in advance which makes rapid changes in production output almost impossible.The factory want to manufacture as many cars as the market can stand whereas importers/dealers would rather they slightly under produced to stop having to discount to shift excess stock.
If BMW UK can reduce the number of M5 it orders to match predicted (post Brexit) sales then there is every reason to expect M5s to depreciate at an acceptable rate.
The problem with pre reg M5s is that they have high interest rates compared to new cars.
BennyboyG said:
Thanks PJV997, I actually hadn’t thought at all about the warranty on a Pre-Reg definitely worth thinking about. Not sure on length but expect 2-3yrs before swapping. I guess if it’s a 6 mth pre-reg I’d have 30 months motoring with the car in warranty.
Also question for anyone else too. How accurate are BMW finances FMV estimates?
With a cash pre-Reg buy is it safe to assume ~ same value when the car is 48mths old or does the BMW finance FMV have a history of being generous?
Just trying to close off as much as I can before heading to the dealers.
Thanks for the help, all been very useful.
Imho it is just set at 50% of the loan value to stop people VTing them early. Applies to any / all cars on PCP.Also question for anyone else too. How accurate are BMW finances FMV estimates?
With a cash pre-Reg buy is it safe to assume ~ same value when the car is 48mths old or does the BMW finance FMV have a history of being generous?
Just trying to close off as much as I can before heading to the dealers.
Thanks for the help, all been very useful.
TX.
BennyboyG said:
M5 London said:
Burwood said:
That’s my point. Some dealers must be uninterested.
Sure and that's their loss...perhaps.Quick look online and I can see advertised discounts of £24K / £25K / £26K (and that's before you start negotiating)
Sent some emails today to arrange visits to dealers and to arrange a test drive of both models. Still undecided on doing a deal pre-Brexit taking the depreciation as I don’t need the car until Feb or waiting until nearer Feb and going used/stock as I absolutely must have a car by mid Feb.
Shame the PCP rates are so poor on those pre-reg M5C's.
PowerEnhancer said:
What GFV's are people achieving on the comp on 3 year PCP's? I am being quoted almost the same as the non comp.
Imho the GFV (just a point of of order though in that GFV isn't guaranteed I don't think it is just the final payment to be made for a PCP) is just set at 50% of the loan value as that way you can't VT The car until almost all payments over the loan tern have been made. It will just depend on your loan value.TX.
On a slightly different note sadly I've just had a bit of an argument with a piece of scaffolding which has resulted in a new bonnet, one new light, new bumper plus a few fixings here and there and so far the estimate is over £5000 to fix 
And I've not done any major damage behind the bumper which was a positive (if there is one!)
And I've not done any major damage behind the bumper which was a positive (if there is one!)
Terminator X said:
PowerEnhancer said:
What GFV's are people achieving on the comp on 3 year PCP's? I am being quoted almost the same as the non comp.
Imho the GFV (just a point of of order though in that GFV isn't guaranteed I don't think it is just the final payment to be made for a PCP) is just set at 50% of the loan value as that way you can't VT The car until almost all payments over the loan tern have been made. It will just depend on your loan value.TX.
PowerEnhancer said:
Terminator X said:
PowerEnhancer said:
What GFV's are people achieving on the comp on 3 year PCP's? I am being quoted almost the same as the non comp.
Imho the GFV (just a point of of order though in that GFV isn't guaranteed I don't think it is just the final payment to be made for a PCP) is just set at 50% of the loan value as that way you can't VT The car until almost all payments over the loan tern have been made. It will just depend on your loan value.TX.
If you pay £80k for the car with a £1k deposit then imho the GFV will be set at £39.5k which is 50% of £79k.
You say not the case though?
If the term of the loan is 3 or 4 years it should apply. Do people take PCP out over 1 or 2 years? If they do then I guess you make a valid point as the value of the car is higher. I still maintain that the GFV is set at a level to generally stop people VT'ing the cars early.
TX.
HoHoHo said:
On a slightly different note sadly I've just had a bit of an argument with a piece of scaffolding which has resulted in a new bonnet, one new light, new bumper plus a few fixings here and there and so far the estimate is over £5000 to fix
And I've not done any major damage behind the bumper which was a positive (if there is one!)
Nightmare for you fella And I've not done any major damage behind the bumper which was a positive (if there is one!)
TX.
Terminator X said:
If you pay £80k for the car with a £10k deposit then imho the GFV will be set at £35k which is 50% of £70k.
If you pay £80k for the car with a £1k deposit then imho the GFV will be set at £39.5k which is 50% of £79k.
You say not the case though?
If the term of the loan is 3 or 4 years it should apply. Do people take PCP out over 1 or 2 years? If they do then I guess you make a valid point as the value of the car is higher. I still maintain that the GFV is set at a level to generally stop people VT'ing the cars early.
TX.
If you put money up front into a pcp deal then you pay less interest as the amount you are borrowing is less. It doesn't change the final payment figure.If you pay £80k for the car with a £1k deposit then imho the GFV will be set at £39.5k which is 50% of £79k.
You say not the case though?
If the term of the loan is 3 or 4 years it should apply. Do people take PCP out over 1 or 2 years? If they do then I guess you make a valid point as the value of the car is higher. I still maintain that the GFV is set at a level to generally stop people VT'ing the cars early.
TX.
Terminator X said:
PowerEnhancer said:
Terminator X said:
PowerEnhancer said:
What GFV's are people achieving on the comp on 3 year PCP's? I am being quoted almost the same as the non comp.
Imho the GFV (just a point of of order though in that GFV isn't guaranteed I don't think it is just the final payment to be made for a PCP) is just set at 50% of the loan value as that way you can't VT The car until almost all payments over the loan tern have been made. It will just depend on your loan value.TX.
If you pay £80k for the car with a £1k deposit then imho the GFV will be set at £39.5k which is 50% of £79k.
You say not the case though?
If the term of the loan is 3 or 4 years it should apply. Do people take PCP out over 1 or 2 years? If they do then I guess you make a valid point as the value of the car is higher. I still maintain that the GFV is set at a level to generally stop people VT'ing the cars early.
TX.
Terminator X said:
HoHoHo said:
On a slightly different note sadly I've just had a bit of an argument with a piece of scaffolding which has resulted in a new bonnet, one new light, new bumper plus a few fixings here and there and so far the estimate is over £5000 to fix
And I've not done any major damage behind the bumper which was a positive (if there is one!)
Nightmare for you fella And I've not done any major damage behind the bumper which was a positive (if there is one!)
TX.
Fortunately I'm away next week working and I'm told it will be done when I get back.
Official estimate is £4700 + VAT
PowerEnhancer said:
Definitely not the case from the dealers I have been speaking with. Standard M5 I was offered around £35/36k on a 4 year and low 40's on a 3 year PCP. Increasing the deposit just lowered the monthlies and total interest paid. I was surprised that the comp was only £1-2k more on the GFV.
Absolutely correct across all pcp deals with all dealers. It is simply driven by expected value of the car at the end of the term given term, mileage, etc. Avoiding VT does not come into. My local Stratstone BMW dealer said they’ve had a client VT 3 cars in a row due to negative equity. His last 7 series was showing £22k out with him wanting to move into another car. This time BMW refused him finance on the new car he wanted to buy (although he could obviously still VT his existing 7). Supposedly, the finance companies are tightening up on lending to people who have VT’d their cars. Although this cannot be classed as a default, etc, it is now clearly shown on your credit file and this will likely impact future ability to borrow. My previous X5M, which is on 1.9% pcp, is going in in a couple of weeks for my M5 Comp. A VT would see me an additional £2.5k up on trade-in but no chance I’d want that on my credit file.How does the VT work? Are customers just handing the car back and stopping payments leaving the dealer with a vehicle worth less than the outstanding finance?
I have terminated PCP's early but always paid the finance off in full and then sold or traded the car in accordingly, depending on what I could get for it.
I have terminated PCP's early but always paid the finance off in full and then sold or traded the car in accordingly, depending on what I could get for it.
PowerEnhancer said:
How does the VT work? Are customers just handing the car back and stopping payments leaving the dealer with a vehicle worth less than the outstanding finance?
I have terminated PCP's early but always paid the finance off in full and then sold or traded the car in accordingly, depending on what I could get for it.
If you have paid 50% of the outstanding finance you can simply hand it back leaving the finance company (not the dealer) to deal with it. In cases of obvious negative equityI have terminated PCP's early but always paid the finance off in full and then sold or traded the car in accordingly, depending on what I could get for it.
Gassing Station | M Power | Top of Page | What's New | My Stuff