F90 M5 Competition

[Wills2]

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?

TX.

It's absolutely not the case.

[PowerEnhancer]

Burwood said:

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 equity

Ouch! I can see why that would affect future PCP applications.

[Burwood]

PowerEnhancer said:

Burwood said:

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 equity

Ouch! I can see why that would affect future PCP applications.

I would think the frequency of such depreciation events to be few relatively speaking. Take a depreciation magnet like a 760 loaded to the roof. 150k, deposit will be at least 20k(ma as a box of frogs but hey ho). Finance 130k. GFV irrelevant for this example. the key point is you must pay back 65k of principle to qualify at which point the outstanding is 65k. a 3 year old loaded 760 is worth about that asa trade. a 4 year old one a bit less so you might avoid 7-10k negative equity by VT'g. Does anyone actually pay 150k. It doesn't apply to companies either, the main buyer of these cars.

[R.Sole]

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.

Not sure how that would work though as I was offered the same GFV regardless if the deposit was £1,000 or £10,000? Also, unless I have misunderstood your point, a shorter PCP term should result in a higher GFV?

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.

Not sure that’s right?
The gfv should be set by bmw finance so it should not matter how big or small the deposit is!
£100k car gfv £50k you could theoretically put a deposit of £50k in and the gfv will still be £50k.

[PowerEnhancer]

Burwood said:

PowerEnhancer said:

Burwood said:

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 equity

Ouch! I can see why that would affect future PCP applications.

I would think the frequency of such depreciation events to be few relatively speaking. Take a depreciation magnet like a 760 loaded to the roof. 150k, deposit will be at least 20k(ma as a box of frogs but hey ho). Finance 130k. GFV irrelevant for this example. the key point is you must pay back 65k of principle to qualify at which point the outstanding is 65k. a 3 year old loaded 760 is worth about that asa trade. a 4 year old one a bit less so you might avoid 7-10k negative equity by VT'g. Does anyone actually pay 150k. It doesn't apply to companies either, the main buyer of these cars.

The 7 series is one of those cars where heavy discounts are available very soon after release. Same as the Audi A8.

On a different note I have just been offered £32K discount on a new non-comp M5. Becoming very difficult to turn down now.

[R.Sole]

Burwood said:

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 equity

Its 50% of the invoice price not finance.

[greeneking]

PowerEnhancer said:

On a different note I have just been offered £32K discount on a new non-comp M5. Becoming very difficult to turn down now.

can I kindly ask which dealer. I'm looking at the moment on a hi-spec non comp my2020

[anonymous-user]

R.Sole said:

Its 50% of the invoice price not finance.

No it isn't. It's 50% of the amount you have financed. Essentially, half the total amount payable under the finance agreement. Deposit and discounts have nothing to do with it.

[Burwood]

R.Sole said:

Burwood said:

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 equity

Its 50% of the invoice price not finance.

Hmm I read the legislation. It says ‘amount finance’.

[Terminator X]

Wills2 said:

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?

TX.

It's absolutely not the case.

Thanks, great insight

TX.

[Firestick]

greeneking said:

PowerEnhancer said:

On a different note I have just been offered £32K discount on a new non-comp M5. Becoming very difficult to turn down now.

can I kindly ask which dealer. I'm looking at the moment on a hi-spec non comp my2020

New member here, awaiting delivery of a high spec M5 non comp.

I bought because of the deal, but did have a preference for the non comp pack this time. Have M Sport exhaust and the M seatbelts, but will miss the black body bits.

The deals are everywhere, but the result depends on the appetite of the dealer. Plus it was on stock cars, but sure you can haggle for a factory (18 week) order.

The offer was £20k off, £5k deposit contribution, 3.9% apr, if finance was required.

I ended up £21k off, £5k deposit cont, £8k spec extras for £2k (£6k off), so overall, I am happy at a net £32k off the list, which came in a few pence under £100k.

Loyalty went out of the window - I rang half a dozen and said 'no' a lot, until the deal met my expectations.

Edited by Firestick on Friday 30th August 19:49

[Wills2]

Terminator X said:

Wills2 said:

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?

TX.

It's absolutely not the case.

Thanks, great insight

TX.

They cannot vary the amount they underwrite based upon your deposit, it makes no sense, I'm not sure what insight is needed to understand that.

The GFV is set and how you pay for the balance over the term has no bearing on that figure.

[R.Sole]

Burwood said:

R.Sole said:

Burwood said:

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 equity

Its 50% of the invoice price not finance.

Hmm I read the legislation. It says ‘amount finance’.

Yep sorry total invoice price of the finance including interest ,charges and balloon.

[Burwood]

R.Sole said:

Burwood said:

R.Sole said:

Burwood said:

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 equity

Its 50% of the invoice price not finance.

Hmm I read the legislation. It says ‘amount finance’.

Yep sorry total invoice price of the finance including interest ,charges and balloon.

No worries

[Terminator X]

Wills2 said:

They cannot vary the amount they underwrite based upon your deposit, it makes no sense, I'm not sure what insight is needed to understand that.

The GFV is set and how you pay for the balance over the term has no bearing on that figure.

Well perhaps just me but every PCP I've had, the final payment has been 50% of the financed sum.

TX.

[anonymous-user]

Terminator X said:

Well perhaps just me but every PCP I've had, the final payment has been 50% of the financed sum.

TX.

Your experienced could purely be coincidental but it's not how it normally works.

The final payment is the guaranteed future value. It is normally a conservative estimate of what the car would be worth at the end of the agreement. However they guarantee they will value it at that price, so if you give it back it clears the remaining credit.

In my experience you normally have a car worth a bit more which can then be used as you wish if you exchange or sell privately.

I'd be interested to see what the values look like for what cars this has been on?

[skeeterm5]

Burwood said:

I would think the frequency of such depreciation events to be few relatively speaking. Take a depreciation magnet like a 760 loaded to the roof. 150k, deposit will be at least 20k(ma as a box of frogs but hey ho). Finance 130k. GFV irrelevant for this example. the key point is you must pay back 65k of principle to qualify at which point the outstanding is 65k. a 3 year old loaded 760 is worth about that asa trade. a 4 year old one a bit less so you might avoid 7-10k negative equity by VT'g. Does anyone actually pay 150k. It doesn't apply to companies either, the main buyer of these cars.

If you purchased on PCP you can't end up in negative equity, the worst case is you walk away with nothing.

S

[theboss]

skeeterm5 said:

If you purchased on PCP you can't end up in negative equity, the worst case is you walk away with nothing.

S

Assuming you stick to the agreed mileage!

Good work to the posters above with the non-CP M5 discounts. Incredible car for the money. I’d be doing exactly the same and trading up from my F10 but with a baby on the way I now need 6-7 seats.

Last time I looked the M760i could be had with about £35k discount and no doubt more is available if you push. I saw one on the M5 near Cheltenham the other day. Very rare things indeed.

[Terminator X]

Petrolsniffed said:

Terminator X said:

Well perhaps just me but every PCP I've had, the final payment has been 50% of the financed sum.

TX.

Your experienced could purely be coincidental but it's not how it normally works.

The final payment is the guaranteed future value. It is normally a conservative estimate of what the car would be worth at the end of the agreement. However they guarantee they will value it at that price, so if you give it back it clears the remaining credit.

In my experience you normally have a car worth a bit more which can then be used as you wish if you exchange or sell privately.

I'd be interested to see what the values look like for what cars this has been on?

Here you go, my RS3 at 53% final payment:

https://documentcloud.adobe.com/link/track?uri=urn...

TX.

[anonymous-user]

Terminator X said:

Here you go, my RS3 at 53% final payment:

https://documentcloud.adobe.com/link/track?uri=urn...

TX.

Could that just be because the estimated loss of the car over the period was 47%

Have a look at PCP deals on different dealer websites. One coincidence does not create the rule