It’s nearly time, M4 or M4CP, personal loan or PCP
Discussion
M4’s are finally within reach and I can only make the numbers work on the normal M4, my budget is 30,000 and it has to be the LCI.
Ideally I’d prefer the M4 CP as it sounds much nicer however they’re at least £33,000 and I can only get one if it’s PCP. I’ve also seen a lot of reviews on the CP and they all say it’s a lot stiffer than the normal one but there aren’t any back to back drives or both or even any reviews of the normal M4!
My finance options are as follows, 5k deposit, 25k loan, lloyds have a calculator and they’ve calculated it at 10.9 %apr for 60 months which equates to 533 a month. It’s a lot of interest but I don’t intend to keep the car for that long and I will sell it and pay the loan off sooner meaning I pay less interest. I need to sit down and speak to them or shop around for other loans however I’m in the process of getting a mortgage so I’m waiting until that’s all sorted first. The loan example I gave is just a guide.
So budget is 30k if I go for the loan route.
PCP route is different and opens me up to better options, such as, a lovely, dream spec silver M4CP with every option that’s up for £33,295, 67 plate, I had a word with the salesman and he said PCP I can put 5 down and pay 430 a month, 10k per annum, final payment 13k and 8.9% interest.
So, let’s say I can’t get a better late on that loan, would I be better off in a normal M4 and exploring exhaust options or go for the PCP route and get the exact car I want in the spec I want after going through all the trouble of borrowing that kind of money?
It’s quite the predicament as id much rather the loan option, I think it’s better in the sense of the car being fully mine where I can do all the miles I want and sell it when I want and paying the remainder of the loan off BUT I will never be fully fulfilled as hardly any M4’s have the HK audio or MPE fitted in my budget.
I’ve driven both in 2018 when I tried getting one then so I can’t remember the differences other than the noise being much better in the CP. I decided at that time to wait til they drop a bit more.
One more thing, I’d rather a coupe as I prefer the practicality and I imagine they won’t handle as well but could someone tell me about the convertible, I can’t see or drive any at the moment so some information would be helpful, do they handle well and what’s the boot size like with the roof down? The convertibles are surprisingly cheaper in the M4 range. I thought they’d cost more as normal 4 series convertibles in the used market cost much more.
Ideally I’d prefer the M4 CP as it sounds much nicer however they’re at least £33,000 and I can only get one if it’s PCP. I’ve also seen a lot of reviews on the CP and they all say it’s a lot stiffer than the normal one but there aren’t any back to back drives or both or even any reviews of the normal M4!
My finance options are as follows, 5k deposit, 25k loan, lloyds have a calculator and they’ve calculated it at 10.9 %apr for 60 months which equates to 533 a month. It’s a lot of interest but I don’t intend to keep the car for that long and I will sell it and pay the loan off sooner meaning I pay less interest. I need to sit down and speak to them or shop around for other loans however I’m in the process of getting a mortgage so I’m waiting until that’s all sorted first. The loan example I gave is just a guide.
So budget is 30k if I go for the loan route.
PCP route is different and opens me up to better options, such as, a lovely, dream spec silver M4CP with every option that’s up for £33,295, 67 plate, I had a word with the salesman and he said PCP I can put 5 down and pay 430 a month, 10k per annum, final payment 13k and 8.9% interest.
So, let’s say I can’t get a better late on that loan, would I be better off in a normal M4 and exploring exhaust options or go for the PCP route and get the exact car I want in the spec I want after going through all the trouble of borrowing that kind of money?
It’s quite the predicament as id much rather the loan option, I think it’s better in the sense of the car being fully mine where I can do all the miles I want and sell it when I want and paying the remainder of the loan off BUT I will never be fully fulfilled as hardly any M4’s have the HK audio or MPE fitted in my budget.
I’ve driven both in 2018 when I tried getting one then so I can’t remember the differences other than the noise being much better in the CP. I decided at that time to wait til they drop a bit more.
One more thing, I’d rather a coupe as I prefer the practicality and I imagine they won’t handle as well but could someone tell me about the convertible, I can’t see or drive any at the moment so some information would be helpful, do they handle well and what’s the boot size like with the roof down? The convertibles are surprisingly cheaper in the M4 range. I thought they’d cost more as normal 4 series convertibles in the used market cost much more.
Edited by Chestrockwell on Wednesday 27th January 14:23
Wills2 said:
10.9% is too much on a personal loan if you can't get a better offer like Tescobank that offer 25k over 60 months for 3% APR I wouldn't be borrowing the money.
Oh wow that sounds good! If it’s that much I’d borrow more and get the competition pack that I want. I want to shop around but don’t want anything coming up on my credit report. I know they don’t do checks without asking but after looking at a detailed report of mine, there were multiple ‘quotations’ or ‘audits’ for every insurance quote I got even though I pay my insurance off cash
Chestrockwell said:
Wills2 said:
10.9% is too much on a personal loan if you can't get a better offer like Tescobank that offer 25k over 60 months for 3% APR I wouldn't be borrowing the money.
Oh wow that sounds good! If it’s that much I’d borrow more and get the competition pack that I want. I want to shop around but don’t want anything coming up on my credit report. I know they don’t do checks without asking but after looking at a detailed report of mine, there were multiple ‘quotations’ or ‘audits’ for every insurance quote I got even though I pay my insurance off cash
10.9% is insane on a personal loan. Was it Lloyds? They offered me that ridiculous rate too. I almost burst out laughing on the phone. Ironically I bank with them, so they know my situation and despite having a 999 credit score.
I went to Tesco and got 2.9%.
I went to Tesco and got 2.9%.
Edited by david-j8694 on Wednesday 27th January 14:59
I got a personal loan for £25k and the APR was, IIRC, 2.9%. I pay £500pm over 4.5 years.
£25k is the maximum you can go with that cheap rate APR though. Only way to go higher is to borrow on your mortgage or similar, but that's complicated and risky - you need to really have your numbers lined up.
For the sake of a couple of grand, drop a bigger deposit and shop around for the personal loan.
I have found that the loan is being paid off faster than the car is depreciating, so I'll be out of it well before 4.5 years with the same deposit I put in, or I can keep the car for the full term and have a bigger amount to deposit on the next one.
£25k is the maximum you can go with that cheap rate APR though. Only way to go higher is to borrow on your mortgage or similar, but that's complicated and risky - you need to really have your numbers lined up.
For the sake of a couple of grand, drop a bigger deposit and shop around for the personal loan.
I have found that the loan is being paid off faster than the car is depreciating, so I'll be out of it well before 4.5 years with the same deposit I put in, or I can keep the car for the full term and have a bigger amount to deposit on the next one.
Chestrockwell said:
M4’s are finally within reach and I can only make the numbers work on the normal M4, my budget is 30,000 and it has to be the LCI.
Ideally I’d prefer the M4 CP as it sounds much nicer however they’re at least £33,000 and I can only get one if it’s PCP. I’ve also seen a lot of reviews on the CP and they all say it’s a lot stiffer than the normal one but there aren’t any back to back drives or both or even any reviews of the normal M4!
My finance options are as follows, 5k deposit, 25k loan, lloyds have a calculator and they’ve calculated it at 10.9 %apr for 60 months which equates to 533 a month. It’s a lot of interest but I don’t intend to keep the car for that long and I will sell it and pay the loan off sooner meaning I pay less interest. I need to sit down and speak to them or shop around for other loans however I’m in the process of getting a mortgage so I’m waiting until that’s all sorted first. The loan example I gave is just a guide.
So budget is 30k if I go for the loan route.
PCP route is different and opens me up to better options, such as, a lovely, dream spec silver M4CP with every option that’s up for £33,295, 67 plate, I had a word with the salesman and he said PCP I can put 5 down and pay 430 a month, 10k per annum, final payment 13k and 8.9% interest.
So, let’s say I can’t get a better late on that loan, would I be better off in a normal M4 and exploring exhaust options or go for the PCP route and get the exact car I want in the spec I want after going through all the trouble of borrowing that kind of money?
It’s quite the predicament as id much rather the loan option, I think it’s better in the sense of the car being fully mine where I can do all the miles I want and sell it when I want and paying the remainder of the loan off BUT I will never be fully fulfilled as hardly any M4’s have the HK audio or MPE fitted in my budget.
I’ve driven both in 2018 when I tried getting one then so I can’t remember the differences other than the noise being much better in the CP. I decided at that time to wait til they drop a bit more.
One more thing, I’d rather a coupe as I prefer the practicality and I imagine they won’t handle as well but could someone tell me about the convertible, I can’t see or drive any at the moment so some information would be helpful, do they handle well and what’s the boot size like with the roof down? The convertibles are surprisingly cheaper in the M4 range. I thought they’d cost more as normal 4 series convertibles in the used market cost much more.
There’s a good back to back review on you tube of *M3 *Competition pack and the same age (2016) non CP, the review covers issues such as noise and ride comfort. Ideally I’d prefer the M4 CP as it sounds much nicer however they’re at least £33,000 and I can only get one if it’s PCP. I’ve also seen a lot of reviews on the CP and they all say it’s a lot stiffer than the normal one but there aren’t any back to back drives or both or even any reviews of the normal M4!
My finance options are as follows, 5k deposit, 25k loan, lloyds have a calculator and they’ve calculated it at 10.9 %apr for 60 months which equates to 533 a month. It’s a lot of interest but I don’t intend to keep the car for that long and I will sell it and pay the loan off sooner meaning I pay less interest. I need to sit down and speak to them or shop around for other loans however I’m in the process of getting a mortgage so I’m waiting until that’s all sorted first. The loan example I gave is just a guide.
So budget is 30k if I go for the loan route.
PCP route is different and opens me up to better options, such as, a lovely, dream spec silver M4CP with every option that’s up for £33,295, 67 plate, I had a word with the salesman and he said PCP I can put 5 down and pay 430 a month, 10k per annum, final payment 13k and 8.9% interest.
So, let’s say I can’t get a better late on that loan, would I be better off in a normal M4 and exploring exhaust options or go for the PCP route and get the exact car I want in the spec I want after going through all the trouble of borrowing that kind of money?
It’s quite the predicament as id much rather the loan option, I think it’s better in the sense of the car being fully mine where I can do all the miles I want and sell it when I want and paying the remainder of the loan off BUT I will never be fully fulfilled as hardly any M4’s have the HK audio or MPE fitted in my budget.
I’ve driven both in 2018 when I tried getting one then so I can’t remember the differences other than the noise being much better in the CP. I decided at that time to wait til they drop a bit more.
One more thing, I’d rather a coupe as I prefer the practicality and I imagine they won’t handle as well but could someone tell me about the convertible, I can’t see or drive any at the moment so some information would be helpful, do they handle well and what’s the boot size like with the roof down? The convertibles are surprisingly cheaper in the M4 range. I thought they’d cost more as normal 4 series convertibles in the used market cost much more.
Edited by Chestrockwell on Wednesday 27th January 14:23
If it’s of use , and you can’t find it, shout up as I’ve got it somewhere.
Surprised it’s hard to find HK on the OG M4. Along with HUD it seemed popular when I looked.
If it’s a CP you want tho , go for it. Best to be 100% satisfied.
Muzzer79 said:
£25k is the maximum you can go with that cheap rate APR though. Only way to go higher is to borrow on your mortgage or similar, but that's complicated and risky - you need to really have your numbers lined up.
That isn't quite right. Banks and others will lend more on unsecured loans but it depends heavily on how they see you. Right now Barclays are offering me a personal loan of well beyond £25k at 4.3%.OP it might be worth talking to a specialist car finance house such as Oracle to see what they can do and I would wager that they will be far cheaper than BMW.
S
Smuler said:
There’s a good back to back review on you tube of *M3 *Competition pack and the same age (2016) non CP, the review covers issues such as noise and ride comfort.
If it’s of use , and you can’t find it, shout up as I’ve got it somewhere.
Surprised it’s hard to find HK on the OG M4. Along with HUD it seemed popular when I looked.
If it’s a CP you want tho , go for it. Best to be 100% satisfied.
Just had a look, can’t find it! If you could drop me a link that would be great.If it’s of use , and you can’t find it, shout up as I’ve got it somewhere.
Surprised it’s hard to find HK on the OG M4. Along with HUD it seemed popular when I looked.
If it’s a CP you want tho , go for it. Best to be 100% satisfied.
There are a few M4’s with HK and HUD but they cost the same as competition’s.
I’ll post a few links of ones I like
https://www.autotrader.co.uk/car-details/202012197...
That one is beautiful and I love the colour, wheels and chrome grill, no doubt it will ride better on the 19’s however its missing the HK which is a must for me and it won’t sound as nice as the CP. It’s also 2k above budget.
https://www.autotrader.co.uk/car-details/202009023...
This one is also lovely, mileage is slightly higher but for the spec, it’s a lot cheaper, pcp this one makes perfect sense for me but again, I’d rather get a loan, especially after seeing the tesco rates (Thanks everyone)
Convertible boot is very spacious. Here’s a pic of it loaded with my son’s gear when he returned to University recently. There’s a massive hold-all in there too. With the roof down, less space, but I did a week Euro tour with 3 adults in the car and all their gear. So, it’s good.
Driving? I went for the convertible because I’ve got an Elise, so anything else will feel like a bus in comparison. I wanted a four seat convertible and find the convertible M4 Comp Pack excellent, I think it’s probably got better headroom in the rear than the coupe too (a guess). No rattles from the roof, feels like a coupe, even when hustling down the lanes. Happily keeps up with almost everything else at road speeds, even on the B roads (even spirited driving). Very fast in a straight line of course too. And then you can drop the roof. Really love mine. Had it almost 3 years from new now and never thought of changing it.
Driving? I went for the convertible because I’ve got an Elise, so anything else will feel like a bus in comparison. I wanted a four seat convertible and find the convertible M4 Comp Pack excellent, I think it’s probably got better headroom in the rear than the coupe too (a guess). No rattles from the roof, feels like a coupe, even when hustling down the lanes. Happily keeps up with almost everything else at road speeds, even on the B roads (even spirited driving). Very fast in a straight line of course too. And then you can drop the roof. Really love mine. Had it almost 3 years from new now and never thought of changing it.
10.9% is obscene, plenty of other companies will loan you at a better rate. Barclays do 3.3% and a quick google will throw up plenty of options. I think "hitachi finance" are one of the better ones, used by many high street businesses for financing.
I'm currently looking at M4C's with a 36k budget, but I'm holding off at the moment, not because of the current situation, but because I want to try and stretch it out so the prices of 2018/19 come into my budget (approved used). My one concern is that the new model which is a bit marmite regarding the styling might actually have an impact on residuals of late LCI's, by increased demand as people prefer the previous aesthetics to the current. i'm hoping not though.
Also, while I'm here (sorry for a bit of a hijack) , what year did the M4 LCI come out? some say 16, some 17. Is there any visual way to tell apart from turning on the headlights?.
Good luck in your search, I must admit this sub forum of PH is a very pleasant and helpful place to be. Thanks Fellas.
I'm currently looking at M4C's with a 36k budget, but I'm holding off at the moment, not because of the current situation, but because I want to try and stretch it out so the prices of 2018/19 come into my budget (approved used). My one concern is that the new model which is a bit marmite regarding the styling might actually have an impact on residuals of late LCI's, by increased demand as people prefer the previous aesthetics to the current. i'm hoping not though.
Also, while I'm here (sorry for a bit of a hijack) , what year did the M4 LCI come out? some say 16, some 17. Is there any visual way to tell apart from turning on the headlights?.
Good luck in your search, I must admit this sub forum of PH is a very pleasant and helpful place to be. Thanks Fellas.
SELON said:
Convertible boot is very spacious. Here’s a pic of it loaded with my son’s gear when he returned to University recently. There’s a massive hold-all in there too. With the roof down, less space, but I did a week Euro tour with 3 adults in the car and all their gear. So, it’s good.
Driving? I went for the convertible because I’ve got an Elise, so anything else will feel like a bus in comparison. I wanted a four seat convertible and find the convertible M4 Comp Pack excellent, I think it’s probably got better headroom in the rear than the coupe too (a guess). No rattles from the roof, feels like a coupe, even when hustling down the lanes. Happily keeps up with almost everything else at road speeds, even on the B roads (even spirited driving). Very fast in a straight line of course too. And then you can drop the roof. Really love mine. Had it almost 3 years from new now and never thought of changing it.
That’s lovely and I love the San Marino blue, hardly any of them in my budget!Driving? I went for the convertible because I’ve got an Elise, so anything else will feel like a bus in comparison. I wanted a four seat convertible and find the convertible M4 Comp Pack excellent, I think it’s probably got better headroom in the rear than the coupe too (a guess). No rattles from the roof, feels like a coupe, even when hustling down the lanes. Happily keeps up with almost everything else at road speeds, even on the B roads (even spirited driving). Very fast in a straight line of course too. And then you can drop the roof. Really love mine. Had it almost 3 years from new now and never thought of changing it.
The boot space looks good, there are some photos of the boot in convertible ones and it looks like there’s only space in the middle but turns out there’s more, thanks for sharing
texaxile said:
10.9% is obscene, plenty of other companies will loan you at a better rate. Barclays do 3.3% and a quick google will throw up plenty of options. I think "hitachi finance" are one of the better ones, used by many high street businesses for financing.
I'm currently looking at M4C's with a 36k budget, but I'm holding off at the moment, not because of the current situation, but because I want to try and stretch it out so the prices of 2018/19 come into my budget (approved used). My one concern is that the new model which is a bit marmite regarding the styling might actually have an impact on residuals of late LCI's, by increased demand as people prefer the previous aesthetics to the current. i'm hoping not though.
Also, while I'm here (sorry for a bit of a hijack) , what year did the M4 LCI come out? some say 16, some 17. Is there any visual way to tell apart from turning on the headlights?.
Good luck in your search, I must admit this sub forum of PH is a very pleasant and helpful place to be. Thanks Fellas.
10.9 is obscene but I feel like it gave me freedom on the car, not being tied down by a PCP agreement and the whole debt of the car including final payment being on my credit file. I mean; it made sense before I started this thread on the Silver Competition pack but after seeing the lower rates, I’m definitely going to do that instead.I'm currently looking at M4C's with a 36k budget, but I'm holding off at the moment, not because of the current situation, but because I want to try and stretch it out so the prices of 2018/19 come into my budget (approved used). My one concern is that the new model which is a bit marmite regarding the styling might actually have an impact on residuals of late LCI's, by increased demand as people prefer the previous aesthetics to the current. i'm hoping not though.
Also, while I'm here (sorry for a bit of a hijack) , what year did the M4 LCI come out? some say 16, some 17. Is there any visual way to tell apart from turning on the headlights?.
Good luck in your search, I must admit this sub forum of PH is a very pleasant and helpful place to be. Thanks Fellas.
The LCI started in 2017, but there are some pre LCI 17 plates so keep a good eye out, however at your budget, they’ll all be LCI’s.
I’d love an 18/68/19 plate purely for the warranty, it will be easier and cheaper to extend but the price jump is too high. I’d avoid 19 plates or at least check if they have OPF filters.
As for the residuals, I’d never take a 25k loan out and put that kind of money in a car that’s over 4 years old unless I knew the prices would remain solid. Yes the new M3/M4’s are out but they’re competition packs that start at 75k.
The way I see it is, E92 M3’s, 57 plates with 120k miles are going for 13k, there is no way the M4 will drop to that money for a looong time and even if it did halve in value after 4 years of ownership, that’s £3,750 a year in depreciation, that’s not a bad deal at all, I pay more to lease a diesel C class
Chestrockwell said:
SELON said:
Convertible boot is very spacious. Here’s a pic of it loaded with my son’s gear when he returned to University recently. There’s a massive hold-all in there too. With the roof down, less space, but I did a week Euro tour with 3 adults in the car and all their gear. So, it’s good.
Driving? I went for the convertible because I’ve got an Elise, so anything else will feel like a bus in comparison. I wanted a four seat convertible and find the convertible M4 Comp Pack excellent, I think it’s probably got better headroom in the rear than the coupe too (a guess). No rattles from the roof, feels like a coupe, even when hustling down the lanes. Happily keeps up with almost everything else at road speeds, even on the B roads (even spirited driving). Very fast in a straight line of course too. And then you can drop the roof. Really love mine. Had it almost 3 years from new now and never thought of changing it.
That’s lovely and I love the San Marino blue, hardly any of them in my budget!Driving? I went for the convertible because I’ve got an Elise, so anything else will feel like a bus in comparison. I wanted a four seat convertible and find the convertible M4 Comp Pack excellent, I think it’s probably got better headroom in the rear than the coupe too (a guess). No rattles from the roof, feels like a coupe, even when hustling down the lanes. Happily keeps up with almost everything else at road speeds, even on the B roads (even spirited driving). Very fast in a straight line of course too. And then you can drop the roof. Really love mine. Had it almost 3 years from new now and never thought of changing it.
The boot space looks good, there are some photos of the boot in convertible ones and it looks like there’s only space in the middle but turns out there’s more, thanks for sharing
I’m sure the coupe is a great drive too. They’re better cars than their depreciation says!!
Good luck with your hunt. Hope you find your car soon.
Chestrockwell said:
Smuler said:
There’s a good back to back review on you tube of *M3 *Competition pack and the same age (2016) non CP, the review covers issues such as noise and ride comfort.
If it’s of use , and you can’t find it, shout up as I’ve got it somewhere.
Surprised it’s hard to find HK on the OG M4. Along with HUD it seemed popular when I looked.
If it’s a CP you want tho , go for it. Best to be 100% satisfied.
Just had a look, can’t find it! If you could drop me a link that would be great.If it’s of use , and you can’t find it, shout up as I’ve got it somewhere.
Surprised it’s hard to find HK on the OG M4. Along with HUD it seemed popular when I looked.
If it’s a CP you want tho , go for it. Best to be 100% satisfied.
There are a few M4’s with HK and HUD but they cost the same as competition’s.
I’ll post a few links of ones I like
https://www.autotrader.co.uk/car-details/202012197...
That one is beautiful and I love the colour, wheels and chrome grill, no doubt it will ride better on the 19’s however its missing the HK which is a must for me and it won’t sound as nice as the CP. It’s also 2k above budget.
https://www.autotrader.co.uk/car-details/202009023...
This one is also lovely, mileage is slightly higher but for the spec, it’s a lot cheaper, pcp this one makes perfect sense for me but again, I’d rather get a loan, especially after seeing the tesco rates (Thanks everyone)
https://youtu.be/WJvlq6cq5VI
I looked at your links. Can I suggest if you're buying from non franchised dealers, you get a free account with BCA, the auction site. You may well see some of the cars you could be considering there. You'll see a detailed report on their condition. From M's I've looked at for/with others sometimes any issues are "papered over," before re-sale, so it may be worth an "avoid" list. Or if they are grade1, a list to consider if you see them pop up.
There's about 16 lots on today.
I presume you've dismissed the non HK black car, but did you notice the silver car's tax expired 5 month ago? So looks like it's been floating around the trade and not selling. Maybe an issue, or maybe , if it's good, a chance for a deal.
Playing devils advocate here but is this really the right car for you? Saying a £30k is within range when you have £5k in actual cash is a very modern approach to affordability. This isn't to say don't do it, as you may have allocated £5k of a much larger pot for this purpose, but it raises a question, more so given a new set of tyres and brakes will do you for at least £2k, you need to stay liquid to run an M car.
Speaking finance as I've used all available options in the past, I would lay it out as follows:
If £5k really is all or most of your available cash, go PCP as it reduces your exposure and ties the debt to the car. If things go wrong your lose the car, but also the liability.
If you're comfortable with taking all of the risk, I would get the largest and longest 0% credit card going. Typically 2 years is offered, then get a bank loan at 3-4% over a longer period to get you to where you need to be. This weights the repayments at the start of the package thus reducing the risk into the future where life is less certain, it also get you into the cheapest loan bracket. Paying >5% these days for any financial instrument is un-necessary, you just need to get creative.
Speaking finance as I've used all available options in the past, I would lay it out as follows:
If £5k really is all or most of your available cash, go PCP as it reduces your exposure and ties the debt to the car. If things go wrong your lose the car, but also the liability.
If you're comfortable with taking all of the risk, I would get the largest and longest 0% credit card going. Typically 2 years is offered, then get a bank loan at 3-4% over a longer period to get you to where you need to be. This weights the repayments at the start of the package thus reducing the risk into the future where life is less certain, it also get you into the cheapest loan bracket. Paying >5% these days for any financial instrument is un-necessary, you just need to get creative.
Shanksy87 said:
Playing devils advocate here but is this really the right car for you? Saying a £30k is within range when you have £5k in actual cash is a very modern approach to affordability. This isn't to say don't do it, as you may have allocated £5k of a much larger pot for this purpose, but it raises a question, more so given a new set of tyres and brakes will do you for at least £2k, you need to stay liquid to run an M car.
Speaking finance as I've used all available options in the past, I would lay it out as follows:
If £5k really is all or most of your available cash, go PCP as it reduces your exposure and ties the debt to the car. If things go wrong your lose the car, but also the liability.
If you're comfortable with taking all of the risk, I would get the largest and longest 0% credit card going. Typically 2 years is offered, then get a bank loan at 3-4% over a longer period to get you to where you need to be. This weights the repayments at the start of the package thus reducing the risk into the future where life is less certain, it also get you into the cheapest loan bracket. Paying >5% these days for any financial instrument is un-necessary, you just need to get creative.
I appreciate your thoughts and tips, I think I’d much rather a loan despite PCP being easier as I feel like I have more freedom, for example, I could sell the M4 in a year or in 2 years without having to worry about equity, finance companies and final payments. Speaking finance as I've used all available options in the past, I would lay it out as follows:
If £5k really is all or most of your available cash, go PCP as it reduces your exposure and ties the debt to the car. If things go wrong your lose the car, but also the liability.
If you're comfortable with taking all of the risk, I would get the largest and longest 0% credit card going. Typically 2 years is offered, then get a bank loan at 3-4% over a longer period to get you to where you need to be. This weights the repayments at the start of the package thus reducing the risk into the future where life is less certain, it also get you into the cheapest loan bracket. Paying >5% these days for any financial instrument is un-necessary, you just need to get creative.
As for it being the right car for me, I mean, I don’t think it is, I’d be better off VFM wise in a 440i or even a BMW M2 however the M4 has been a dream car for me since it came out and it’s an itch I need to scratch as anything else will be unfulfilling, I don’t even think I’ll buy a performance car if I can’t get the M4!
The way I’ve justified it is that I paid £1500 initial payment on my current lease car and 390 a month, my previous car was bought via a personal loan and those repayments were 450 a month. I’ve been paying that monthly for the past 4 years so I’m used to it and it’s become a cost of life if you want to call it that.
I see the 5k deposit as if I’m buying the M4 for 3500 and as I’d be paying the same monthly payments I have been for the last 4 years, it starts to make sense. However, the reason my cap is 5k is because I intend to buy a warranty which will be about a grand for the year so while I can afford to pay extra for the competition pack, I don’t think paying more is worth it.
Shanksy87 said:
Playing devils advocate here but is this really the right car for you? Saying a £30k is within range when you have £5k in actual cash is a very modern approach to affordability. This isn't to say don't do it, as you may have allocated £5k of a much larger pot for this purpose, but it raises a question, more so given a new set of tyres and brakes will do you for at least £2k, you need to stay liquid to run an M car.
Speaking finance as I've used all available options in the past, I would lay it out as follows:
If £5k really is all or most of your available cash, go PCP as it reduces your exposure and ties the debt to the car. If things go wrong your lose the car, but also the liability.
If you're comfortable with taking all of the risk, I would get the largest and longest 0% credit card going. Typically 2 years is offered, then get a bank loan at 3-4% over a longer period to get you to where you need to be. This weights the repayments at the start of the package thus reducing the risk into the future where life is less certain, it also get you into the cheapest loan bracket. Paying >5% these days for any financial instrument is un-necessary, you just need to get creative.
Are you able to expand on this a bit please? As far as I understood it, with a PCP he's locked in for the duration of the term, unless he VTs half way through, whereas with a loan he's free to sell the car and pay off the loan if he needs to get rid of the car for some reason. I thought getting out of a PCP because "I can't afford it anymore" was quite difficult.Speaking finance as I've used all available options in the past, I would lay it out as follows:
If £5k really is all or most of your available cash, go PCP as it reduces your exposure and ties the debt to the car. If things go wrong your lose the car, but also the liability.
If you're comfortable with taking all of the risk, I would get the largest and longest 0% credit card going. Typically 2 years is offered, then get a bank loan at 3-4% over a longer period to get you to where you need to be. This weights the repayments at the start of the package thus reducing the risk into the future where life is less certain, it also get you into the cheapest loan bracket. Paying >5% these days for any financial instrument is un-necessary, you just need to get creative.
Chestrockwell said:
I appreciate your thoughts and tips, I think I’d much rather a loan despite PCP being easier as I feel like I have more freedom, for example, I could sell the M4 in a year or in 2 years without having to worry about equity, finance companies and final payments.
As for it being the right car for me, I mean, I don’t think it is, I’d be better off VFM wise in a 440i or even a BMW M2 however the M4 has been a dream car for me since it came out and it’s an itch I need to scratch as anything else will be unfulfilling, I don’t even think I’ll buy a performance car if I can’t get the M4!
The way I’ve justified it is that I paid £1500 initial payment on my current lease car and 390 a month, my previous car was bought via a personal loan and those repayments were 450 a month. I’ve been paying that monthly for the past 4 years so I’m used to it and it’s become a cost of life if you want to call it that.
I see the 5k deposit as if I’m buying the M4 for 3500 and as I’d be paying the same monthly payments I have been for the last 4 years, it starts to make sense. However, the reason my cap is 5k is because I intend to buy a warranty which will be about a grand for the year so while I can afford to pay extra for the competition pack, I don’t think paying more is worth it.
I can't fault your logic as I have done the same in the past, I prefer loans personally, although I have a PCP active right now as the deal was right for me. You know your financial position better than anyone.As for it being the right car for me, I mean, I don’t think it is, I’d be better off VFM wise in a 440i or even a BMW M2 however the M4 has been a dream car for me since it came out and it’s an itch I need to scratch as anything else will be unfulfilling, I don’t even think I’ll buy a performance car if I can’t get the M4!
The way I’ve justified it is that I paid £1500 initial payment on my current lease car and 390 a month, my previous car was bought via a personal loan and those repayments were 450 a month. I’ve been paying that monthly for the past 4 years so I’m used to it and it’s become a cost of life if you want to call it that.
I see the 5k deposit as if I’m buying the M4 for 3500 and as I’d be paying the same monthly payments I have been for the last 4 years, it starts to make sense. However, the reason my cap is 5k is because I intend to buy a warranty which will be about a grand for the year so while I can afford to pay extra for the competition pack, I don’t think paying more is worth it.
Reference the M4 specifically, I think a warranty is always useful but don't let it lull you into thinking it covers all your costs. A major service is a grand, even if they find nothing else that needs doing and other consumables that a warranty doesn't touch can add up.
With respect to the comp pack, every review I've read suggests this is the better car and it is widely held that the later the M4 the more resolved it is. Also having worked in this industry I would strongly recommend getting as new a vehicle as you can, they are always better as every year brings improvements, many not advertised. In essence, i'm saying it is worth paying more and a few grand shouldn't really put you off.
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