How to fund an M140i

[Shotgun Jon]

Evening everyone

Got a few questions and was interested in your opinions basically.

Had a M135i few years back, loved it, anyway it went (and a what a sad day that was) and at the time there was nothing decent around to lease so i bought a mkv R32. Lovely car but now looking to get into a m140i......so, the question is how?

Reckon i'd get 7k for the R32 of which i owe nothing on it. Now, ive seen TRL's deals and basically i want an Alpine white three door auto with heated seats, sunglass protection and the driver comfort pack (that's cruise and rear parking sensors right) Price wise that's coming our at £2k and £315 pcm. GMFV is about £14.5k.

Now, considering i'm looking to keep the car i looked at buying out right. via coast to coast the car is coming in at £26.5k. I can put 7k in and borrow 19k. On an unsecured loan over 48 months (same period as pcp) payments are £400 pcm at 3.2% but at the end i'll own the car as oppose to having a balloon payment to make.

Also, the second hand values for the M135i seem to be hanging in there making buying seem even more sensible?

Just wonder what others did and what opinions you had?

Thanks in advance.

Jonto

Edited by Shotgun Jon on Wednesday 5th October 22:10

[Ken Figenus]

Dont pay BMW's comedy 10.9% APR unchangeble and 'set by BMW Sir' whatever you do. Got them to 8.4% when i mentioned 'my broker' but still sorted my own at far better rate/terms/restrictions. Get the best deal you can but be vague on how you will fund - do allow them to quote though but ultimately never use their finance.

[ashleyman]

Shotgun Jon said:

Price wise that's coming our at £2k and £315 pcm. GMFV is about £14.5k.

7k and £400 pcm at 3.2% but at the end i'll own the car as oppose to having a balloon payment to make.

PCP = £2,000 Down + (48 * £315) = £17,120 + GFV £14,500 = £31,620

LOAN = £7,000 Down + (48 * £400) = £26,200

If this was me, I'd do the loan and try my hardest to keep the car for the 4 years. For the sake of an extra £85 a month (and no spare cash after the R32 sale) I can own the car outright after 4 years instead of having to pay another £14k to own it.

4 year old M135i's are on eBay for like £17k. Theoretically, if that trend continues, at 4 years old you could sell it and it would have cost you less than £9,000, thats £187.50 a month! Cheaper than any PCP or lease deal ever as after 4 years the cost to change was only £2,000!

I just ran your spec through Broadspeed and it came out at £27,721. I did it to read the small print and it said: Please note that any registration bonus or finance deposit allowance has already been deducted. I would just give whichever broker you use a call and ask how much the car would be without finance, if it's more, then get onto whoever supplies BMW finance and ask them about how to pay off in full. I know with VW so long as you pay off in full within 14 days it won't cost you any extra and you'll keep the finance discounts.

[Ken Figenus]

ashleyman said:

PCP = £2,000 Down + (48 * £315) = £17,120 + GFV £14,500 = £31,620

LOAN = £7,000 Down + (48 * £400) = £26,200

If this was me, I'd do the loan and try my hardest to keep the car for the 4 years. For the sake of an extra £85 a month (and no spare cash after the R32 sale) I can own the car outright after 4 years instead of having to pay another £14k to own it.

4 year old M135i's are on eBay for like £17k. Theoretically, if that trend continues, at 4 years old you could sell it and it would have cost you less than £9,000, thats £187.50 a month! Cheaper than any PCP or lease deal ever as after 4 years the cost to change was only £2,000!

I just ran your spec through Broadspeed and it came out at £27,721. I did it to read the small print and it said: Please note that any registration bonus or finance deposit allowance has already been deducted. I would just give whichever broker you use a call and ask how much the car would be without finance, if it's more, then get onto whoever supplies BMW finance and ask them about how to pay off in full. I know with VW so long as you pay off in full within 14 days it won't cost you any extra and you'll keep the finance discounts.

A thinking man - great advice! Penalty for early exit in my case was one month's interest. You will also write off the £200 arrangement fee of course - which i'm not sure all showroom dealers charge? So be clear on that too.

We did do the VW PCP to get the discount for my Mum's Golf. Paid it off next day - no penalty. Bit of a charade but there you go! You MAY get a better overall deal just going with their finance if you can bridge/cashflow a swift exit to your funding source. Get the loan in the bank BEFORE you line up the PCP though...

[HJMS123]

I think you should wait until the new year to buy the M140i so you can sell me your R32

In all seriousness .... bank loan is the way to go imo

[mikeN54]

Loan and buy is the best option, no tie ins you can sell up and pay off the balance if you wish before 4 years is up, all under your control.

Shotgun Jon said:

On an unsecured loan over 48 months (same period as pcp) payments are £400 pcm at 3.2%...

...but more to the point where the hell do you get an unsecured loan for £19K at 3.2%? Do you work for the bank?

[Ken Figenus]

Nationwide

[Shotgun Jon]

HJMS123 said:

I think you should wait until the new year to buy the M140i so you can sell me your R32

In all seriousness .... bank loan is the way to go imo

Decided to go with the bank loan option. Like people have pointed out it's the cheapest and offers the most flexibility.

Loan wise Nationalwide, sainsaburys, Tesco etc all offer 3.2/3.3 percent Apr.

Factory order car is looking like Jan 17 so if you are actually interested in my R32 let me know. It's a silver five door manual in the cheap tax bracket. 55plate.

Thanks
Jonathan. .

[chr15b]

Are 4 year old 135's genuinely selling for £17k when a new 140 can be bought for 26.5k?

[Ken Figenus]

Its an odd market indeed! There were more expensive lesser diesel models with 10,000 miles on them a year old that what we paid for a pre reg 4 month old M235i cloth roof... Mind you we got a banging bargain but ensure no man maths here

[mikeN54]

Ken Figenus said:

We did do the VW PCP to get the discount for my Mum's Golf.

That's interesting, I thought it was illegal to offer discounts linked to finance? I.e encouraging people to take on finance?

Edited by mikeN54 on Saturday 8th October 16:58

[mikeN54]

Ken Figenus said:

Nationwide

wow, last time I looked the best was about 7 or 8%!

[mikeN54]

chr15b said:

Are 4 year old 135's genuinely selling for £17k when a new 140 can be bought for 26.5k?

But the vast majority will be bought for near list by people who go in "for a look" and walk out with a new car, or by folks pleased they got 3% off or something.

Although growing, the number who buy cheap from brokers or leasing are still small.

Eg I'm the only person I know in my entire family / friends / work circle who has ever leased or bought from a broker. So that make me about 1 in 50 or 2% being generous, more like probably 1 in 100.

Thats the PH minority.

[Ken Figenus]

mikeN54 said:

That's interesting, I thought it was illegal to offer discounts linked to finance? I.e encouraging people to take on finance?

Edited by mikeN54 on Saturday 8th October 16:58

She was a cash buyer mate - there was no other reason to take on a PCP and cancel it the next day other than the VW rebate - or however they worded the discount off for using their finance.

[steve-5snwi]

M135's have only just started to drop off, last year the cheaper ones were around 19/20k, now the cheaper ones are 16/17k

Loan wise I would havegone with a bank loan too, pcp is only if you don't want to keep the car but you should be able to gets the rates down to 7.9% Apr if not a touch less.

[ollyprice87]

Thought standard APR rate on these was 5.9%?

[Ken Figenus]

Low base rate at the moment, its a secured loan, blah blah "but finance is set at 10.9 by BMW sir". Got 6.2 via a broker in the end. Bl00dy Arfur Daleys with silk ties!

[rcorr92]

I see a lot of people buy the car on the PCP deal as they get all the dealer cont towards the car then pay the car off in full within the cooling off period. This way they get it at the discounted price but still pay it off in full.