Discussion
Managed to find a deal on a fully loaded saloon, standard trim but with piano black interior and sunroof, and all the plus packs except for M Performance.
£60,200 list, but with discount to £50,000
2.9 APR
8000 miles
£570 / month with £6,000 deposit
The deposit bit always seems strange to me on PCP. If you have the monthly budget to drop £570 on a car, for your next car on PCP you will need that deposit again - in this case £6k (assuming similar price of car and similar monthly budget). Your positive equity is unlikely to be £6k over GFV... So what do you do? Save up that 6k for your next car over the 3/4 years term? If that's the case isn't it better to just pay more per month to reduce the interest. My thinking is yes, so if PCP was to work "as intended" for the consumer, you shouldn't need to be saving any deposit, and should just be using the difference in GFV, therefore "what you can afford" per month should be the monthly total and your deposit should be say 4k maximum as an optimistic difference from your last car.
£60,200 list, but with discount to £50,000
2.9 APR
8000 miles
£570 / month with £6,000 deposit
The deposit bit always seems strange to me on PCP. If you have the monthly budget to drop £570 on a car, for your next car on PCP you will need that deposit again - in this case £6k (assuming similar price of car and similar monthly budget). Your positive equity is unlikely to be £6k over GFV... So what do you do? Save up that 6k for your next car over the 3/4 years term? If that's the case isn't it better to just pay more per month to reduce the interest. My thinking is yes, so if PCP was to work "as intended" for the consumer, you shouldn't need to be saving any deposit, and should just be using the difference in GFV, therefore "what you can afford" per month should be the monthly total and your deposit should be say 4k maximum as an optimistic difference from your last car.
I don't usually bother with PCPs, but I do consider them. The only figure I look at is the interest I pay on the deal, I want that to be as small as poss.
They usually set the GMFV to be low. At the end of the term when you want to sell, you will have a car that's worth a bit more than GMFV and you can use this to fund the next one. My 135i was worth about £4k more than the GMFV when I sold it.
They usually set the GMFV to be low. At the end of the term when you want to sell, you will have a car that's worth a bit more than GMFV and you can use this to fund the next one. My 135i was worth about £4k more than the GMFV when I sold it.
12TS said:
I don't usually bother with PCPs, but I do consider them. The only figure I look at is the interest I pay on the deal, I want that to be as small as poss.
They usually set the GMFV to be low. At the end of the term when you want to sell, you will have a car that's worth a bit more than GMFV and you can use this to fund the next one. My 135i was worth about £4k more than the GMFV when I sold it.
Cheers, yes exactly my point. So if you're putting in more than 4k the whole reason for your PCP is really to afford a car monthly that you otherwise could not, or I guess to get a more expensive car over a longer period (e.g. PCP plus loan to pay off GFV). Of course, if you have cash to pay off GFV, then in that case you might as well have paid more earlier.They usually set the GMFV to be low. At the end of the term when you want to sell, you will have a car that's worth a bit more than GMFV and you can use this to fund the next one. My 135i was worth about £4k more than the GMFV when I sold it.
TimewarpUK said:
12TS said:
I don't usually bother with PCPs, but I do consider them. The only figure I look at is the interest I pay on the deal, I want that to be as small as poss.
They usually set the GMFV to be low. At the end of the term when you want to sell, you will have a car that's worth a bit more than GMFV and you can use this to fund the next one. My 135i was worth about £4k more than the GMFV when I sold it.
Cheers, yes exactly my point. So if you're putting in more than 4k the whole reason for your PCP is really to afford a car monthly that you otherwise could not, or I guess to get a more expensive car over a longer period (e.g. PCP plus loan to pay off GFV). Of course, if you have cash to pay off GFV, then in that case you might as well have paid more earlier.They usually set the GMFV to be low. At the end of the term when you want to sell, you will have a car that's worth a bit more than GMFV and you can use this to fund the next one. My 135i was worth about £4k more than the GMFV when I sold it.
bad company said:
The other benefit is protection from increased depreciation. If the bottom should fall out of the market say for big engine cars the buyer can simply return it at the end of the contract.
True, yes on my deal you would have paid £32,700 by that point.If you bought it outright but then it was worth £11k after 4 years instead of £21k, you'd have lost £39,000.
If you wanted to keep it on PCP you'd be paying £53,538 in total, assuming no extra loans. So you've insured yourself against a £6300 loss by paying £3583, so you've prevented a loss of £2717 in my example. Of course, just an example, but its not much over 4 years vs interest, and is extreme so it might only show the best case (assuming my calculations are correct). Let me know if I need more coffee...
Bear with me......
Hoping to order an M340i Touring soon. The main point of worry is my beloved partner who, it has to be said, sees cars much as she sees general appliances.
With a total inability to test drive anything, wondering if anyone's in a similar siutation and how your non-petrolhead has found the driving experience. I plan on introducing her to Eco-Pro mode early.
Of course in normal circumstances we'd have test driven at least a 330i by now. Closest point of comparison is our dearly departed 530d Touring, which was dispensed with for being too large and unweildy
Hoping to order an M340i Touring soon. The main point of worry is my beloved partner who, it has to be said, sees cars much as she sees general appliances.
With a total inability to test drive anything, wondering if anyone's in a similar siutation and how your non-petrolhead has found the driving experience. I plan on introducing her to Eco-Pro mode early.
Of course in normal circumstances we'd have test driven at least a 330i by now. Closest point of comparison is our dearly departed 530d Touring, which was dispensed with for being too large and unweildy
BrownTrousers said:
Bear with me......
Hoping to order an M340i Touring soon. The main point of worry is my beloved partner who, it has to be said, sees cars much as she sees general appliances.
With a total inability to test drive anything, wondering if anyone's in a similar siutation and how your non-petrolhead has found the driving experience. I plan on introducing her to Eco-Pro mode early.
Of course in normal circumstances we'd have test driven at least a 330i by now. Closest point of comparison is our dearly departed 530d Touring, which was dispensed with for being too large and unweildy
Just tell her it's a normal car. My other half normally drives slow 4x4 SUV's. Since we both started working from home we decided to get rid of her old wallowy XC90 and just use my car. It's a 540i. She's never once used the sport button or revved past 2500rpm. She just potters around in it while complaining about the reverse camera and sensors making it harder for her to park (I've yet to understand this) and how low she sits in it. She actually gets car sick when she's a passenger and I find a good road and use the sport button. Hoping to order an M340i Touring soon. The main point of worry is my beloved partner who, it has to be said, sees cars much as she sees general appliances.
With a total inability to test drive anything, wondering if anyone's in a similar siutation and how your non-petrolhead has found the driving experience. I plan on introducing her to Eco-Pro mode early.
Of course in normal circumstances we'd have test driven at least a 330i by now. Closest point of comparison is our dearly departed 530d Touring, which was dispensed with for being too large and unweildy
12TS said:
Sorry this won't help much.
My wife's not happy with the 340 - it's too big and powerful in comparison to her car - a Mini Cooper Sport.
How about a JCW Clubman?
I tried the Clubman and although it's a great car, it's very very stiff. I ended up going for the current m135i instead, which is now being replaced by an M340i when it arrives in a few months My wife's not happy with the 340 - it's too big and powerful in comparison to her car - a Mini Cooper Sport.
How about a JCW Clubman?
Love the Minis though - the Mrs has a Cooper 1.5T and it's great fun.
TimewarpUK said:
True, yes on my deal you would have paid £32,700 by that point.
If you bought it outright but then it was worth £11k after 4 years instead of £21k, you'd have lost £39,000.
If you wanted to keep it on PCP you'd be paying £53,538 in total, assuming no extra loans. So you've insured yourself against a £6300 loss by paying £3583, so you've prevented a loss of £2717 in my example. Of course, just an example, but its not much over 4 years vs interest, and is extreme so it might only show the best case (assuming my calculations are correct). Let me know if I need more coffee...
Haven’t checked the detail of your maths, but yes in principle you’re right. Depends on your view of risk though and I think your £11k example is a bit extreme. Remember they’re set up to keep you coming back every 3 to 4 years to get a new car, so it’s in their interests for the car to be worth more than the GMFV. That way you can just roll it up into another one. They’re clever. If you bought it outright but then it was worth £11k after 4 years instead of £21k, you'd have lost £39,000.
If you wanted to keep it on PCP you'd be paying £53,538 in total, assuming no extra loans. So you've insured yourself against a £6300 loss by paying £3583, so you've prevented a loss of £2717 in my example. Of course, just an example, but its not much over 4 years vs interest, and is extreme so it might only show the best case (assuming my calculations are correct). Let me know if I need more coffee...
FYI my new 340 cost me £35k in 2016. It was list at £42k. P/ex now is £16k.
BrownTrousers said:
Bear with me......
Hoping to order an M340i Touring soon. The main point of worry is my beloved partner who, it has to be said, sees cars much as she sees general appliances.
With a total inability to test drive anything, wondering if anyone's in a similar siutation and how your non-petrolhead has found the driving experience. I plan on introducing her to Eco-Pro mode early.
Of course in normal circumstances we'd have test driven at least a 330i by now. Closest point of comparison is our dearly departed 530d Touring, which was dispensed with for being too large and unweildy
I have an M340i touring on order, my non-petrolhead wife just knows I've ordered a sensible hybrid (well, kinda) and as she's much shorter than me I have the comfort plus pack, so electric seats making it easier for her to adjust her driving position, and as I'm concerned about her comfort I also ordered Marino leather. She complained about the black leather in the F31, so just for her, I have the pano roof.Hoping to order an M340i Touring soon. The main point of worry is my beloved partner who, it has to be said, sees cars much as she sees general appliances.
With a total inability to test drive anything, wondering if anyone's in a similar siutation and how your non-petrolhead has found the driving experience. I plan on introducing her to Eco-Pro mode early.
Of course in normal circumstances we'd have test driven at least a 330i by now. Closest point of comparison is our dearly departed 530d Touring, which was dispensed with for being too large and unweildy
She didn't believe a word of my reasoning, I just didn't tell her the price as other than the laser lights I ticked all the boxes. Ha!
12TS said:
TimewarpUK said:
True, yes on my deal you would have paid £32,700 by that point.
If you bought it outright but then it was worth £11k after 4 years instead of £21k, you'd have lost £39,000.
If you wanted to keep it on PCP you'd be paying £53,538 in total, assuming no extra loans. So you've insured yourself against a £6300 loss by paying £3583, so you've prevented a loss of £2717 in my example. Of course, just an example, but its not much over 4 years vs interest, and is extreme so it might only show the best case (assuming my calculations are correct). Let me know if I need more coffee...
Haven’t checked the detail of your maths, but yes in principle you’re right. Depends on your view of risk though and I think your £11k example is a bit extreme. Remember they’re set up to keep you coming back every 3 to 4 years to get a new car, so it’s in their interests for the car to be worth more than the GMFV. That way you can just roll it up into another one. They’re clever. If you bought it outright but then it was worth £11k after 4 years instead of £21k, you'd have lost £39,000.
If you wanted to keep it on PCP you'd be paying £53,538 in total, assuming no extra loans. So you've insured yourself against a £6300 loss by paying £3583, so you've prevented a loss of £2717 in my example. Of course, just an example, but its not much over 4 years vs interest, and is extreme so it might only show the best case (assuming my calculations are correct). Let me know if I need more coffee...
FYI my new 340 cost me £35k in 2016. It was list at £42k. P/ex now is £16k.
Not that I'm against PCP, just that I'm trying to figure out out loud what deposit to go for in terms of deposit Vs monthly. My two thoughts are either deposit 4k and make sure the monthly is what I'm comfortable with, or deposit enough to cover the options I go for now. This way will mean I can continue to PCP next time with equity, even if I don't get everything on the car next time.
Edited by TimewarpUK on Friday 26th March 03:45
It doesn't really matter, just presume you will have nothing at the end and you will be fine.
Put more deposit in and you will pay less interest, but 2.9% you will pay very little anyway and the difference between £4k down and £8k down is bugger all. Around £235 over the term in extra interest.
9 times out of 10 the final value is determined by what BMW have set all the GFVs at anyway.
You figures show a GFV of roughly £20500, £50000 with £6k down and £570 a month at 2.9% apr.
I would guess that GFV to be there or thereabouts.
Stick £4k in and pay £612 a month, then walk away after 48 months.
Or go and buy a Porsche if you want to lose £700 a month. A 3 series for £700 a month is nuts imho.
Put more deposit in and you will pay less interest, but 2.9% you will pay very little anyway and the difference between £4k down and £8k down is bugger all. Around £235 over the term in extra interest.
9 times out of 10 the final value is determined by what BMW have set all the GFVs at anyway.
You figures show a GFV of roughly £20500, £50000 with £6k down and £570 a month at 2.9% apr.
I would guess that GFV to be there or thereabouts.
Stick £4k in and pay £612 a month, then walk away after 48 months.
Or go and buy a Porsche if you want to lose £700 a month. A 3 series for £700 a month is nuts imho.
BrownTrousers said:
Bear with me......
Hoping to order an M340i Touring soon. The main point of worry is my beloved partner who, it has to be said, sees cars much as she sees general appliances.
With a total inability to test drive anything, wondering if anyone's in a similar siutation and how your non-petrolhead has found the driving experience. I plan on introducing her to Eco-Pro mode early.
Of course in normal circumstances we'd have test driven at least a 330i by now. Closest point of comparison is our dearly departed 530d Touring, which was dispensed with for being too large and unweildy
My wife has to use my 340i Touring with the M performance pack/exhaust. She likes the car, but she dislikes the sounds it makes. To be fair, it’s too nosy on start up with the wastegate open, although I think it’s worth it for 400hp in a RWD dog/bike wagon. With the current used market it also seems to be an appreciating asset, but high miles and dog hair will put an end to that. Hoping to order an M340i Touring soon. The main point of worry is my beloved partner who, it has to be said, sees cars much as she sees general appliances.
With a total inability to test drive anything, wondering if anyone's in a similar siutation and how your non-petrolhead has found the driving experience. I plan on introducing her to Eco-Pro mode early.
Of course in normal circumstances we'd have test driven at least a 330i by now. Closest point of comparison is our dearly departed 530d Touring, which was dispensed with for being too large and unweildy
I’ve had my 340 for a year now. As others have said it’s all the car you need, fast, comfortable, well equipped and can carry plenty of people & luggage if needed.
I really don’t understand why anyone would buy one and spend a fortune changing the perfectly good run flat tyres to something the car wasn’t designed to run on.
I really don’t understand why anyone would buy one and spend a fortune changing the perfectly good run flat tyres to something the car wasn’t designed to run on.
Luke. said:
JackReacher said:
My wife is happy driving my m340i touring, its just a 3 series at the end of the day. She does complain that it feels slow compared to our i3s though.
Re the i3, does it really feel slower in day to day driving? I loved our i3 and would absolutely have another.JackReacher said:
In day to day driving the i3s feels quicker and more responsive than the m340i, that is due to the instant torque available with no delay which is a benefit of EVs in general. Of course on paper and on more open roads the m340i is a lot quicker, but not noticable around town. I3's are brilliant cars.
Interesting. Thanks.Gassing Station | BMW General | Top of Page | What's New | My Stuff