Car Finance with Balloon - help needed please
Car Finance with Balloon - help needed please
Author
Discussion

m3sye

Original Poster:

26,231 posts

217 months

Wednesday 8th June 2011
quotequote all
Could someone help please?
I am Looking at a car at 15750.00, I can put 3/4k down, ideally it would it be over 48/60months with a 40% balloon - how much would this work out per month on a realistic APR?

Eric Mc

124,041 posts

281 months

Wednesday 8th June 2011
quotequote all
Can't honestly say what the trade-in value for one of these is -



Sorry - couldn't resist.

m3sye

Original Poster:

26,231 posts

217 months

Wednesday 8th June 2011
quotequote all
Eric Mc said:
Can't honestly say what the trade-in value for one of these is -



Sorry - couldn't resist.
loserlaugh

sidicks

25,218 posts

237 months

Wednesday 8th June 2011
quotequote all
m3sye said:
Could someone help please?
I am Looking at a car at 15750.00, I can put 3/4k down, ideally it would it be over 48/60months with a 40% balloon - how much would this work out per month on a realistic APR?
A quick bit of spreadsheet work suggests:

£15,750 car
£3,000 loan
40% balloon (£6,300)
@ 8.4% APR
£200 per month over 4 years
OR £173 per month over 4 years

If you Google, you should be able to find an on-line PCP calculator you can play around with.

smile
Sidicks


m3sye

Original Poster:

26,231 posts

217 months

Wednesday 8th June 2011
quotequote all
Thanks!

CaptainSlow

13,179 posts

228 months

Thursday 9th June 2011
quotequote all
Agree with the calcs but 40% sounds a bit high.

Skrambles

1,355 posts

280 months

Thursday 9th June 2011
quotequote all
I'm also looking at a possible finance deal with a balloon, from BMW. The dealer has started with a quote for 4 years at an APR of 11.4%, which seems huge to me. The cash price of the car is £60,000. My deposit will be £11,000. The balloon is £20k. What is the best rate that you can get from BMW or from others? I know that these balloon deals are expensive, but I'm staggered by the deal that they've proposed.

m3sye

Original Poster:

26,231 posts

217 months

Thursday 9th June 2011
quotequote all
CaptainSlow said:
Agree with the calcs but 40% sounds a bit high.
What do you recommend ?

Pharoah

359 posts

285 months

Friday 10th June 2011
quotequote all
Skrambles said:
I'm also looking at a possible finance deal with a balloon, from BMW. The dealer has started with a quote for 4 years at an APR of 11.4%, which seems huge to me. The cash price of the car is £60,000. My deposit will be £11,000. The balloon is £20k. What is the best rate that you can get from BMW or from others? I know that these balloon deals are expensive, but I'm staggered by the deal that they've proposed.
I could you a similiar deal for approx 7% Apr on that car - pm me if you want further details.

snorkel sucker

2,695 posts

219 months

Friday 10th June 2011
quotequote all
If you don't mind my asking, what car are you looking at for £15k with a 40% balloon after 4 years?

On the subject of APRs, have recently seen a car with an APR of nearly 13% which I thought was extremely high. With some flex on this and the sticker price, it may work out in financial terms for me, but that depends on whether they want to budge.

What, therefore, could be deemed a "reasonable" APR figure to expect a main dealer to drop to on a pre reg car. I stress not new, as I understand these rates are heavily subsidised, hence the lower APRs

m3sye

Original Poster:

26,231 posts

217 months

Friday 10th June 2011
quotequote all
snorkel sucker said:
If you don't mind my asking, what car are you looking at for £15k with a 40% balloon after 4 years?

On the subject of APRs, have recently seen a car with an APR of nearly 13% which I thought was extremely high. With some flex on this and the sticker price, it may work out in financial terms for me, but that depends on whether they want to budge.

What, therefore, could be deemed a "reasonable" APR figure to expect a main dealer to drop to on a pre reg car. I stress not new, as I understand these rates are heavily subsidised, hence the lower APRs
It was a 335i, tbh I am not sure about balloons I thought that was just standard. What would you recommend?

m3sye

Original Poster:

26,231 posts

217 months

Friday 10th June 2011
quotequote all
Pharoah said:
I could you a similiar deal for approx 7% Apr on that car - pm me if you want further details.
Do you do cars of the value I was looking at?

Gilmore

357 posts

202 months

Friday 10th June 2011
quotequote all
m3sye said:
Could someone help please?
I am Looking at a car at 15750.00, I can put 3/4k down, ideally it would it be over 48/60months with a 40% balloon - how much would this work out per month on a realistic APR?
Who's going to offer you 40% ballon on a 335, that's not brand new, over a 5 year term?


m3sye

Original Poster:

26,231 posts

217 months

Friday 10th June 2011
quotequote all
Pharoah said:
I could you a similiar deal for approx 7% Apr on that car - pm me if you want further details.
Do you do cars of the value I was looking at?

Deva Link

26,934 posts

261 months

Friday 10th June 2011
quotequote all
sidicks said:
£200 per month over 4 years
OR £173 per month over 4 years
scratchchin Hmmm...which one to go for?

don'tbesilly

15,361 posts

179 months

Friday 10th June 2011
quotequote all
Deva Link said:
scratchchin Hmmm...which one to go for?
I'm struggling too!

m3sye

Original Poster:

26,231 posts

217 months

Friday 10th June 2011
quotequote all
Gilmore said:
Who's going to offer you 40% ballon on a 335, that's not brand new, over a 5 year term?
I am not saying they are, I just used that as an example, I am looking for help tbh ? what balloon would be offered?

Gilmore

357 posts

202 months

Friday 10th June 2011
quotequote all
m3sye said:
I am not saying they are, I just used that as an example, I am looking for help tbh ? what balloon would be offered?
How old is the car?

Perhaps, a personal loan may be a better option?

m3sye

Original Poster:

26,231 posts

217 months

Friday 10th June 2011
quotequote all
Gilmore said:
How old is the car?

Perhaps, a personal loan may be a better option?
56 plate, I bought my last M3 this way that was 3 years old at the time.

Tino

1,948 posts

299 months

Friday 10th June 2011
quotequote all
A balloon payment is normally less than what the dealer/finance company think they will get on a car at the end of its life.
I doubt a 5 year old 15k car will be worth 6K in 4 years.