M2 - alternative finance options

[snorkel sucker]

Does anybody have any recommendations for who to approach for finance as an alternative to BMW? I've had dealings with Oracle in the past but that's all.

Early M2's are now dipping below £30k for an AUC car and are showing pretty decent GMFV figures which makes a 3 year stint in one a very tempting option. I just refuse to pay BMW's 12%+ APR!

[meatballs]

You can get a 25000 loan from Zopa at around 4.9% at the moment...

[Berry10000]

Pretty much walk into any BMW dealer and with a bit of haggling they’ll give you 4.9% apr no problem.

[snorkel sucker]

Thanks both.

First up will be haggling with BMWFS I think and go from there.

[Max Maxasson]

Tesco and Sainsburys do good personal loans around 2.9%

Edited by Max Maxasson on Tuesday 21st January 16:03

[as7920]

Yeah, first try to haggle with dealer and BMW FS. Should get 6.9% minimum but lower could be achievable.

Alternatively try Magnitude Finance, Oracle and Capital Car Finance

[snorkel sucker]

Started some dialogue with AUCs but firm resistance so far to anything close to 5%.

[9k rpm]

I’m having the same issue buying an AUC M4 best I have got is 8.9% with a load of “we can’t go any lower rubbish”. Think I’ll be using Oracle who have come in much lower at about 6.5%.

[snorkel sucker]

9k rpm said:

I’m having the same issue buying an AUC M4 best I have got is 8.9% with a load of “we can’t go any lower rubbish”. Think I’ll be using Oracle who have come in much lower at about 6.5%.

That sounds very familiar. I literally could not bring myself to sign a deal at 8.9%. I'd struggle even at 6.5% to be honest!

I will see what Oracle and Capital Car Finance say...

[Andy OH]

snorkel sucker said:

That sounds very familiar. I literally could not bring myself to sign a deal at 8.9%. I'd struggle even at 6.5% to be honest!

I will see what Oracle and Capital Car Finance say...

I think you'll struggle to get Oracle below 6.5%. When I was looking at possibly getting a 981 Cayman GT4 they wouldn't budge on 6.5%.

[skeeterm5]

Max Maxasson said:

Tesco and Sainsburys do good personal loans around 2.9%

Edited by Max Maxasson on Tuesday 21st January 16:03

Assuming the OP is talking about PCP finance then this is an apples and pears comparison.

BMWFS has to price in the risk of the final used car where as the sources your quote don’t. Lenders like Oracle are at around 6.5% too, which is realistically where the market seems to be at the moment.

Haggle to 6.5% with BMWFS and let them take the risk, or borrow cheaper but you take the risk, that’s the choice.

[snorkel sucker]

Yes, it was on the basis of a PCP rather than personal loan as I don't have the intention of keeping the car any longer than 3 years.

It is looking like either going PCP at 6-7% but with a guaranteed safety net (GMFV) or going HP with a balloon which is my risk.

I've got Clydesdale Asset Finance on my radar to speak to regards HP + balloon option.

[Bam89]

Capital Car Finance are offering 4.9% as their headline rate based on a 10% deposit and £30k car price, no idea if they actually will offer that once you request a quote though

[snorkel sucker]

Bam89 said:

Capital Car Finance are offering 4.9% as their headline rate based on a 10% deposit and £30k car price, no idea if they actually will offer that once you request a quote though

Thanks; have seen that and enquired but the GMFV is set at about £10k lower than anywhere else which renders a PCP pointless!

[Rameez-v57b3]

I got 2.9% fixed which is about 5.9% apr i believe through Alphera finance solutions which are owned by BMWFS/.


Any Arnold Clark BMW dealer will offer 4.6% fixed but this can be negotiated to sub 4% easily!

[snorkel sucker]

Rameez-v57b3 said:

I got 2.9% fixed which is about 5.9% apr i believe through Alphera finance solutions which are owned by BMWFS/.


Any Arnold Clark BMW dealer will offer 4.6% fixed but this can be negotiated to sub 4% easily!

Thanks. Stalemate reached with one dealer at 6.9% so I've said thanks but no thanks. Apparently sub 5% is only for new cars or ex-demo. I refuse to believe that is the case; if its available for those its available for everything else!

Its not like there is a shortage of M2's out there so I'm happy to walk away until I get the deal I'm after...

[Rameez-Q]

snorkel sucker said:

Thanks. Stalemate reached with one dealer at 6.9% so I've said thanks but no thanks. Apparently sub 5% is only for new cars or ex-demo. I refuse to believe that is the case; if its available for those its available for everything else!

Its not like there is a shortage of M2's out there so I'm happy to walk away until I get the deal I'm after...

The base rate is 4.6% fixed from Arnold Clark, assuming you'd come to Scotland or in here, my last car M4 bought from BMW owned by AC was 3.2% and another Fiat garage got me 2.9% fixed. Requires a lot of haggling though and very good credit!

[as7920]

snorkel sucker said:

Bam89 said:

Capital Car Finance are offering 4.9% as their headline rate based on a 10% deposit and £30k car price, no idea if they actually will offer that once you request a quote though

Thanks; have seen that and enquired but the GMFV is set at about £10k lower than anywhere else which renders a PCP pointless!

4.9% is a promo at the moment I believe though I've seen it at that rate before anyway.

If the GMFV is lower then you should be quids in at the end of the agreement provided you don't just had it back. Should have more equity or bigger deposit for next car so long as monthlies aren't too much higher.

[dinosaurumpus]

in yr situation, if you only want the car for 3 years but want cheap monthlies (w/o going the pricier PCP route) one option would taking a cheap loan from tescobank or the AA and extending the period out to 5,6 or 7 years. due to the interest rebate that would apply if settling after 3 years, the settlement figure is unlikely to be less than the value of the car at that point, esp if you have put a few k down at the front end.

[julian64]

I'm a bit confused here. You are trying to knock 2-3% off a load which is understandable, but the car depreciation even over the three years will be a magnitude higher.

Surley better to get an older car with less depreciation and not worry about the load payment %?