M2C - PCP deals
Discussion
Evening All,
Anyone seen any better deals than this, would consider nearly new as well, but when you look at the following dealer contribution and the higher rates of APR on used cars, this seems like a good deal (well, maybe not for long term residuals, but that's BMWs for you).
Current 340i is just coming up to the 2 year point in a 4 year PCP and the automatic valuation is coming in £1.1k over the current settlement figure and mine has high spec and MPPSK, so I'm hoping they'll give me £1.5k+ so I can essentially move into the M2 without having to put new equity in and just a slightly higher monthly payment.
This my local BMW dealership:
https://www.group1auto.co.uk/bmw/new-car-offers/m/...
Thanks in advance,
HBT
Anyone seen any better deals than this, would consider nearly new as well, but when you look at the following dealer contribution and the higher rates of APR on used cars, this seems like a good deal (well, maybe not for long term residuals, but that's BMWs for you).
Current 340i is just coming up to the 2 year point in a 4 year PCP and the automatic valuation is coming in £1.1k over the current settlement figure and mine has high spec and MPPSK, so I'm hoping they'll give me £1.5k+ so I can essentially move into the M2 without having to put new equity in and just a slightly higher monthly payment.
This my local BMW dealership:
https://www.group1auto.co.uk/bmw/new-car-offers/m/...
Thanks in advance,
HBT
Edited by handbraketurn on Saturday 22 February 19:21
That looks great bearing in mind TRL the discount king said on this thread the prices quoted will be a lot lower than today https://www.babybmw.net/forum/viewtopic.php?f=80&a... ....only thing for me with these 4 year deals bearing in mind you will be no where near positive equity end year 3 .When it is an old car year 4 you will have to pay for a warranty so the 4 th year costs you more than the first 3.
Edited by smashy on Saturday 22 February 20:33
Nice car, nice choice!
Ive never explored finance as I change my car too often so I’m trying to get my head around the numbers for the fun of it.
The 4 years with deposit is about 30k. I assume at the end of 4 years you can either hand the car back or you pay the remaining balance of 23k to keep it? Servicing as warranty for 2-4 years I imagine is included as part of the deal and can be extended for a fee? Is there anything else?
And if instead you went down the route of buying a used model a couple of years old, it would set you back about 40k to buy and I’d guess the residual value in 4 years time would be somewhere around the 20k mark.
You’d have lower road tax for a couple of years but get hit with more servicing and higher warranty fees.
So assuming a 20k depreciation on the used model and a few thousand more in costs, the real cost of having a new car over a slightly used one is like £5-6k ish. Which isn’t anything like as bad as I was thinking before I started crunching those numbers.
Unless I’m missing something?
It also means you keep any cash you have in property, funds, etc and hopefully out earn the 5% fees? Risky... but in recent history it would have made sense.
If my maths is vaguely right it’s little wonder there some 85% odd new cars on finance.
Ive never explored finance as I change my car too often so I’m trying to get my head around the numbers for the fun of it.
The 4 years with deposit is about 30k. I assume at the end of 4 years you can either hand the car back or you pay the remaining balance of 23k to keep it? Servicing as warranty for 2-4 years I imagine is included as part of the deal and can be extended for a fee? Is there anything else?
And if instead you went down the route of buying a used model a couple of years old, it would set you back about 40k to buy and I’d guess the residual value in 4 years time would be somewhere around the 20k mark.
You’d have lower road tax for a couple of years but get hit with more servicing and higher warranty fees.
So assuming a 20k depreciation on the used model and a few thousand more in costs, the real cost of having a new car over a slightly used one is like £5-6k ish. Which isn’t anything like as bad as I was thinking before I started crunching those numbers.
Unless I’m missing something?
It also means you keep any cash you have in property, funds, etc and hopefully out earn the 5% fees? Risky... but in recent history it would have made sense.
If my maths is vaguely right it’s little wonder there some 85% odd new cars on finance.
smashy said:
That looks great bearing in mind TRL the discount king said on this thread the prices quoted will be a lot lower than today https://www.babybmw.net/forum/viewtopic.php?f=80&a... ....only thing for me with these 4 year deals bearing in mind you will be no where near positive equity end year 3 .When it is an old car year 4 you will have to pay for a warranty so the 4 th year costs you more than the first 3.
Thanks for link, very helpful. Edited by smashy on Saturday 22 February 20:33
Who is TRL, outlook email seems a bit dodge, but I like that level of APR. However, I'll drop him a line...
I agree with you on the 4 years, although my present 340i (dealer demo 3 months old) on a 4 years, £32k purchase (but with a decent spec) will be at the 50%/2 year mark in June and at the moment, there appears to be £1-1.5k equity. Got a price of £22.4k from that Motorway website and similar from BMW website, but that's just based on standard spec car, mine also has MPPSK, so hoping to squeeze a bit more. £21.3k settlement figure. I've gone way over the miles too, I bought it on 8k PA but it's currently got 30k on clock, reg'd early 2018.
I did, however put down £6k deposit (to bring monthly cost down to £388) and get a pretty good discount as end of the line before the 2019 model came, but with the dealer finance contribution plus buyer deposit, potentially could be in a similar situation half way through?
I was pretty surprised with the 340i, it's a saloon so most keen drivers go for the 440i, 1/240i and families for the 340i estate. That's why I'm thinking of getting out while I can. That and I made the mistake of buying a car with white leather, which are gradually looking worse and worse...
Generally though, you're in for the long haul I agree, I guess question is, apart from some special Porsches, are there any modern cars that you won't be in that position in the current market with PCP/Finance? Particularly the high volume marques, who all discount on a regular basis.
Also agree in warranty and servicing, but I'm in same boat with current car, albeit M cars probably a bit more expensive on both fronts.
All of this is why I don't want to put any cash equity in the deposit if they'll give me good cash for mine, it's just an increased monthly cost but ultimately I'm in the same place as I currently am but with longer to go. Can get service packs with some discount, I got one on mine for £400. Covers the first two.
It's actually cheaper to insure an M2C, than a modified 340i, saving of over £400!!
I'm trying not to think about the increased fuel consumption!
Alextodrive said:
Nice car, nice choice!
Ive never explored finance as I change my car too often so I’m trying to get my head around the numbers for the fun of it.
The 4 years with deposit is about 30k. I assume at the end of 4 years you can either hand the car back or you pay the remaining balance of 23k to keep it? Servicing as warranty for 2-4 years I imagine is included as part of the deal and can be extended for a fee? Is there anything else?
And if instead you went down the route of buying a used model a couple of years old, it would set you back about 40k to buy and I’d guess the residual value in 4 years time would be somewhere around the 20k mark.
You’d have lower road tax for a couple of years but get hit with more servicing and higher warranty fees.
So assuming a 20k depreciation on the used model and a few thousand more in costs, the real cost of having a new car over a slightly used one is like £5-6k ish. Which isn’t anything like as bad as I was thinking before I started crunching those numbers.
Unless I’m missing something?
It also means you keep any cash you haven e in property, funds, etc and hopefully out earn the 5% fees? Risky... but in recent history it would have made sense.
If my maths is vaguely right it’s little wonder there some 85% odd new cars on finance.
Yes, you've basically got it right, except used car finance is very expensive with a few exceptions. With my 340i, they initially tried to charge me 12.9% APR, which I rejected and went to walk out. They offered me 7.9% which I still thought was expensive but hoped I could re-finance later on, that was a mistake because I couldn't get cheap loans with car finance of that level outstanding... Ive never explored finance as I change my car too often so I’m trying to get my head around the numbers for the fun of it.
The 4 years with deposit is about 30k. I assume at the end of 4 years you can either hand the car back or you pay the remaining balance of 23k to keep it? Servicing as warranty for 2-4 years I imagine is included as part of the deal and can be extended for a fee? Is there anything else?
And if instead you went down the route of buying a used model a couple of years old, it would set you back about 40k to buy and I’d guess the residual value in 4 years time would be somewhere around the 20k mark.
You’d have lower road tax for a couple of years but get hit with more servicing and higher warranty fees.
So assuming a 20k depreciation on the used model and a few thousand more in costs, the real cost of having a new car over a slightly used one is like £5-6k ish. Which isn’t anything like as bad as I was thinking before I started crunching those numbers.
Unless I’m missing something?
It also means you keep any cash you haven e in property, funds, etc and hopefully out earn the 5% fees? Risky... but in recent history it would have made sense.
If my maths is vaguely right it’s little wonder there some 85% odd new cars on finance.
https://www.buyacar.co.uk/bmw/m2/m2-coupe/m2-compe...
If you look at this used example, comes out at a similar monthly rental figure, but you've got to come up with £4k deposit. And it'll now have two registered owners. Plus you're paying 7.9% APR, which means you'll pay circa £9.5k in interest over the term. So when you add that back onto the price, you're getting back fairly close to the new cost.
Admittedly you're paying 4.9% on the new one and that's why the TRL deal looks interesting.
The problem with the mass production German manufacturers doing discounts like this, is they ruin the residuals for the used market, in order to meet their short term new car sales targets.
That said, it's likely the car will be worth more than the residual level they guarantee in the PCP, they price it at a level there is some potential equity you could put into a new car and if not, some margin for them to sell it. So you could sell it privately (if you can be arsed), settle the outstanding finance and keep what ever the difference is.
as7920 said:
Current Stratstone deal is £1.5-£2k better. Higher contribution. Not sure if it’s DCT only.
Still too rich for me to trade though at year 2. Apr May come down as we reach end of quarter.
Nice one. Will check it out. Still too rich for me to trade though at year 2. Apr May come down as we reach end of quarter.
Too rich on monthly cost basis or having to come up with £1.5k deposit after putting equity into your current deal?
For me, I'm hoping to hand back current car and not put anything down.
Thanks for responses!!!
Edited by handbraketurn on Sunday 23 February 16:46
Handbraketurn TRL is Tony Lewis he seems a one off he works for Berrys Chiswick and Heathrow but works from home you will not see him in the showroom.Met him once a really good bloke here he is https://www.youtube.com/watch?v=8tz8DV2_SHU&t=...
He actually told me not to get my car serviced/worked here as they are kept on the road overnight!!!
re what you said on residuals was interesting.New with discounts BMWs are so much cheaper than equiv Audi Merc Jag pcp monthlies ridiculously so to be fair but 2 year old Jags are always really good value.strange. I could always manage a BMW monthly but not the other Marques
He actually told me not to get my car serviced/worked here as they are kept on the road overnight!!!
re what you said on residuals was interesting.New with discounts BMWs are so much cheaper than equiv Audi Merc Jag pcp monthlies ridiculously so to be fair but 2 year old Jags are always really good value.strange. I could always manage a BMW monthly but not the other Marques
Edited by smashy on Sunday 23 February 17:48
handbraketurn said:
Nice one. Will check it out.
Too rich on monthly cost basis or having to come up with £1.5k deposit after putting equity into your current deal?
For me, I'm hoping to hand back current car and not put anything down.
Thanks for responses!!!
2 years in on a 4 year PCP and well over my mileage limit, 27k as opposed to 16k contracted. So too much negative equity ATM.Too rich on monthly cost basis or having to come up with £1.5k deposit after putting equity into your current deal?
For me, I'm hoping to hand back current car and not put anything down.
Thanks for responses!!!
Edited by handbraketurn on Sunday 23 February 16:46
as7920 said:
handbraketurn said:
Nice one. Will check it out.
Too rich on monthly cost basis or having to come up with £1.5k deposit after putting equity into your current deal?
For me, I'm hoping to hand back current car and not put anything down.
Thanks for responses!!!
2 years in on a 4 year PCP and well over my mileage limit, 27k as opposed to 16k contracted. So too much negative equity ATM.Too rich on monthly cost basis or having to come up with £1.5k deposit after putting equity into your current deal?
For me, I'm hoping to hand back current car and not put anything down.
Thanks for responses!!!
Edited by handbraketurn on Sunday 23 February 16:46
smashy said:
Handbraketurn TRL is Tony Lewis he seems a one off he works for Berrys Chiswick and Heathrow but works from home you will not see him in the showroom.Met him once a really good bloke here he is https://www.youtube.com/watch?v=8tz8DV2_SHU&t=...
He actually told me not to get my car serviced/worked here as they are kept on the road overnight!!!
re what you said on residuals was interesting.New with discounts BMWs are so much cheaper than equiv Audi Merc Jag pcp monthlies ridiculously so to be fair but 2 year old Jags are always really good value.strange. I could always manage a BMW monthly but not the other Marques
If you look at approved Used Porsches you'll see older models really hold their value, that is partly because Porsche support their used cars with 2 years warranty even older ones. Partly the quality of the cars and partly because they don't discount or do cheap finance deals. And their finance on used is not a million miles off the new, so used cars are very worth consideration with Porsche. He actually told me not to get my car serviced/worked here as they are kept on the road overnight!!!
re what you said on residuals was interesting.New with discounts BMWs are so much cheaper than equiv Audi Merc Jag pcp monthlies ridiculously so to be fair but 2 year old Jags are always really good value.strange. I could always manage a BMW monthly but not the other Marques
Edited by smashy on Sunday 23 February 17:48
It would be a more sensible investment to get a Cayman S or GTS if budgets allowed, but even used, you'll need a big deposit and I'll be higher monthly cost, because they're not about to discount £6-7k to get your sale.
With the BMW's it's just accessible, its much easier to get into a M2C than the above and in terms of driving quality and build quality, not a lot in it at the moment. I'd certainly rather have a 3l straight 6, than a 2.5l 4 pot.
To be fair, Porsche dealers will tell you you'll be in a much stronger position with a Porsche equivalent and that can be true, but a mate of mine bought a GT3 RS for £150k and a year late and 5k miles and he's lost £30k, not quite the story the dealer promised. So no guarantees it'll be better, the only guarantee is it will go down in value.
Porsche finance is 6.9% apr new or used, they base residuals on spec. unlike nearly every one else where you loose the options, although that is changing with packs a little.
Porsche can be a lot cheaper than BMW if buying used and with their PCP, so worth getting quotes.
My old man nearly bought a Cayenne instead of his X6 a couple of years back.
It was £33k at 4 years old, because of spec and residual value it was coming in at £270 a month over 3 years compared to £500 and something for the X6.
Yet another Cayenne, same price, less well specced but a year newer and half the miles on it was nearly as expensive than the X6.
But Porsche have a tight hold on controlling the used market value and they do protect it, unlike BMW, Audi and Mercedes who will give nearly 50% off run out models and screw over their loyal customers. It is one of the reasons I will no longer buy something new from them. M340i at £750 a month for doing 15k miles a year is imho silly money.
That is pretty much what your 340i has cost you, you can be in a MY2018 Panamera for less than that, or a 991 Carrera, with 2 years warranty.
Porsche can be a lot cheaper than BMW if buying used and with their PCP, so worth getting quotes.
My old man nearly bought a Cayenne instead of his X6 a couple of years back.
It was £33k at 4 years old, because of spec and residual value it was coming in at £270 a month over 3 years compared to £500 and something for the X6.
Yet another Cayenne, same price, less well specced but a year newer and half the miles on it was nearly as expensive than the X6.
But Porsche have a tight hold on controlling the used market value and they do protect it, unlike BMW, Audi and Mercedes who will give nearly 50% off run out models and screw over their loyal customers. It is one of the reasons I will no longer buy something new from them. M340i at £750 a month for doing 15k miles a year is imho silly money.
That is pretty much what your 340i has cost you, you can be in a MY2018 Panamera for less than that, or a 991 Carrera, with 2 years warranty.
gizlaroc said:
Porsche finance is 6.9% apr new or used, they base residuals on spec. unlike nearly every one else where you loose the options, although that is changing with packs a little.
Porsche can be a lot cheaper than BMW if buying used and with their PCP, so worth getting quotes.
My old man nearly bought a Cayenne instead of his X6 a couple of years back.
It was £33k at 4 years old, because of spec and residual value it was coming in at £270 a month over 3 years compared to £500 and something for the X6.
Yet another Cayenne, same price, less well specced but a year newer and half the miles on it was nearly as expensive than the X6.
But Porsche have a tight hold on controlling the used market value and they do protect it, unlike BMW, Audi and Mercedes who will give nearly 50% off run out models and screw over their loyal customers. It is one of the reasons I will no longer buy something new from them. M340i at £750 a month for doing 15k miles a year is imho silly money.
That is pretty much what your 340i has cost you, you can be in a MY2018 Panamera for less than that, or a 991 Carrera, with 2 years warranty.
Agreed, but you still need a big lump of cash to get in and that is where the mass production marques get people. Porsche can be a lot cheaper than BMW if buying used and with their PCP, so worth getting quotes.
My old man nearly bought a Cayenne instead of his X6 a couple of years back.
It was £33k at 4 years old, because of spec and residual value it was coming in at £270 a month over 3 years compared to £500 and something for the X6.
Yet another Cayenne, same price, less well specced but a year newer and half the miles on it was nearly as expensive than the X6.
But Porsche have a tight hold on controlling the used market value and they do protect it, unlike BMW, Audi and Mercedes who will give nearly 50% off run out models and screw over their loyal customers. It is one of the reasons I will no longer buy something new from them. M340i at £750 a month for doing 15k miles a year is imho silly money.
That is pretty much what your 340i has cost you, you can be in a MY2018 Panamera for less than that, or a 991 Carrera, with 2 years warranty.
For me to swap from a 340i to a M2C isn't going to cost me anything if they''ll give me £1.5k+ above settlement, and chuck in 8k deposit contribution, it's just a slightly higher monthly cost. If I can sell privately and get £3k+ brings payment down even further to c£500 PCM. And I get a substantially better car.
To get a a similar car, say a Cayman GTS or even an S, for similar value and get payments down to a manageable level will require £10k+ customer deposit, so they're still getting their pound of flesh, it's just you come up with it up front.
And yes, potentially you'll get more of that back when you come to sell in positive equity. But no guarantees.
As mentioned, my mate just lost £30k in one year on a GT3 RS and only covering 5k miles, one of the most sought after and respected 911's around, that was an approved used and they told him he'd likely sell it for what he bought it for. LOL. Bought for £150k and sold for £120k 12 months later. Painful.
Check out this GTS I just found, ok, it's more expensive by £10k but the residual they're offering is 60% of purchase. Porsche will say that is under valued, and they'll offer you more or you'll sell for more and have equity. But you're the one taking that risk. You've still got to come up with huge deposit and pay the monthly principal plus interest. And if the market stays as it is, then yes, you'll likely have equity, or more equity than a BMW equivalent but its not like Porsche are underwriting that, you are!
Edited by handbraketurn on Monday 24th February 08:59
Re my F30 340i
£32k in June 2018. £6k deposit. £388 PCM @ 7.9% APR.
Currently just been valued at £22.4k by algo valuation. Probably worth c£25k used and current settlement £21.3k. And another payment about to come off in March.
That was a run out deal with c30% discount.
Edited by handbraketurn on Monday 24th February 09:01
Edited by handbraketurn on Monday 24th February 09:07
I was comparing like with like with the X6 and the Cayenne, same deposit, same selling price, well the X6 was actually a grand less.
I had quotes on the Cayenne for £3k, £5k and £8k deposit from memory.
I guess it comes down to whether you don't mind used cars or not though, totally get some people really only like new.
I just can't loose that amount of money. Haha
My 335i touring was £31k at 3 months old with 3k miles on it, it was a brand new model at the time. Sold it 2 years later with 30k on it for £26k privately.
535d was 9 months old with 10k on it, £32k from a list of £53000, sold that 18 months later with 40k on it for £28k. Even with interest it worked out at just under £280 a month.
Even with 20-25% off list, buying new they would have been triple those figures loss wise.
I just couldn't swallow that.
My M3 was only around £400 a month, the CSL was even less.
I had quotes on the Cayenne for £3k, £5k and £8k deposit from memory.
I guess it comes down to whether you don't mind used cars or not though, totally get some people really only like new.
I just can't loose that amount of money. Haha
My 335i touring was £31k at 3 months old with 3k miles on it, it was a brand new model at the time. Sold it 2 years later with 30k on it for £26k privately.
535d was 9 months old with 10k on it, £32k from a list of £53000, sold that 18 months later with 40k on it for £28k. Even with interest it worked out at just under £280 a month.
Even with 20-25% off list, buying new they would have been triple those figures loss wise.
I just couldn't swallow that.
My M3 was only around £400 a month, the CSL was even less.
handbraketurn said:
Re my F30 340i
£32k in June 2018. £6k deposit. £388 PCM @ 7.9% APR.
Currently just been valued at £22.4k by algo valuation. Probably worth c£25k used and current settlement £21.3k. And another payment about to come off in March.
That was a run out deal with c30% discount.
So it has cost you just under £13k for the 20 months you have had it? £32k in June 2018. £6k deposit. £388 PCM @ 7.9% APR.
Currently just been valued at £22.4k by algo valuation. Probably worth c£25k used and current settlement £21.3k. And another payment about to come off in March.
That was a run out deal with c30% discount.
So £650 a month.
I get your thinking, chop it in now and you will be in a new model for maybe £110 a month more?
I used to do it all the time, but with used so I could swap quicker, easily bored.
I then got to the point where I thought, I could finance the £21k with Hitachi or Lombard for 2.7% and have it paid off an owned out right with 4 years.
Since doing that I am finding it really hard to get financed up again. I know my car is depreciating, but that £10k I just paid is now gone, forgotten about, like I used to do with deposits. So justifying a new car I think is long gone for me.
I'm also 47 though, so now have the reality of only having 15 years or so to get the mortgages paid, pension pot sorted etc. as well.
And, the realisation that most cars I am trying these days seem to be going backwards for driver enjoyment. Maybe when the new Porsche Centre opens in Norwich I will eat my words, we shall see? haha
gizlaroc said:
So it has cost you just under £13k for the 20 months you have had it?
So £650 a month.
I get your thinking, chop it in now and you will be in a new model for maybe £110 a month more?
I used to do it all the time, but with used so I could swap quicker, easily bored.
I then got to the point where I thought, I could finance the £21k with Hitachi or Lombard for 2.7% and have it paid off an owned out right with 4 years.
Since doing that I am finding it really hard to get financed up again. I know my car is depreciating, but that £10k I just paid is now gone, forgotten about, like I used to do with deposits. So justifying a new car I think is long gone for me.
I'm also 47 though, so now have the reality of only having 15 years or so to get the mortgages paid, pension pot sorted etc. as well.
And, the realisation that most cars I am trying these days seem to be going backwards for driver enjoyment. Maybe when the new Porsche Centre opens in Norwich I will eat my words, we shall see? haha
Yes, £650 a month and that was about where the lease deals were at the time but with a deposit on top and a poverty spec IIRC. So £650 a month.
I get your thinking, chop it in now and you will be in a new model for maybe £110 a month more?
I used to do it all the time, but with used so I could swap quicker, easily bored.
I then got to the point where I thought, I could finance the £21k with Hitachi or Lombard for 2.7% and have it paid off an owned out right with 4 years.
Since doing that I am finding it really hard to get financed up again. I know my car is depreciating, but that £10k I just paid is now gone, forgotten about, like I used to do with deposits. So justifying a new car I think is long gone for me.
I'm also 47 though, so now have the reality of only having 15 years or so to get the mortgages paid, pension pot sorted etc. as well.
And, the realisation that most cars I am trying these days seem to be going backwards for driver enjoyment. Maybe when the new Porsche Centre opens in Norwich I will eat my words, we shall see? haha
So if I chopped in for a M2C, would actually be less a month in real terms.
I do also claim roughly £400 a month from my company for business miles, so in reality it cost me £250 for the 340i and would be around £150 for the M2.
I did explore the cheap loan approach, it makes a lot of sense to me and I'm not exactly fond of loosing money or paying interest, but its just that most cars really depreciate after the warranty runs out. And doing high miles for work, I wanted something fairly new, under warranty and in good condition. If I knew about Porsches what I know now, I'd have probably put £6k down on a used Cayman S for around £40k and id be better off It think.
Edited by handbraketurn on Monday 24th February 16:30
I think the M2 looks a cracker mate.
If you're happy with the numbers go for it.
Sorry, I read my posts back and I sounded a bit judgemental, I didn't mean it to be like that at all, I meant it more as me being wishing I was back at the age where I would just say 'sod it' and buy what took my fancy.
I sort of wish I hadn't paid off my cars, getting a new agreement passed the missus will be nigh on impossible now. Haha
If you're happy with the numbers go for it.
Sorry, I read my posts back and I sounded a bit judgemental, I didn't mean it to be like that at all, I meant it more as me being wishing I was back at the age where I would just say 'sod it' and buy what took my fancy.
I sort of wish I hadn't paid off my cars, getting a new agreement passed the missus will be nigh on impossible now. Haha
gizlaroc said:
Can you still VT at 50% and they can only 'ask' if you want to pay for the over milage?
Another Grey area still it seems be prepared for a legal fight https://debtcamel.co.uk/vt-end-car-finance-early/quote
Excess mileage charges
PCP contracts contain a mileage clause, where you will have agreed to pay so much per mile over the annual mileage agreed. When you VT the car, the finance company usually says that you should pay the excess mileage charge for the time you have had the car.
This is a grey area. Excess mileage charges aren’t included in the 50% figure in your contract, so some legal experts don’t think you have to pay them if you terminate your car finance. But I have seen Financial Ombudsman decisions on excess mileage complaints where the Ombudsman said it is fair that excess mileage charges should be paid when you VT.
It’s up to you if you want to challenge an excess mileage charge. You will need to be determined. You may spend a long while exchanging letters with the car finance company and its solicitors. And you may need to be prepared to go to court. You can get help on the Legal Beagles forum if you do want to challenge this.
Edited by smashy on Monday 24th February 20:45
Edited by smashy on Monday 24th February 20:45
Nezquick said:
OP am I right in thinking that the quote you posted in your first post is only for a base spec M2C?
I was always under the impression that once you start adding things (comfort pack, Harmon Kardon, parking sensors etc) then the monthly payments really start to ramp up.
Well spotted. I was always under the impression that once you start adding things (comfort pack, Harmon Kardon, parking sensors etc) then the monthly payments really start to ramp up.
Yes, I assumed the competition M cars came with most of the stuff you'd want but after closer inspection yesterday, there are quite a few packs that are £k's which really should be standard a £53k 2 series.
I'd only take one on if they give me one in stock with those added on, no way I'm paying over £53k with that level of depreciation.
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