0% APR on M cars?
Discussion
Late last year, BMW were offering contributions and 0% PCP deals on M cars, first time they had ever done, so I was told.
I couldn't take advantage of it, as was out of the country, when I came back they'd pushed it up to the current rate of 4.9% and was told by a dealer in the know, it was unlikely they'd do it again.....unless they had terrible sales.
Interest rates very low at the moment and all manufacturers and dealers just took a massive hit in income and profits, what do people think the chances are the 0% will come back?
At that level, I can basically get into a new warrantied M-car where the interest rates just push out of my affordability and into the used car market and a substantially older and more abused one.
Cheers,
Nick
I couldn't take advantage of it, as was out of the country, when I came back they'd pushed it up to the current rate of 4.9% and was told by a dealer in the know, it was unlikely they'd do it again.....unless they had terrible sales.
Interest rates very low at the moment and all manufacturers and dealers just took a massive hit in income and profits, what do people think the chances are the 0% will come back?
At that level, I can basically get into a new warrantied M-car where the interest rates just push out of my affordability and into the used car market and a substantially older and more abused one.
Cheers,
Nick
Car sales have dropped off a cliff apparently and with looming redundancies and cratered economy are they likely to bounce back soon?
I can imagine gov will do some sort of incentive like the scrappage scheme to push to EV perhaps.
Doubt it will apply to sporty ICE models but who knows. Also i wonder how much niche parts of the car market have faired compared to bread and butter - perhaps not as bad.
I can imagine gov will do some sort of incentive like the scrappage scheme to push to EV perhaps.
Doubt it will apply to sporty ICE models but who knows. Also i wonder how much niche parts of the car market have faired compared to bread and butter - perhaps not as bad.
I can imagine that is the case for new car sales.
The used market on the other hand has gone through the roof, certainly at the lower end. I've spoken to a lot of dealers over past few weeks, quite often you end speaking the principal, so you get good information. They're all busy, few will budge on price, because at present, they don't need to. Some cars I track on AT/Ebay have gone up in value and people taking advantage of the sudden demand.
My understanding is though, this is a. bored people (who might regret it later) and b. people worried about public transport combined with the (temporary) low supply due to dealers closed and most of their staff on furlough, not listing new stock, not able to buy new stock, pushing prices up or at least maintaining them due to supply/demand.
This trend might continue at the lower end, but my gut instinct is that higher value cars might see a decline in values over the coming months as unemployment grows/continues the recession reality hits. People tighten their purse strings and wait to see what happens before major expenditure.
The used market on the other hand has gone through the roof, certainly at the lower end. I've spoken to a lot of dealers over past few weeks, quite often you end speaking the principal, so you get good information. They're all busy, few will budge on price, because at present, they don't need to. Some cars I track on AT/Ebay have gone up in value and people taking advantage of the sudden demand.
My understanding is though, this is a. bored people (who might regret it later) and b. people worried about public transport combined with the (temporary) low supply due to dealers closed and most of their staff on furlough, not listing new stock, not able to buy new stock, pushing prices up or at least maintaining them due to supply/demand.
This trend might continue at the lower end, but my gut instinct is that higher value cars might see a decline in values over the coming months as unemployment grows/continues the recession reality hits. People tighten their purse strings and wait to see what happens before major expenditure.
handbraketurn said:
Late last year, BMW were offering contributions and 0% PCP deals on M cars, first time they had ever done, so I was told.
I couldn't take advantage of it, as was out of the country, when I came back they'd pushed it up to the current rate of 4.9% and was told by a dealer in the know, it was unlikely they'd do it again.....unless they had terrible sales.
Interest rates very low at the moment and all manufacturers and dealers just took a massive hit in income and profits, what do people think the chances are the 0% will come back?
At that level, I can basically get into a new warrantied M-car where the interest rates just push out of my affordability and into the used car market and a substantially older and more abused one.
Cheers,
Nick
It’s definitely not the first time they have done 0% and contributions.I couldn't take advantage of it, as was out of the country, when I came back they'd pushed it up to the current rate of 4.9% and was told by a dealer in the know, it was unlikely they'd do it again.....unless they had terrible sales.
Interest rates very low at the moment and all manufacturers and dealers just took a massive hit in income and profits, what do people think the chances are the 0% will come back?
At that level, I can basically get into a new warrantied M-car where the interest rates just push out of my affordability and into the used car market and a substantially older and more abused one.
Cheers,
Nick
They did it on the M5 a few years back.
) of bangornomics Anonymous-poster said:
handbraketurn said:
Late last year, BMW were offering contributions and 0% PCP deals on M cars, first time they had ever done, so I was told.
I couldn't take advantage of it, as was out of the country, when I came back they'd pushed it up to the current rate of 4.9% and was told by a dealer in the know, it was unlikely they'd do it again.....unless they had terrible sales.
Interest rates very low at the moment and all manufacturers and dealers just took a massive hit in income and profits, what do people think the chances are the 0% will come back?
At that level, I can basically get into a new warrantied M-car where the interest rates just push out of my affordability and into the used car market and a substantially older and more abused one.
Cheers,
Nick
It’s definitely not the first time they have done 0% and contributions.I couldn't take advantage of it, as was out of the country, when I came back they'd pushed it up to the current rate of 4.9% and was told by a dealer in the know, it was unlikely they'd do it again.....unless they had terrible sales.
Interest rates very low at the moment and all manufacturers and dealers just took a massive hit in income and profits, what do people think the chances are the 0% will come back?
At that level, I can basically get into a new warrantied M-car where the interest rates just push out of my affordability and into the used car market and a substantially older and more abused one.
Cheers,
Nick
They did it on the M5 a few years back.
Still lost a s
tload in depreciation but it was worth it :-)R33FAL said:
Re car sales, I think its all well and good when people have a false sense of security through furloughs etc. When that ends, and the P45s start making the rounds, not sure buying a car will be a priority for those affected.
Exactly. The flood of pcp VT's will result in some bargain buys..handbraketurn said:
Late last year, BMW were offering contributions and 0% PCP deals on M cars, first time they had ever done, so I was told.
Nick
Utter drivel Nick who ever told you that, as 0% is often offered but of course the discount is always adjusted to take account of that offer. Nick
I took an M5 back in 2014 on 0% as an example the discount was 14k from a list of 80k, current M car I have was 2.9% apr but the discount from list was 21k...
Edited by Wills2 on Friday 29th May 23:43
bmwmike said:
Exactly. The flood of pcp VT's will result in some bargain buys..
What's the evidence for this "flood"? My friends in the trade are looked at cars going through BCA at strong money at the moment, their words are no bargains and bidders are keen...They have sold cars all the way through the lockdown (online) and whilst sales were down the pricing on the sales wasn't meaningfully different and any silly offers were just rejected.
Wills2 said:
bmwmike said:
Exactly. The flood of pcp VT's will result in some bargain buys..
What's the evidence for this "flood"? My friends in the trade are looked at cars going through BCA at strong money at the moment, their words are no bargains and bidders are keen...They have sold cars all the way through the lockdown (online) and whilst sales were down the pricing on the sales wasn't meaningfully different and any silly offers were just rejected.
bmwmike said:
Was following on to prior post i.e. when the p45's start flowing the pcp's will start VT'ing. Hasnt happened yet because furlough etc.
So all these cleaners/bar staff and retail shop workers will be handing back their M cars? Average age of a car in the UK is 8 years old the vast majority of people don't have a car on PCP, let alone an M car.Wills2 said:
bmwmike said:
Was following on to prior post i.e. when the p45's start flowing the pcp's will start VT'ing. Hasnt happened yet because furlough etc.
So all these cleaners/bar staff and retail shop workers will be handing back their M cars? Average age of a car in the UK is 8 years old the vast majority of people don't have a car on PCP, let alone an M car.RUSSELLM said:
I’m surprised the new car sales only dropped 90%
Nobody built a vehicle
What with the few left in storage, not being available, as the dealers were closed, I’d image a 90% drop would classed as a good result.
I’m sure I saw something on the news this morning saying something like 99.7%! Nobody built a vehicle
What with the few left in storage, not being available, as the dealers were closed, I’d image a 90% drop would classed as a good result.
Wills2 said:
So all these cleaners/bar staff and retail shop workers will be handing back their M cars?......
Hilarious! - The only people to have stopped working, be adversely affected by COVID 19, or at risk of losing their jobs due to the pandemic are cleaners/bar staff and retail shop workers! 
Meanwhile - Back in the real World!
Wills2 said:
bmwmike said:
Exactly. The flood of pcp VT's will result in some bargain buys..
What's the evidence for this "flood"? My friends in the trade are looked at cars going through BCA at strong money at the moment, their words are no bargains and bidders are keen...They have sold cars all the way through the lockdown (online) and whilst sales were down the pricing on the sales wasn't meaningfully different and any silly offers were just rejected.
But this is unlikely to be sustained once the furlough ends, supply will increase and the true picture of the global financial carnage of lock down will become apparent. Car market was bubbly before. None of us can truly predict what will happen, but I think it's unlikely that prices won't be affected in the medium term.
I bought my first new BMW in 2018 and I just sold it £2k above settlement half way through a PCP, which is testament to the strength of used car sales at present.
Wills2 said:
handbraketurn said:
Late last year, BMW were offering contributions and 0% PCP deals on M cars, first time they had ever done, so I was told.
Nick
Utter drivel Nick who ever told you that, as 0% is often offered but of course the discount is always adjusted to take account of that offer. Nick
I took an M5 back in 2014 on 0% as an example the discount was 14k from a list of 80k, current M car I have was 2.9% apr but the discount from list was 21k...
Edited by Wills2 on Friday 29th May 23:43
Didn't realise about 0% on M-Cars, it came from Tony @ Berry BMW, but I guess he was just trying a bit of the old scarcity tactics.
The discount on offer in December on M2/4 was the same as what is on offer now, but it's 4.9% now and it was 0% in December.
Obviously if reduce the discount, then it wouldn't be of interest, but if I could get into an M2 with minimal despot and early £400 a month, my company would pay that with the miles I claim.
But I'm not in a hurry to sign up to a new car, until end of Furlough.
I did speak to a dealer last week, he told me Bmw have not announced the deals for Q3 but did confirm that they're not chasing targets this year, so the sales pressure is off a bit. Plus with production being stopped, they haven't got a big stock of cars, at least with M2C. So potentially they're not going to go straight into panic / discount mode.
Edited by handbraketurn on Monday 15th June 16:02
Edited by handbraketurn on Monday 15th June 16:03
I've bought several M cars on 0% and also obtained decent discounts, so a dealer telling you 0% never happens is lying
I honestly think that come the end of the year it will be carnage in the car market. Most manufacturers are shedding staff! There will be a recession, there will be redundancies once furlough ends, companies now realise that staff can work from home and the job will still get done, hence having an expensive asset sat on the drive doing 0 miles won't be a big priority anymore for a lot of people
It doesn't sound rosy but maybe I'm a pessimist but I think realist!
I honestly think that come the end of the year it will be carnage in the car market. Most manufacturers are shedding staff! There will be a recession, there will be redundancies once furlough ends, companies now realise that staff can work from home and the job will still get done, hence having an expensive asset sat on the drive doing 0 miles won't be a big priority anymore for a lot of people
It doesn't sound rosy but maybe I'm a pessimist but I think realist!
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