BMW PCP 2 dealers, sanity over my sums help!

[knitware]

AH, if I was back in the office I could talk this out but as I'm on my own I can't talk through the options in front of me only in my head and I have brain fart, it will probably make sense tomorrow after a sleep, i'm the mean time,...please be kind and tell me what i'm missing...

Rough figures:

Dealer 1
BMW 340i £48,000 inc options £5300 total £53,300
Dealer discount £9358 (17.5%)
My deposit £5k
Dealer contribution £0
Monthly = £577 x 48 10k miles 4.9 apr
Total £32,696

Dealer 2
BMW 340i £48,000
(No discount discussed as yet)
My deposit £570
Dealer contribution £9,700
Options £5,300, therefore deposit £5,870
£577 x 48 8k miles 4.9 apr
Total £33,230

Dealer 2 would be beneficial only if I could secure a discount on top of their contribution, has anyone managed to gain a 17% ish discount as well as a dealer finance contribution?

[Camelot1971]

Dealer discount, deposit contribution, it's all the same. You just need to focus on the total cost to buy the car. The rest is just smoke and mirrors. You haven't mentioned the final payment either - you need to factor that in too, even if you don't intend to pay it off.

[knitware]

Camelot1971 said:

Dealer discount, deposit contribution, it's all the same. You just need to focus on the total cost to buy the car. The rest is just smoke and mirrors. You haven't mentioned the final payment either - you need to factor that in too, even if you don't intend to pay it off.

Haha, that what I thought, all the same, just different terminology, I'll speak with dealer 2 tomorrow and ask for 17.5% discount and the 9k contribution, I have a feeling I already know the answer. Interestingly both are almost identical with final payment:

1 = 18,476
2 = 18, 422

[Driver101]

This guy posts his finance deals opening on a forum.

https://www.babybmw.net/forum/viewtopic.php?f=80&a...

[Camelot1971]

knitware said:

Camelot1971 said:

Dealer discount, deposit contribution, it's all the same. You just need to focus on the total cost to buy the car. The rest is just smoke and mirrors. You haven't mentioned the final payment either - you need to factor that in too, even if you don't intend to pay it off.

Haha, that what I thought, all the same, just different terminology, I'll speak with dealer 2 tomorrow and ask for 17.5% discount and the 9k contribution, I have a feeling I already know the answer. Interestingly both are almost identical with final payment:

1 = 18,476
2 = 18, 422

Assuming the cars are identical, deal 1 is better as the overall amount payable is less and you get more miles per annum.

[knitware]

Driver101 said:

This guy posts his finance deals opening on a forum.

https://www.babybmw.net/forum/viewtopic.php?f=80&a...

Thank you! I guess the deals I posted look comparable give or take mileage and options.

[knitware]

Camelot1971 said:

Assuming the cars are identical, deal 1 is better as the overall amount payable is less and you get more miles per annum.

Yes, I was looking at deposits and mileage, finance contribution vs discount and I think you summed it up earlier, just look at the cost. I've been looking at a lease, PCP for a couple of months, nearly placed an order for an M240i but decided not to.

[Driver101]

knitware said:

Driver101 said:

This guy posts his finance deals opening on a forum.

https://www.babybmw.net/forum/viewtopic.php?f=80&a...

Thank you! I guess the deals I posted look comparable give or take mileage and options.

It's £6 per month per extra 1000 miles. The £56k car is still coming in less than your £53k car.

His deals are around £3000 better. I'd be chasing my dealer to be matching that.

[PeteinSQ]

When people get to the end of the 47 months how common is it for the value of the car to be more than the GFV? And if it is what happens?

I've only ever leased or bought outright.

[WAVman]

Dealer discount and deposit contribution are different things.

Dealer discount is given by the dealer to encourage you to purchase something from them, irrespective of how you pay for it.

Deposit contribution is given by the lender to encourage you to use their money to fund the purchase, at no cost to the dealer.

Simple.

[stuart_83]

As others on here have said, go to TRL. When I was getting quotes from two local dealers for the same car he was significantly cheaper.

Checked on the status of my order yesterday with the supplying dealer, and you'll be looking at a Jan / Feb delivery date at the moment on an m340i unless you buy from stock.

If you're related to anyone who works in the Emergency Services, Army or Department for Education (long shot) I'd go here:

Https://www.bmw-ukforces.co.uk/eligibility

Saved me an absolute fortune.

Edited by stuart_83 on Tuesday 25th August 08:27

[dmsims]

Why is the interest rate so high?

[HTP99]

dmsims said:

Why is the interest rate so high?

Page won't open for me so I can't see the interest rate, however if it's anything like the manufacturer who I sell for, it will be case of national advertised retail offers taking advantage of the low rate finance but with minimal discount or a hefty discount but unable to take advantage of the low rate finance so hence a higher rate, you have to look at the bigger picture.

[Camelot1971]

WAVman said:

Dealer discount and deposit contribution are different things.

Dealer discount is given by the dealer to encourage you to purchase something from them, irrespective of how you pay for it.

Deposit contribution is given by the lender to encourage you to use their money to fund the purchase, at no cost to the dealer.

Simple.

The principle is the same though - money off. All that matters is the total discount. How you arrive at the total isn't relevant unless it's linked to, for example, buying on finance.

[Camelot1971]

PeteinSQ said:

When people get to the end of the 47 months how common is it for the value of the car to be more than the GFV? And if it is what happens?

I've only ever leased or bought outright.

How long is a piece of string? Some cars will hold their value more than others, but usually the manufacturers/finance houses know pretty well what the car will be worth at the end of the term. It will also depend on spec, colour, mileage, service history etc.

Personally, I would always go into a PCP with the expectation of breaking even, and of course, if the miles and car condition are ok, you can just give it back if the balloon payment is more than the trade in.

You can't really lose with PCP though, if you keep to the terms properly. If you buy the car on HP, and want to trade it in, there is no protection if the value has plummeted.

If you know 100% you won't keep the car or want to swap after 2 years, I think leasing is better. But you have to look at your own personal circumstances.

[quintonside]

Some dealers have the ability to alter the GFV in order to make the monthly's work for people.. You think your getting a discount, but all that happens is it just takes longer to get to parity.

As others say, its how long is a piece of string when it comes to what is the car worth vs the GFV at month 48/49. In short, if you have significant equity at that point, you effectively overpaid on the monthlys. If the car is worth far less than the GFV then you've underpaid. However, your protected by that GFV. The only downside on the former scenario, is you'll never reach parity through the 48 months. You'll either have to PX and roll your negative (looking to offset it with a discount) or VT if possible, if you want to change cars earlier.

[WAVman]

Camelot1971 said:

The principle is the same though - money off. All that matters is the total discount. How you arrive at the total isn't relevant unless it's linked to, for example, buying on finance.

You would only get a deposit contribution if buying on finance.

Jeez.

[knitware]

stuart_83 said:

As others on here have said, go to TRL. When I was getting quotes from two local dealers for the same car he was significantly cheaper.

Checked on the status of my order yesterday with the supplying dealer, and you'll be looking at a Jan / Feb delivery date at the moment on an m340i unless you buy from stock.

If you're related to anyone who works in the Emergency Services, Army or Department for Education (long shot) I'd go here:

Https://www.bmw-ukforces.co.uk/eligibility

Saved me an absolute fortune.

Edited by stuart_83 on Tuesday 25th August 08:27

Hello! Thank you for this. I spoke with TRL.

He said he couldn't help much, he only has two cars available with a void of stock until January!
His cars, different spec, are similar in price and suggested, if happy, to go with the deal as there's little around. A month ago perhaps he could have helped.

Tony (TRL) was really quick with his response, seems like a decent chap.

I'll call my dealer a little later, I'm sure there's a little more, even if they throw in GAP.
I guess this tread may help some who are thinking of a M340i, get one soon or it could be next year, Jan/Feb/March

[Court_S]

knitware said:

Hello! Thank you for this. I spoke with TRL.

He said he couldn't help much, he only has two cars available with a void of stock until January!
His cars, different spec, are similar in price and suggested, if happy, to go with the deal as there's little around. A month ago perhaps he could have helped.

Tony (TRL) was really quick with his response, seems like a decent chap.

I'll call my dealer a little later, I'm sure there's a little more, even if they throw in GAP.
I guess this tread may help some who are thinking of a M340i, get one soon or it could be next year, Jan/Feb/March

Tony is a good bloke. I bought my M140i through him...no BS, no pressure etc. I liked being able to work out what my car was going to roughly cost before starting the order process.

Much nicer than the smoke and mirrors approach from Sytner.

[Camelot1971]

WAVman said:

Camelot1971 said:

The principle is the same though - money off. All that matters is the total discount. How you arrive at the total isn't relevant unless it's linked to, for example, buying on finance.

You would only get a deposit contribution if buying on finance.

Jeez.

You completely miss my point (what a surprise). The ONLY thing that matters is the total discount. If some of that discount is linked to a condition i.e. taking finance, you need to consider how that impacts the deal.

It's not rocket surgery. Even you can figure it out if you try hard enough. Go on, give it a go.