Discussion
Wasn’t sure whether to post this here or in car buying.
Anyway I’ve ordered a new BMW 440. At the moment I’ve said I’ll buy with a PCP which is offered by BMW at 4.9% APR. Alternatively I have cash available but wondering if that’s as sensible choice as 4.9% is fairly low. Also with the PCP I’m protected if the market falls for larger engine cars.
Any thoughts?
Anyway I’ve ordered a new BMW 440. At the moment I’ve said I’ll buy with a PCP which is offered by BMW at 4.9% APR. Alternatively I have cash available but wondering if that’s as sensible choice as 4.9% is fairly low. Also with the PCP I’m protected if the market falls for larger engine cars.
Any thoughts?
bad company said:
Wasn’t sure whether to post this here or in car buying.
Anyway I’ve ordered a new BMW 440. At the moment I’ve said I’ll buy with a PCP which is offered by BMW at 4.9% APR. Alternatively I have cash available but wondering if that’s as sensible choice as 4.9% is fairly low. Also with the PCP I’m protected if the market falls for larger engine cars.
Any thoughts?
Consider putting down a large deposit, to reduce the amount borrowed, and thus reduce the overall interest payable. Anyway I’ve ordered a new BMW 440. At the moment I’ve said I’ll buy with a PCP which is offered by BMW at 4.9% APR. Alternatively I have cash available but wondering if that’s as sensible choice as 4.9% is fairly low. Also with the PCP I’m protected if the market falls for larger engine cars.
Any thoughts?
Keep the PCP if you feel the protection it offers is agreeable with you, however note that the bulk of the interest payment will be on the balloon, which doesn't reduce with the term.
Mandat said:
Consider putting down a large deposit, to reduce the amount borrowed, and thus reduce the overall interest payable.
Keep the PCP if you feel the protection it offers is agreeable with you, however note that the bulk of the interest payment will be on the balloon, which doesn't reduce with the term.
Thanks, that’s good advice. I’m not really concerned about the balloon as I’ll almost certainly change the car at the end of the 4 year term.Keep the PCP if you feel the protection it offers is agreeable with you, however note that the bulk of the interest payment will be on the balloon, which doesn't reduce with the term.
bad company said:
Wasn’t sure whether to post this here or in car buying.
Anyway I’ve ordered a new BMW 440. At the moment I’ve said I’ll buy with a PCP which is offered by BMW at 4.9% APR. Alternatively I have cash available but wondering if that’s as sensible choice as 4.9% is fairly low. Also with the PCP I’m protected if the market falls for larger engine cars.
Any thoughts?
Is there a balloon?Anyway I’ve ordered a new BMW 440. At the moment I’ve said I’ll buy with a PCP which is offered by BMW at 4.9% APR. Alternatively I have cash available but wondering if that’s as sensible choice as 4.9% is fairly low. Also with the PCP I’m protected if the market falls for larger engine cars.
Any thoughts?
Can the bmw finance offer possibly be laid out in detail?
Using finance in the past has been great for me and enabled some very special cars that otherwise would not have been possible to be here. True APRs have been below 2% on a few.
Now it’s a struggle to get 12% APR through the previous channels to buy a 2010 Bentley supersports. The owner is allowing a payment plan so effectively self financing the purchase - ie it will be owned outright.
Lenders were much more cautious than in previous years.
4.9% seems reasonable if it’s true APR or on the whole lend.
👍👍
halo34 said:
Pop the cash in an interest account that nets 5% and effectively get 0% interest? Protected from market and you have cash available if you need it?
Basically this - best of both worlds. I recently took about a PCP at the same interest rate although the decision was a lot easier for me due to the £1,750 contribution from the finance company.
I’m away at the moment so can’t lay hands on the exact numbers. I paid a low deposit of only £1,800. Car was around £30,200 after discounts and contributions and I’m paying £365 per month.
The balloon payment will be set by the finance provider. You can only adjust a little by changing the mileage and/or term length (mine is from VWFS).
The balloon payment will be set by the finance provider. You can only adjust a little by changing the mileage and/or term length (mine is from VWFS).
Edited by Mark V GTD on Wednesday 15th November 08:43
The full figures really need looking at to calculate the overall cost of the car including the interest.
I’m getting my car on PCP as it offers a £2K discount i can’t get for cash.
However looking at the interest paid over 3 years is over £4K.
I could say the discount is offsetting the interest cost but at the end of the day it’s increasing the overall cost of the car so I plan to pay it off ASAP.
I could borrow the cost to change off the bank and that would only cost £800 interest over 3 years.
I’m getting my car on PCP as it offers a £2K discount i can’t get for cash.
However looking at the interest paid over 3 years is over £4K.
I could say the discount is offsetting the interest cost but at the end of the day it’s increasing the overall cost of the car so I plan to pay it off ASAP.
I could borrow the cost to change off the bank and that would only cost £800 interest over 3 years.
highpeakrider said:
The full figures really need looking at to calculate the overall cost of the car including the interest.
I’m getting my car on PCP as it offers a £2K discount i can’t get for cash.
However looking at the interest paid over 3 years is over £4K.
I could say the discount is offsetting the interest cost but at the end of the day it’s increasing the overall cost of the car so I plan to pay it off ASAP.
I could borrow the cost to change off the bank and that would only cost £800 interest over 3 years.
Borrow the cost to change off the bank. Take the PCP and get the dealer deposit contribution. Withdraw from the pcp within 14 days by paying it off with the bank loan. I’m getting my car on PCP as it offers a £2K discount i can’t get for cash.
However looking at the interest paid over 3 years is over £4K.
I could say the discount is offsetting the interest cost but at the end of the day it’s increasing the overall cost of the car so I plan to pay it off ASAP.
I could borrow the cost to change off the bank and that would only cost £800 interest over 3 years.
On the PCP deals the three main aspects are the actual price of the car, the amount of deposit and the APR of the finance package.
The balloon payment (final payment or MGFV as it used to be termed) is usually set by the finance house and can only be altered by changing the length of the deal or the mileage allowance.
If you got a good discount, a finance contribution and APR sub 5% you’re doing well regardless of how the figures are set out. Obviously the higher the deposit you put down the less interest you will pay and it’s always charged on the balloon amount so there will always be an element of it even with max deposit (finance companies normally limit the amount of deposit you can put down at the start of the deal but many allow overpayments later on).
The balloon payment (final payment or MGFV as it used to be termed) is usually set by the finance house and can only be altered by changing the length of the deal or the mileage allowance.
If you got a good discount, a finance contribution and APR sub 5% you’re doing well regardless of how the figures are set out. Obviously the higher the deposit you put down the less interest you will pay and it’s always charged on the balloon amount so there will always be an element of it even with max deposit (finance companies normally limit the amount of deposit you can put down at the start of the deal but many allow overpayments later on).
Bazooka Joe said:
So you'll hand the car back, but you'll have to have a major service and belts to do so at month 48 as per the manufacturers service schedule?
I sold my 3 1/2 year old 340 yesterday or I’d check the schedule on that car. My understanding is that the servicing schedule is as below. Everything else is either lifetime or replace when the warning light comes on.
Edited by bad company on Wednesday 15th November 14:14
bad company said:
True but I won’t be keeping the car.
The numbers are quite simple than, £875/month to have the a 440i for 4 years. If that looks OK to you than go it. The other number is £61k on a car you know you wouldn’t keep longterm. Neither number make much financial sense unless you have £60K to burn, but the PCP number looks much more appealing than the 2nd.
gangzoom said:
The numbers are quite simple than, £875/month to have the a 440i for 4 years. If that looks OK to you than go it.
The other number is £61k on a car you know you wouldn’t keep longterm. Neither number make much financial sense unless you have £60K to burn, but the PCP number looks much more appealing than the 2nd.
Buying cars very rarely make financial sense. I agree though the PCP looks more appealing and almost certainly that’s what I’ll do.The other number is £61k on a car you know you wouldn’t keep longterm. Neither number make much financial sense unless you have £60K to burn, but the PCP number looks much more appealing than the 2nd.
Don't forget to consider that there could be tax on investment income/interest but not on interest saved.
We PCP'd an EV for MrsLT, mainly as a result of not wanting to have the downside risk/be left holding the baby at the end of the term. It was possible to pre-pay additional sums (bringing the financed sum outstanding, on which interest was payable, down) to minimise the cost of finance. Might be something to consider in your position too?
We PCP'd an EV for MrsLT, mainly as a result of not wanting to have the downside risk/be left holding the baby at the end of the term. It was possible to pre-pay additional sums (bringing the financed sum outstanding, on which interest was payable, down) to minimise the cost of finance. Might be something to consider in your position too?
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