Guaranteed Future Value ?

[Johnwebster12]

Got my Z4M Coupe on a three year PCP with BMW. Guarenteed future value of £21500 (@ 24000 miles). It is up in 15 months,

I am shocked at the price they are now, some selling for sub 20k at 2 and a bit years old. I guess BMW are going to take a hit on resale. It makes me think what its 'real' value will be in 15 months, and if BMW would take less than the GFV should i decide to keep it ?

[Badapple]

Johnwebster12 said:

Got my Z4M Coupe on a three year PCP with BMW. Guarenteed future value of £21500 (@ 24000 miles). It is up in 15 months,

I am shocked at the price they are now, some selling for sub 20k at 2 and a bit years old. I guess BMW are going to take a hit on resale. It makes me think what its 'real' value will be in 15 months, and if BMW would take less than the GFV should i decide to keep it ?

I think 3yrs old with that mileage £17-18,000

I believe that prices on these cars will really firm up now, they are obviously selling well, almost defying the rest of the market as long as they are competitively priced.
At bedford today was a steel grey 56 plate with 8,000K & most of the kit, that went for £22K odd (without premium), & had some large scratches.
I've seen a few at auctions & they have been making top money with mostly main dealers buying them.

I could be totally wrong, but my plan is to keep my car for 2 1/2 years, buying 1 years warranty when the 18 months runs out. I hope to sell the car under 60K & get £13-£14K at least?? & i'm talking 2 1/2 half years away....

[Booyakajon]

I have been considering a BMW pcp deal. Would you mind telling us how much per month you are paying for your Z4M and what kind of deposit you had? No probs if you don't! I guess with BMW's high GFV, they guarantee themselves that you will not be able to use your current car as a 'trade in' for your next and that you would be paying way over the odds should you decide to keep it.

Cheers

Jon

[dick_dastardly71]

I bought my October 2008 M3 on a PCP deal as I managed to get c.£30k after 3 years / 30k miles on a PCP deal (c.£61k car, factory order and paid sub £54k). Pretty attractive given late '07 models aren't fetching much more than this as AUCs so PX value must be way south of that value. Got an OK interest rate too (significantly below initial quote after producing 3rd party comps).

Can only assume that (i) either BMW Finance hadn't wised up to what was happening with RV's, or (ii) they're prepared to take a potential hit on the finance RV to drive sales volumes.

[pgilc1]

Booyakajon said:

I have been considering a BMW pcp deal. Would you mind telling us how much per month you are paying for your Z4M and what kind of deposit you had? No probs if you don't! I guess with BMW's high GFV, they guarantee themselves that you will not be able to use your current car as a 'trade in' for your next and that you would be paying way over the odds should you decide to keep it.

Cheers

Jon

Given how badly BMW Finance have got their fingers burnt recently with having to take back PCP deal cars at wayyyy more than they are worth, i wouldnt hold out much hope of getting a high PCP value at the moment.

BMW would much prefer you had a few thousand of equity when it comes to the end of the agreement as

(a) you are more likely to trade in and buy another BMW
(b) they wont be in a position of negative equity as they are currently with a lot of their cars being handed back.

Edited by pgilc1 on Friday 16th January 21:48

[Johnwebster12]

Car was up for just under 45k, got it for 38k

Deposit of £6700

450 per month GFV of 21500 @24000 miles

[gizlaroc]

Johnwebster12 said:

Car was up for just under 45k, got it for 38k

Deposit of £6700

450 per month GFV of 21500 @24000 miles

To think, when they first came out I was offered a GFV of £28k on one at 3 years, that was buying an ex-dem car for £38k.

However, even though it sounded great, the APR meant I was paying for it really.

Think it was around £520 a month, so that is 12% apr??


Now if it were 7% apr at £520 a month the amount owing would have been £22k. Sometimes it can be the way they word it that makes you think you are doing alright.

[Booyakajon]

I think BMW have wised up to the GMFV. Have just had a quote on a new M3 that, with extras is £60k. 9k deposit, £1100 per month for 36 months & then GMFV £22k!!!!

BMW now think their cars will depreciate by 2/3 in 3 years.

I did have a look at a 09/07 M5 that was £74k new, done 4800 miles & being sold for £43k. After a 5yr pcp the GMFV would be £11k. They did offer me £10k trade in for my 2004 M3 though.

Think i am better off sticking with my M3.

[athol]

I have the same issue with mine. June 07 z4mc with GFV of £19500. I can't sell it (not that i want to!) as it would cost thousands to sell so i'll keep it and see what happens at the end of the term.

Interestingly, i was in BMW yesterday discussing a 630 that they have for £18K (55 plate, 45k miles auto no nav) and was told to consider straight finance as a better option. If i take 5 years straight finance, that's £350 a month with £1000 deposit and the safeguard of exercising the "Right to Terminate" after 50% of paymants have been made, or 2.5 years.

I reckon that's maybe a better way to buy if you can't stand the thought of keeping a car for it's entire term or you just know that you'll want to change as that's what we car people do!

[gizlaroc]

athol said:

If i take 5 years straight finance, that's £350 a month with £1000 deposit and the safeguard of exercising the "Right to Terminate" after 50% of paymants have been made, or 2.5 years.

Be careful of that, you hear that all the time, that you can hand the car back half way through the term.
You can hand it back when half the finance is paid.

With the APR rate they are using this is more like 40 months through, not after 30 months of a 60 month term.

[mantonclan]

Picked this thread up a little late.

I paid £37K for my Z4MC in January 2007. It was an ex demonstrator (registered September 2006) and was fully loaded (circa £45K new.) I paid a deposit of £10K. Term of the PCP is 3 years with a GFV of £18.5K. Cost £455 per month.

I reckon that the car will be worth circa £16K by the end of the 3 year term. I'd love to keep it but there's no way I'm paying BMWFS over the odds for the car.

Having made some enquiries, I understand that the BMWFS approach is to to negotiate a settlement and not to insist on payment of the GFV - if the car is worth less, of course.

[David111]

Erm the future value placed on cars by BM finance is not what it was. I just bought a Nov 2006 Z4M for £18,800 from BM and the future value they offered was £5,400 in 3yrs time, guess they have got burned recently....

Edited for typo

Edited by David111 on Friday 30th January 14:08

[MC99]

unless you're doing starship mileage per year that GFV sounds crazy (in terms of % value) they're offering more on a 1 series for 3 years on PCPs. For such a low GFV you may as well finance conventionally, as there's limited "benefit" to a guarantee so low..

[bungle]

David111 said:

I just bought a Nov 2006 Z4M for £28,800

£28K??!! Is that a typo???

[Badapple]

If anyone is looking for one i've just put mine up for sale

http://www.pistonheads.com/sales/864002.htm

Its a nice one...

[Johnwebster12]

Thats interesting. If BMW does not insist on the GFV and will take a market value offer (my GFV being 21.5k) i might try and keep it.

My value guess is the same as david111, i reckon about 16-17k at 3 years and 24000 miles.

[flimper]

I have just bought a 56 Z4M for £21k, my future value was just short of 9k, so I refused their polite offer

[gizlaroc]

flimper said:

I have just bought a 56 Z4M for £21k, my future value was just short of 9k, so I refused their polite offer

What do you mean refused it??

[flimper]

I didn't take credit, paid with the old readies

[David111]

bungle said:

David111 said:

I just bought a Nov 2006 Z4M for £28,800

£28K??!! Is that a typo???

Yes Typo 2yr old main dealer car, like new, 26k miles £18,800.

Edited by David111 on Friday 30th January 14:09