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Dealer finance at the moment


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E92 M3's are getting more and more tempting i.e. cheaper! I wouldn't be doing anything until the new year but wanted some views on what kind of deal would be reasonable to expect from BMW dealer. I have never taken car finance before so wouldn't have a clue what's the norm.

If I put down £10k and financed £25k over 3/4 years (assuming they are £35k by then!) what sort of deal should I be looking to put together?

Cheers +++

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E92 M3's are getting more and more tempting i.e. cheaper! I wouldn't be doing anything until the new year but wanted some views on what kind of deal would be reasonable to expect from BMW dealer. I have never taken car finance before so wouldn't have a clue what's the norm.

If I put down £10k and financed £25k over 3/4 years (assuming they are £35k by then!) what sort of deal should I be looking to put together?

Cheers +++

That is the deal put together on the E46 M3 i bought a few years ago.

10k part ex, 4 years, 1k deposit, 25k financed.

Monthly payment was £491 a month i think.. (it was a while ago though)

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That is the deal put together on the E46 M3 i bought a few years ago.

10k part ex, 4 years, 1k deposit, 25k financed.

Monthly payment was £491 a month i think.. (it was a while ago though)

Sounds a great deal - £25k paid back over 4 years (48 months) is £520.83 per month, interest free, so if you paid less than £520.83 you were charged negative interest (circa -3%, I reckon).

:)

Gareth is good, but I doubt he can beat -3% interest. If he can let me know as there are lots of cars I'd like to buy i he can fund at that rate!!:roflmao:

:beer:

Sidicks

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Best del I could get out of BMW finance (and I tried it on with 3 dealer groups) was 10.4% APR on a 3yr lease purchase or PCP.

Ended up using Bespoke Automotive (aka Gareth) and got it down to 9.4%, with a much lower balloon figure. This was based on a 3yr lease purchase, NOT a PCP. Now I know how PCP's work, I'm never going to have one again.

Gareth is on hols till next week btw.

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If you decide before the 3 years is up you want to get rid of the car, you just trade it in as you do and any negative equity has to be paid off e.t.c. But judging by the deposit I doubt you will be. If you keep the car for the full 3 years, you will get an absolute minimum of the 12k they guarenteed you when you set up the finance package. Anything over is your equity to do whatever you want with. Anything below and you don't pay a penny.

This is just a rough example, but Gareth will probably do a miles better deal.

Is the BMW Select a PCP? If it is then the finance is FRONT LOADED, so you don't start paying off the actual car till most of the interest is paid off, unlike a Lease or Hire Purchase which is a more regular form of finance. If your likely to keep the car for the full term and not exceed the agreed mileage, then a PCP is OK, but (like I tend to do) you change the car before then, you will have a bit of a shock on the settlement figure.

I was totally unaware of this till Gareth talked me through all the different finance options and their various pros and cons.

My opinion (now my eyes have been opened) is to shop around for finance. The negotiations can be made on the car and part-ex as normal, just don't mention you'll NOT use their finance till the deal is done.

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Yes it is a PCP, just BMW's name for it :P

You can do a PCP over 2 years aswell, but like you said if you come out of it early you get screwed. I do mine over 3 years because I usually keep them that long. But I get an interest rate of 4.5% :)

But I bet that is flat?? BMW are buying money at about 6% apr at the mo, so would they lend at a loss?? even to staff??

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Buying my wife's 3 series earlier this year, I told the dealer I'd be using the same finance from ING as my Porker. I got the old "I need to make a call" a couple of times but they just fiddled with the figures on screen and got something like 4% flat on lease purchase. I was losing the will so just accepted it as we weren't borrowing that much and couldn't be bothered talking with the slimey finance manager any longer for the sake of a couple of quid a month. Funniest thing was the initial pitch on how great BMW Select was. Put him straight on that in about 10 seconds flat, told him to wash his mouth out and only talk about lease purchase.

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My APR is just under 9% and my interest rate at 4.5%, that's the lowest it could be done without BMW sticking their nose in and saying no. I don't work there anymore but doing so gets good discount :)

I only have finance on the 330d, it's better because it's for business use and miles are piling on. So i'm in neg equity with a guaranteed future value, so i'm not going to have to fork out at the end of the 3 years (Next Feb), also not sure whether to buy it and run it into the ground or get something new. I own the other 2 out right, not a big finance fan tbh.

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Why would you buy a car that is owing more than it is worth??

It's not owing more than it's worth on purpose. It's done a lot more mileage than was first thought. I have a minimum future value guaranteed anyway which is acceptable to me. It'll be worth less than that at the end, but I won't have to bail myself out of the negative equity.

And I bought it nearly 3 years ago when they were holding their value a lot more.

They won't let you buy it for book surely?? They will want to retail it and clamber back some of the loss??

What you referring to here sorry?

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Sorry, I thought you said that the car was going to be worth less than the GFV when you handed it back, and then said you didn't know whether to buy it.

Just seemed strange to buy it if it was going to be worth less than the buy price at the end, but that obviously is not the case. +++

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When I bought my A4, the stealer wouldn't give me an APR figure, they just kept banging on about how they finance through a bank who will only quote them flat rate. Utter bollocks of course. Anyway we agreed a payment plan and I was very happy with the price.

When it came to signing the finance agreement, low and behold, the interest figure quoted was APR on the document. I went ballistic with them and saw the dealer principal who stuck to his guns and told me they had no choice buy to quote flat rate. As it happened, the APR was 7.9% which I was very happy with anyways as the best I found anywhere back then was 7.6%. After my outburst, the stealer threw in quite a few extras for that more than made up for the finance package shortcomings IMHO.

Be careful with them though and definitely play them off against other lenders as they should really be able to match them IMHO.

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