In negative equity with our car

vikingaero

The OP should get the dent repaired/resprayed by an independent bodyshop. Most BMW dealers don't have their own bodyshops and contract out the work to third parties and add their whack on top.

I can't help thinking that the OP bought a cruddy PCP deal. Buying a 3 year old car on PCP and with it being 7 years old at the end of term isn't going to give rise to great values. I personally would have ignored the badge and the need to have a Beemer and gone for a new/nearly new mainstream car.

motorguy

vikingaero wrote: »

The OP should get the dent repaired/resprayed by an independent bodyshop. Most BMW dealers don't have their own bodyshops and contract out the work to third parties and add their whack on top.

I can't help thinking that the OP bought a cruddy PCP deal. Buying a 3 year old car on PCP and with it being 7 years old at the end of term isn't going to give rise to great values. I personally would have ignored the badge and the need to have a Beemer and gone for a new/nearly new mainstream car.

I think it was probably a decent enough deal - providing you stick by the 'rules' - one of which is dont try to get out of it half way through unless you have a lot of cash to buy your way out.

I looked at a top spec 3 year old 130i Sport with leather and NAV, upgraded alloys etc and i could get it on a PCP deal for £199 a month with £3K down. £199 a month doesnt buy you much from your local ford dealer.

thescouselander

blondeprincess wrote: »

Because i wont have 4k in 16 months to pay off the baloon payment.. Money like that would go towards my wedding.

I dont mind getting another deal with them but i do not want another ballon payment i want to own the car at the end like i always have.. Thing is with BMW there cars are so expensive in there. We were looking at a X5 & they didnt have one for under 19k on the forecourt nor could they get hold of them at under that :eek:

The whole idea is to keep our payments the same or cheaper....

I think you are being unrealistic - it sounds like your asperations are well beyond your means. Maybe you should consider a cheaper brand of car or maybe a slightly older one.

motorguy

thescouselander wrote: »

I think you are being unrealistic - it sounds like your asperations are well beyond your means. Maybe you should consider a cheaper brand of car or maybe a slightly older one.

+1

If the o/p really must change the car, she should find an independent garage rather than a franchised one and buy a mondeo / vectra / passat - estate car if needs be.

Shop around for the best price and hopefully someone will come with an offer that will allow the finance to be cleared.

flea72

pgilc1 wrote: »

I looked at a top spec 3 year old 130i Sport with leather and NAV, upgraded alloys etc and i could get it on a PCP deal for £199 a month with £3K down. £199 a month doesnt buy you much from your local ford dealer.

no, but £199 a month over 5yrs would buy you a car outright, without the need for a huge deposit or balloon payment

you are just fooling yourself as to the true costs if you only look at the monthly payment - its the balloon payment where most people fall foul. they go in with their p/x worth £3k as deposit, so feel that the initial outlay has cost them nothing, then think £199 a month is peanuts for a prestige car, totally forgetting that if they want to own the car outright, they have to make the ballon payment, which for most people, would require another loan, therefore meaning the finance period for the car is more than likely doubled

you bought a car on pcp that was 4yrs old, and you signed up for 4yr finance, with a balloon payment. the car will be 8yrs old when you come to the end of the term, with still a huge chunk left to clear. if you continue at your current £200 a month to clear the balloon, that would take you another 2ys, so the car will be 10yrs old before you have paid it off, did none of this go through you head when you were signing on the dotted line?

F

verityboo

Our next door neighbour did well because he purchased his Range Rover Sport using a PCP.
At the end of the 2 years, the middle of last year, it was worth £6K less than the balloon payment so he could just had it back. Thats £6K of depreciation he didn't have to pay for.
It is vital that you look after the car and keep to the agreed mileage, but if the ar5e falls out of the car market like it did last year then you do have some protection

bezzza

iolanthe07 wrote: »

Unfortunately when you buy a car on HP

The OP bought the car on PCP, not HP.

Sorry - I actually meant to explain that we had entered into what we thought was an HP contract similar in style to a PCP about 12 years ago on a Peugeot (think they called it the passport option back then) where they bamboozle you with figures and numbers and tell you you can have a different car every 3 years with no repercussions yeah right! The balloon payment was monstrous but as we both worked we thought we could afford it, however, when we were reaching that point we asked about getting another car but they hammered us on mileage, (non existent) damage, even wear and tear so we never got our next car with them because we ended up owing them loads for the mileage and wear and tear and had no money for a deposit for our next car!

motorguy

flea72 wrote: »

no, but £199 a month over 5yrs would buy you a car outright, without the need for a huge deposit or balloon payment

True, though the car in question was around £17K. A PCP does make sense, providing you play by the rules of it. As it happened i opted to buy a new car and have just a normal loan on it.

flea72 wrote: »

you are just fooling yourself as to the true costs if you only look at the monthly payment - its the balloon payment where most people fall foul. they go in with their p/x worth £3k as deposit, so feel that the initial outlay has cost them nothing, then think £199 a month is peanuts for a prestige car, totally forgetting that if they want to own the car outright, they have to make the ballon payment, which for most people, would require another loan, therefore meaning the finance period for the car is more than likely doubled

I wasnt fooling myself. Dont forget that a PCP deal is 'depreciation proof' so if you're doing it right you're paying a monthly payment that includes your depreciation.

flea72 wrote: »

you bought a car on pcp that was 4yrs old, and you signed up for 4yr finance, with a balloon payment. the car will be 8yrs old when you come to the end of the term, with still a huge chunk left to clear. if you continue at your current £200 a month to clear the balloon, that would take you another 2ys, so the car will be 10yrs old before you have paid it off, did none of this go through you head when you were signing on the dotted line?

F

I didnt!!! BUT even if i did, then thats not the way to play a PCP deal. Take one out over three years, and at the end of the deal, trade the car in and use the diffenence between the balloon payment and the cars value as your next deposit.

And dont forget on new cars manufacturers often offer finance incentives - BMW usually put £2000 into the pot when you buy a 5 series, i've seen Mercedes deals whereby mercedes put £12,000 into the deal - albeit on very heavy duty cars.

verityboo

pgilc1 wrote: »

True, though the car in question was around £17K. A PCP does make sense, providing you play by the rules of it. As it happened i opted to buy a new car and have just a normal loan on it.



I wasnt fooling myself. Dont forget that a PCP deal is 'depreciation proof' so if you're doing it right you're paying a monthly payment that includes your depreciation.



I didnt!!! BUT even if i did, then thats not the way to play a PCP deal. Take one out over three years, and at the end of the deal, trade the car in and use the diffenence between the balloon payment and the cars value as your next deposit.

And dont forget on new cars manufacturers often offer finance incentives - BMW usually put £2000 into the pot when you buy a 5 series, i've seen Mercedes deals whereby mercedes put £12,000 into the deal - albeit on very heavy duty cars.

I agree that they are a good idea on new cars but only ones with comparatively low depreciation. That means that the chunk you pay off is comparatively small and hence the monthly payments are low. No good buying a Citroen on a PCP which is worthless after 3 years anyway

We have one of our cars on a PCP which we are replacing in a couple of months time. We have found that there is plenty of equity in the car and are putting a reasonable deposit on the new one. Assuming we could get the same low interest rate, an HP loan for the full amount with the same monthly payments would take over 7 years to pay off.

wattywattwatt

The trouble with this whole story is that the OP obviously went into the original deal with her eyes shut, the lure of the 'prestige' car must have been too strong to resist! The main thing is to always keep in mind that circumstances change and if you over-extend yourself financially all it takes is a new baby, a new romance (wedding to pay for) and before long, it's all too much. I took out a pcp recently on a 1 year old Toyota, it was a no-brainer as I will owe less at the end of the three year term (balloon payment) than would have been outstanding on a regular 5 year HP deal, plus the monthly payments are lower as there were extra incentives from Toyota. If I want to keep the car at the end I'll refinance it through a new bank loan or Toyota finance, the dealer said that Toyota will offer this, won't hold my breath on that one though! All in all, I'm really pleased with the deal as the car is also costing over a hundred pounds less a month in running costs, but it took a lot of research and agonising over making the decision before I would commit but I'm really glad I did. I did have a PCP many years ago on a Rover and remember being very wary of that at the time also, but at the end of it I did really well out of the deal and would never have been able to afford such a nice car otherwise. The main thing is you really must keep the car for the full term otherwise you risk losing a lot of money.