Financing used BMW - help please!!

ultracheapskate

Hi guys. I am looking to purchase a used BMW coupe and my budget is approximately £25k. I have seen a few cars that interest me (320d and 330d with quite a good spec), and they are listed at £25k, which sounded good to me.

However when I spoke to the dealers regarding financing the car (using their PCP scheme - personal contract purchase), I was put off by the seemingly high deposit and monthly payments. Over a period of 48 months (I only do £6k miles/year on average), I would have to pay:

£2k deposit and £550/month OR
5k deposit and £480/month

At the end of the 4 years, they included a balloon payment too. This seemed excessively high especially as looking at https://www.broadspeed.com, you can get a new 320d coupe (£31k) for £460/month with £3k deposit! Are the BMW dealership ripping me off?

If I didn't want to finance the car through BMW, could I get an independent broker to finance the car)? If so where is a good place to look? Furthermore would leasing the car (PCH) rather than using PCP, give me a lower monthly payment, especially as I would be looking to change the car after 4 years?

Sorry for asking so many questions, but if somebody could help guide me in the right direction that would be great! I am very confused by all the financing options available. Thank you!

ultracheapskate

Anyone please? I need to finalise the car by this weekend. Many thanks

harveybobbles

Well it sounds like you cant afford your any of these cars, so maybe look at older cars for say 15k...?

LandyAndy

For such a low annual mileage a diesel is probably inappropriate.

motorguy

I think the O/P is looking for assistance with financing options, not looking for advice on his financial standing OR his choice of car.

motorguy

To the O/P

You can now check figures for the PCP deals online via BMW's used car site. simply use the used car search facility, pick the car you like, then look up the finance tab.

Some dealers dont yet have the functionality, but most do.

Check for the cheapest car of the type you want natioanally, and use that as your yardstick. The residual price is set by BMW Finance, and is not a proportion of the sticker price, therefore the more competitive the sticker price, the cheaper the monthly payments will be.

Also, check BMW's deals on new cars, as they often include cash incentives to use the finance scheme. Again those will be on the main site.

ultracheapskate

harveybobbles wrote: »

Well it sounds like you cant afford your any of these cars, so maybe look at older cars for say 15k...?

It's not about whether or not I can afford it, but I want to make sure I am getting the best deal out there. Isn't that the basis of this site after all, and why we all post here?

ultracheapskate

LandyAndy wrote: »

For such a low annual mileage a diesel is probably inappropriate.

You're right, it would probably be better to get a petrol in an ideal world. However looking at the BMW used vehicles, the cars I seem to like (based on price/spec/colour etc) just happen to be diesel by chance.

ultracheapskate

pgilc1 wrote: »

To the O/P

You can now check figures for the PCP deals online via BMW's used car site. simply use the used car search facility, pick the car you like, then look up the finance tab.

Some dealers dont yet have the functionality, but most do.

Check for the cheapest car of the type you want natioanally, and use that as your yardstick. The residual price is set by BMW Finance, and is not a proportion of the sticker price, therefore the more competitive the sticker price, the cheaper the monthly payments will be.

Also, check BMW's deals on new cars, as they often include cash incentives to use the finance scheme. Again those will be on the main site.

Thanks very much for the advice. I have been using BMW's used car search for months now but never noticed that financing tab! It seems that it is cheaper to finance a new coupe (£32k list price) via a broker, than it is to finance a used coupe (£25k) via BMW PCP...that can't be right!

Do you know whether it is possible to purchase the used car via an independent broker? I would like to change the car after 3/4 years, and am under the impression that it would be cheaper to hire/lease the car rather than use PCP. I was ideally looking for monthly payments in the region on £350 (without using a huge deposit), but maybe I am being too optimistic?

Thanks

Shimrod

ultracheapskate wrote: »

Thanks very much for the advice. I have been using BMW's used car search for months now but never noticed that financing tab! It seems that it is cheaper to finance a new coupe (£32k list price) via a broker, than it is to finance a used coupe (£25k) via BMW PCP...that can't be right!

Are you sure you are comparing like with like? You mentioned you were looking at diesels because they had the right spec. While options tend not to add much to the resale value, on BMW they are expensive for new cars. It is not uncommon for some of the used cars to have £8-10K of options on them (e.g. Leather is circa £1500 as is Auto box £1500).

Also be aware the standard spec is better on the 6 cylinder than the 4 cylinder models, so double check you have the expected options before purchase.

cyclonebri1

And just because this is a money saving site you will allways get the rightfull suggestions of why don't you forget the brand and go cheaper. Not a critisism of your choice, just giving credence to why you will get "conservative" posts.