BMW Finance, better than my bank?

Joeler

Hi lovely people

I was after some advice...

I would like to buy a used BMW. Looking to spend about 20k ish. Have up to 5k to put down and need to borrow the rest.

I have a pre-approved offer from my bank Halifax, for the 15k, but the APR is high at around 14%!! This FRUSTRATES me, because I've had two previous loans with them of 7k and 10k, and both of which were paid off early. The APR's on these were slightly higher because I used to have some credit issues, but now I don't (at least with Experian anyway!) I also have 6.5k credit limit on a CC from Halifax, and a 4k overdraft, so they obviously think I'm good for it!

I want to apply for finance through BMW a) If it's likely to be cheaper overall and b) if I'm likely to be accepted. However I don't really want to have to go into a showroom, find a car I want go through the rigmarole of applying for finance only to find out they can't offer me it! Is there anyway of finding out if I can get the finance with them before finding my ideal car?!

Also any other bright ideas?

Merci!

pippitypop

I got 10.5% APR finance from BMW. Some good news, if you want to pay back your finance via a 0% credit card you can, you can over pay over the phone. Bad news, they are pretty poor at setting up D/Ds so make sure yours gets set up and it stays set up, make sure you phone them to make over payments otherwise they will simply send them back to your bank account! My credit rating was good but I had quite a lot of outstanding debt before I got my car and still got accepted, my income was also quite low compared to what it is now. I think they should be able to sort you out a good finance deal, think they are desperate for customers in this economic climate. Also, lots of wiggle room on asking price - I only just had another promo leaflet asking me to come along and look at their cars. Dark times!

Good luck!

Gurj247

Not sure about how you could find out before visiting, but i would assume that you can see what the APR would be if you did take out finance with them on a car, that would be the first thing i would do.

SimonD316

My understanding is that car finance is secured on the vehicle so your more likely to be accepted, especially as you've got a chunk to put down, and the APR is likely to be lower.

Car dealers like to sell finance products because they make money out of it so you may be able to get a better deal on the car than you would buying 'Cash'.

Gra76

BMW finance offered me a lower APR but only after I'd got a loan accepted at 6% APR with M&S.

Even then BMW could only offer me something in the region of 8%.

CLAPTON

Joeler wrote: »

Hi lovely people

I was after some advice...

I would like to buy a used BMW. Looking to spend about 20k ish. Have up to 5k to put down and need to borrow the rest.

I have a pre-approved offer from my bank Halifax, for the 15k, but the APR is high at around 14%!! This FRUSTRATES me, because I've had two previous loans with them of 7k and 10k, and both of which were paid off early. The APR's on these were slightly higher because I used to have some credit issues, but now I don't (at least with Experian anyway!) I also have 6.5k credit limit on a CC from Halifax, and a 4k overdraft, so they obviously think I'm good for it!

I want to apply for finance through BMW a) If it's likely to be cheaper overall and b) if I'm likely to be accepted. However I don't really want to have to go into a showroom, find a car I want go through the rigmarole of applying for finance only to find out they can't offer me it! Is there anyway of finding out if I can get the finance with them before finding my ideal car?!

Also any other bright ideas?

Merci!

do you really mean you have an 4k overdraft or do you mean you have a 4k overdraft facility (unused)?
if you have an actually in your OD then that is usually consider as showing some-one having financial difficulties which will make further borrowing at good APRs difficult

bargainbetty

If you want to buy a used BMW, why not save a bit of money and get an older one?

http://www.carandclassic.co.uk is a great website. Most of the people on there are real car lovers and have taken good care of their machines. You also have a lot of trade dealers.

I got a 325i M E36 Sports convertible for less than £3k. It's in excellent working order, and is beautiful! It's big and it's blue and it goes vroom!

Sorry, momentary Clarkson moment there, but to be honest, £20k for a car is a hell of a lot of debt to take on.

BugsyBrowne

Pretty sure this site had the E30 M3 sports evolution, more of an investment I would say.

Joeler

Hi guys

Thanks for all your replies. I haven't taken out Car finance before so appreciate all your advice/information.

PipetyPop - Thanks, good info, will keep that in mind.

Simon D316 - Yeah I guess that if you go down that route the car forms some security so that might help to get the nod

Clapton - 4k Overdraft facility, not 4k owing. I just meant to say that Halifax obviously arent concerned that with the loan I would have up to 25k of unsecured lending with them, so I was confused why the APR was so high? To make the risk worthwhile? Who knows...

Bargainbetty - Yeah I'm sure there are some fantastic older cars for nowhere near this price on that site, however I have always owned older cars and I want something newer (not new) but around three years old. Buying a new car would in my opinion be insanity, due to the immediate depreciation. 20k debt on a car is relative. Some people have 20k on Credit cards, store cards and loans. I have nothing. Plus I've always had older cars and it's time for something better!

P.S I'm also self employed and have been for 2 years, but this may be what increases the APR from the banks point of view?

Gurj247

Joeler wrote: »

Hi guys


Bargainbetty - Yeah I'm sure there are some fantastic older cars for nowhere near this price on that site, however I have always owned older cars and I want something newer (not new) but around three years old. Buying a new car would in my opinion be insanity, due to the immediate depreciation. 20k debt on a car is relative. Some people have 20k on Credit cards, store cards and loans. I have nothing. Plus I've always had older cars and it's time for something better!

P.S I'm also self employed and have been for 2 years, but this may be what increases the APR from the banks point of view?

I have to ask, but what car are you looking at getting that is £20k from the BMW dealer and 3 years old? M3? M5? etc

Joeler

M3/M5, erm nope!

Looking at 3series diesel m-sport coupes, probably a 325d or 330d. But needs to have a top spec, low milage and be within 3years old

Although I'm planning to spend this amount on a car, I'm not going to buy one which will cost me a fortune to run, I see these as best of both worlds, sporty enough but pretty fuel efficient!