Advice (Experience) with BMW Finance

TradePro

100% wrong I'm afraid Trebor.

To get BMW Finance's 4.9% APR deal, you'll either pass, or you won't.

If you fail, the dealer may well offer you finance from another lender at a higher rate (i.e. Black Horse), but BMW Finance won't just up the rate like banks do - it's a fixed offer to help sell the cars, as previously described.

TradePro

Trebor16 wrote: »

The fact is dealers will get some reward for doing all the work in setting up a finance agreement.

The 'reward' is that the dealer gets the sale of the car, made easier/possible by being able to offer reduced rate finance.

charlearose

I've leased lots of cars and used lings twice recently

my husband presently has an audi tt convertible 12,000 mile per year
he pays 325 a month inc tax which they send in the post
(insurance is extra) he had to put down 1000k or 3 time 325 and then at the end of the three years he just hands the car back
I leased a maxda mx5 which was £600 down and then 189 a month for 3 years which was a very good deal compared to the mazda dealer

We looked at audi and they wanted something similar to the op post
and in my mind its a waste of a deposit you could hold on to the 4k for something else

also dont lease or pcp cars for more than three years once your out of the three year period there is no warranty and if anything goes wrong its down to you to pay for it Under three years and your covered

the roof leaked on our tt last year in total it was a new seat & upholstery inc carpets some new electrics cos of water damage and new seals and new roof lining i dont think there was much change from 5k
they had to give us a comparable car ( which was really nice once -sad to give it back) and it took 6 weeks to do as the car stunk because everything was rotting cause of the water damage

gilbert_and_sullivan wrote: »

Certainly not my area, but have you looked at Lings Cars to see how much a simple lease plan would be to compare.

Hmm this BMW will be 4 years old and you'll still be paying £8k balloon for it, that seems awfully expensive for an Astra sized hatch, thats not meant harshly it just IS a lot of money for a small car.

If you do proceed with the BMW deal and after 10k miles are still serious about buying the car when the time comes, i suggest you get interim oil changes done to the car during your tenure, it might only come up for change every 20k as it is but if its a Diesel then BMW turbos are not exactly long life items, giving it some fresh oil at sensible intervals could be a prudent investment.

TradePro

charlearose wrote: »

my husband presently has an audi tt convertible 12,000 mile per year
he pays 325 a month inc tax which they send in the post
(insurance is extra) he had to put down 1000k or 3 time 325 and then at the end of the three years he just hands the car back
I leased a maxda mx5 which was £600 down and then 189 a month for 3 years which was a very good deal compared to the mazda dealer

the roof leaked on our tt last year in total it was a new seat & upholstery inc carpets some new electrics cos of water damage and new seals and new roof lining i dont think there was much change from 5k
they had to give us a comparable car ( which was really nice once -sad to give it back) and it took 6 weeks to do as the car stunk because everything was rotting cause of the water damage

I admit to being a bit anti-German when it comes to cars, and I think the biggest lesson learnt here is to stay away from VAG products!

I assume that the Mazda which cost half as much didn't have catastrophic leaks?

Almost £13,000 (plus extortionate servicing/maintenance costs) sounds a lot of money to rent a leaking 'handbag on wheels' for 3 years, I do hope nobody reading this will be tempted to do the same.

almillar

£4,000 deposit plus £300 x 47 is £18,100. That's what you're paying to rent a 1 Series for 4 years. It's not yours at the end, it'll cost you £8,000 to buy if you want to keep it THEN you can sell it. Or hand it back and start another PCP.
That make sense?

Trebor16

TradePro wrote: »

100% wrong I'm afraid Trebor.

To get BMW Finance's 4.9% APR deal, you'll either pass, or you won't.

And you can verify this claim?

TradePro wrote:

If you fail, the dealer may well offer you finance from another lender at a higher rate (i.e. Black Horse), but BMW Finance won't just up the rate like banks do - it's a fixed offer to help sell the cars, as previously described.

BMW Finance do have different rates, something I know from personal experience. What information are you basing your claims on?

Trebor16

TradePro wrote: »

I admit to being a bit anti-German when it comes to cars, and I think the biggest lesson learnt here is to stay away from VAG products!

What would you base that advice on? Would you include Skoda and Seat within that?

TradePro

Trebor16 wrote: »

And you can verify this claim?



BMW Finance do have different rates, something I know from personal experience. What information are you basing your claims on?

You're beginning to embarrass yourself now.

YES, I have worked with various motor manufacturers, and most do reduced rate PCP deals, usually 4.9 or 6.9 APR.

This rate is fixed, and usually subsidised (as previously discussed) as it is the manufacturer's preferred finance route -stats show there is a considerably greater chance of repeat business/brand loyalty when a car is funded this way.

Yes, of course BMW Finance have different rates (with the higher the rate charged, the higher the commission paid) but this is not for their special PCP offers. This will be primarily for used cars, maybe HP on new vehicles sometimes.

If a PCP buyer 'fails' the criteria for the 4.9% offer, the dealer will need to find an alternative lender, who perhaps takes greater risks but charges more interest.

BE 100% SURE OF THIS, BMW Finance will not offer a 'risky' PCP buyer a higher APR because they haven't met their conditions.

TradePro

Trebor16 wrote: »

What would you base that advice on? Would you include Skoda and Seat within that?

I am an ex-VAG Service Manager, and know completely how over-rated they are, and how terrible they can be.

Skoda and SEAT are a little behind with the new tech, so therefore 'innovations' are more tried and tested by the time they reach them. Also, they are relatively cheap, so at least buyers are not ripped-off or expecting World-leading engineering.

This said they really aren't all that, not markedly better than French or Italian stuff really.

mrshultz

Even though this thread is old, I thought I'd give a post just to let everyone know what I decided to do in the end, and hopefully it might give someone else some advice in the future should they be in my shoes

I decided to buy a 12 plate 1 series with 7k miles in the clock, I managed to get all my optional extras and managed to get a 118D instead of the 116D I was after. The book price of this new was around 26K and I picked it up with tax and servicing for just under 17K, I couldn't bear the thought of driving a car for a year and losing 11K...

Another thing that might be obvious to everyone else, but I didn't catch until late, BMW say its 4.9%APR, however it's flat rate (please correct me if I'm using the wrong term), so I would pay interest on the full amount of the finance loan, rather than the outstanding balance. Also because the price of the car was lower, I just bought it outright, so I have the pleasure of driving my new(ish) 1 series with no Finance.

Happy days

A