Bmw 135

TClite

Approved dealership is offering the following arrangement on this car:

PCP: £26,995. Deposit £3,995 (trade in + cash from me). Financing £22,997 @ 5.8% APR. bubble of £13,107. Cost of finance over 4 years £4,131. Total cost of £31,126. Repayments of £299. 8,000 miles (won't be a problem - I'm pretty central)

Car is 14 regi with < 5k miles. Was their "display model" and comes equipped with all their "toys" and I'm being told cost new is approx £39k which I've checked on parkers and is accurate given the spec.

So my thoughts are this is a lot of car for this money. My question is, removing the fact it's still a lot of money for what is essentially negative equity, is this a reasonable deal all things considered?


More importantly and hypothetically ,as I'm unlikely going to buy this as my head is winning over My heart, what would the cheapest way to finance £26k or any large sum for that matter?

loskie

The new cost is not £39k, That is the list price that can be heavily discounted.
This is a huge cost to obtain this car. Worth looking at a 2yr personal lease.

Oh and you do know that the 1 series is about to get a facelift so you are talking about an obsolete model.

forgotmyname

Several for sale from Franchised dealers for under £26k. 2014 upto 10,000 miles.

Are they depreciating that much?

TClite

loskie wrote: »

The new cost is not £39k, That is the list price that can be heavily discounted.
This is a huge cost to obtain this car. Worth looking at a 2yr personal lease.

Oh and you do know that the 1 series is about to get a facelift so you are talking about an obsolete model.

Thanks for the reply. I understand that £39k is very much a window price and essentially a bit of smoke and mirrors. I'm also aware the 2 series is just about to come out and the new registration is also about to hit.

Knowing it's the best spec or thereabouts for this car, what would you shake hands on hypothetically. Also, any thoughts on my 2nd question? Thanks

TClite

forgotmyname wrote: »

Several for sale from Franchised dealers for under £26k. 2014 upto 10,000 miles.

Are they depreciating that much?

I think they tend to hold their value quite well after a certain point. But the "window price" on the basic spec is £31k going off parkers valuation

Mobeer

With a list price of 39k it would probably cost about 33k if bought new. To go from 33k to 26k in the first year doesn't seem too bad, especially give a small impact from the LCI. Of course that's a 26k including some profit for the dealer, so it might really have gone 33k to 24k, which sounds more painful.

I'd be tempted if all the toys actually had value to me. Otherwise I'd be wondering what deal could be had on a basic new one, and how difficult it would be to get a First Direct 3.6% APR loan (needing a current account).

Then I'd decide to pay off a chunk of my mortgage instead, which is why I don't own a M235i.

loskie

If you think you need to finance £26k for a car may I suggest you buy what you can afford.
This is not meant to sound as rude as it may do but you would get a good used car for £8k.

TClite

loskie wrote: »

If you think you need to finance £26k for a car may I suggest you buy what you can afford.
This is not meant to sound as rude as it may do but you would get a good used car for £8k.

sound advice. We are in a position to buy this outright but it's a bit more complicated if you consider doing PCP and trading in after a few years etc so i.e. I would effectively pay 11k for a 26k car. This thought process is likely flawed. As I said its pie in the sky stuff ive said to them I want it for 25k and I've not heard from them since! This was a few days ago - I'll see what happens.

TClite

Mobeer wrote: »

With a list price of 39k it would probably cost about 33k if bought new. To go from 33k to 26k in the first year doesn't seem too bad, especially give a small impact from the LCI. Of course that's a 26k including some profit for the dealer, so it might really have gone 33k to 24k, which sounds more painful.

I'd be tempted if all the toys actually had value to me. Otherwise I'd be wondering what deal could be had on a basic new one, and how difficult it would be to get a First Direct 3.6% APR loan (needing a current account).

Then I'd decide to pay off a chunk of my mortgage instead, which is why I don't own a M235i.

Also sound advice. We do overpay our mortgage and I've got a meeting with our FA next week so I'm sure I'll probably have my head pulled out the sky and be told where I can wisely invest our nest egg - not that it would ever get chucked on a motor anyway

loskie

No you "rent" it for £11k which is why leasing may be better.

TClite

loskie wrote: »

No you "rent" it for £11k which is why leasing may be better.

Yeah, correct. I've looked at leasing and can't find a better deal. relative to the spec. I'm not against this route.

I seen somewhere mentioning motoring as a "Monthly tarrif" if you like. It's an "ok" logic if you don't mind NOT having the "asset" of a car. It also means if you ever want out the reoccurring cycle of this "monthly tarrif" you will have to either pay the bubble or exit.