My Rationale - PCP

System

omariqy wrote: »

It cost me about £3,250 a year since I had it. I am happy to pay the £5k as a premium to have a new new car and not a 5/6 year old car with 60k on the clock......I am very conscious of negative equity and the PCP trap

ROFLMAO. Talks about the PCP trap, walks straight into it. Gets a new vehicle and ends up paying its biggest highest annual rate of depreciation.

You need to diving the £5000 deposit over the length of the PCP deal. Only then do you get the true figure. Thing is though you won't because it'll force you to face up to the fact that actually the BMW 320 was a bargain. The BMW 320 is going to look like even more of a bargain once you've got the bill for the excess mileage.

The best I could get was a 3.3% rate over 7 years which was about £368 per month. PCH was £400 per month with £3.6k down payment

But there is a big difference between the two. The loan you'd have had a car at the end of it, not had to worry about mileage and you could at any point in the 7 years choose to sell the car and pay off the loan. With the PCP deal you've got nothing at the end of it and you can't get out of it until most of the way through the 4th year so if you need to change the car or your circumstances change where you can't afford it you're stuffed.

I have been put off with a used car given the depreciation and the costs I have experienced.

Funny you're put off with depreciation on a used car but you're happy to pay for depreciation on a new one covering the first few years where its value tanks the most and which will be over the deal around 2/3 of the value of what you have just paid. As for costs, you were unlucky. I bought my car at 2 years old for 2/3 of its new price. I've had it for nearly 6 years and done 87,000 miles in it and other than servicing its required under £300 of repairs.

angrycrow

So £5000 deposit, £14880 payments and roughly £600 a year servicing/tyres.

£22280 over 4 years or £464 a month.you estimated your old car was costing you around £270 a month. Are you are happy to pay £194 a month (£9312 over 4 years) for the new car feel which only lasts 6 months till the new reg comes out.

Mercdriver

Are those runflat tyres you have on your X1?

If so, (and it is very likely) then you are going to be making good friends with tyre sellers. Not only that but you will get a much firmer ride with them and the BMW X range is already firm enough on the ride front. You won't be able to swap them for normal without notifying your insurers, and possibly the finance house too, since the car isn't yours until the final payment (the balloon) is paid.

My wife has the X5 - a 2012 model with the low profile rear tyres - I wish she'd stuck with the Q7 now - tyres for the X5 don't last long and are eye wateringly expensive.

I don't think you've properly factored in your deposit or the balloon payment correctly. You're going to find that deposit all over again, and the deals may not be so good next time - BMW financial services rates can be one of the highest.

If you think the running costs of your X1 will be lower than that of the 320, I'd have to suggest that you keep taking the tablets. The X1 is a nice car, particularly if you get a good spec. I looked at it, but then got a less than 2 year old CX5 on 3 years 0% APR on HP.

omariqy

No non run flats as standard on the X1. I've factored in the deposit to my costs. I will only have to service it once in the time period. I normally do about 10k miles not many more. Like I said extenuating circumstances. I don't think it will cost me £600 a year to maintain. Also I have the warranty if anything drastically goes wrong on it. I think £100 a month is worth getting a new car for me, not too bothered about the reg changing in 6 months.

TheMoonandBack

omariqy wrote: »

My question is - have I been sensible in my decision making or have I missed a trick?

Only you can answer the decision making thing. Its going to cost money to run any car especially a BMW. Most replies on here will not be favourable to a new BMW on pcp.

Missing a trick ? Yes, you’ve already sold the 320d which you’ve paid to sort out brakes and suspension on, and seemed pretty reasonable to run for a bmw.

As long as you feel that you have the income to cope with it then enjoy the X1.

Jonesya

Sensible?

New cars are expensive. Status cars from fancy marques are costly to run. So new status cars are both expensive and costly to run.

But whether it's sensible depends on your circumstances, your priorities and what gives you enjoyment.

angrycrow

omariqy wrote: »

No non run flats as standard on the X1. I've factored in the deposit to my costs. I will only have to service it once in the time period. I normally do about 10k miles not many more. Like I said extenuating circumstances. I don't think it will cost me £600 a year to maintain. Also I have the warranty if anything drastically goes wrong on it. I think £100 a month is worth getting a new car for me, not too bothered about the reg changing in 6 months.

But it's not only £100 more a month and one service in 4 years. At 18k service interval and 10k miles a year you are looking at a minimum of 2 services and at least one full set of tyres, at least £1000. Over 4 years this is £435 a month so £165 more a month than the 3 series.

omariqy

Very true. Still not terrible IMO. Also there is still a chance that I can sell privately for more than the GMFV if I look after it.

fiisch

I don't think PCP can be rationalised - it is the motor trade's latest trick at hiding the cost of new cars.

Having said that, you can't beat owning a new car, and there is a higher certainty in regards to the known costs during the PCP. I have only ever PCP'ed new cars in 14 years of driving, and have no regrets - cars are a big passion of mine.

Just be sure to to go into it with your eyes fully open - expect to have nil equity at the end of the deal, make sure you look after it (that means no cheap hand car washes!) and ensure you are saving over and above the cost of the car so you have something for a deposit on your next car.

I am not sure I agree with your choice of vehicle, but enjoy...!!

omariqy

Haha thanks. Honestly I really do love the car. It's practical and still good to drive.

Thanks for all your replies guys. Some interesting insights.