PCP, deposit and personal loans

thescouselander

What car are you looking at? If you dont have much of a deposit a lease might be a better option.

Personally I'd never go for finance as high as 9%. It doesn't sound like a good deal.

Qrbrrbl

Not going to be looking seriously for another 9 months or so, and I will have a sizeable deposit at that point - probably looking at at BMW m140i but the Merc A45 is another contender.

On the affordability question, like I said I'm not seriously considering full finance - it was a hypothetical question. My monthly disposable income is in four figures (even taking my current higher monthly PCP cost into account) so like I said, regardless of whether it's sensible it would be affordable for me to purchase a 25k car fully on finance.

thescouselander

Qrbrrbl wrote: »

Not going to be looking seriously for another 9 months or so, and I will have a sizeable deposit at that point - probably looking at at BMW m140i but the Merc A45 is another contender.

On the affordability question, like I said I'm not seriously considering full finance - it was a hypothetical question. My monthly disposable income is in four figures (even taking my current higher monthly PCP cost into account) so like I said, regardless of whether it's sensible it would be affordable for me to purchase a 25k car fully on finance.

Have you looked into this properly? A BMW M140 starts at £35k before options and by the time you've ticked a few options boxes you'll be pushing £40k before any incentives you can get. Either way you'll need to raise a lot more than £25k. Luckily BMW PCP finance is more like 5% APR rather than 9% and sometimes they'll do the odd 0% special (on diesels mainly).

Cornucopia

I assume that 9% is a finger-in-the-air estimate? The only place you will see that being quoted these days is in the used market, and even then it is expensive, especially for a PCP.

There are plenty of 0% and low rate PCPs out there. Some of them even have low deposits. Someone has already mentioned leasing, and quite a few leases are a fair bit cheaper than the PCPs on the same models at the moment.

For example, BMW is quoting £499 deposit + £499pm over 48 months for the 140i Shadow. A similar lease is £2825 + £282pm. (which works out £7800 cheaper).

neilmcl

thescouselander wrote: »

Have you looked into this properly? A BMW M140 starts at £35k before options and by the time you've ticked a few options boxes you'll be pushing £40k before any incentives you can get. Either way you'll need to raise a lot more than £25k. Luckily BMW PCP finance is more like 5% APR rather than 9% and sometimes they'll do the odd 0% special (on diesels mainly).

However you're likely to get very good deals on a new M140i on PCP, at least 20% or more.

thescouselander

neilmcl wrote: »

However you're likely to get very good deals on a new M140i on PCP, at least 20% or more.

20% would be the maximum I'd say - that's also what Broadspeed seem to be indicating (about 18%). I can tell you from experience BMW dealers are offering naff all discount on petrol models at the moment; all the best deals seem to be on diesel variants.

I ordered a new BMW recently and luckily I got a good discount through a work scheme which ended up at about 20%. The dealers couldn't event get close to that.

The other thing with the 1 Series is that its not a well speccced model. For example even on the M140 variant you only get the basic idrive system as standard - upgrading to the Professional system would be a must on that car but its an extra £800. Theres arguably a few other options boxes that need ticking too and discounts are rarely available on options.

Qrbrrbl

Been looking already at new or used and whilst a new would be nice I wouldn't be able to make the figures work. I could bring them down lower than my current cars PCP but not to a level I would be happy with. Generally with a couple of options (pro media, sports auto and heated seats) I was being given costs of around 33k including deposit contribution (which was 2.3k iirc). I know the base spec isn't great for these, but we already have another car for carting the kid around which is a lot more comfortable so this would purely be a fun machine for me.

Looked at used models which is where the 25k came from. On new m140s you would be looking at 4.9% but on used models they only go to 9.1% with BMW finance.

Where are people getting lease estimates from? I have considered this as an option as well but couldn't find anything close to the 282 monthly figure noted above...

Cornucopia

Qrbrrbl wrote: »

Where are people getting lease estimates from? I have considered this as an option as well but couldn't find anything close to the 282 monthly figure noted above...

I think the £282 is this one:

https://carlease4u.com/car-listing/lease-bmw-1-series-m140i-shadow-edition-5dr-auto/?gclid=CjwKCAjwqarbBRBtEiwArlfEIHsi4hs3E73q7fa7sedg3-Phs3i46CWMbq8XfM1_ofbfUxhPp06ObxoCZPQQAvD_BwE

Unfortunately I misread the downpayment, and it is actually £3385, although that's still a saving of £7250 against the BMW PCP.

Quite a few options here around £305pm plus £2800 down...

https://www.cars2buy.co.uk/personal-car-leasing/BMW/1+Series/?fFuel=0&fEngine=0&fTransmission=0&fTrim=M140i+Shadow+Edition&fBodytype=0&fDoors=0&fCarID=0&fTerm=48&fDeposit=9&fMileage=10000&maxbudget=0

Qrbrrbl

Decent mileage allowance as well. I won't be doing a great deal of miles (current has 10k on the clock and I've had it for 2 years) so should be able to get something even better.

Other than not having the option to buy are there any other disadvantages of lease over PCP?

Cornucopia

Qrbrrbl wrote: »

Other than not having the option to buy are there any other disadvantages of lease over PCP?

This is pretty comprehensive: https://www.simplemotoring.co.uk/tips-advice/pcp-versus-leasing-which-should-you-choose/