Bmw car finance

macman

What the OP doesn't seem able to grasp is that the only figure that matters is the total cost of ownership over the 2 or 3 years of the PCP. Not how little or much you put down as the initial deposit, or how much the monthly payment is.
PCP's are a mug's game if you do not intend to pay the balloon payment at the end. The dealers love them of course, as you are caught in a cycle of a brand new car every 2/3 years with nothing at the end of it. OP needs to look at leasing deals instead.
As for depreciation, that is built into the monthly charge-who else do you think is paying for it if not you?

DrEskimo

macman wrote: »

What the OP doesn't seem able to grasp is that the only figure that matters is the total cost of ownership over the 2 or 3 years of the PCP. Not how little or much you put down as the initial deposit, or how much the monthly payment is.
PCP's are a mug's game if you do not intend to pay the balloon payment at the end. The dealers love them of course, as you are caught in a cycle of a brand new car every 2/3 years with nothing at the end of it. OP needs to look at leasing deals instead.
As for depreciation, that is built into the monthly charge-who else do you think is paying for it if not you?

Couldn't agree more. Essentially buying new cars, agreeing to trade them in at rock bottom market value back to the dealer, whilst paying stupid amounts of interest...

If a dealer offers a particularly low APR on a PCP, you can ask to lower the GFV to as low as possible (usually £1,000) and essentially you are just on a standard personal loan. Of course the monthlies go up, but as you say, monthly cost isn't important, it's the cost to borrow the money (interest). Minimising this by borrowing a smaller amount (large deposit), for the shortest term and with the smallest GFV will all reduce the total cost.

Depreciation is what it is, regardless of whether you pay cash, bank loan, secured HP or PCP....

Lease is the only way to reduce this, but of course comes with other caveats.