[Shake n Bake]

Folks, I would welcome your experiences of this contract hire thingy.

M-Sport Touring
6000 miles
Carbon Black
Prof Media
Folding Mirrors
Sun protection
sports auto
July 2013.
Got them down to £27,000 - I think that's a good price.

I've never had finance before so i am a bit ignorant. The sales pitch for this scheme certainly sounds compelling, but I am skeptical and would really welcome others real world experiences.

The pitch from yon sales geezer:

"£0 deposit
£453 a month
We like to get you back in after 2 or 2 and a half years and we take that car from you and put you into another new(er) one for the same monthly fee and no capital outlay"

Well, that sounds great, but is it real? Or do you rock up in 2 years time to be told "ahhh, that's only worth £15k in part exchange and you still owe us £18k so you will need to give us £3k now before we can do anything".

The actualy credit agreement detail is:
4 year term
8.0 APR
Total cost of credit £6002
Guaranteed value at end of term £11,511.
15,000 miles per year
9p per mile over that.

A lot of people read this forum and don't post - if you have experience of this kind of credit arrangement I would be really grateful to hear about it.

Thanks for reading!

That APR seems high. I haven't challenged that yet, have others done better?

[73henny]

Seems expensive to me. Though you don't mention what engine the car has.
Have a look at new offers. Sometimes the lower interest rate can mean its no more expensive to buy new rather than 2nd hand. You can play with models / mileage etc here;

http://www.bmw.co.uk/en_GB/topics/ow...ailoffers.html

[Shake n Bake]

Ahh. 520d

[Balster]

Yep, I have to agree, sometime buying new is cheaper than used....thats why I went for a new one.

0% deposit...I would always put down a deposit, even if it meant having to wait a little longer whilst saving up.
There are load os new car deals out there. Have you got £3k for a deposit, if yes then look up sytner deals - new 530d LCI Auto + Pro Sat Nav for £449 per month.

[Shake n Bake]

Originally Posted by Balster

Yep, I have to agree, sometime buying new is cheaper than used....thats why I went for a new one.

0% deposit...I would always put down a deposit, even if it meant having to wait a little longer whilst saving up.
There are load os new car deals out there. Have you got £3k for a deposit, if yes then look up sytner deals - new 530d LCI Auto + Pro Sat Nav for £449 per month.

Really? wow that sounds good

[Beancounter_74]

Agree with the comments, 8% APR is expensive.
I think BMW offer finance at 5.9% on new cars.
As Balster says, with a relatively small deposit, Sytner do some good deals and are worth a look.
I'd definitely weigh up the cost of a new one before you pull the trigger.

[Shake n Bake]

Originally Posted by Beancounter_74

Agree with the comments, 8% APR is expensive.
I think BMW offer finance at 5.9% on new cars.
As Balster says, with a relatively small deposit, Sytner do some good deals and are worth a look.
I'd definitely weigh up the cost of a new one before you pull the trigger.

thanks for that. the headline price looks good - very - but it's based on 10,000 miles a year. I'm going to be 17,500 so I need to get a price for that and the website doesn't show that. Will make some calls.

[Piers]

Originally Posted by Shake n Bake

thanks for that. the headline price looks good - very - but it's based on 10,000 miles a year. I'm going to be 17,500 so I need to get a price for that and the website doesn't show that. Will make some calls.

That is where they get you, 10k pa in a car like an F10 is rarer than most I would say.

That said at 11p per mile excess, not the end of the world. It is the options that add monthly cost, and if buying a new 530d I would want my toys in it, therefore nowhere near £449 per month after that.

[Balster]

Sytner were willing to try and get to £499 including all of my toys. But I'm happy with my 520d on order. But I know where I will go next!

[Piers]

Originally Posted by Balster

Sytner were willing to try and get to £499 including all of my toys. But I'm happy with my 520d on order. But I know where I will go next!

Interesting....not my worry for 2-3 years...but interesting!

[hajmuntz]

Originally Posted by Piers

Interesting....not my worry for 2-3 years...but interesting!

+1

[accordRE]

Anyone who's already had exprience on a PCP, what kind of equity were you left in the car when you went to return it in relation to your deposit?

Is it realistic to expect in the region of 1000-2000 on an F10 M sport with a GFV of 13500?

[xenon]

The equity in my last F10 was sufficient to fully pay the deposit on this F10 so I just tipped up at the dealers and swapped cars. My first F10 was only 18 months old at change though.

[JustChris]

Apr for new would be 4.9 or mist 5.9 depends upon model. For used best getting private finance rather than dealer IMO.

[BC1809]

PCP's can be good, and interest rates should be pretty good. Do not put a big deposit down on the vehicle though, as you are not going to see this back at the end.

As for the salesman saying it will be cheaper then how would they know? Got a crystal ball? Good at predicting the lottery numbers?

The car may be worth more than the balloon payment, it may not. Just treat it as a bonus if it is

[Shake n Bake]

So I agree that the salesman wouldn't know definitively......but they would have years worth of data to make an informed assertion.

Of course it's a salesman trying to make a sale so you have to carry a healthy degree of scepticism.

[BC1809]

They would set the end payment as low as they can. Firstly if this is the figure that is still outstanding on the vehicle, and they do not want to lose money if you hand it back and it is not worth that. Also if it is worth more than the final figure then that gives you equity to use as a deposit for a new purchase (makes it much easier for them to do another deal if you put no cash in).

All that said they do not know for sure, if anyone could predict the value of a vehicle in 3 or 4 years then they would be a rich man.

A friend of mine just handed back a vehicle at the end of these deals, the vehicle was just over £1000 the wrong way. They handed it back and walked away

[mroll320]

Go to Buyacar.co.uk for what I`m 99% certain will be the best discount. Take this info to dealer, if they don`t match it, buy it fromn them. You will pick up at BMW dealer in london. You can use BMW dealer finance at 4.9%.
I`d recommend a 2 year deal for better payments, 3 years take your vehicle out of warranty so value will dive!
The buyacar site has a finance calulator which is usefull for getting an idea of final values at a particular term. I was buying a 435, but the smaller discount and smaller final value made it far more per month even though they worked out about he same cash price after discount and extras...

I`m in the process of buying a 535d m-sport, buycar price £41900, a massive 13k off! £9800 of the list price + discounted extras! My local dealer is trying to match it and is within £800 at the minute..

hope this helps..
and I`ve a nice 530d alpine white, m-sport for sale too, 3k less than your paying ha ha...
Martyn

hope this helps...