Guaranteed minimum future value

J

JustCruzin

Member
Hi

Apologies if I have posted this in the wrong section but I wanted to hear from anyone who has experience with GMFV :)

I am just over half way through a select finance deal with BMW on my 35is which I have had since new. The OTR price was around £48500 (yikes for me) and I managed to get a deposit of £9000 on this which left me rather poor but it was worth it as I loved the car.

On the finance paperwork I was given a GMFV of a touch over £16000 after 3 years (this is also the 'balloon payment'). I estimate my total mileage will be 20k at the end of the three years. Obviously I am hoping the car will be worth somewhat more than the GMFV so I can use this as deposit for the next one.

Has anyone much experience of this? Will BMW be generous to a loyal customer or should I look to sell privately?

Any advice very much appreciated.

Cheers JC :D
 
They will try their hardest and work you up on this final payment in regards to any blemishes on the paint, any stone chips, any marks on the alloys, miles etc, I wouldn't expect it to be worth huge amounts.

I paid £41,000 for my car and I sold my car at trade value at about £16,500 after 4 years. So at best I would expect £20,000....if that scares you, sorry.
 
Hi thanks

Not scared but sad! You would think BMW would be looking to retain customers but I guess it is a cut throat business of profiteering. No doubt about the £20,000 you state and that would be in mint condition which they would sell as approved AUC for £25000+

Thanks for you honesty.

Cheers JC :D
 
I suspect they'll be far more generous if you're trading in after 3 years for another new BMW. As an ex car sales person (albeit 20 years ago), PCPs were designed to get customers into a 3 year replacement loop where it was better to buy another new than it was to make the balloon payment...
 
Averaging 7k a year after 3yrs it's just about run in.If it's a good one I'd keep it and enjoy the next few yrs +. Purchase a warranty and wallow in the glory of owning a beautiful car.
 
I agree with Worcester on this one they want repeat sales coming back every 3 years they will get you into a new one just stick to your guns on all your figures
 
I had the Zed on a 4 year Select PCP but swapped it at 26 months for a new M135i again on a 4 year PCP. The dealer valued the Zed accordingly to pay off the outstanding finance of 19k and I started a new PCP on the M135i on the same monthly I had on the Zed at 299. Will be keeping an eye on 1 Series trade in values and hope to swap again half way through.

If your an ongoing customer a decent dealer will work the figures to get you into another car.

Tim.
 
If you put 9k of your own money into the deposit for a PCP deal I reckon you'll have lost most if not all. My experience with this including on a BMW, exactly as Worcester says, I expected I'd see some or most of my money back. Not a chance. This has led me only to ever paying minimum or no deposits, makes the monthly payments higher but at least you never lose a slab of cash. Just assume it's a pay and drive deal, give it back at then end then haggle hard to get into anew one with no p/x
 
Worcester_spoon said:
I suspect they'll be far more generous if you're trading in after 3 years for another new BMW. As an ex car sales person (albeit 20 years ago), PCPs were designed to get customers into a 3 year replacement loop where it was better to buy another new than it was to make the balloon payment...
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Well I am glad you said this! Quite a few bitter sweet opinions here, tending more towards the negative but no doubt honest views on what is in essence the hard sell. A part of me would like to hang on to what is no doubt a spectacular zed but I need more seats soon!

Interesting facts from Tim as well - didn't know you could exchange partway through a PCP deal so this may also be an option. Thanks.

Very grateful for all the advice.

Cheers JC :D
 
JC so many dealers will let you come out to keep the sales figures high, and not many non forum people know this.....a useful option if you want to refinance and maybe get something newer....
 
Apologies to resurrect this thread. If you chose to go for another marque (those new Boxsters and Caymans are pretty lush! :) ) do you only have the option to cut and run from a PCP finance deal and suffer what I would think be a loss as you have chosen not to stay 'loyal' to BMW or can you approach lets say Porsche and explain your desire to come to them and possibly come to mutually beneficial deal (does any of that make sense? :? )?

I have one more year on this PCP and I have been tempted by the M4 but there has been a flurry of threads on new Porsches which has been playing on my dark side!

Cheers JC :D
 
So basically your looking to possibly trade your car? If that's what you want to do then ideally you need to contact BMW finance and ask them for a settlement figure and then go to your next marque of choice and see what they'd offer.

I know that BMW finance advise that they should be offered the car first but I don't think they've ever made someone sell the car to them whilst under finance.

I'm sure you'll have an idea of how much you'd get offered trade and what possibly you have (ballpark) left to pay and see if it might be possible to come to some sort of arrangement
 
Angie4m said:
I know that BMW finance advise that they should be offered the car first but I don't think they've ever made someone sell the car to them whilst under finance.
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Never heard that before. Surely it's the dealer that would buy the car back and settle with the finance company in reality.

If you can get a better deal elsewhere and that's what you want to do, do it.
 
srhutch said:
Angie4m said:
I know that BMW finance advise that they should be offered the car first but I don't think they've ever made someone sell the car to them whilst under finance.
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Never heard that before. Surely it's the dealer that would buy the car back and settle with the finance company in reality.

If you can get a better deal elsewhere and that's what you want to do, do it.
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It's actually in the contract that people sign. Just like its also in the finance contract that they can ask to inspect the car at anytime and the car should be maintained as per the schedule.

They may have changed the part re offering them first refusal on the car but it used to be. I read through my mates agreement only because his Mrs was a bit clumsy and I thought she might wreck the car! So just wanted him to understand his obligations.

But yes, ideally you'd just return it to the dealer. By the time the finance is settled BMW wouldn't care who settled it. Plus do they really want more cars on their forecourts if your not taking another car from them? They've got plenty to shift as it is.
 
Plus do they really want more cars on their forecourts if your not taking another car from them? They've got plenty to shift as it is.
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Thanks. I see your point. I have a feeling I am going to come off worse as I have seen some heavily discounted 35is's going for a lot less than I paid for. Nature of the beast I guess.

It may make more sense to stick with a BM for now given the dire state of the markets. The China saga is just the beginning of a of massive black hole and with commodity prices falling it may be worth just hanging on to the 35is as suggested earlier which is no bad thing :)

Cheers JC :D
 
The problem with PCP, as far as I am concerned, is that if you keep the car and make the balloon payment you have paid out a really high finance cost. I'd get rid if the numbers look ok (either at the end of the term or before) and get into something you really like next. The other issue you have to contend with is that BMW have been massively discounting the 35iS in the last 18 months or so to try and stimulate sales. That is bound to have a knock-on effect on second hand prices.
 
original guvnor said:
I'd get rid if the numbers look ok (either at the end of the term or before) and get into something you really like next. The other issue you have to contend with is that BMW have been massively discounting the 35iS in the last 18 months or so to try and stimulate sales. That is bound to have a knock-on effect on second hand prices.
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Agreed. Is there any benefit of coming out of a PCP contract earlier than agreed, in my case 3 years or does it make no difference to what you could potentially carry over towards a deposit on a new car?

This is the very first time I've gone on a PCP product and I get the feeling that you stand to gain if you stay with your current dealer and come off worse if you cut and run....?

Thanks for all the advice

Cheers JC :D
 
After 3 back to back PCP's on Minis covering a decade, my daughter has finally woken up to 'smell the coffee'. Realising now she has just financed the depreciation on 3 cars, lost all deposits paid and ended up with nothing, she finally going to stump up the MGF and own the current car. She realises she can then actually slow down the high first 3 years depreciation, own the car and free to trade anywhere or sell in the future and run a car she can actually afford.

Took a decade and near £30k in monthly payments and deposits and £6k final payment to work it out.
 
Mmmmm...... I also see your point. My balloon after 3 years will be just over £16000 :cry: . I have seen quite a few 5 year old 35iS's going for around £25-£27K (autotrader currently has a few)

Is there a case to try and sell privately or try and settle a case with BMW and argue the point above??

Cheers JC :D
 
You have a legal right to cancel these finance agreements under the voluntary termination clause, basically if you have covered 50% of the total amount payable and you have never missed a payment, you can ask to return the car...... however there are some things you have to consider, as it's a legal right it cannot effect your credit rating, however the finance company may flag this on to your credit history.
 
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