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How do you afford an E89 Z4? I really want one!
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I've bought both this and my previous Z4 on PCP and have always found it works out fine. It appeals to me because I can set my monthly budget and know that there will be no other costs involved as everything is under warranty (and with a bit of haggling the dealer will often throw in a servicing package).
Things to consider...
i) If buying an AUC the dealer is often more likely to negotiate on price if buying on PCP as they also make money from the finance agreement.
ii) You dont need to use BMW finance, the dealers have access to other lenders who often have better rates (my most recent one was through Carlyle Finance)
iii) A AUC Z4 is a decent PCP buy as the depreciation is relatively mild compared to other cars of similar value.
I swapped a 2007 3.0si roadster for a 23i E89. Things Ive noticed are...
Not quite as fast but definitely not slow. Fuel consumption about 20% better on E89, insurance about 10% less on E89 all of which helps offset the slightly higher lease costs.
Hope this helps!
Things to consider...
i) If buying an AUC the dealer is often more likely to negotiate on price if buying on PCP as they also make money from the finance agreement.
ii) You dont need to use BMW finance, the dealers have access to other lenders who often have better rates (my most recent one was through Carlyle Finance)
iii) A AUC Z4 is a decent PCP buy as the depreciation is relatively mild compared to other cars of similar value.
I swapped a 2007 3.0si roadster for a 23i E89. Things Ive noticed are...
Not quite as fast but definitely not slow. Fuel consumption about 20% better on E89, insurance about 10% less on E89 all of which helps offset the slightly higher lease costs.
Hope this helps!
lazerium said:
You can use an independent broker too, they can't force you to use their in-house finance team (much cheaper). Apparently it's also illegal for the dealer to offer you a better price if you use their finance, so another trick is to negotiate based on the idea you will finance and then turn up with cash - they can't change the list price...
ZermattV said:Personally I've always got best value on a 1 year old cars
Agreed.
However, not sure if you are aware but if the car has OEM warranty left the AUC is not relevant - they don't add it to the end unfortunately, the car already has more than the 12 months it would have had, if that makes sense
cj10jeeper said:
Lots of good input, thanks everyone. I'm seriously considering saving hard this year and then looking at E89's next year, when they are 3 years old. I should be in an even better position financially to do it then and I'll seriously make sure it happens next year. I'm most probably going to go down the part cash and part finance route, taking out a personal loan to fund the difference and then keep the car for about 5 years. Good things come to those who wait 
A 2011 BMW brochure popped through my letterbox this morning and there's a couple of finance example on the Z4:
sDrive 23i, 36 months
35 monthly payments of £365
OTR price: £30,405
Customer deposit: £5,715
Dealer deposit: £1,460
Optional final payment: £14,340
6.9% APR
sDrive 23i M Sport
35 monthly payments of £389
OTR price: £34,610
Customer deposit: £6,600
Dealer deposit: £1,670
Optional final payment: £17,053
6.9% APR
These are a pretty good starting point to work from, and when you see the gorgeous white M Sport in the brochure...
:wub:
sDrive 23i, 36 months
35 monthly payments of £365
OTR price: £30,405
Customer deposit: £5,715
Dealer deposit: £1,460
Optional final payment: £14,340
6.9% APR
sDrive 23i M Sport
35 monthly payments of £389
OTR price: £34,610
Customer deposit: £6,600
Dealer deposit: £1,670
Optional final payment: £17,053
6.9% APR
These are a pretty good starting point to work from, and when you see the gorgeous white M Sport in the brochure...
:wub:Ultimately, if you can afford to put ££££ into car it will always b the best method to pay fir it.
Many talk of spreading the depreciation, but ,,, I have always saved up, bought it, then onl need to worry about fuel, tax etc.
Not a fan of debt of any kind, just means tha I usually have to wait. Couple of years to have what I rwall want.
Issue with pp , LAN etc, I guessn is that you gettin hit twice, once your asset is losing cash every day, plus yo bein charged for the privilege by your lender.
If you really really want it. Then put the holidays on hold, no more clothes joppn etc, and buy it...... You will not regret it.
I have had numerous bmw, Porsche, 318, 320,535d, x 3.0sd, 997 c2s, 997 turbo.... The z is eadil my fav of them all.
Many talk of spreading the depreciation, but ,,, I have always saved up, bought it, then onl need to worry about fuel, tax etc.
Not a fan of debt of any kind, just means tha I usually have to wait. Couple of years to have what I rwall want.
Issue with pp , LAN etc, I guessn is that you gettin hit twice, once your asset is losing cash every day, plus yo bein charged for the privilege by your lender.
If you really really want it. Then put the holidays on hold, no more clothes joppn etc, and buy it...... You will not regret it.
I have had numerous bmw, Porsche, 318, 320,535d, x 3.0sd, 997 c2s, 997 turbo.... The z is eadil my fav of them all.
Resh said:
Personally I've used cash, and I've used finance, but IMO saying cash is ultimately the best way to go is a bit like saying you shouldn't get a mortgage because of the interest?
You could save for thirty years and buy a house, or pay for it while you live in it....different methods suit different peoples needs at the end of the day.
I know of wealthy individuals who choose to finance their Bentleys and Ferraris rather than buy as it works better for them, and a multi millionaire who drives a Volvo 440. Different strokes for different folks and all that
I use Clydesdale bank asset finance and pay 5.3% apr, you can buy any car up to 1 year old, they require 10% deposit and defer up to 40% as the final payment, so its a bit like a pcp except you cannot hand the car back. The Z4 is better than most as it depreciates quite well.
If I had an equivalent amount of spare cash would I buy the car outright from the beginning probably not, for me life is like a business my skills are my product and the cost of my product is living. My car is a tool required for my product it might as well be something that I want to drive and not have to.
Like any business having cash in your bank is one of the most important things, my only piece of advice is to make sure that you are not highly geared.
If I had an equivalent amount of spare cash would I buy the car outright from the beginning probably not, for me life is like a business my skills are my product and the cost of my product is living. My car is a tool required for my product it might as well be something that I want to drive and not have to.
Like any business having cash in your bank is one of the most important things, my only piece of advice is to make sure that you are not highly geared.
Well I went with PCP as I get a Car allowance at work. But to get within budget I asked to pay a bigger deposit and instead of going for a 3 year PCP deal I also went with a 5 year deal which made the payments more affordable. I don't recall the exact deposit % I paid (I think that it was 40%) but the sales reps were caught a bit by suprise because they normally take a much lower deposit and they said that it wasnt generally well know that BMW finance would take a larger than standard deposit.
I also got £1k off the price by haggling, but I did read someone post here that they thought this was an illegal practice by the dealer (I'm not so sure personally).
Long and short is I have a £45k car and I'm paying £450 ish a month which was slightly over my car allowance after tax, so very happy with that.
Talk to then is your best bet, tell them your budget and you may find that they can adjust the terms to find a deal that suits you. Depending on the model, you may find that they wont take the £16k deposit you mentioned - i.e. if it exceeds the deposit % but remember that you can always go elsewhere for a loan. Its a free market after all .
One other thing worth considering is changing your mortgage to a Virgin one account, their intrest rate is currently 3.75% and so you could pay for your car at mortgage rates provided that you have equity. Just be sure to overpay and spread the cost over 3 years or whaterver you prefer.
I also got £1k off the price by haggling, but I did read someone post here that they thought this was an illegal practice by the dealer (I'm not so sure personally).
Long and short is I have a £45k car and I'm paying £450 ish a month which was slightly over my car allowance after tax, so very happy with that.
Talk to then is your best bet, tell them your budget and you may find that they can adjust the terms to find a deal that suits you. Depending on the model, you may find that they wont take the £16k deposit you mentioned - i.e. if it exceeds the deposit % but remember that you can always go elsewhere for a loan. Its a free market after all .
One other thing worth considering is changing your mortgage to a Virgin one account, their intrest rate is currently 3.75% and so you could pay for your car at mortgage rates provided that you have equity. Just be sure to overpay and spread the cost over 3 years or whaterver you prefer.
I've leased, bought on bank loans and paid cash. Paying cash is by far the best BUT you have to work a long time and save a lot of money first. Most people can't do it. Leasing isn't a bad deal (sounds a lot like your PCP with the balloon payment at the end) If I didn't like the vehicle I gave it back, if I liked it I paid out the "buyout" at the end. I even sold a lease to someone else to take it over when I got tired of my Volvo, My BMW's were all paid for in cash but I am 56 yrs old , no kids, no mortgages and about ready to pack it all in.(work that is).
And PCP was also known as Horse tranquilizers when I was a youngster.....not wise to buy anything under the influence, except maybe a Big Mac
And PCP was also known as Horse tranquilizers when I was a youngster.....not wise to buy anything under the influence, except maybe a Big Mac
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mcbeee said:I've leased, bought on bank loans and paid cash. Paying cash is by far the best BUT you have to work a long time and save a lot of money first. Most people can't do it. Leasing isn't a bad deal (sounds a lot like your PCP with the balloon payment at the end) If I didn't like the vehicle I gave it back, if I liked it I paid out the "buyout" at the end. I even sold a lease to someone else to take it over when I got tired of my Volvo, My BMW's were all paid for in cash but I am 56 yrs old , no kids, no mortgages and about ready to pack it all in.(work that is).
And PCP was also known as Horse tranquilizers when I was a youngster.....not wise to buy anything under the influence, except maybe a Big Mac
Hello there young chap, hope you're well
That describes me too - the only debt worth having is a mortgage, but that's a necessary evil and better than renting IMO. I've only borrowed money once for a car and that was £5k over 2 years purely to get me out of a problematic car that I couldn't morally sell lol.Resh said:
After reading all that im exhausted :dizzy:
If I were you I would just get saving them pennies. You will feel so much better about it in the long run if you turn all your hard work (cash) into your dream car and you will feel like you deserve it more. Plus you wont have debt hanging over you all the time and it is the cheapest way to do it anyway.
If I were you I would just get saving them pennies. You will feel so much better about it in the long run if you turn all your hard work (cash) into your dream car and you will feel like you deserve it more. Plus you wont have debt hanging over you all the time and it is the cheapest way to do it anyway.
Agreed on the mortgage front, not a problem as long as you are paying off as much as you can each month of the capital. Falling into the trap of interest only mortgages is dangerous.
Taking out a massive loan on a fast depreciating asset is not ideal. Don't forget circumstances change and money does get tighter occasionally, just look at the effect of the recession in the last couple of years.
Just exercise prudence and don't let your heart rule your head.
Taking out a massive loan on a fast depreciating asset is not ideal. Don't forget circumstances change and money does get tighter occasionally, just look at the effect of the recession in the last couple of years.
Just exercise prudence and don't let your heart rule your head.
I sold my 2005 Z4 a few months back in order to get an e89. I'm purchasing on PCP and I'm currently doing my research. I'm interested to hear what sort of interest people are getting on used and new cars. It seems that BMW quote 6.8% on new Z4s and up to 13% on used Z4s which I think is rather cheeky to say the least! I spoke to my friend who is a Mazda car sales man and he said I should be looking to get 8.9% on a used car at the moment. Is this realistic at BMW?
Dealers make money on finance deals. Often new car finance offers are subsidised by the manufacturer and are fixed APR deals.Not so on used. Ask the dealer what their base rate is and don't let them tell you a flat rate. If you want a good flat rate , start from 3.25% and tell the dealer that's the rate you want. This will give you a competitive APR.
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