Paying for a new car

[TitanTim]

It doesn't make sense to 'save' the GFV and then apply it all at the end, unless you specifically want to keep the option of handing back the car.

All you do is incur compound interest on the GFV balance for the term rather than applying it as you go along and thus pay interest on the decreasing balance. Very roughly double the interest on the GFV amount.

Take a look at this company for both good info on how all sorts of fundings work and a competitive quote. I've used them and they are very good. http://www.oraclefinance.co.uk/

Cheers jeeper, unsure if I'm being thick here but if I'm wanting to pay off the car at the end of the PCP rather than now then surely saving the money as I go along is better otherwise it will be a case of refinancing the balloon payment? I would still need a sizeable chunk of money if I'm wanting to pay the Zed off now as not quite at 2 years of a 4 year PCP.

Tim.

 

[TitanTim]

Buy an older model for cash?

The last two 1 Series I bought as 4 month old demos under BMWs AUC so were approx 4K below list, but I'm usually a sucker for the new car smell :roll:

Tim.

 

[Simon_P]

Tim, I know a chap who does very good lease/contract hire, PCP deals and can source cars directly from dealers but at much better prices. Might be worth contacting him to see if he can better your Suzuki deal?

 

[edd_jedi]

Cash all the way, interest rates on cash savings are atrocious at the moment, you definitely won't find a finance package that has lower interest than a savings account.

 

[Adamski]

Paid cash for my zed and will next zed outright too.

No investment will beat 5% growth in current economic conditions (not without taking on lots of investment risk, which could see value of investment falling). Current risk free rate of returns are shocking, an these correlate with equity returns, so until cash rates go up, investment returns will continue to be poor. When cash interest rates go up, APR on PCP will increase.

I can see why someone would hedge their bets on a brand new car with PCP, hoping car will be worth more than GFV at end of contract.

I'd buy outright on anything more than a few years old


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[Simon_P]

Hmm perhaps instead of a Suzuki how about an M135i for just over £300 per month?

http://www.carleasing4u.co.uk/car-leasing-deal-bmw-1-series-3dr-26912376

 

[Maniac]

I'm giving this some serious consideration, pre-registered, brand new, 320D M sport LCI with lots of toys, 10K off original price! My route will be part finance after chopping in the e89. Finance from the bank, lowest rate I can find (5-6%) and then pay it off as rapidly as possible.

:hijacked:

 

[ZermattV]

Paid cash for my zed and will next zed outright too.

No investment will beat 5% growth in current economic conditions (not without taking on lots of investment risk, which could see value of investment falling). Current risk free rate of returns are shocking, an these correlate with equity returns, so until cash rates go up, investment returns will continue to be poor. When cash interest rates go up, APR on PCP will increase.

I can see why someone would hedge their bets on a brand new car with PCP, hoping car will be worth more than GFV at end of contract.

I'd buy outright on anything more than a few years old


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Glad to know my grasp on this is in line with one of the financiers

 

[TitanTim]

Hmm perhaps instead of a Suzuki how about an M135i for just over £300 per month?

http://www.carleasing4u.co.uk/car-leasing-deal-bmw-1-series-3dr-26912376

Thanks Simon, I was thinking of swapping the Zed for a M135i but personally for me I just don't need a car with that kind of power and looking for something a tad cheaper to run and pay for monthly, the Suzuki will be half the cost.

Tim.

 

[TitanTim]

Paid cash for my zed and will next zed outright too.

No investment will beat 5% growth in current economic conditions (not without taking on lots of investment risk, which could see value of investment falling). Current risk free rate of returns are shocking, an these correlate with equity returns, so until cash rates go up, investment returns will continue to be poor. When cash interest rates go up, APR on PCP will increase.

I can see why someone would hedge their bets on a brand new car with PCP, hoping car will be worth more than GFV at end of contract.

I'd buy outright on anything more than a few years old

Is that for new or seconhand though? As Maniac mentioned there's not many of us I imagine can walk into a showroom and slap 30K plus onto the salesmans desk for a new BMW :?

Tim.


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[TitanTim]

I'm giving this some serious consideration, pre-registered, brand new, 320D M sport LCI with lots of toys, 10K off original price! My route will be part finance after chopping in the e89. Finance from the bank, lowest rate I can find (5-6%) and then pay it off as rapidly as possible.

:hijacked:

Looks nice Gary, won't the dealer do a cheaper rate than the bank? Normally I've told BMW I have the finance all sorted and they come back and beat it, they can be quite desperate to get your financial business so worth playing it off against them.

But are you destined for a tin top? :| Reason why I want to keep the Zed and get another cheaper fun car. Plus in all honesty at the moment I'm not sure I would want to buy another new BMW as I feel quality and build is below parr on them, kinda why I fancy going back to a Jap make.

Tim.

 

[Maniac]

Well I've been nothing but impressed by the 5 and I've tried a few now. Tin top, well while its a nice thing to have a 'vert, the noises from it from time to time, the concern over cost if it breaks, and the fact that the car just isn't as rigid as I'd like makes me want to go back to a fixed roof tbh. Its a cracking deal they have, but its the wrong time of year to sell a convertible and I expect them to offer peanuts for mine, if they offer at all. So, this may well be something to entertain next year now. I also saw mention of 5 years at 0% somewhere so I'll be looking into that too. ... I know what you mean about quality though. ..and it perhaps doesn't have that special feeling that the e89 still gives me even all these years later. There are just still minor things I can't get sorted to my satisfaction on this car and that's what keeps me looking.

 

[Anonymous]

Every dealer I've ordered a new car from I've asked which is the cheapest way to purchase the car, and I always get the same answer===cash,.... so that's how I buy.

Odd, every stealer I've spoken to about paying by cash has said the opposite, keep the cash invested as long as the interest on the loan is lower than your investment. Any new car is a depreciating asset and will always lose money.

They were probably thinking about their commission :lol: :wink: