What they offered is likely PCP (Personal Contract Purchase). Many banks lend on cars this way - the big ones are RBS, Santander, Close Brothers, Black Horse (Lloyds TSB), Lombard (though not so much now) etc etc. BMW dealers simply offer the BMW Financial Services 'branded' version of PCP. It make you think it's a bespoke product from them and less clear you can get the exact same thing elsewhere for less money. Every major make has it's own finance arm and it's always got a name - 'Select', 'Options', etc etc. If you sell your MG privately and get a better price, you can then speak to a car finance broker, who will get you the same kind of scheme for a lot less money.
Thank you for that, yes that is exactly what they have offered PCP! I'm not sure that I know what you mean when you say the banks do the same deal for less? Would that be exactly the same sort of scheme then where I lend the full amount from the bank and buy the car but the bank keep my payments low and then at the end of the 3 years I would owe a balloon payment to the bank? When you say a car finance broker? Where do I find one of those or would that be Santander which is my own bank? With the BMW PCP scheme I would pay almost £12,000 over 3 years which would include the £2.300 part exchange for my MGTF + £2000 deposit which would work out to £2,000 interest on a £17,000 car. At the end of the 3 years I would still owe a balloon payment of £7,000 and the salesman reckons that depending on the car market prices I could end up with about £1,500 over and above this as a deposit on my next car. That to me is useless when I've started now with £4,300 and struggling to get on the BMW ladder. But in my mind if I sell my car and take a personal loan which will be fully paid off in 3 years then I'll have the Z4 to sell for around £7,000 or trade in I suppose for around £5000 which has got to be a better deal hasn't it??
Thank you for that, yes that is exactly what they have offered PCP! I'm not sure that I know what you mean when you say the banks do the same deal for less? Would that be exactly the same sort of scheme then where I lend the full amount from the bank and buy the car but the bank keep my payments low and then at the end of the 3 years I would owe a balloon payment to the bank? When you say a car finance broker? Where do I find one of those or would that be Santander which is my own bank? With the BMW PCP scheme I would pay almost £12,000 over 3 years which would include the £2.300 part exchange for my MGTF + £2000 deposit which would work out to £2,000 interest on a £17,000 car. At the end of the 3 years I would still owe a balloon payment of £7,000 and the salesman reckons that depending on the car market prices I could end up with about £1,500 over and above this as a deposit on my next car. That to me is useless when I've started now with £4,300 and struggling to get on the BMW ladder. But in my mind if I sell my car and take a personal loan which will be fully paid off in 3 years then I'll have the Z4 to sell for around £7,000 or trade in I suppose for around £5000 which has got to be a better deal hasn't it??
