Well im finally ready to buy........

A

adam81

Member
Hey guys,

Im just about to buy my 1st Z4 Coupe (Sport) ive been looking for months now and finally got to where i want to be :D

To get the deal im about to do im having to finance part of the deal, i was told i can make 4 payments then clear the finance. However ive been having a think and dont you usually pay the interest only with your early payments and the capital does not get touched until later ?

If this is the case this will be above the agreed cost of change price, i just want some input so im ready for them in the morning.

Thanks :thumbsup:
 
Ok as I understand it, you are going to sign up for a 36 month loan (or some such) and then clear it in month four? On a typical finance deal, yes the interest is 'front loaded' - the payments start out as 'mostly interest' and gradually become 'mostly capital' towards the end of the deal. This link demonstrates it on a table. Put all the information for the loan in here and it will show you what element is interest and what is capital for each payment
 
Ask them to explain exactly what "clear the finance" means, in terms of what you would actually pay. There may be some admin charge for doing this.
 
I asked specifically whether there was a penalty for clearing BMW Finance early and was told 'no', which proved to be incorrect. Just beware.
 
there is no penalty with BMW finance, there is a settlement fee of £150, but that is not a penalty for early termination as its due when you would normally end the agreement.

Note, BMW finance has changed its policy on early payments. You can only pay one full payment to clear the balance, they no longer allow you to drop extra payments on outside the schedule.

The above is based on PCP, not on BMW Select or the other products...

If you do want to pay it off early you have to pay the normal monthly amounts and once you have ALL the remaining amount then you call BMW finance for a settlement figure - this will be a prorata'd interest rate based on how long specially you have taken to pay off the finance - not the whole original agreed term.
 
Kind of what i thought then so basically i will end up owing them more that i loaned by month 4 which is silly when i have the cash to pay it in full..........

They failed to mention that part, well looks like its not done and dusted yet :evil:

Thanks for the input i will let you know how this one ends up
 
adam81 said:
Kind of what i thought then so basically i will end up owing them more that i loaned by month 4
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As I understand it, you won't owe more; the interest/capital split will be recalculated once you ask for the settlement figure, pro rata?

You will pay some interest of course, but you only had the cash for 4 months, so the original interest/capital split changes for each payment...

However a new interest free period credit card might be easier and do the same job (depending on the amount financed)
 
indeed - its not free money!

you will have minor interest to pay - you need to be careful that its clear in your head.

You take out a 36 month loan and pay it off in full - you will have paid 36 months worth of interest plus the £150 settlement fee.

You take out a 36 month load and you pay it off by month 4 - you will have paid 4 months worth of interest plus the £150 settlement fee.

Alternatively, like mentioned if you have the credit line on two credit cards I would pay it on one, then do a 0% balance transfer to another card - then clear it in month 4, no arrangement fee (£195 on first payment) and no settlement fee (£150).

I have just taken out some finance for a new purchase, but I know that on a 48 month deal it will be paid off in month 12-14 so I will pay only nominal interest while my monthly payments are lower. I would have gone 36 months but it would have been pointless now BMW no longer accept one off lump payments to the finance.
 
you say that, but cars do not hang about for you - I missed three cars in a day looking for a 120d last week - people are buying and they just don't hang around for long - and when you get the spec you get THE Spec you want.

Sometimes life's crap and the timings never aline :rofl:
 
gannet said:
It's only 4 months, can you not wait then just pay for the whole car then :?
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Dude as stated in my first post to get the deal i need to use BMW finance to fund part of the deal, Dealership must have finance targets to hit ???

I do have the funds to pay the difference and would prefer this method but to get the deal there insisting on financing 2k

Im going to have a chat with them this morning to clear things up

:thumbsup:
 
thats rubbish.

If you have the money walk away. OR go to another dealer in that network and get them to transfer the car to do the deal at another branch.

The salesman clearly has target, but he also has to sell cars - there is no compulsory finance, infact my dealer gives me a better deal if I don't finance...
 
speedski said:
thats rubbish.

If you have the money walk away. OR go to another dealer in that network and get them to transfer the car to do the deal at another branch.

The salesman clearly has target, but he also has to sell cars - there is no compulsory finance, infact my dealer gives me a better deal if I don't finance...
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Hey mate,

Yeah ive tried that my local dealer (same network) cant get close to the deal there offering :?
 
sounds like they've asked who they've spoken to and offered you way less than they normally would to get the deal.

I would seriously tell them you'll walk if you can't do the deal you want to - theres plenty out there (even if they are quite a rare model) - its just a case of tell the dealer what you want not implying.

I had this problem this past weke, I gave a budget, I gave a list of things I wanted from a nearly used model - they gave me the list well above my budget and even tried to get me into a new model currently on the boat - I just ended up going with another dealer 120 miles away.

Why?

Because they did the deal I wanted at a price and terms that suited me.

So what?

Its the same car, same warranty and its covered int he same way when I take it to my local dealer who failed me.

Thats the beauty of the AUC warranty...
 
As I understand it it is not legal to offer preferential purchase terms in return for taking out a finance arrangement. BMW themselves confirmed that to me when I purchased my car.

They must offer you the same deal whether you finance the purchase or pay by cash.

Hope that helps
 
adam81 said:
Dude as stated in my first post to get the deal i need to use BMW finance to fund part of the deal, Dealership must have finance targets to hit ???
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They are not allowed to do that! Which dealer?

AndyW said:
As I understand it it is not legal to offer preferential purchase terms in return for taking out a finance arrangement. BMW themselves confirmed that to me when I purchased my car.

They must offer you the same deal whether you finance the purchase or pay by cash.
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Exactly right... he's got a knock back on the finance and he's using that to subsidise the trade in by the looks of things. Very, very naughty! Perhaps mention this to his principal to get the car for the agreed terms without the finance...On a side note, BMW Finance are usually very expensive anyway
 
A few years ago a mate of mine bought a LandRover Discovery and was told that if he took out finance he would get a free leather upgrade. He wanted to pay cash for it, but the dealer said he could take the finance offer (I think it was 0% APR anyway) but clear it off right away. He actually did this and cleared the finance on the same day he collected the car!
 
mikedav said:
adam81 said:
Dude as stated in my first post to get the deal i need to use BMW finance to fund part of the deal, Dealership must have finance targets to hit ???
Click to expand...

They are not allowed to do that! Which dealer?

AndyW said:
As I understand it it is not legal to offer preferential purchase terms in return for taking out a finance arrangement. BMW themselves confirmed that to me when I purchased my car.

They must offer you the same deal whether you finance the purchase or pay by cash.
Click to expand...

Exactly right... he's got a knock back on the finance and he's using that to subsidise the trade in by the looks of things. Very, very naughty! Perhaps mention this to his principal to get the car for the agreed terms without the finance...On a side note, BMW Finance are usually very expensive anyway
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Hi thanks for the advice its coopers in chelmsford, oh well i will just have to offer him cash looks like my search will go on lol !
 
Ask them how much finance commission is in the deal. If they are suggesting that you settle month 4, most dealers have a "debit back" clause whereby any commission they build into a finance deal will be clawed back if the deal runs less than 3 months.Sounds like they may have a lump of commission on this deal which they want to ring fence.If your deal runs for 3 months of longer, their commission cannot be takenback.
 
Well i missed out on the car :cry:

They turned down my offer of cash only and somebody bought the car ......

I will get one, one day lol

Thanks for your help though :thumbsup:
 
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