bmw finance question

[shadrack]

so i have never bought new etc but getting sick of paying bills etc on older vehicles and have fell for the x4 so seriously considering the options, however i may also be moving house so want to keep some cash available for that so i have been doing rough calcs on the finance calc (never done it so this q may be daft)

so i put in details car is roughly 45k, i pay max deposit and min per month, 2 years later i still owe £21k or if 3 years i think it was £17k, so how much roughly would the car be worth in 2-3 years, would it leave me buying a car worth less than that could i sell and get money back etc i really dont know about these prducts and bmw likely to tell you anything, i know my dad changes his disco every 2 years and it only cost 6k between tradin and new price as there is high demand.

thanks

[graemeX5]

Hi it may be worth looking at PCP personal contract plan if going to swop it in 2 or 3 years as with that it's a deposit then £x per month then final payment if you want to keep it. My brother in law does this method a lot

If you change then difference between car value and final payment / balance then give you money for the next deposit and so on

Re value of the car in 3 years they do say the German cars retain more 40 -45% I think was the approx figure but really difficult to tell but on PCP they have a good idea of what it would be

just a thought

[X5Sport]

We looked at this with our Mini and the Dealer valued the car below the GFV which meant we would have been left with nothing.

We cut our losses early and ditched the car at the beginning of the month - the earliest we could.

We had been told we could change at two years but it turned out we were misled and we ended up paying another 8 months worth.  Trouble is the sales finance guy was 'let go' for some shady goings on and he had kept all sorts of incriminating notes.  The Dealership knew something had gone wrong but having got rid of all those involved we could do nothing.

Lesson learned!  It should have worked out in our favour but because of the bad practices it didn't and if we do it again it won't be with BMW.

I looked at buying a new X6 on a BMW PCP and after reading all the documents even more carefully and with advice from pvr and 535dboy it looked as if my then £64k car would actually cost me £100k with all the charges so make sure you read everything and ask 'difficult & challenging' questions.  Get everything in writing and keep copies - use your camera phone if necessary - BEFORE you sign up.

I cancelled the order and got my deposit back.  You may not be so lucky.  Don't let a glib salesman fool you.  They only answer the questions you ask, so ask the tricky questions about the true costs and what the figures mean to the layman.

Richard

[shadrack]

[quote="graemeX5"]
Hi it may be worth looking at PCP personal contract plan if going to swop it in 2 or 3 years as with that it's a deposit then £x per month then final payment if you want to keep it. My brother in law does this method a lot

If you change then difference between car value and final payment / balance then give you money for the next deposit and so on

Re value of the car in 3 years they do say the German cars retain more 40 -45% I think was the approx figure but really difficult to tell but on PCP they have a good idea of what it would be

just a thought
[/quote]

this is what I was hoping might happen, but was panicking at the thought of what xsports says. The charge is something like 5k on top.  A while ago someone was doing 3 series on 50/50 with 0% apr. That would be best option. Or just wait and buy a x demo just the x4 is one of the first new cars ive liked, could afford and fits my usage at the minute. I say 2 yrs as I get easily bored.

[535dboy]

Just another point

If you need a mortgage for new house you maybe better to sort that before the car finance.

I don't want to sound funny/cocky, but when I did have a mortgage all finance was taken in to account as to how much mortgage they would lend you based on other commitments so you wouldn't want to cock up the mortgage for the sake of a car

Car finance is easy to get for anybody because they have an asset they can just get back off yo easily

I say the X4 today, it is big ! I though it was an X6 !

[squeaky2]

[quote="535dboy"]
Just another point

If you need a mortgage for new house you maybe better to sort that before the car finance.

I don't want to sound funny/cocky, but when I did have a mortgage all finance was taken in to account as to how much mortgage they would lend you based on other commitments so you wouldn't want to cock up the mortgage for the sake of a car

[/quote]

I was on the understanding under the new mortgage rules that all financial commitments were taken into account when applying

[535dboy]

[quote="squeaky2"]
[quote="535dboy"]
Just another point

If you need a mortgage for new house you maybe better to sort that before the car finance.

I don't want to sound funny/cocky, but when I did have a mortgage all finance was taken in to account as to how much mortgage they would lend you based on other commitments so you wouldn't want to cock up the mortgage for the sake of a car

[/quote]

I was on the understanding under the new mortgage rules that all financial commitments were taken into account when applying
[/quote]

Yeah so if he gets car finance, which he currently doesn't have, then it will affect his mortgage. Hence my suggestion mortgage first then car

[Imy]

Just to highlight what 535d is saying...

I work in the mortgage business albeit as a Treasury dealer but still know the ins and outs from the anaylsts and underwriters especially when applying for my own mortgage.

My advice would be to not apply for any sort of finance especially at this moment in time. Better off getting you mortgage and competing on the property before applying for as much finance as you want.

Criteria for lending is becoming far mor stringent and while personal loans and PCF are hitting all times lows mortgage criteria as per BoE are becoming stricter.

[shadrack]

tbh if i need the morgage it will not be for a high %,, its also not for sure i'm just thinking perhaps 1 year or so in advance, on the deal i was thinking the monthly payment is only £150 pcm, tbh me and other half are trying to pool togther to buy house without morgage anyhow,