BMW PCP Discussions

[monkeymagic]

Can anyone please direct me to any good discussions about BMW PCP?

On the face of it, when compared to other manufacturers, BMW repayments always seem lower, but with higher GFV.  For example, £32k X5 for £250 pcm, compared to £400 pcm for a Discovery 4 of similar price (albeit higher mileage).

If I saved £150 pcm over 3 years, it comes to over £5k.  Difference in GFV between X5 and LRD4 is about £5k.

What am I missing?

What are the good and bad points about PCP, BMW's or generally?

Thanks.

[RodHB]

Resale value - higher for BMW

[X5Sport]

+1 on that.  LR depreciation will make a large chunk of the difference.

[monkeymagic]

oh, so not what lr say, that they are ensuring you have some equity and a deposit to put down on the next lr?

[allforus]

Hi having used both PCps on my x5 and my last couple of landrovers D4 there has always been a very good resale value on the D4 having not traded an X5 yet I can not comment on its resale

But you are propable right residuals are quite low for the D4 under the plan forcing up payments but I think my last D4 cost £46 k and residual after 2 years was £28 k and when traded it was worth £38600

Hope this helps a little

[bluestreak56]

[quote="monkeymagic"]
oh, so not what lr say, that they are ensuring you have some equity and a deposit to put down on the next lr?
[/quote]

BMW say the same thing. In reality PCP deals hardly ever give you any equity leftover, its not in the dealers interest. PCP makes no sense if you have the money available.

[Pinewood]

The BMW loan on £10k over 5 years would have cost be £2600.  The same deal from my bank would have cost me £900. In the end i bought her with cash. Job done no worries for 10 years is the plan

[monkeymagic]

[quote="allforus"]
Hi having used both PCps on my x5 and my last couple of landrovers D4 there has always been a very good resale value on the D4 having not traded an X5 yet I can not comment on its resale

But you are propable right residuals are quite low for the D4 under the plan forcing up payments but I think my last D4 cost £46 k and residual after 2 years was £28 k and when traded it was worth £38600

Hope this helps a little
[/quote]

Which do you prefer?  X5 or D4?

[Don Coffey]

I have used finance, PCP and paying up front and to be honest for me PCP is the best way.  I only tend to keep cars for 2-3 years and usually buy new so paying saying 50k upfront to be hit with a 40-50% reduction in value just kills me, so having a set monthly out going and leaving the spare cash in the bank makes more sense to me. 

Depending on the car you want and how fussy you are with colour, spec etc. you can bag some very good deals by ringing round and being prepared to travel to collect the car.

My current car is on a two year deal with 0% interest on PCP so come next February I throw back the keys and walk away.  This is a Nissan, so don't expect such a good deal from BMW but the deals are out there.

Don

[bluestreak56]

[quote="Don Coffey"]
I have used finance, PCP and paying up front and to be honest for me PCP is the best way.  I only tend to keep cars for 2-3 years and usually buy new so paying saying 50k upfront to be hit with a 40-50% reduction in value just kills me, so having a set monthly out going and leaving the spare cash in the bank makes more sense to me. 

Depending on the car you want and how fussy you are with colour, spec etc. you can bag some very good deals by ringing round and being prepared to travel to collect the car.

My current car is on a two year deal with 0% interest on PCP so come next February I throw back the keys and walk away.  This is a Nissan, so don't expect such a good deal from BMW but the deals are out there.

Don
[/quote]

If you must have a brand new car and only plan to keep it for 2-3 years then it might make sense (maths needs to be done on the deal you are getting). If you can buy the car 1 year old, keep it for 2-3 years it makes more sense to buy it and sell it as the depreciation is much less than the cost of the "lease".

[allforus]

I like both the D4 and X5 the tech is far better in the X5 and it tows a little better but the D 4 is a go anywhere type of car and instills confidence where ever you want to go
But the X5 is far more fun to drive as well