[robwils]

So I can feel its just a matter of time before I change the car (just sent Riaz an e-mail).

Been reading lots about you guys on PCP deals. I bought mine with big cash deposit and rest on bank loan as it seemed best way to own the car overall, something I now wonder about, as once its paid I'll be looking to change anyway and never really keep the car when there is no monthlies left. I could quite easily pay of bank loan today to be honest.


So considering PCP route.
Lots seem to run with little / no equity in the car (I reckon there is a fair chunk in mine, with value vs loan), i guess the only downside is you end up paying more interest and higher monthlies ?

For those of you that have put some capital in then do you retain this amount when delas expires or do people just focus on the monthly payment level ?


Of course part of me still has a distrust as thats the route they seem to want you to take - so obviously better for them (but at what cost to us ?).


This seems to be most salesmans pitch in what figure were you thinking of?

Any advice appreciated.

Rob

[E60MKF]

All i look at is the monthly payments and make sure i don't give more than £500 on top of my part-ex as a deposit. The dealers can play around with the numbers enough to make it work.

[RalphyBMW]

Expect to get no equity at the end of term and you should be fine.
Opinions differ, but IMO minimal deposit is the way to go. Put the cash aside for a rainy day instead.

[DB118D]

My personal opinion with PCP is to put in as little deposit as you're comfortable with. Bigger deposits wont alter the GFV (future value) of the car. As an example, if you put in £5k and had a GFV of £15k, ideally you're looking for £20k back when you come to change. Alternatively, if you only put £500 in, you're only looking for £15.5k back at the end, which would probably be more realistic

The flipside is that someone with £5k in up front will be paying at least £100 a month less than someone with £500 in at the start

[Mattt1]

It all works out equal in the end surely, less deposit and higher monthlies = more deposit and lower monthlies as the PCP takes you from purchase price to GFV, the only variable is interest paid.

[RalphyBMW]

This is true, but if you buy new then you should get a very discounted APR. Also, will you be good enough to actually "save" the monthly saving so that you have a deposit for the next one?

[davyk31]

Lower deposit means more interest paid so the overall cost is a little higher. Also more protection against negative equity with a larger deposit should you want out early.

[JustChris]

If you have the cash though and the APR is higher than 0% you save something by putting the bigger deposit in.

You can drive yourself nuts thinking over the best way to do it.

[Blown Cover]

Originally Posted by M Car Chris

If you have the cash though and the APR is higher than 0% you save something by putting the bigger deposit in.

You can drive yourself nuts thinking over the best way to do it.

Nail on head!!im one of them driving myself nuts over thinking of best way to buy lease pcp.I don't fancy paying £400 for the rest of my days keeping chopping it in every 2-3 years..

[....,,,,..,,..]

Originally Posted by Blown Cover

Nail on head!!im one of them driving myself nuts over thinking of best way to buy lease pcp.I don't fancy paying £400 for the rest of my days keeping chopping it in every 2-3 years..

Lol same here, although we have 2 cars to juggle.

We find we have a year or so now and then when not paying for cars lol.

We now try to buy one outright and pcp the other.

As long as I don't go over a total of £1k a month then it's fine and does not impact my wages, with my pension covering the cars.

[TheLiverBird]

My own personal view is that, with interest rates so low for savers, you may as well put in as bigger deposit as you can comfortably afford, keeping enough in reserve for any 'disasters'. The more you put in, the less you're paying 4.9%APR on, as opposed to earning a pitiful few pence in interest in banks.

Obviously, if your money is earning you more than 4.9% then you should take the above advice and put in as little as possible.

I personally like to make sure that if I want out early I'm not left with huge negative equity so often stump up quite a big deposit. I suppose it's very much down to your own personal circumstances.

[chetalien]

Very interesting re PCP- i beleive in minimal dep and see what monthlies you can afford comfortably. I like to change my cars and have done so. Dont forget doing that also means the maintenance of cars are lot lesser which will add up over time for the total cost of car buying

[Ss66]

Just had a pcp quote to change up from my 2014 330d msport plus to a 2015 335d f30 , paying 220 at the mo they want 460 a month for the up change wtf think I will pass on that lol , cars not even 12 months old

[mcdokika]

I payed the maximum allowed deposit, for 2 years. May pay itt off at the end of first year. Will decide..

[MWA]

Originally Posted by mcdokika

I payed the maximum allowed deposit, for 2 years. May pay itt off at the end of first year. Will decide..

That's EXACTLY what I did! Except after paying it off, I fancy a change... I fancy a 435i GC or 640d GC

The suspension setup on my 335d had focked me off! I fancy a petrol as well

[mcdokika]

Originally Posted by MWA

That's EXACTLY what I did! Except after paying it off, I fancy a change... I fancy a 435i GC or 640d GC

The suspension setup on my 335d had focked me off! I fancy a petrol as well

I may keep it longer, even my favourite is the 6 GC or X6..
Maybe in 5 years. Atm I enjoy the small dimensions of the F30 and the power of this engine. If everything goes well will be even more powerful soon.

[mcdokika]

Originally Posted by MWA

That's EXACTLY what I did! Except after paying it off, I fancy a change... I fancy a 435i GC or 640d GC

The suspension setup on my 335d had focked me off! I fancy a petrol as well

Otherwise if you pay it off sooner then the end of your PCP let me know , my GFV is 22.x after 2 years, after one year should pay 25.x for the car. With 16 deposit and 340 monthly instalment.

[MWA]

Originally Posted by mcdokika

Otherwise if you pay it off sooner then the end of your PCP let me know , my GFV is 22.x after 2 years, after one year should pay 25.x for the car. With 16 deposit and 340 monthly instalment.

I paid 17k deposit on mine, monthlies were 292... 3 years PCP, GFV was around £19.5k,

I paid off all the finance at 13 months into PCP partly because i had cash sitting, and thought (I HAD TO KEEP CAR) having lost so much... if it can last me for another 2 years, I'd happily give it to the wife by then.

I would be surprised if dealers offer more than 25k for it at 16 months old. which is no way good for me having cost me 47k with M Performance kit.

am seeing a dealer this weekend, if they could offer a 435i GC with same spec as mine for an extra £10k, then happy days, otherwise no deal

The dealer will be having a 435i GC and a 640d GC for me to try out, if the numbers are not right, I would walk away..

[mcdokika]

Originally Posted by MWA

I paid 17k deposit on mine, monthlies were 292... 3 years PCP, GFV was around £19.5k,

I paid off all the finance at 13 months into PCP partly because i had cash sitting, and thought (I HAD TO KEEP CAR) having lost so much... if it can last me for another 2 years, I'd happily give it to the wife by then.

I would be surprised if dealers offer more than 25k for it at 16 months old. which is no way good for me having cost me 47k with M Performance kit.

am seeing a dealer this weekend, if they could offer a 435i GC with same spec as mine for an extra £10k, then happy days, otherwise no deal

The dealer will be having a 435i GC and a 640d GC for me to try out, if the numbers are not right, I would walk away..

Ok, I see.

Was it easy to pay it off sooner ? Any penalty charge ? Was it BMW Finance ?

[MWA]

Originally Posted by mcdokika

Ok, I see.

Was it easy to pay it off sooner ? Any penalty charge ? Was it BMW Finance ?

Very easy, I phoned BMW Financial, I requested an early settlement figure (they gave it to me over the phone) I took their bank details and paid it all off via bacs same day. 24,600..

no penalty charge, option to buy car was around £10 i think

I saw it like this, 3.9% APR on 20k finance over two years, i'd be saving £800 in interest, hence why i settled early

[mcdokika]

Originally Posted by MWA

option to buy car was around £10 i think

Sorry , did not understand this part.

[MWA]

Originally Posted by mcdokika

Sorry , did not understand this part.

At the end of your PCP there's an optional buy cost of £10. If you decide to keep the car you have to pay £10 fee + GFV

There is no early settlement penalty, you just pay £10 + current outstanding amount which is calculated on GFV + monthlies left less interest