[King of the Hill]

Hello,

I will shortly be taking delivery of my new BMW F30. Whilst it is cheaper for me to take a car loan, I have elected to take a PCP agreement through BMW Financial Services to benefit from the security offered by the GMFV, which is something that I would like.

I was wondering if there is a way to use a normal car loan to pay off all but maybe a de minimis amount of the PCP agreement and thereby keep the GMFV without having to pay the excessive (relative to the car loan) interest charge?

Thanks

[NISFAN]

Depends if the 'car loan' is secured on the car or not, I guess. You can't usually have the collateral 'owned' by two different institutions.

Is there that much of a difference in APR to make that complicated approach worth it?

[King of the Hill]

Originally Posted by NISFAN

Depends if the 'car loan' is secured on the car or not, I guess. You can't usually have the collateral 'owned' by two different institutions.

Is there that much of a difference in APR to make that complicated approach worth it?

Thank you; the car loan looks to be unsecured and is 3.4 percentage points lower on the APR level than the PCP agreement.

Given this, might my idea be possible?

[NISFAN]

Originally Posted by King of the Hill

Thank you; the car loan looks to be unsecured and is 3.4 percentage points lower on the APR level than the PCP agreement.

Given this, might my idea be possible?

Seeing as a reasonably large portion of the loan is still going to be on PCP, surely any surety given by the PCP's 'GMV' would be covered by the difference in finance charges?

Why not use the car loan and take out GAP insurance? The end value of the car is still likely to be close to the estimated GMV, with perhaps a couple of grand paid out less for it, due to the cheaper car loan, which mitigates any risk.

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

I thought paying off chunks of pcp finance brought your GMV closer?

It drops your monthly amount and changes your date due for GMFV.

(I could be wrong).

[Mattt1]

Are you buying used by any chance?

[NISFAN]

Originally Posted by Brigand

I thought paying off chunks of pcp finance brought your GMV closer?

It drops your monthly amount and changes your date due for GMFV.

(I could be wrong).

With BMW finance you have the option of reducing the term, reducing the GMV, or reducing the monthlies. Quite flexible.

[CazuaLLUK]

Originally Posted by NISFAN

With BMW finance you have the option of reducing the term, reducing the GMV, or reducing the monthlies. Quite flexible.

Interesting, I got my BMW via Evans Halshaw. I will be going direct to BMW next time, there seems to be lots more options and benefits.