[frankie]

Hi his going to buy my wife a car through BMW finance what's a good apr in today's Market there first offer on the finance is 10.5%

Thanks steve

[m@rk]

Assuming no bad credit then you should never pay more than 8% and ideally be looking for less than 7%

Some of the brokers I have been using this week for my new motor were able to get me 6.5% straight HP even if i didn't get the car through them so the deals are out there.

10% sounds like a rip off.

[pjs]

Lombard did mine at 5.9% apr

[Vaheed1]

I agree with the guys here - anything above 8% is far too much. I'm on a 10.5% and am in the middle of trying to have it changed.

PJS, how did you get such a low APR? have you had previous finance with them? I'm currently looking to re-finance due to a eventual car change and the Black Horse are refusing to drop below the current 10.5% - even though I have a excellent credit score and have never missed a payment etc.

[frankie]

Originally Posted by Vaheed1

I agree with the guys here - anything above 8% is far too much. I'm on a 10.5% and am in the middle of trying to have it changed.

PJS, how did you get such a low APR? have you had previous finance with them? I'm currently looking to re-finance due to a eventual car change and the Black Horse are refusing to drop below the current 10.5% - even though I have a excellent credit score and have never missed a payment etc.

I'm doing a pcp through BMW will they come down that low I have bought a few cars through main dealer and have never got to apr that low

[dopper99]

If you want to borrow non-BMW then Sainsburys are doing loans at 6.3% at the minute.

[Vaheed1]

Originally Posted by dopper99

If you want to borrow non-BMW then Sainsburys are doing loans at 6.3% at the minute.

Just seen that too. I suppose it's a good idea if a) you're planning on keeping for a long time and b) if the car you're investing in is not going to plummet into serious negative equity.

I'm looking to change my 330d for a Newer Mini cooper S. If I was to settle the HP balance with a loan from Sainsbury's - 1) my payments would come down by £150 a month and 2) after 2 years of use, the mini will be worth more than what will be left to pay on the loan - if prices of the older mini are anything to go by at the moment. Could be a win win situation.

[pjs]

Originally Posted by Vaheed1

I agree with the guys here - anything above 8% is far too much. I'm on a 10.5% and am in the middle of trying to have it changed.

PJS, how did you get such a low APR? have you had previous finance with them? I'm currently looking to re-finance due to a eventual car change and the Black Horse are refusing to drop below the current 10.5% - even though I have a excellent credit score and have never missed a payment etc.

Yes, I've had previous finance from them. This current deal was done nearly 2 years ago fwiw. From memory I didn't really have to negotiate too hard either, they are always competitive.

[stupot]

Originally Posted by frankie

I'm doing a pcp through BMW will they come down that low I have bought a few cars through main dealer and have never got to apr that low

10.5% APR on a BMW PCP deal is probably about as good as it is going to get for a standard deal. BMW do special deals to shift cars sometimes that are a little lower, but 10.5 on a normal deal is doing well.

The dealer is not ripping you off at that.

[NFS]

Originally Posted by stupot

10.5% APR on a BMW PCP deal is probably about as good as it is going to get for a standard deal. BMW do special deals to shift cars sometimes that are a little lower, but 10.5 on a normal deal is doing well.

The dealer is not ripping you off at that.

Dealers will offer significantly better deals, but you need to show that you can get a lower rate elsewhere and give them an opportunity to match it.

Rates seem to have crept up recently though and I reckon 7-8% is about right for a PCP at the moment.

Broker 4 cars are quoting 7.4% today. Obviously credit rating, loan amount and term will affect this though.

[stupot]

Originally Posted by NFS

Dealers will offer significantly better deals, but you need to show that you can get a lower rate elsewhere and give them an opportunity to match it.

Rates seem to have crept up recently though and I reckon 7-8% is about right for a PCP at the moment.

Broker 4 cars are quoting 7.4% today. Obviously credit rating, loan amount and term will affect this though.

The dealer can only pass on the rate that BMW Finance give to them and they dont give 7-8% on thier Select PCP product.

If you can get a PCP at 7.4% grab it because your dealer aint matching that.

As I said in my other post at 10.5% APR the dealer isnt holding much/any margin.

[Th3xf4ctor]

Thats a ridiculous offer. i just bought a 2011 car with an apr of 1.9% on finance

[mabosh]

Originally Posted by stupot

The dealer can only pass on the rate that BMW Finance give to them and they dont give 7-8% on thier Select PCP product.

If you can get a PCP at 7.4% grab it because your dealer aint matching that.

As I said in my other post at 10.5% APR the dealer isnt holding much/any margin.

Hmmmmm. We bought a new E92 330d M Sport in July and our Select PCP rate is 8.2%. They were matching a quote from another dealer and referred to it as "low rate". I would say it's "reasonable" rather than "low rate" but they wouldn't budge any further.

I wouldn't be too happy paying any APR in double figures. If they won't shift on it, insist on more discount or higher part ex, it's only one part of the overall deal after all.

Good luck!

[gIzzE]

I got 6.4% fixed with Lombard on the X1 a couple of months back, and then managed 5.9% fixed on the 530d GT, but the 530d was £31k borrowed where as the X1 was something like £18k borrowed, all makes a difference.

10.5% is crazy!!


Say the car is £20,000 with a £2,000 deposit, At 10.5% it is £400 a month over 48 months and then you owe them nearly £5000 balloon.


at 6% it is £420 a month over 48 months and you then own the car.

It can make a big difference.


Or you could buy a car £3000 more for no extra monthly cost.

[gIzzE]

Also make sure you look at contract hire, some mega deals out there at the moment.

Someone I work with has just hired a Mercedes C250cdi sport estate Edition 125 for 2 years for £340 a month, that comes with leather, 18" alloys, comand nav, bluetooth, iPod and usb and a few other toys. Its a £35,000 car!

That is £340 including vat with £1020 deposit.

[stupot]

Originally Posted by gIzzE

I got 6.4% fixed with Lombard on the X1 a couple of months back, and then managed 5.9% fixed on the 530d GT, but the 530d was £31k borrowed where as the X1 was something like £18k borrowed, all makes a difference.

10.5% is crazy!!


Say the car is £20,000 with a £2,000 deposit, At 10.5% it is £400 a month over 48 months and then you owe them nearly £5000 balloon.


at 6% it is £420 a month over 48 months and you then own the car.

It can make a big difference.


Or you could buy a car £3000 more for no extra monthly cost.

That’s getting into a PCP verses straight finance debate, which is a whole separate subject and yes compared to a personal loan rate 10.5% APR may be viewed higher.

OP has been quoted 10.5% APR on a BMW Select PCP, and my advice to him is that on that product that rate is actually pretty decent.

The dealer isn’t making much on that, it is the rate BMW place on Select, if the dealer was adding finance profit into the deal it would be much higher.

Select is dearer than straight finance as BMW are pricing in a margin that they might get the car handed back and could take a loss disposing of it at the other end.

[gIzzE]

Originally Posted by stupot

That’s getting into a PCP verses straight finance debate, which is a whole separate subject and yes compared to a personal loan rate 10.5% APR may be viewed higher.

OP has been quoted 10.5% APR on a BMW Select PCP, and my advice to him is that on that product that rate is actually pretty decent.

The dealer isn’t making much on that, it is the rate BMW place on Select, if the dealer was adding finance profit into the deal it would be much higher.

Select is dearer than straight finance as BMW are pricing in a margin that they might get the car handed back and could take a loss disposing of it at the other end.

No it's not.

The fact is, he has a massive balloon because he is paying too much.

I would rather not owe anything after 48 months than be guaranteed it is worth £4000 and owe £4000.

Think about it for a minute.

[stupot]

Originally Posted by gIzzE

No it's not.

The fact is, he has a massive balloon because he is paying too much.

I would rather not owe anything after 48 months than be guaranteed it is worth £4000 and owe £4000.

Think about it for a minute.

That’s the PCP verses straight finance debate. The majority of customers, rightly or wrongly, value having the guaranteed future value of a PCP and enjoy the side effect of the lower monthly payments.

You can only work out what is the absolute cheapest way to fund a car with hindsight, once you know its disposal value.

The GFV would never be as low as your example. BMW tend to set quite high GFV's, that equation could quite easily be GFV £12000, actual car value £8000. Bye bye car back to BMW finance for them to take a £4000 loss. Suddenly it’s been a very cheap way to fund it.

Anyway, we are probably now going a bit off topic.

[eaglesfan83]

Wow thats high. I have 4.8% and I think that is way to high. I guess times have changed. I thought the average was 1.9-3.9%

[webwysard]

Originally Posted by stupot

That’s the PCP verses straight finance debate. The majority of customers, rightly or wrongly, value having the guaranteed future value of a PCP and enjoy the side effect of the lower monthly payments.

You can only work out what is the absolute cheapest way to fund a car with hindsight, once you know its disposal value.

The GFV would never be as low as your example. BMW tend to set quite high GFV's, that equation could quite easily be GFV £12000, actual car value £8000. Bye bye car back to BMW finance for them to take a £4000 loss. Suddenly it’s been a very cheap way to fund it.

Anyway, we are probably now going a bit off topic.

Do you work for BMW by any chance ?

[gIzzE]

Originally Posted by stupot

That’s the PCP verses straight finance debate. The majority of customers, rightly or wrongly, value having the guaranteed future value of a PCP and enjoy the side effect of the lower monthly payments.

You can only work out what is the absolute cheapest way to fund a car with hindsight, once you know its disposal value.

The GFV would never be as low as your example. BMW tend to set quite high GFV's, that equation could quite easily be GFV £12000, actual car value £8000. Bye bye car back to BMW finance for them to take a £4000 loss. Suddenly it’s been a very cheap way to fund it.

Anyway, we are probably now going a bit off topic.

A guaranteed future value used to be a very good way of doing things, when BMW set the guarantees extremely high, however, at the moment they are setting them very low.

Our F11 520d with all the essentials was being given a GFV of £7500 after 48 months by BMW.

The interest rate was 10.9%.

The car was £33000 and with a £3000 deposit it was costing £646.84 a month.

However, we went with Lomnbard at 5.9% apr it was £633 a month over 54 months.


So pay for another 6 months and it is yours.

All car manufacturers are desperate for you to have a balloon to keep your business next time, but right now a GFV is worthless when the value is so low and the rates are covering their guarantee anyway, ion other words you are paying the guarantee over the loan term.


Don't get me wrong over the years I have been the biggest advocate of going pcp with a balloon, on a depreciating asset it makes perfect sense, but right now a few, like VW, Audi and BMW are really taking the piss with it and people are not stopping and doing the maths.



When I bought my 535d sport touring I paid £34500 for it at 9 months old, £52k car new, and the GFV after 48 months was £19k. The apr was 5.1% and the monthly payments were £380 a month.
That makes sense.

Paying extra just to cover the balloon is nonsensical.

[stupot]

Originally Posted by webwysard

Do you work for BMW by any chance ?

No. A different manufacturer.