[Reece]

Im looking at getting an e93 and one to my exact spec bar its got anthracite bamboo But il wrap that, has popped up at a price that you can only just about buy them private.

Now this car is £22995 and the finance is working out more than another auc car i used just for instance at £26995. Ill add photos below, am i doing something wrong or am i mis understanding something here?
Why would i pay more per month for a car which is older and cheaper than a newer more expensive car?

Seriously confused so all help appreciated

[Reece]

Sorry ive added the same one twice this is the other i have

[gangzoom]

Because the first car (320d) is on PCP so has a large final payment, where as the second car (330d) is on a standard loan.

Look at the APRs they don't lie, 3% difference, the 330d is cheaper car to finance overall.

[xPETEZx]

AS above.
The first car has a balloon payment at the end of £12k.

So if you where to "save" the 12k over the 35 month period, you need to put away an additional £342 per month.

Basically look at the "total Amount Payable" line.
The first car is £32k the second is £24k.

[djgandy]

At £32k you might as well buy brand new and get a decent APR!

[Reece]

Thaks for the replies

I see now so the £399 a month i will own the car at the end of the 3 years.

The £275 a month i will have to pay £12k at the end or hand the car back.

What happens to the deposit if you hand the car back?

Thing is if i buy it outright after 3 years the car will then be 6 years old what will it be worth? £15k? So would be a loss of 7k over 3 years as where if i went the other route and handed it back after 3 years i wouldnt have lost anything and the monthly payment is cheaper???

Im a virgin with car finance so just trying to get a clear picture in my heas

[djgandy]

Originally Posted by Reece

Thaks for the replies

I see now so the £399 a month i will own the car at the end of the 3 years.

The £275 a month i will have to pay £12k at the end or hand the car back.

What happens to the deposit if you hand the car back?

Thing is if i buy it outright after 3 years the car will then be 6 years old what will it be worth? £15k? So would be a loss of 7k over 3 years as where if i went the other route and handed it back after 3 years i wouldnt have lost anything and the monthly payment is cheaper???

Im a virgin with car finance so just trying to get a clear picture in my heas

1) Difference of £125/month over 36 months is £4,500. £4,500 buys you the same as a £12k lump, it's a no brainer.

2) The deposit is not refundable at the end of the period, it is your contribution towards the car to reduce the amount of finance you need

3) You seem to be mixing up which car you are talking about all the time. The car that was £22k had the far better finance than the £26k one. What is the other route you refer to? Going with the PCP car (£26K), spending £20K on it and having no car at the end of it? How is that cheaper? You lose £10k of deposit and and you have paid 10K of interest payments and have no car at the end of it.

The 22K car you own outright, you might only get £10K for it but even if you take the finance and it costs you £24K after payments you will still be £6K up.

[ahenners]

Just my two cents here... is it really that wise to drop that much cash (and financed cash) on an e93 which is getting on a bit now? Are there no older ones around 3 years old which have already lost most of their value and therefore make more financial sense? It doesn't even have idrive which in my opinion makes the interior look very dated and old even now, never mind in 3 years time when the finance is clear.

Bank loan will probably get you a much lower APR on 12k if you're definitely set on borrowing. Unless dealer is willing to throw in some other incentives i.e. free servicing etc.

Not having a go, or wanting to tell you how to spend your money, but buying a 13 plate e93 just seems a bit daft imo when there's identical 10/60 plates for much less.

[Reece]

Sorry about the confusion .

The car im after is the white 330d priced at £22k, its got the exact spec im after white, coral red interior, pro cic, electric heated seats etc. they are priced the same privately with same spec.

I didnt realise you dont get your deposit back, so the PCP option is a definate no goer as its just a waste of money.

The option on the car im after works out then that you own the car after the 3 years for another £125 a month is alot better. But its stil quite a high APR, Maybe i might have to look into getting a normal loan for it.

£399 a month is stil quite high for a 3 year old car.

Do you think the price will drop when the 4 series convertible is out and more established?

Appreciate the replies its all new to me

[bennyball]

My understanding of the finance deals is that PCP is only really good for people that change their car every year or so and stick with the same manufacturer, I think most will give you a guaranteed future value on them to use against your next car, ie you don't pay a deposit next time.

I have had the same debate as you recently, it works our cheaper to finance through a bank loan as you can get rates of about 5% if your credit rating is good.

[Reece]

Originally Posted by bennyball

My understanding of the finance deals is that PCP is O let really good for people that change their car every year or so and stick with the same manufacturer, I think most will give you a guaranteed future value on them to use against your next car, ie you don't pay a deposit next time.

I have had the same debate as your recently, it works our cheaper to finance through a bank loan as you can get rates of about 5% if your credit rating is good.

My credit rating was brilliant until orange/EE messed that up when i upgraded they set me a temp contract up, even though i was stil on the same number etc it went on for months as i refused to pay for this temp contract and number that i had no way of ever using, started in october and only got resolved in april, but there was debt collectors involved but i hope it hasnt ruined it too much for me.

I need ti get rid of my car before it starts loosing me too much money

[gangzoom]

You do realise any newer car you buy will also depreciate, and probably quicker than your current car?

[Reece]

Originally Posted by gangzoom

You do realise any newer car you buy will also depreciate, and probably quicker than your current car?

Of course it will, problem is if i keep my car another 3 years it will be worth maybe £5k ive then got an even bigger hill to climb to get a newer car, at the minute its worth £10k.

If the car costs me £22k now and in 3 years is worth say £12k atleast ive got more than what i have now

[bennyball]

Originally Posted by Reece

My credit rating was brilliant until orange/EE messed that up when i upgraded they set me a temp contract up, even though i was stil on the same number etc it went on for months as i refused to pay for this temp contract and number that i had no way of ever using, started in october and only got resolved in april, but there was debt collectors involved but i hope it hasnt ruined it too much for me.

I need ti get rid of my car before it starts loosing me too much money

It sounds like it might be worth getting a credit check done. If it has adversely affected your rating get them to place a correction on your report

[Reece]

Originally Posted by bennyball

It sounds like it might be worth getting a credit check done. If it has adversely affected your rating get them to place a correction on your report

I didnt think they could change anything on there?

[gangzoom]

Originally Posted by Reece

Of course it will, problem is if i keep my car another 3 years it will be worth maybe 5k ive then got an even bigger hill to climb to get a newer car, at the minute its worth 10k.

If the car costs me 22k now and in 3 years is worth say 12k atleast ive got more than what i have now

Humm...

If your current car is going to be worth 5k in a few years you will have 'lost' 5k.

If your new car is going to drop from 22k to 12k you will have 'lost' 10k, plus the finance costs of the new car......

So even by your own calculations your be at least 5k WORSE off

If your bored of you car and fancy a change go for it...but if your changing because you want to 'save' money the maths just don't add up.

[Reece]

Originally Posted by gangzoom

Humm...

If your current car is going to be worth 5k in a few years you will have 'lost' 5k.

If your new car is going to drop from 22k to 12k you will have 'lost' 10k, plus the finance costs of the new car......

So even by your own calculations your be at least 5k WORSE off

If your bored of you car and fancy a change go for it...but if your changing because you want to 'save' money the maths just don't add up.

All these calculations are worked out straight of the top of my head

But in all seriousness , if i go for it, hopefuly in 3 years it will be worth £12-15k so in the long run you have got to spend money to make money really, atleast in 3 years i will have a car worth more money than mine is now.

And i do want a new car im bored of mine want something newer and faster

[gangzoom]

LoL you will never make money by spending it on a car (unless your taking about ultra rare things like F1 etc)...but we all love cars that's why we're on the forum

I've worked out I've spent/lost 27k in 3 years on my 335...but would do it all again without a second thought, money's for spending and life's for living

[Reece]

Originally Posted by gangzoom

LoL you will never make money by spending it on a car (unless your taking about ultra rare things like F1 etc)...but we all love cars that's why we're on the forum

I've worked out I've spent/lost 27k in 3 years on my 335...but would do it all again without a second thought, money's for spending and life's for living

Exactly that, il never save the money i would spend on a car so to have a car worth 12-15k in 3 years will hopefully be when i go for a mortgage so it wont owe me anything then