New AUC BMW and PCP with my own car as deposit - sanity check

Associate
Joined
14 May 2007
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843
Location
London
Hey all,
I own my current 535 outright. 2015 plate 535 toyed up. Nice car on 54000. I pay £90 a month extended warranty. Remember that figure....

I am getting bored of 5 series, been in them now for 15 years and on my fourth one. Had a few niggles and I'm out of love with this car now. Seen a nice August 2019 640i Xdrive loaded with toys AUC at BMW with delivery 100 miles on it. Rather than splash my own cash on it, I looked at PCP.

Say I got roughly £14000 for mine - a realistic figure I think - and I use that as a deposit. The monthly payments come in, assuming 11000 a year mileage (more than I do currently) and that deposit for 48 months at only £230 a month. More deposit makes a huge difference to that monthly figure. Considering I am paying £90 a month currently on my 535 for extended warranty, for only an extra £140 a month outlay cost to me, quite easily affordable (no conceit intended) - I can get a practically brand new car with two and half years warranty on it still.

I know you could say, well, the car has to go back in 48 months whereas with your car you own it outright. True. But in 48 months my own car will be worth only a couple of grand. So that is hardly big money is it?

Questions.
Why would an August 2019 only have 123 miles on it?
Is my thinking sound?
I won't have to pay the whacking £885 tax will I because car already registered?

Cons. Road tax is much higher at £455 a year and insurance will be more.
 
Associate
Joined
9 Mar 2004
Posts
1,589
You 5 series is going to be worth more than 2k in 4 years time. The warranty on the 6er will expire before your PCP is up so you need to factor in the cost of that from year 3. Unless you pay the balloon at the end you won't be seeing your 14k 'deposit' back so you need to add that in to your monthly cost (14,000/47 = £297) so your true monthly is about £530 before the deduction for warranty savings.

If you want the new car go for it, but be honest with yourself about the true cost.
 
Don
Joined
19 May 2012
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Location
Spalding, Lincolnshire
Say I got roughly £14000 for mine - a realistic figure I think - and I use that as a deposit.
Seems low

But in 48 months my own car will be worth only a couple of grand. So that is hardly big money is it?
It won't be worth "a couple of grand". Go look at cars 4 years older than yours now (i.e. 2011 cars around 80-90k miles) - they are still worth 8-9k at least.


By all means if you want to change car because you are bored of it, then do it. Just don't try and dress it up as a "good deal"
 

Jez

Jez

Caporegime
Joined
18 Oct 2002
Posts
33,073
A 9 year old (by then) loaded 535 with low miles for the year will likely be worth getting on £10k, not £2k! Thats a great model and spec of car and it'll likely hold OK value.

£14k also seems quite low for the value now?

Add the loss of a £10k (then) asset to the cost of this deal.
 
Soldato
Joined
14 Jan 2018
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14,658
Location
Hampshire
Your looking at £25k to lease this car for 4 years going by your figures. PCP interest rates on second hand cars are often higher than new as well. You may be better doing a hire purchase, bigger deposit as your car is worth more than you state. Then you own the car at the end as well.
 
Soldato
Joined
26 Jul 2004
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3,268
Location
Thunderdome
The thinking is sound assuming you simply want a new car and don't mind throwing away the deposit if you hand the 6er back.

The mileage of the 6er won't be 123 miles either, this is simply a random figure BMW use when selling low mileage cars. Phone them and you'll find it actually has a couple of thousand miles on the clock. No biggie though.
 
Commissario
Joined
23 Nov 2004
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41,851
Location
Herts
Also need to look at the cost of borrowing, i.e. the APR? May be cheaper to find another finance provider offering a lower rate.
 
Soldato
Joined
30 Sep 2005
Posts
16,527
Actually, the guys raise a good point. APR rates on PCP vary wildly between new and used cars. Sometimes it's cheaper buying brand new, and BMW are known to offer huge discounts.

I'd check the online brokers first. Haggle! and play a couple of dealers off against each other.
 
Associate
Joined
1 Jun 2014
Posts
1,574
When i was looking at a used BMW (albeit a cheaper one) from a main dealer, they advised heavily against using my car as a deposit if i were to consider paying using PCP and mine was only worth 3k!
It may drop the monthlies but i'd consider how much over the course of the term it would actually be saving you / reducing each payment, vs how much it would be worth at the end of the 48 months. As some others have suggested it would be unlikely to be 2k and more around the 10k mark if kept well maintained!
 
Soldato
Joined
20 Oct 2010
Posts
4,168
I am getting bored of 5 series, been in them now for 15 years and on my fourth one. Had a few niggles and I'm out of love with this car now.

This to me is the most important part, you may as well change it as you've already made up your mind that you no longer like the car, whether this deal is a good one or not is completely up to you, what works for someone else won't necessarily work for you and vice versa
 
Man of Honour
Joined
17 Oct 2002
Posts
159,534
Don't PCP an AUC, the rates are always awful. Use cash for AUC.

If you are bored of a 5 series you do realise a 6 GT is a 5 Series hatchback yes? It's a great car, my Dad has one, but it's a 5 hatchback with a great standard spec. It doesn't really drive any differently to a 5 series.

The 6 isn't loaded btw, most of the spec is standard. The BMW UK used stuff generally only have a couple of options.

The 6 is an amazing used buy, they are generally higher spec and cheaper than the equivalent 5 series.
 
Soldato
Joined
18 Oct 2002
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14,047
Location
West Midlands
Is my thinking sound?

You want a new car, but it seems like the costs isn't that relevant just an after thought.

You are looking at getting a very similar car and committing yourself for 4 years to it. Have you test drove anything else? Do you cover huge amount of motorway mileage, and require a huge hatched rear boot?

Sounds like you like buttons and gadgets, but what do you find you actually need on your car, and extra is only worth it if you use it or benefit from it. So what do you want, or do you just like the though of having all of the add-on packages?

If the PCP is 0-3% APR then at least you are doing OK there.
 
Soldato
Joined
4 Nov 2004
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14,365
Location
Beds
Keep your current car.

If you take on the new deal and hand back the 2019 car in 4yrs time you'll be left with nothing other than the memories of a car you've essentially leased for 4 yes.
 
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