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BMW and M Power Owners

Discussion in 'Motors' started by panthro, 12 Apr 2012.

  1. SDK^

    Capodecina

    Joined: 18 Oct 2002

    Posts: 19,269

    If you're rounding up to the nearest ten thousand then it's nearly £10k

    More accurately, it's £8.5k over 2 years
     
    Last edited: 23 Jan 2014
  2. -Ad-

    Capodecina

    Joined: 4 Nov 2004

    Posts: 13,809

    Location: Aberdeen

    Went up quite steeply if I remember but am unsure of exact numbers. Around 11ppm excess over the 10k, so £550 if you did it that way.

    :D


    £1758 initial + £6739 + £200 fee = £8697 or £362pcm averaged.

    I've always been very against PCP and lease deals, but this just made sense. I don't need this car, but it's a cheap, hassle free way to own what is a brand new 35k hatchback as fast as an M3. Plus my DC2 is getting long in the tooth, losing the appeal on the commute and really is a PITA for general bumming around town and siting in traffic.

    Don't forget that I'm not paying any road tax over the lease (£475+260=£735), it won't need a service and hopefully no tyres either.

    My car allowance from work covers 80% of the cost, plus as in my previous post, I can insure both the M135 and the DC2 for the same or less than just the DC2 as my main/only car. So in essence, my total costs should just be the figures above and the fuel :)

    Buying/owning the car would mean a significant loan which I'm not planning on taking out as it'll affect my mortgage application (in say a year) more than the current deal and I would have had to mess around with the right spec and consider colours/options that 'resale well', then have to deal with the hassle of keeping/selling etc. This lease is incredibly cheap, zero hassle and effort and by far the best option for me currently.
     
    Last edited: 23 Jan 2014
  3. Barks

    Mobster

    Joined: 20 Jul 2008

    Posts: 4,164

    I agree.

    For me an important factor to buy brand new was the fact that the M135i is (even more so at release before competitors reacted) very good value. It's definitely not a 'no brainer' I agree but together with the finance deal it certainly wasn't a terrible purchase by any stretch either.

    I think what really swayed me to be honest was the 6-cylinder engine. The engine may not be that 'special' in the grand scheme of things but the thought of having a proper engine i.e. a BMW straight six under my bonnet and not some VAG tuned 4-pot was a key attraction. I simply can't fathom why someone would spend £40,000+ on a 4-pot hatchback (aimed at the A45).
     
  4. SDK^

    Capodecina

    Joined: 18 Oct 2002

    Posts: 19,269

    The rears won't last 20k miles - I changed mine on 14k (118i)
     
  5. mike gunnz

    Mobster

    Joined: 12 Oct 2007

    Posts: 2,647


    I'm clearly not following the calculations you've posted up - are you saying that running your Integra for the next 2 years as your only car would cost you over £8697 and therefore, you are actually saving money by leasing the M135i and keeping the Integra as a second car?
     
  6. -Ad-

    Capodecina

    Joined: 4 Nov 2004

    Posts: 13,809

    Location: Aberdeen

    OK cheers, something to plan for.

    Noooo, not at all. Just pointing out that by having both the cars, insurance and tax costs for both together are exactly the same as just owning the Teg as I currently do.

    I'm still renting a car for 2yrs for a lot more than just peanuts, but the cost at the start of my other post are the total costs bar fuel and possibly 2 new rear tyres. Running both isn't neay as expensive as first thought!

    I can now enjoy commuting and general driving, keep the miles off the Teg, get on with the longer jobs I couldn't do with her as a daily and just strip some weight out and enjoy her as a weekend blast and track car :D
     
    Last edited: 23 Jan 2014
  7. DAIR

    Sgarrista

    Joined: 23 Jul 2009

    Posts: 8,868

    Location: Cayman Islands

    Very good deal.

     
  8. [TW]Fox

    Man of Honour

    Joined: 17 Oct 2002

    Posts: 157,123

    No, it's not. It's £8700. It is not cheap.


    It absolutely is this, mind.

    You own nothing, so no, it's not that.

    Flawed maths here because the first years road tax on a brand new car is included in the on the road price anyway, its not 'not paid' its just included in the cost of the car. Just as it is if you ordered a new one yourself.

    It will need 2 tyres.


    Don't get me wrong. I'm not saying it's a bad choice or that it wasn't a good idea. Far from it - it's a great car and if you absolutely wanted a new M135i this is a credible way to fund it.

    But I take issue with the constant holding up of deals like this as 'so cheap' and 'amazingly cheap' and 'no brainer' and 'such a good deal'.

    It's not. It's the price of the car new minus the expected resale value plus the profit margin for the lease company, just like any other lease. The first ones that popped up where, I agree, eyebrowing raising but going around saying its cheap is just plain misleading.

    It's not cheap, you are paying £8700 to borrow an M135i for 2 years. People are carrying on like they are basically giving away free M135i's with participating packets of cornflakes and you'd be mad not to consider one. This is, IMHO, rubbish.

    Your car will be great and it's not a bad deal. Thats it :p
     
    Last edited: 23 Jan 2014
  9. 86JR

    PermaBanned

    Joined: 19 Oct 2007

    Posts: 6,322

    Location: .

    What would a 2014 M135i with 30k miles be worth after two years, once depreciation has taken it's toll?
     
  10. [TW]Fox

    Man of Honour

    Joined: 17 Oct 2002

    Posts: 157,123

    It would have 20k miles because it's a 10k PA lease.

    The cheapest 12 month old (Actually it's 15 months old) M135i in the country is a 20k mile example for £23500. Ones with more sensible miles for a 1 year old car start at £25.5k.

    You can get them for just over £26k in base spec from a broker. So assuming then that it accelerates its depreciation from here and loses more in the next 9 months than it has over the previous 15 you could perhaps reasonably expect to get £20-£21k for it. Meaning it's cost just £5-6k in depreciation, less money than the lease. The lease isn't a bargain, whats happened is that the projected residuals for the M135i are excellent - it doesn't depreciate hugely. As a result, products which are priced based on depreciation end up more attractively priced.

    Generally speaking, unless it's a manufacturer subsidised deal, personal leasing is the most expensive way to drive a new car (but to counter this is also the most convenient).
     
    Last edited: 23 Jan 2014
  11. SDK^

    Capodecina

    Joined: 18 Oct 2002

    Posts: 19,269

    It's a cheap lease and with a fixed price over two years, no risk as well.
     
  12. mike gunnz

    Mobster

    Joined: 12 Oct 2007

    Posts: 2,647

    Clarified, but still man maths at it's purest.

    I know nothing of lease deals but a 10k per year mileage limit seems paltry for an outlay of £8697 in such a car that practically begs to be driven extensively?

    Is there an additional fee should you exceed the annual mileage limit and how much would it be?
     
  13. rodenal

    Capodecina

    Joined: 7 Dec 2011

    Posts: 10,243

    Buying one is pretty much a fixed price over the warranty period too. Only difference is one years road tax.

    Excess mileage usually starts at about 6ppm
     
  14. Type_R

    Soldato

    Joined: 18 Oct 2002

    Posts: 6,120

    Location: EGBB

    Quick question guys on screenwash and BMWs. I have been reading around about certain models seriously not liking mixing BMW with 3rd party stuff..leading to congealing of the wash and clogging up of the filter and pump.

    Now the BMW screenwash is priced very uncompetitively, so really just wanted to know what people use and whether there is any truth in the whole filter/pump issue.
     
  15. Clarkey

    Capodecina

    Joined: 18 Oct 2002

    Posts: 18,151

    Just flush it out and use whatever else after?
     
  16. 86JR

    PermaBanned

    Joined: 19 Oct 2007

    Posts: 6,322

    Location: .

    Honestly a £2-3k saving at the £26k level of money isn't worth the hassle it takes to sell the car to me. I would rather lease it and then just give it back and get another brand new one.

    However the issue I have with leasing is spec: if you want extras it gets very expensive very quickly. Whereas when you buy it you pay for those extras with no leasing premium on top, neither are you mileage limited.

    I do wonder also if I leased a car like an M135i if I would not drive it properly like I would if I owned one; because the car is someone elses (the lease company) and not mine. What is the point of a 306hp car if you drive it like it belongs to someone else?
     
  17. [TW]Fox

    Man of Honour

    Joined: 17 Oct 2002

    Posts: 157,123

    The £26k is irrelevent though because there isn't £26k in an account waiting to be spent. So, in the context of the spend, that £2-3k is a third off the ownership cost. Now suddenly it seems like a bigger deal.

    I'm not suggesting he should have done that, as leasing has its plus points, but I'm using that example to highlight it isn't the deal of the decade a lot of people seem to think it is.
     
  18. -Ad-

    Capodecina

    Joined: 4 Nov 2004

    Posts: 13,809

    Location: Aberdeen

    It's the cheapest and easiest way to own one of these! More further down.

    I know :)

    Naturally an AUC would have tax, but would it really always be 12months?


    It's the best way to fund it by a country light year, surely you see that :p

    320hp :D

    And yes, I'm with you. More below in answer to Fox.

    I will drive it just as much as if it was my own, maybe more so :D

    How else would you fund one of these for 2yrs?

    Cash - I don't have £26k+ and it would a complete waste of capital even if I did!
    Finance - Nope, it's dearer and you're locked in for longer and I don't intend to get locked into the joys of finance. Even if you just hand it back you'll be paying more than the lease.
    Loan - So take my £1.7k deposit and grab a £24k loan (if I'd even get approved for it), which would cost over £1k in monthly payments. That's an incredible amount amount of disposable income to lose, there will be about £2k interest to pay on the loan, whereas with the lease I have, I'm still going to be investing/saving £800pcm over the next 2yrs, a far better way to utilise and increase the value of that ~£20k capital.

    And with the above loan or 'owning' a car, no one can absolutely predict what the car will be worth in 2 years time, how in demand they'll be, especially with all these 2yr old lease cars flooding the market once handed back. Then there's the hassle of selling it.

    With all the above taken into account, the mentality of 'OMG you should own the car and not rent it' really doesn't work out as a sensible financial option at all vs. leasing. You have worked out the figures well, but there's more to life than just headline figures and savings at the end of the 2yrs, plus with my leasing option I will probably save money vs any owning option (investing the money instead), have an extra £800pcm available should I really need it and have no risk at all when compared to having to sell it on in a few years time.

    It's a no brainer really for me and still cheap in my eyes.
     
    Last edited: 24 Jan 2014
  19. Gaygle

    Capodecina

    Joined: 7 Nov 2004

    Posts: 15,278

    Location: East of England

    It's not " very uncompetitively priced" at all. I paid £17 for 5 litres of the stuff and bare in mind the BMW stuff is down to -63 which means you can dilute it many times more than the 3rd party guff you buy, meaning it goes much further.

    And yes 3rd party stuff will lead to sludging in the tank and pump, which are both difficult to get to.
     
  20. Kingy

    Mobster

    Joined: 18 Oct 2002

    Posts: 3,403

    Location: Leicester

    I don't understand the thought process behind scrimping & trying to save part of £17 in the context of the depreciation/repayments of a five figure car?