AUC M2 PCP deals
Discussion
Looking at getting an M2 competition when my M140 PCP deal runs out, been looking on the AUC site and was wondering if APR on the PCP deals is negotiable most are around the 9.9% to 8.9% which seams a bit steep to me, would be looking at putting down 10% deposit and not wanting to pay anymore than £475 a month for dct car with plus and comfort packs on 4 year PCP on 8,000 miles a year.
Is this realistic or do i need to rethink my budget, car must be an AUC car for peace of mind.
Any advice would be most welcome
Is this realistic or do i need to rethink my budget, car must be an AUC car for peace of mind.
Any advice would be most welcome
Since the beginning of February, BMW have been telling everyone that their rates are fixed.
What you'll get at one dealer, will be the same as from another dealer...all set by BMW Financial Services...bu there are different rates for new cars and AUC, as there are for PCP, HP and PCH.
No reduction for payment method, length of agreement, bigger deposit, etc. as the salesman can no longer be incentivised with higher commissions for forcing higher APRs (i.e. no 'discretionary commission model)...as this was found to be against the customers' interests.
And as there's no incentives, what's the point in struggling to find you a better deal when their pay will remain the same.
Depending on how you're planning on funding the car, then a bank loan may be the cheapest option.
MORE INFORMATION (FROM FCA.ORG.UK HERE)
What you'll get at one dealer, will be the same as from another dealer...all set by BMW Financial Services...bu there are different rates for new cars and AUC, as there are for PCP, HP and PCH.
No reduction for payment method, length of agreement, bigger deposit, etc. as the salesman can no longer be incentivised with higher commissions for forcing higher APRs (i.e. no 'discretionary commission model)...as this was found to be against the customers' interests.
And as there's no incentives, what's the point in struggling to find you a better deal when their pay will remain the same.
Depending on how you're planning on funding the car, then a bank loan may be the cheapest option.
MORE INFORMATION (FROM FCA.ORG.UK HERE)
Edited by mmm-five on Sunday 7th March 13:30
mmm-five said:
Since the beginning of February, BMW have been telling everyone that their rates are fixed.
What you'll get at one dealer, will be the same as from another dealer...all set by BMW Financial Services...bu there are different rates for new cars and AUC, as there are for PCP, HP and PCH.
No reduction for payment method, length of agreement, bigger deposit, etc.
Depending on how you're planning on funding the car, then a bank loan may be the cheapest option.
It will be the cheapest option yes, but in terms of monthly payment it will fall well outside the O/Ps range. Also assuming a £38K purchase and the O/P wanting to finance all but 10% of it, its going to be trickier to get a quote (most online tools assume £25K max)What you'll get at one dealer, will be the same as from another dealer...all set by BMW Financial Services...bu there are different rates for new cars and AUC, as there are for PCP, HP and PCH.
No reduction for payment method, length of agreement, bigger deposit, etc.
Depending on how you're planning on funding the car, then a bank loan may be the cheapest option.
Deep Thought said:
It will be the cheapest option yes, but in terms of monthly payment it will fall well outside the O/Ps range. Also assuming a £38K purchase and the O/P wanting to finance all but 10% of it, its going to be trickier to get a quote (most online tools assume £25K max)
Doesn't he also say he's after a PCP on an AUC, rather than an outright purchase? So not the full £38k to fund?Cheapest I've seen on AUC (looking as a replacement for a leggy/old Z4MC) was £28k for a 33k mile Dec '16 model - so £5k deposit and £22.5k bank finance instead - and no worries about 8,000 mile a year limit.
mmm-five said:
Deep Thought said:
It will be the cheapest option yes, but in terms of monthly payment it will fall well outside the O/Ps range. Also assuming a £38K purchase and the O/P wanting to finance all but 10% of it, its going to be trickier to get a quote (most online tools assume £25K max)
Doesn't he also say he's after a PCP on an AUC, rather than an outright purchase? So not the full £38k to fund?Cheapest I've seen on AUC (looking as a replacement for a leggy/old Z4MC) was £28k for a 33k mile Dec '16 model - so £5k deposit and £22.5k bank finance instead - and no worries about 8,000 mile a year limit.
He said hes interested in a M2 Competition, which are late 2018 onwards and start at around £38K.
EDIT - i see M2 Competitions have dropped back a little in the last month or so. Now can be got starting from £36K for an AUC, but probably still £38K for a low miles one with choice options - rising to well over £40K for the newest ones.
https://www.autotrader.co.uk/car-details/202102028...
Edited by Deep Thought on Sunday 7th March 13:51
Deep Thought said:
Yes. And on a PCP you still have to finance the full balance.
He said hes interested in a M2 Competition, which are late 2018 onwards and start at around £38K.
EDIT - i see M2 Competitions have dropped back a little in the last month or so. Now can be got starting from £36K for an AUC, but probably still £38K for a low miles one with choice options - rising to well over £40K for the newest ones.
https://www.autotrader.co.uk/car-details/202102028...
Definitely slightly fewer options then He said hes interested in a M2 Competition, which are late 2018 onwards and start at around £38K.
EDIT - i see M2 Competitions have dropped back a little in the last month or so. Now can be got starting from £36K for an AUC, but probably still £38K for a low miles one with choice options - rising to well over £40K for the newest ones.
https://www.autotrader.co.uk/car-details/202102028...
mmm-five said:
Since the beginning of February, BMW have been telling everyone that their rates are fixed.
What you'll get at one dealer, will be the same as from another dealer...all set by BMW Financial Services...bu there are different rates for new cars and AUC, as there are for PCP, HP and PCH.
No reduction for payment method, length of agreement, bigger deposit, etc. as the salesman can no longer be incentivised with higher commissions for forcing higher APRs (i.e. no 'discretionary commission model)...as this was found to be against the customers' interests.
And as there's no incentives, what's the point in struggling to find you a better deal when their pay will remain the same.
Depending on how you're planning on funding the car, then a bank loan may be the cheapest option.
MORE INFORMATION (FROM FCA.ORG.UK HERE)
The 2 closest dealers to me (Bavarian and prentice) both have 2017 m3 comp packs in stock. Prentice are offering 7.9 apr over Bavarians 9.9 (on bmw user car official site) making it a chunk cheaper per month. Still pays to shop about. What you'll get at one dealer, will be the same as from another dealer...all set by BMW Financial Services...bu there are different rates for new cars and AUC, as there are for PCP, HP and PCH.
No reduction for payment method, length of agreement, bigger deposit, etc. as the salesman can no longer be incentivised with higher commissions for forcing higher APRs (i.e. no 'discretionary commission model)...as this was found to be against the customers' interests.
And as there's no incentives, what's the point in struggling to find you a better deal when their pay will remain the same.
Depending on how you're planning on funding the car, then a bank loan may be the cheapest option.
MORE INFORMATION (FROM FCA.ORG.UK HERE)
Edited by mmm-five on Sunday 7th March 13:30
irish boy said:
The 2 closest dealers to me (Bavarian and prentice) both have 2017 m3 comp packs in stock. Prentice are offering 7.9 apr over Bavarians 9.9 (on bmw user car official site) making it a chunk cheaper per month. Still pays to shop about.
Well spotted!They have 7.9% APR across their used car range (a small number at 5.9% too)
Not sure how they've managed to swing that, given Bavarian would be a much bigger dealer.
hajaba123 said:
Go to oracle or magnitude, they’ll be able to get you to Alphera direct who is BMW finance, you’ll be able to get a pcp, with the same guaranteed value that the dealer offers. You’ll also get it at a cheaper rate, maybe 6.9 or below.
Has anyone gone down this route and been given the same GVF if so that would be worth a look as that brings the car within budget.Thanks again for the feed back, any help is much appreciated.
OP, car shopping at the end of a qtr is often the best time as dealers try to meet their figures & in some instances selling a car or two at a more competitive finance rate can see them get a better finance deal for the next qtr from the manufacturer.
I can’t see dealers necessarily being overwhelmed with business this month with lockdown/wider Covid uncertainty for some business sectors so be persistent if you find a car you like. Also, check out how competitive (or not!) the GAP insurance is (which you should consider taking out if using PCP in case it gets stolen/written off) - this is often much cheaper if you go online I’ve found out
I can’t see dealers necessarily being overwhelmed with business this month with lockdown/wider Covid uncertainty for some business sectors so be persistent if you find a car you like. Also, check out how competitive (or not!) the GAP insurance is (which you should consider taking out if using PCP in case it gets stolen/written off) - this is often much cheaper if you go online I’ve found out
cwf said:
hajaba123 said:
Go to oracle or magnitude, they’ll be able to get you to Alphera direct who is BMW finance, you’ll be able to get a pcp, with the same guaranteed value that the dealer offers. You’ll also get it at a cheaper rate, maybe 6.9 or below.
Has anyone gone down this route and been given the same GVF if so that would be worth a look as that brings the car within budget.Thanks again for the feed back, any help is much appreciated.
As I understand it, if you get finance through Oracle (or another provider) they can’t use Alphera to fund the car if you’re buying it from a BMW main dealer - conflict of interest, as Alphera is BMW Finance.
At least, this was what happened with my M2 purchase.
I use Oracle (have done for the last three cars), but the finance company is Aldemore.
At least, this was what happened with my M2 purchase.
I use Oracle (have done for the last three cars), but the finance company is Aldemore.
Edited by Square Leg on Saturday 13th March 21:20
mmm-five said:
Since the beginning of February, BMW have been telling everyone that their rates are fixed.
What you'll get at one dealer, will be the same as from another dealer...all set by BMW Financial Services...bu there are different rates for new cars and AUC, as there are for PCP, HP and PCH.
No reduction for payment method, length of agreement, bigger deposit, etc. as the salesman can no longer be incentivised with higher commissions for forcing higher APRs (i.e. no 'discretionary commission model)...as this was found to be against the customers' interests.
And as there's no incentives, what's the point in struggling to find you a better deal when their pay will remain the same.
Depending on how you're planning on funding the car, then a bank loan may be the cheapest option.
MORE INFORMATION (FROM FCA.ORG.UK HERE)
Another example of the FCA screwing over the consumer by not understanding the market they regulate.What you'll get at one dealer, will be the same as from another dealer...all set by BMW Financial Services...bu there are different rates for new cars and AUC, as there are for PCP, HP and PCH.
No reduction for payment method, length of agreement, bigger deposit, etc. as the salesman can no longer be incentivised with higher commissions for forcing higher APRs (i.e. no 'discretionary commission model)...as this was found to be against the customers' interests.
And as there's no incentives, what's the point in struggling to find you a better deal when their pay will remain the same.
Depending on how you're planning on funding the car, then a bank loan may be the cheapest option.
MORE INFORMATION (FROM FCA.ORG.UK HERE)
Edited by mmm-five on Sunday 7th March 13:30
The current AUC interest rates offered are madness a 43k M2C costing 53k over the term 10k in interest, utterly bonkers whilst the BoE interest rate is at at .10% offering secured finance at 8-10% incredible.
Square Leg said:
I’m amazed anyone uses main dealers for finance when just a bit of research can get you more than (less than..?) half the interest rate they charge.
The problem is unsecured personal loans are harder to get, very hard if not impossible when talking up close to 40k. The likes of oracle seems like a lot of hassle to some people to get coordinated to save a few percent (without looking at the hard numbers) when the dealer just holds a piece of paper in front of them to sign and drive away.irish boy said:
Square Leg said:
I’m amazed anyone uses main dealers for finance when just a bit of research can get you more than (less than..?) half the interest rate they charge.
The problem is unsecured personal loans are harder to get, very hard if not impossible when talking up close to 40k. The likes of oracle seems like a lot of hassle to some people to get coordinated to save a few percent (without looking at the hard numbers) when the dealer just holds a piece of paper in front of them to sign and drive away.It’s just so simple to do.
I saw a car at a dealer 150 miles away, phoned the dealer and agreed a price, then called Oracle who did all the necessary paperwork and all agreed within two days, all done via email.
Took the train up to collect the car and when I got there the money had been transferred so I just drove away.
No negotiations with a salesman over rates, tyre insurance, GAP etc.
So easy!
Not talking about a personal loan here though, which I understand could be trickier.
If more people did this then surely dealers would start to reduce their rates to an acceptable level?
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