What's the best way to haggle?

[pk328]

Hi all,

An impending new job means that I can ditch the compulsory company car and get something of my own choice.

I'm tempted to get a brand new 3-series (or Alp D3) given the good deals that seem to be around at the moment but would only do so via a PCP finance deal.

To get the best deal possible, should I first agree an outright price and then talk fijnance based upon that or should I talk deposit and monthly payments straight away and chip at that?

Do you reckon I could get into a £25k BM for a £6k deposite and, say, £200/month?

Cheers

Paul

[derin100]

You mean £6K deposit, £200/month...PLUS the money you're haemorrhaging every month in depreciation?

[touching cloth]

Can't see you getting too close to £25K with £200 per month payments. Whichever way you look at it, even with a 6K deposit you are looking to borrow £19K and the interest will make up a huge chunk of that monthly payment before you even start paying anything off. You are looking at basically having a massive balloon payment at the end which will be limited by what the car will actually be worth at the end of say 3 years. Your mileage would obviously also be a factor in this. I am far from an expert in this field however and may be out of touch with how it all works but I can't see those sort of purchase figures being possible until you are closer to £350-400 per month minimum.

[olf]

Ok, first of all even with a 6k deposit you'll be looking at at least 300 quid a month.

BUT, when talking about PCP's, the word deposit is a bit misleading. All the major PCP players would use that 6k to reduce your monthly payments. The amount you borrow is essentially the same, i.e. if you think you'll get your 6 k back at the end of the term you're gonna be disappointed.

Best bet is to put a max 1k deposit in and face up to the 450 pound monthlys. Thats way when you get rid of the car you have minimal capital tied up.

The APR can be a bit steep but play around on www.lexfreechoice.co.uk to get a better picture. Despite the higher APR's Lex do include all tax discs and mettalic paint which other PCP companies don't.

I played with a 320d 4dr sport to get the figures above.

Edited by olf on Saturday 6th January 09:09

[bennno]

pk328 said:

Hi all,

An impending new job means that I can ditch the compulsory company car and get something of my own choice.

I'm tempted to get a brand new 3-series (or Alp D3) given the good deals that seem to be around at the moment but would only do so via a PCP finance deal.

To get the best deal possible, should I first agree an outright price and then talk fijnance based upon that or should I talk deposit and monthly payments straight away and chip at that?

Do you reckon I could get into a £25k BM for a £6k deposite and, say, £200/month?

Cheers

Paul

I think you might just get there if you go for a 320d es / se with an 11% discount its about £21k, get the best possible residual (45%) and go over a 36 or 48 month term starting with a balance and you will be looking at circa £200-£230ish

Alpina's dont attract discounts not particularly strong residuals so thats probably going to cost you an extra £100-£150

bennno

[catherineJ]

I was under the impression that the 11/12% discount on BMW was now a thing of the past. Whilst I was able to get 12% comfortably last year on a 3 Series M Sport and an X5, I was advised that the maximum available discount for 2007 was 8%.

Apparantly this was introduced to stop the fire sales that were happening at a number of dealers.

Edited by catherineJ on Saturday 6th January 12:20