depreciation question - E92 coupe purchase options

[BERGS2]

Hi All -

am looking at various purchase options for a new shape 3-series coupe (probably a 325SE) with a ticket price of say £30k

Now - here is the question - the likely depreciation curve on these new shape coupes should be (relatively) shallow for the first couple of years, would this point towards the outright purchase combination of loan and savings being the best option?

On the flip side - there are contract hire deals which look quite competitive out there - are there any serious disadvantages to these??

for example - this seems very cheap to me...(ok its a 320 - but nevertheless....)

www.buyyourcar.co.uk/Spec/Bmw/3-Series-Coupe/320i-SE-2dr/Code/CONBMG744LY5773744.aspx

Am looking to spend around £4-500 per month

What would the likely real cost be (excluding the opportunity cost of the money) - of owning the car for a couple of years or so?

Finally - If i do go for the purchase option - what do the panel think will aid re-sale in 24 months time??

Sat nav seems to split opinion these days and at £2k vs a £300 tom tom or similar - I'm not sure it has the same value as a few year back...

many thanks
BERGS

[jezzaaa]

BERGS2 said:

Hi All -

am looking at various purchase options for a new shape 3-series coupe (probably a 325SE) with a ticket price of say £30k

Now - here is the question - the likely depreciation curve on these new shape coupes should be (relatively) shallow for the first couple of years, would this point towards the outright purchase combination of loan and savings being the best option?

On the flip side - there are contract hire deals which look quite competitive out there - are there any serious disadvantages to these??

for example - this seems very cheap to me...(ok its a 320 - but nevertheless....)

www.buyyourcar.co.uk/Spec/Bmw/3-Series-Coupe/320i-SE-2dr/Code/CONBMG744LY5773744.aspx

Am looking to spend around £4-500 per month

What would the likely real cost be (excluding the opportunity cost of the money) - of owning the car for a couple of years or so?

Finally - If i do go for the purchase option - what do the panel think will aid re-sale in 24 months time??

Sat nav seems to split opinion these days and at £2k vs a £300 tom tom or similar - I'm not sure it has the same value as a few year back...

many thanks
BERGS

Hi Berg - nice car you're thinking of getting! It depends on how often you change your cars...if you're like me, there's no point in ever owning the car cos I'll want another new one in 2-3 years time, so I always do PCPs because it keeps the monthly payments down, and the costs are fixed, even though I think it's a more expensive option overall in terms of finance charges.
If, on the other hand, you're going to keep it for five years, then it's different and the HP/savings thing might make alot more sense. Especially when you think that at the end of a PCP/CH term you'll have to come up with probably £15,000 in one lump to then buy the car and keep it, where as with straight finance you will own it at the end of the term regardless.

Just been through all this with my new one. I think contract hire is something only business users can have....which I take to mean a company or partnership. If you're a private individual you have to do a PCP which is a similar thing, but without the tax breaks the company can get on the CH payments (off set interest charges against tax and reclaim VAT on payments). Also, if (like me) you do have your own company that could take out the contract hire, it means that you'll face benefit in kind tax based on the full value of the vehicle...and on a car like that, you'll be paying the CO2 top band I would have thought. Which will be alot.

As for resale options...something I learned with my Boxster is don't go overboard on options because it seems to make stuff all difference to the value of the car come resale. Metallic paint, leather seats and big alloys are the main ones I would look for on a car like that. Maybe SatNav too, but as you say, its always so much money it makes you wonder. They can look a bit poverty spec if they don't have it, but my old Tom Tom One was so much better as a Navigation aid than my £1500 BMW Pro Nav!

Good luck mate - a nice position to be in for sure!

Cheers,
J.

[bergs2]

Thanks Jezza -

here is the one I'm looking at:

www.bmw.co.uk/bmwuk/auc/car_details/0,,1260_159980106__,00.html?currentCh=WBAWB32050PS97046

looks well specced (SatNav/Leather)

Would the interior prove problematic to shift down the line???

must confess I kinda like it

[bmwdrivernigel]

bergs2 said:

Thanks Jezza -

here is the one I'm looking at:

www.bmw.co.uk/bmwuk/auc/car_details/0,,1260_159980106__,00.html?currentCh=WBAWB32050PS97046

looks well specced (SatNav/Leather)

Would the interior prove problematic to shift down the line???

must confess I kinda like it

Its an ex BMW UK car, try to find out what it was used for/who drove it.

[jezzaaa]

bergs2 said:

Thanks Jezza -

here is the one I'm looking at:

www.bmw.co.uk/bmwuk/auc/car_details/0,,1260_159980106__,00.html?currentCh=WBAWB32050PS97046

looks well specced (SatNav/Leather)

Would the interior prove problematic to shift down the line???

must confess I kinda like it

Anytime...and I must say I like the red interiors alot too. It's all down to individual taste...I for example would never buy one with all Black leather cos I think it looks dull. Other people won't buy anything except black! I can't see that it would harm the future value either way...if it was a really garish colour (like Yellow) then you might be restricting your market to people with flamboyant tastes!

I think the only thing that one you're looking at misses is large wheels...matter of taste thing but I think BMs these days do look underwheeled on anything less than 18" ones. Not a big deal though if you're not bothered.

J.

Edited by jezzaaa on Tuesday 10th April 15:27

[bergs2]

bmwdrivernigel said:

Its an ex BMW UK car, try to find out what it was used for/who drove it.

Thats what I asked the fella at the dealership - he said it was a press car/show car - only got 1500 miles though...... wonder if the press boys adhered to the running in rev limit? (if there was one....)

at Aug 06 Reg it must be one of the really early ones, no?

[chippers54]

The red interior looks really great at night as the coupes have the cool interior lighting like the 7 series. Apparently they adjust the brightness of the lights depending on what colour leather you have but I am not sure I believe that!

[bergs2]

Right - I'm going to see this one late this week -

www.bmw.co.uk/bmwuk/auc/car_detail

Whats the liklihood of getting them to switch the wheels - as I'd tend to agree with the above post re 17" rims?

Also, what else should i be looking for? other than a sweeeeeet finance deal

they are currently offering £417 pcm with a £6k trade in based on £12500 3 yr residual - which I'm sure can be improved upon....

ta in advance!

[bennno]

I got a new 335i M Sport saloon with a big discount and low rate manufacturer backed finance.

It worked out at circa £5.5k deposit, £400 per month and £14k residual.

You might be better off looking at a saloon or holding fire for 6 months as the non sport coupes will drop sharply from the current short supply prices imho.

Bennno

[jezzaaa]

bennno said:

I got a new 335i M Sport saloon with a big discount and low rate manufacturer backed finance.

It worked out at circa £5.5k deposit, £400 per month and £14k residual.

You might be better off looking at a saloon or holding fire for 6 months as the non sport coupes will drop sharply from the current short supply prices imho.

Bennno

Hi Benno - hope you don't mind my asking but what was price of the car once discounted and what would it have been RRP?
Cheers,
J.

Edited by jezzaaa on Wednesday 11th April 14:09

[bmwdrivernigel]

bergs2 said:

bmwdrivernigel said:

Its an ex BMW UK car, try to find out what it was used for/who drove it.

Thats what I asked the fella at the dealership - he said it was a press car/show car - only got 1500 miles though...... wonder if the press boys adhered to the running in rev limit? (if there was one....)

at Aug 06 Reg it must be one of the really early ones, no?

YHM

[bergs2]

bennno said:

I got a new 335i M Sport saloon with a big discount and low rate manufacturer backed finance.

It worked out at circa £5.5k deposit, £400 per month and £14k residual.

You might be better off looking at a saloon or holding fire for 6 months as the non sport coupes will drop sharply from the current short supply prices imho.

Bennno

thats cheap!!

what was that £28.5 or thereabouts??

[bennno]

jezzaaa said:

bennno said:

I got a new 335i M Sport saloon with a big discount and low rate manufacturer backed finance.

It worked out at circa £5.5k deposit, £400 per month and £14k residual.

You might be better off looking at a saloon or holding fire for 6 months as the non sport coupes will drop sharply from the current short supply prices imho.

Bennno

Hi Benno - hope you don't mind my asking but what was price of the car once discounted and what would it have been RRP?
Cheers,
J.

Edited by jezzaaa on Wednesday 11th April 14:09

It came a smidge under £35k (m sport 335i + mats + tank fuel + leather + heated seats + manual gearbox)

I got circa £3950 knocked off when I ordered and then BMW announced a £1250 finance contribution and 7.6% apr if you take it on their residual pcp which I did - meaning .

It ended up therefore at circa £29,750. If quick I think you could repeat the deal...check broadspeed which links you to Inchcape which links you to Cooper Group BMW......

The low apr helps bring the payments down in addition to the discount which effectively acts as additional deposit in bringing down the monthly payments by reducing the differential between new and residual value.

With deals like the above the coupe is currently less attractive imho

Bennno

[hughjayteens]

I have just taken delivery of a 325i SE coupe (Space Grey with Red Leather) which is on contract hire.
I pay £370+VAT a month on a 3+23 basis which I am very confident will work out far cheaper than buying one, as I just had an X3 on a similar basis, and worked out that I saved £4.5k over the two years.

Lovely car, but the standard 17" wheels do look a little limp even if it rides brilliantly!

[bennno]

hughjayteens said:

I have just taken delivery of a 325i SE coupe (Space Grey with Red Leather) which is on contract hire.
I pay £370+VAT a month on a 3+23 basis which I am very confident will work out far cheaper than buying one, as I just had an X3 on a similar basis, and worked out that I saved £4.5k over the two years.

Lovely car, but the standard 17" wheels do look a little limp even if it rides brilliantly!

How many miles is that based on?

bennno

[bergs2]

bennno said:

hughjayteens said:

I have just taken delivery of a 325i SE coupe (Space Grey with Red Leather) which is on contract hire.
I pay £370+VAT a month on a 3+23 basis which I am very confident will work out far cheaper than buying one, as I just had an X3 on a similar basis, and worked out that I saved £4.5k over the two years.

Lovely car, but the standard 17" wheels do look a little limp even if it rides brilliantly!

How many miles is that based on?

bennno

suspect 10k - there are quite a few similar deal available at the moment....

www.contracthireandleasing.com/special-offers-full-info.asp?VehicleID=6336664

[bennno]

In which case that works out at 57p per mile (excluding fuel and servicing etc) .....which seems fairly expensive

Bennno

[gizlaroc]

For your budget you should be looking at a 335d/i with leather, nav, voice, bluetooth and upgraded stereo.

You do not want to take out BMW finance either, they will try and get you into a PCP deal, which is like renting, so you are paying the equivilent of around £35k on a £28k sticker priced car.

Drop me a PM if you want more details and I will pass you on a couple of peoples details that will get you into the right car and the right price.

BMW wanted £660 a month for my 335i m-sport touring, I did it through Lombard for £440 a month, bit of a difference!!

[mgordon]

Ordered a brand new 335d Coupe with leather, iPod connector, upgraded stereo and 19" wheels on the road for £30k from a BMW dealer

I'm in the Army and off to Germany so am entitled to buy it free of VAT and BMW also offered an extra 10% military discount. I can only buy one vehicle a year but am hoping that I'll be able to offload her next year and get what I paid for her so I can effectively swap a year old car for a new one.

I'd be interested to hear if you think I could expect to get £30k for a year old coupe with around 10k miles on.

[gizlaroc]

You will get £30/32k if it has nav, without nav I would expect around £27/28k, I was offered a couple of 335d coupes without nav for just under £30k at 6 months old and less than 5k miles.