BMW Hire Purchase & Contribution Advice

[razor11]

Mrs is about to buy a new BMW 4 series convertible. She's been offered Hire Purchase at 2.9% APR and a £2k deposit contribution. Alternatively, she could afford to buy outright.

Having never taken out HP, grateful for a couple of questions answered:

1. If she takes the minimum HP loan amount to secure the deposit contribution, any idea when she can pay off the owed HP balance? Any early repayment penalties to pay? (I cannot work it out from their website).

2. Is a £2k contribution the normal amount?

3. Any general thoughts on whether you'd HP if you could buy outright.

Much appreciated.

[Gareth1974]

Is that £2k off list? Doesn't sound much https://broadspeed.com/new_cars/BMW/4-Series/Choos...

[Dimebars]

If £2k is the total discount she is being offered then walk away. It's nowhere near enough

[razor11]

Thanks guys, really appreciate that you are looking out for us. She has secured the Broadspeed discount (then gone and spent almost the same on options....).

The query relates to the Deposit Contribution by BMW if we take out HP on the deal.

Appreciated.

[wemorgan]

The model is 3 yrs old now - so discounts should be significant.

[TimmD]

In my experience take the HP and the contribution. Then if it suits you, pay it off after a couple of months.

I bought a M140i in December with about £5k finance contribution and payed it off in Jan, no penalties.

But 2.9% is cheap money.

[Dimebars]

TimmD said:

In my experience take the HP and the contribution. Then if it suits you, pay it off after a couple of months.

I bought a M140i in December with about £5k finance contribution and payed it off in Jan, no penalties.

But 2.9% is cheap money.

This

Take the 2.9% deal and contribution, then pay it off ASAP

[razor11]

Thanks for all the help.

She will take the HP deal. Overall, the deal looks decent (still a lot of money) for a new LCI BMW.

Amusingly, it also looks like she wants me to take the HP responsibility but have the car registered in her name......(images of her driving off into the sunset, top down of course).

Cheers all.

[steve-5snwi]

BMW finance probably won't let you do that, the finance and V5 usually need to be in the same name.