Sytner - ridiculous APR 13.9% on used BMWs

[stewieyan]

Just wondering, how can they justify a 13.9% APR on a BMW, when e.g. Porsche is 10.5% in the current climate.
In monetary terms, that leads to an average of 50% (!!!) more PCP interest payment every month... madness!

Edited by stewieyan on Thursday 31st August 21:33

[MitchT]

I've been watching F32 440i prices for around a year. BMW main dealers haven been quoting 11.9-13.9% APR for as long as I've been checking. I guess you could try to negotiate the rate.

[mcg_]

you'd have to be mad

[Dingu]

I’d wager the average person shopping in an official Porsche dealer is a better bet than a BMW customer for not defaulting.

[MarkJS]

Happy to be proven wrong here, but I don't think it's Sytner who set the rates and it's actually BMW's finance arm and Sytner are just a passenger.

BMW have always (well, in recent years anyway) been pretty poor with APR's on used/AUC stock.

You're welcome to sort your own finance out too.

[Ella Jean]

They’ve always been uncompetitive but that’s mad.

Sytner BMW were advertising 11.9% in April/ May this year.

[williamp]

Get a bank loan for the car, or shop elsewhere

[DanL]

Bought my AUC from Sytner a couple of months ago. The finance bod did his usual bit, but was quite understanding when I pointed out the huge gulf between a personal loan and the PCP rate and gave up rather than trying to labour the “advantages” of PCP.

From memory it was £100/month cheaper to take a loan over 5 years than to take their PCP over 3, and after 3 years I’d still have owed 30k on the car if I wanted to keep it! Didn’t even look at the HP cost - the rate just made that comparison pointless.

[Pent]

you dont have to go with the dealer finance house , you can arrange your own finance and still buy the car from them

[akirk]

I was idly browsing for cars yesterday (new run-around incoming) and was on the carshop website (also owned now by Sytners) - their APR is somewhere in the region of 11.x% -> 16.9% depending on credit rating / etc.

I think that it is not going to be cheap currently to buy a car - fortunately I will have cash...

[curvature]

DanL said:

Bought my AUC from Sytner a couple of months ago. The finance bod did his usual bit, but was quite understanding when I pointed out the huge gulf between a personal loan and the PCP rate and gave up rather than trying to labour the “advantages” of PCP.

From memory it was £100/month cheaper to take a loan over 5 years than to take their PCP over 3, and after 3 years I’d still have owed 30k on the car if I wanted to keep it! Didn’t even look at the HP cost - the rate just made that comparison pointless.

I did exactly the same with my wife's X3, your comparison is very true.

Do people not know what APR is? Or do BMW finance accept people with poor credit ratings?

I know of people that have had quite nice cars on PCP's and now that the rates and car values have shot up they are driving smaller and sometimes older cars than they previously had.

[smashy]

Tony Lewis TRL used to put all his deals on Babybmw.net. he hardly posts anymore March being the last deal post, he seemed to have a kind of one off position at Berry's BMW didn't he. Wonder if he is suffering as well.

[Court_S]

BMW Finance rates for used cars have always been high, 10.9% used to be the usual so a hike to 13.9% given where we are with rates is about right.

I guess their rate on new cars is probably pretty high too now.

[stewieyan]

I don't think this is to do with BMW - it's purely the dealer.
Why? Because if you look on BMW approved used cars, you will see some dealers offering 10.9% right now, significantly lower.

[Court_S]

smashy said:

Tony Lewis TRL used to put all his deals on Babybmw.net. he hardly posts anymore March being the last deal post, he seemed to have a kind of one off position at Berry's BMW didn't he. Wonder if he is suffering as well.

I guess he must have found it tough since all of the cars / deals dried up. I bought my M140i from him and it was a good experience and very open compared to the smoke and mirrors approach of my local dealer.

[Tea Pot One]

I sent him a message on BabyBMW a couple of months ago as per his request that this was his preferred way of contact now. I got nothing back which was unusual as I have had contact before when buying. I wonder if he is no longer doing it ?

[duckson]

Tea Pot One said:

I sent him a message on BabyBMW a couple of months ago as per his request that this was his preferred way of contact now. I got nothing back which was unusual as I have had contact before when buying. I wonder if he is no longer doing it ?

He is, as per Instagram.

Did you email him or instant message him on Babybmw?
Email and he’ll respond. Trldeals2 [at] outlook [dot] com

Edited by duckson on Saturday 2nd September 14:37

[ComStrike]

BOE base rate is 5.25% at the moment
Finance house has to buy the money for at least 5.25% .. flat rate not APR
APR roughly calculated is double the flat so for layman's terms say the paid 6% for the money equates to 12%, they then have 1.9% apr ... 0.95% flat rate commission to work with.
Yeah the rate is really ridiculous ..........
Wouldnt be my risk thats for sure

[Guyr]

ComStrike said:

BOE base rate is 5.25% at the moment
Finance house has to buy the money for at least 5.25% .. flat rate not APR
APR roughly calculated is double the flat so for layman's terms say the paid 6% for the money equates to 12%, they then have 1.9% apr ... 0.95% flat rate commission to work with.
Yeah the rate is really ridiculous ..........
Wouldnt be my risk thats for sure

Sorry but you're wrong. Base Rate is not the same as Flat Rate. Flat rate is a largely fictional term only invented to quote a lower rate in certain finance contracts. APR quotes were introduced by law to remove that confusion.

5% Base Rate if charged annually is 5% APR, if charged monthly is 5.12% APR.

[worsy]

duckson said:

Tea Pot One said:

I sent him a message on BabyBMW a couple of months ago as per his request that this was his preferred way of contact now. I got nothing back which was unusual as I have had contact before when buying. I wonder if he is no longer doing it ?

He is, as per Instagram.

Did you email him or instant message him on Babybmw?
Email and he’ll respond. Trldeals2 [at] outlook [dot] com

Edited by duckson on Saturday 2nd September 14:37

I just bought an M3 from him. He is flat out but as duckson says, email address is with a "2" nowadays..