Finance options

[Clive]

Thanks Paul, that's an interesting tactic. BMW FS currently put in £2.5k, the discount so far from the dealer on top is about 10% but I have carwow offers of around 15% so I can probably get close to 20% in total. It sounds like there are no to low penalties for settling PCP early...

[Paul]

Thanks Paul, that's an interesting tactic. BMW FS currently put in £2.5k, the discount so far from the dealer on top is about 10% but I have carwow offers of around 15% so I can probably get close to 20% in total. It sounds like there are no to low penalties for settling PCP early...

You can’t be penalised or charged for settling a PCP early (or any other retail finance offering)

[Clive]

The dilemma becomes, do I wait until Brexit is done and car sales conceivably plummet. I reckon OEMs would absorb the bulk of the WTO 10% tariff in the event of no deal. Then again my existing car value could plummet.

[Wing Commander]

Anecdotally, folks have reported that Porsche, so maybe others, are likely to pass on pretty much the full 10% hike, or whatever tariff imports are affected by.

[Clive]

Porsche are likely to pass on increased tariffs to the customer because they can get away with it. It'll vary by OEM. The UK is a huge market for BMW yet prices in the US are much lower, I believe there's scope for BMW to absorb much of any tariff...but I could easily be very wrong.

[Paul]

I suspect, as Clive says, the majority of “volume” manufacturers will do their utmost to minimise any impact of WTO. (As I posted elsewhere, all Japanese / Korean manufacturer cars have been paying their 10% tarif for years now!)

[adam b]

There used to be a saying that you should buy a 3 year old car and sell after 5

The biggest cost of cars is depreciation and generally the best way of maximising that cost is buy new and sell at 2 or 3 years through a dealer.

I bought well IMHO and got a great spec 11k miles turbo. 2 years old and 1/3 off list. I paid 40 cash and borrowed 14, will extend warranty and keep for 4 or 5 years hopefully - don’t need any more pace or luxury than this.

Would never use PCP (unless as a short term tactic to get a discount and then pay off the following month), borrowed the 14 via my bank at 3.3%

[Clive]

If I pay off the PCP after the 1st payment do I pay the balloon at the same time or at the end of the original contract eg 3 years?

[Paul]

If I pay off the PCP after the 1st payment do I pay the balloon at the same time or at the end of the original contract eg 3 years?

All in one go; the full outstanding balance.

[Clive]

Ok, that's what I expected