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Discussion Starter · #1 ·
hello.
i want to buy either an M2 or an M4 - first time i'm ever buying a car over £6k in my life.
i want to put down about 10k deposit and pay the rest over 4 years, budget of 35k but really i would stretch to 37k for an M2.

as i was dithering about, all the finance deals on the bmw website seem to have gone. It was showing 10.8% APR deals for hire purchase for all the approved used cars.

So my question to you all is - whats the trend? do BMW do these rates once a year or something? was 10.8% their usual rate for finance?
and is it possible to negotiate the purchase price if using bmw finance? or for cars like the M2 or M4, even second hand, is it just completely fixed?
can you ask them to throw things in like a 5 year service plan, for e.g?

last car i bought was a 2012 citroen c4 for 5.3k and i'm used to negotiating heavily on price by turning up with a stack of 'evidence' - other adverts with similar cars, guide prices, etc.etc.. so the dealer can see i .. 'mean business' and it usually works.

but when it comes to 35k cars, do all the same techniques apply?

so those are my questions really -
1. bmw finance rates, whats good, whats normal, how often do 'deals' come along etc.
2. is there much point even trying to negotiate on such cars or should i expect to get a few 'freebies' like service plans etc?

thanks!
 

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Hi

Bmw finance is variable depending on the car and time of year. They do have different interest rates for different cars.

Car finance front loads the interest, so you’ll pay off the all the applicable interest before you pay off the car, so you pay the 10.8% on whatever is outstanding on the year.

As such, I would recommend getting a bank loan, as there % rate is spread evenly across the whole loan.

Beyond all this, you’re more likely to get a larger discount if you take BMW finance vs buying cash (with private loan) which will offset against the interest you’ll pay.

I’d get a quote for a personal loan and then go in to see bmw and see what they’re prepared to do for you.

Finally in terms of negotiations, take a look at CarWow and see what used m4’s and m2’s there are, carwow is like a blind auction and the dealer often gives you their rock bottom price to start with, I did this when buying my wife’s c class and got nearly 10k off a new car, and the same when buying my used 4 series.

The experienced guys will be able to see if you’re kicking tyres or looking to buy, more often than not there’s a deal to be had, as always, just be prepared to walk away.


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Definitely a personal loan. You'll get a much much lower rate.
Years ago I when I was young and stupid I bought a brand new bike on finance. A few months in I realised I was being stitched up so got a loan to pay off the finance. Even with the penalty for paying it off early I still saved a shit load of money. Just wish I'd got the loan in the first place.
A year or so ago we got a loan to by my Mrs a second hand 1 Series and we were looking to borrow around 4k over three years. I think the interest rate was something like 7 or 8%. However if we borrowed 7.5k the interest rate dropped to something like 3%. So we borrowed 7.5k over five years which due to the lower interest rate meant the monthly repayments were less than if we borrowed 4k over three years. Bought a car for 5k (used 1k of our own), then payed off 3.5k of the loan leaving us owing 4k. Now due to the fact we'd payed back 3.5k, our term had consequently been reduced to a couple of months more than three years, thus meaning we got our 4k loan at the lowest possible interest rate over the term we wanted - result!
No penalties for paying back the 3.5k either.
That loan was with our bank (Lloyds), and it was actually the bank manager that suggested we do it that way. I wasn't keen to start with because having all that extra money can be tempting to spend it. However if you stick to the plan it's a great way to get a cheap loan. The bank manager even advised me to go home and do the deal online as the interest rate would be even cheaper than what he could offer me in the bank! So that's what I did.
I guess if I was even more clever about it, I could've got a credit card with a 0% deal, but for the pitance the interest was on the loan it was just easier to do that.
If you're looking to borrow 35k you'll get a stupidly low rate.

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Discussion Starter · #5 ·
thanks, really interesting responses and food for thought.
i've never been in debt in my life so i'm a bit nervous about financing for the first time ever. Part of me is like "just save up for 3 years and pay in cash".
But then i think Life is too short and i could get hit by a bus soon, and also i could use that cash for other things.

Personal unsecured loan does seem to be the way to go but i don't know realistically how much a bank would give for a car, the most i'd want is 25k or I save up another 3-4 months and ask for 20k. - thats why i was looking at bmw finance because maybe they'd offer deals off the sticker price - i don't know.

you've given me some direction though, thank you
 

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Discussion Starter · #6 ·
Hi

Bmw finance is variable depending on the car and time of year. They do have different interest rates for different cars.

Car finance front loads the interest, so you’ll pay off the all the applicable interest before you pay off the car, so you pay the 10.8% on whatever is outstanding on the year.

As such, I would recommend getting a bank loan, as there % rate is spread evenly across the whole loan.

Beyond all this, you’re more likely to get a larger discount if you take BMW finance vs buying cash (with private loan) which will offset against the interest you’ll pay.

I’d get a quote for a personal loan and then go in to see bmw and see what they’re prepared to do for you.

Finally in terms of negotiations, take a look at CarWow and see what used m4’s and m2’s there are, carwow is like a blind auction and the dealer often gives you their rock bottom price to start with, I did this when buying my wife’s c class and got nearly 10k off a new car, and the same when buying my used 4 series.

The experienced guys will be able to see if you’re kicking tyres or looking to buy, more often than not there’s a deal to be had, as always, just be prepared to walk away.


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great stuff, yeh good idea about getting personal loan quotes and then going to the dealer to do battle with those. seems so obvious now!

re: carwow, oh right, i thought that was just for new cars! awesome, will have to check it out.
 

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I wouldn't say it matters to the bank what it's for. All they want to know is if you can pay it back. And from what you've said, if you are in a position where you can save 5k in a few months, you must be earning serious money. Therefore I can't see why the bank wouldn't lend you what you're after. Just go to your online banking and see what you can get - it only takes a few minutes.

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Discussion Starter · #8 ·
I wouldn't say it matters to the bank what it's for. All they want to know is if you can pay it back. And from what you've said, if you are in a position where you can save 5k in a few months, you must be earning serious money. Therefore I can't see why the bank wouldn't lend you what you're after. Just go to your online banking and see what you can get - it only takes a few minutes.

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nah not at all, when i say 'a few months' i didn't literally mean 2, i meant 4. I can save about 1.3k a month.

I've had a look today at M2's, some garages are doing it at 5.9% - but you're all correct about the bank loans, i know the economy hasn't actually recovered since 2008 but i didn't realise money was still so cheap.
I could just put down a 15k deposit and get a 25k loan from sainsburys at 3%! only £500 odd a month for 4 years which is easily manageable.
quite amazing that you can buy such amazing performance for relatively little money, i feel like there must be a catch somewhere.....

as long as i have secure employment for 4 years i'll be fine! i'm going to save up a bit more and take the plunge in september, its all been baked into my budgeting spreadsheet. i'll see you guys then!
 

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I looked at buying a nearly new m240i but the finance figures weren’t a great deal different to a brand new car due to the higher interest rate. I think I’m paying 3% on the new car but it was more like 8% on nearly new. I just thought I may as well buy a new one
 

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nah not at all, when i say 'a few months' i didn't literally mean 2, i meant 4. I can save about 1.3k a month.

I've had a look today at M2's, some garages are doing it at 5.9% - but you're all correct about the bank loans, i know the economy hasn't actually recovered since 2008 but i didn't realise money was still so cheap.
I could just put down a 15k deposit and get a 25k loan from sainsburys at 3%! only £500 odd a month for 4 years which is easily manageable.
quite amazing that you can buy such amazing performance for relatively little money, i feel like there must be a catch somewhere.....

as long as i have secure employment for 4 years i'll be fine! i'm going to save up a bit more and take the plunge in september, its all been baked into my budgeting spreadsheet. i'll see you guys then!
Top man! Looks forward to the pics!

Got any ideas about colour combos?


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If your spending that amount consider a PCP you will get a decent interest rate and keep your deposit you should get a tidy discount on the car - try to give as little as poss as a deposit no more than £500 I know the car isn't your own but you should get the car you want. I would suggest an interest rate of no more than 3.5%. Some numbers that I got on a 45k car (3 series touring, m sport plus with some options) = £413 per month for four years £500 deposit I think it was 2.9% apr. Be careful though any car now over 40k (discount isn't taken into account) new will cost £400 extra a year VED for the first 5 years. If you don't like it at the end of term hand it back and you will still have your deposit. You may be able to negotiate some free servicing too though I found this tough to get. Forgot to say if you do check out Carwow it will get you a baseline however I found the deals were much stronger when I went into the dealership. Finally, be firm with the low deposit the sales people will try hard to remove the cash from your pocket. Good luck let us all know how you got on the motor your looking for seems great, enjoy
 

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Discussion Starter · #14 ·
If your spending that amount consider a PCP you will get a decent interest rate and keep your deposit you should get a tidy discount on the car - try to give as little as poss as a deposit no more than £500 I know the car isn't your own but you should get the car you want. I would suggest an interest rate of no more than 3.5%. Some numbers that I got on a 45k car (3 series touring, m sport plus with some options) = £413 per month for four years £500 deposit I think it was 2.9% apr. Be careful though any car now over 40k (discount isn't taken into account) new will cost £400 extra a year VED for the first 5 years. If you don't like it at the end of term hand it back and you will still have your deposit. You may be able to negotiate some free servicing too though I found this tough to get. Forgot to say if you do check out Carwow it will get you a baseline however I found the deals were much stronger when I went into the dealership. Finally, be firm with the low deposit the sales people will try hard to remove the cash from your pocket. Good luck let us all know how you got on the motor your looking for seems great, enjoy
this is interesting - i've no idea what to expect or what to ask for so really useful to hear other people experiences and finance options.

so you're saying i should be able to walk into the dealer and demand a sub 3.5% APR? What you've just said gets me .... very excited, because i could go and get my M2 this weekend if that's the case!

or are you saying that's ONLY for buying New? Or can i get that kind of deal on approved-used stuff too?
I'm not considering new or nearly-new because the price premium seems too high - £49k on carwow - a best match of £42k for a car registered in Dec2017, and then earlier cars for £37k.

But obviously if it works out cheaper to buy a higher priced car for a lower interest rate, then obviously I need to factor all this in.

It seems like i have to factor in about 5 different variables to understand what is the best value for money option here...... i'm in a daze.


As a side note - can you or anyone confirm that if I buy a car nearly new - i.e. registered in say 2017 thats approved used - it still comes with the remainder of the 3 year warranty, and not just 1 year, correct?
 

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Discussion Starter · #15 ·
@slopps I’m guessing you haven’t seen you can get a new M4 on 0% finance at the moment. An M2 is 2.9% :jaw-dropping

https://offers.bmw.co.uk/finance-offers/
for me personally i don't think its worth paying the premium for brand new - by premium i mean the initial depreciation hit. i'm quite happy getting something a year or 2 old with very low miles and save £10k-£15k on a £50k car, which is what the M2 costs when i spec it up with all the options i want.

I also want to pay the car off over 4 years and so my monthly budget is £750/month.
 

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Sorry guys, every time I read a post about finance this joke comes to to mind ? .....it never gets old.....

A lady walks into a BMW dealership. She browses around, spots the Top-of-the-line Beemer and walks over to inspect it. As she bends over to feel the fine leather upholstery, she inadvertently breaks Wind. Very embarrassed, she looks around nervously to see if anyone has noticed her little accident and prays that a sales person doesn't pop up right now. As she turns around, her worst nightmare materializes in the form of a salesman standing right behind her. Cool as a cucumber and displaying complete professionalism, the salesman greets the lady With, "Good day, Madame. How may we help you today?" Very uncomfortably, but hoping that the salesman may just not have been there at the time of her accident, she asks, "Sir, what is the price of this lovely vehicle?" He answers, "Madam, if you farted just touching it, you are going to shit yourself when I tell you the price."
 

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Ayup slopps, I think if able to, everyone should have a new car and/or motorbike during their lives, many of course will never do so, but having a new car is an event in itself, so been there, done that, having said that, I've ended up latterly buying at 3yrs old, 20,000 miles (think one was 22k, but close), it enabled me to buy higher spec models than I would ever entertain - like a 730d Sport when a long school run was on the cards for several years, I think the one I had was around £65k new as specced up a bit, but dropped hugely at 3yrd old, the 535d was £30k at 3yrs old with 20k miles, no idea what it was new.
Big plus point was on last two I had the 5 year pre-paid service pack on them as well!

So settle on what price point/mileage suits you, it's a personal thing, very personal, as is the finance, I wouldn't touch PCP as I want to own the car, money is still cheap if any need to borrow but like every 'person' (I use that term loosely) everyone trying to sell you anything will want as much as possible for as little given, so when I've applied in the past for loans I've had folk 'advise' me that as my credit rating was bad I could only get a loan from them at a 'special' rate from them that was very high - the advisor hadn't known my details nor that I'd run my own credit rating via Experian or Equifax and it was brilliant, there's so much absolute rubbish being spouted that won't stand up to close inspection.
Some dealers will have access to low rate finance, some won't because it's a hard thing for the poor dears to try to do, and they don't bleeding care anyway, once the cars off of their lot, onto the next!

May have mentioned previously, having the sort of mortgage with a huge reserve overdraft facility could give access to say £30k at 1.6%, that's what I did with the 535d.

Lastly, have you driven the M2 yet? Living with one could be quite 'interesting' :)
And if it (or anything in mind) has 'comfort access' I'd be taking steps to make things difficult for the low lifes that use the kit that takes the fob signal (constant broadcast) and sends to a 2nd low life next to the car, car unlocks and they can drive away, part of the answer is keep the key fob in a mini wallet faraday cage, my answer is swerve and avoid anything with comfort access, I can just about manage to press a button :)

Good Luck :)
 

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Discussion Starter · #18 ·
Ayup slopps, I think if able to, everyone should have a new car and/or motorbike during their lives, many of course will never do so, but having a new car is an event in itself, so been there, done that, having said that, I've ended up latterly buying at 3yrs old, 20,000 miles (think one was 22k, but close), it enabled me to buy higher spec models than I would ever entertain - like a 730d Sport when a long school run was on the cards for several years, I think the one I had was around £65k new as specced up a bit, but dropped hugely at 3yrd old, the 535d was £30k at 3yrs old with 20k miles, no idea what it was new.
Big plus point was on last two I had the 5 year pre-paid service pack on them as well!

So settle on what price point/mileage suits you, it's a personal thing, very personal, as is the finance, I wouldn't touch PCP as I want to own the car, money is still cheap if any need to borrow but like every 'person' (I use that term loosely) everyone trying to sell you anything will want as much as possible for as little given, so when I've applied in the past for loans I've had folk 'advise' me that as my credit rating was bad I could only get a loan from them at a 'special' rate from them that was very high - the advisor hadn't known my details nor that I'd run my own credit rating via Experian or Equifax and it was brilliant, there's so much absolute rubbish being spouted that won't stand up to close inspection.
Some dealers will have access to low rate finance, some won't because it's a hard thing for the poor dears to try to do, and they don't bleeding care anyway, once the cars off of their lot, onto the next!

May have mentioned previously, having the sort of mortgage with a huge reserve overdraft facility could give access to say £30k at 1.6%, that's what I did with the 535d.

Lastly, have you driven the M2 yet? Living with one could be quite 'interesting' :)
And if it (or anything in mind) has 'comfort access' I'd be taking steps to make things difficult for the low lifes that use the kit that takes the fob signal (constant broadcast) and sends to a 2nd low life next to the car, car unlocks and they can drive away, part of the answer is keep the key fob in a mini wallet faraday cage, my answer is swerve and avoid anything with comfort access, I can just about manage to press a button :)

Good Luck :)


thanks for that, really appreciate these responses, its all food for thought.
i made a similar thread on pistonheads and i am considering PCP Purely as a way to save money, if dealers can offer contributions etc - and then i pay it off early, to negate any impact of increased rates.
So there seems to be a number of ways to go about this to finance at the cheapest possible rate.

I either succumb to my temptation right now, put down an 8k deposit, PCP the rest, and then each month pay in twice as much as the PCP monthly payment to offset the interest effect, Or, my original plan, which was wait another 6 months, put down a 15k deposit and just have a simple bank loan.

as you say though, i would like to Own the car, but then i'm not sure how different the ownership experience is if i PCP it, i suppose in everything other than legal documentation i "own" it (i don't, but in terms of living with the car day to day it'd be no different right?! i suppose i couldn't make any Mods to the car).

Interesting on the comfort access - didn't realise that. It was one of the options i wanted because, it is handy, and i had an FK2 Type R for 1 year which had it and i did like it a lot.
Same goes for the ride, I have no problems with stiff ride quality. That FK2 was pretty hardcore and i had no issue, it was comfortable enough for me on motorways, and i did 15k miles in it.

The other issue i'm trying to figure out is the depreciation - and whether i should buy nearly new or used, and how much i'd lose in depreciation in both cases.
can't decide whether to go for a "cheap" M2 for 36-37k, that's 1-1.5 years old with 5-10k miles on it, or for aother £5k get a nearly new LCi updated one for £41k.
 
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