i3 PCP, do not do it

Yawlboy

I bought my i3 ReX in Nov 2015 on PCP, it was €58k with all the options before rebates etc. Due to personal circumstances I now need a 5 seater. I asked BMW Finance for the settlement options. They said I could hand it back with no additional payments or trade it in against another car if I wanted as I should have equity in the vehicle, they said they thought it would be €4/5k.

So my local BMW dealer, where I bought the i3, asked me to come in and have a chat. They said I owed €26k on the car and that they would give me €22k for it.... :eek

I was a little confused as they seemed to want €4K from me on a car I could just hand back, but apparently that’s what they wanted......

So Wilson Auctions collected my i3 ReX this morning and I’m looking at a Mercedes today.

Really sad end to one of the most amazing cars I’ve ever owned and really disappointing service from BMW.

enricoh

So it cost 35k for just over 2 years motoring? Strewth! If correct, i couldn't justify a BMW if I won the lotto, it'd have to be euromillions !

Dont be at yourself

It's not PCP that's then issue here; it's the high price/rapid depreciation.

Calahonda52

enricoh wrote: »

So it cost 35k for just over 2 years motoring? Strewth! If correct, i couldn't justify a BMW if I won the lotto, it'd have to be euromillions !

He says 58 BEFORE...., just to maximise the drama

Fann Linn

So let me get this right.
The op spent €35k to drive a car for 3 years.
And then has to hand it back.

Is that what happened?

unkel

Yawlboy wrote: »

So Wilson Auctions collected my i3 ReX this morning

So what do you expect to happen next? You reckon your car will make more than €26k at auction? If it does, it's better for you than just handing the car back now. If it makes less than €26k, you will have to pay the €26k you owe to the finance company, so you'd be at a loss

Very risky strategy in my book...

Also I'm not sure where BMW is to blame in any of this?

stesaurus

Are you putting it through auction yourself? You could have handed it back under the half rule, you're probably pretty close if not over the mark on that

unkel

stesaurus wrote: »

You could have handed it back under the half rule, you're probably pretty close if not over the mark on that

He's aware of that. See his OP. "They said I could hand it back with no additional payments"

I would have handed it back. Problem gone (although a mark on his credit history). I could be wrong, but I very much doubt the car will fetch over €26k at auction...

jhegarty

€22k sounds about right. It cost me €21k to import a December 2014 i3 rex this time last year.

unkel

jhegarty wrote: »

€22k sounds about right. It cost me €21k to import a December 2014 i3 rex this time last year.

The model is getting on a bit and other options are now (or soon) more viable. €21k for a high spec 3 year old i3 last year was decent value. It would be a lot less so now.

Yawlboy

Don’t want to cause offense I was trying to point out the issues with PCP as far as an i3 goes.

I told BMW finance that I was handing back under the half rule and they sent Wilson Auctions to collect it.

In total I paid just over €25k for 26 months with my i3

testicles

This post has been deleted.

stesaurus

Yawlboy wrote: »

Don’t want to cause offense I was trying to point out the issues with PCP as far as an i3 goes.

I told BMW finance that I was handing back under the half rule and they sent Wilson Auctions to collect it.

In total I paid just over €25k for 26 months with my i3

Oh interesting. I dropped mine back to a main dealer after opting for the same. It's still there as I haven't removed access under the connected app yet.
I would have thought they'd need to service it with a dealer before auction, seems an odd choice from them.

Did you get hit for any excess mileage?

Yawlboy

stesaurus wrote: »

Did you get hit for any excess mileage?

The car has 19500 kms on it - I only did 4000 in the last 12 months as I'm working in the UK and only back at weekends. I'd based the finance on 15000kms per annum.

Soarer

Yawlboy wrote: »

In total I paid just over €25k for 26 months with my i3

Now that's a reason not to do PCP.

draiochtanois

This post has been deleted.

KCross

Soarer wrote: »

Now that's a reason not to do PCP.

Not sure its PCP's fault.

If you buy any €50k new car(PCP or cash) and sell it within 2yrs you are going to be down that kind of money.

Selling early is always going to sting more.

Yawlboy

Yawlboy wrote: »

The car has 19500 kms on it - I only did 4000 in the last 12 months as I'm working in the UK and only back at weekends. I'd based the finance on 15000kms per annum.

The car will be a cracking second hand buy for somebody if they get it at a right price.

Pity that it didn't work for you due to change of circumstances but I bet you enjoyed the past two years on the helm.

Mooooo

Did you try a different dealer / brand? Another garage may have given more for it

ELM327

paging Mad Lad

unkel

testicles wrote: »

This post has been deleted.

Perhaps I didn't word it right. But when you take on a contract like hire purchase / PCP, all your payments (and hence your non-payments) will be sent to the Irish Credit Bureau.

Now I don't know who has access to what data in there, maybe future lenders aren't allowed full access to everything about you in there. But fact is, your data is in there.

unkel

draiochtanois wrote: »

This post has been deleted.

You can, brilliant (but expensive) yokes, those multimacs. Not quite sure though what the insurance standing is on carrying 5 people in a car designed for only 4. I would want a confirmation in writing from my insurance company that it fully complies.

Patser

samih wrote: »

The car will be a cracking second hand buy for somebody if they get it at a right price.

Where'd you say it was on sale?

stesaurus

unkel wrote: »

Perhaps I didn't word it right. But when you take on a contract like hire purchase / PCP, all your payments (and hence your non-payments) will be sent to the Irish Credit Bureau.

Now I don't know who has access to what data in there, maybe future lenders aren't allowed full access to everything about you in there. But fact is, your data is in there.

It is supposed to read like ending a finance agreement through a settlement. The same way if you decided to pay off early and purchase the car outright.
I'll be requesting a new ICB shortly to make sure but that's how it should work in theory.

stesaurus

Patser wrote: »

Where'd you say it was on sale?

Keep an eye here I guess:
https://www.wilsonsauctions.com/upcoming-auctions?location=Dublin&category=Car

Casati

V odd that the BMW dealer are sending that car to auction isn’t it? Surely they could charge top dollar for it as a low mileage high spec I3

Seems to be mad depreciation for two years. One obviously point is that registering in December is a bad idea as your car is three years old after 25 months

unkel

stesaurus wrote: »

It is supposed to read like ending a finance agreement through a settlement.

That makes sense. I payed off (after negotiation) a significant part of (but not the full) balance owned by someone else to an institution, based on an old credit card balance. They got a letter that a full and final settlement was reached. It does have implications for their credit record, but it was relatively minor and it was only temporary (I don't recall the exact details)

stesaurus wrote: »

I'll be requesting a new ICB shortly to make sure but that's how it should work in theory.

Would be great if you found out and posted it here. I'd never enter a PCP arrangement myself, but thousands of people do, without fully understanding the implications. If we can make it clearer, for sure it will help some people make better decisions!

ewj1978

Yawlboy wrote: »

I bought my i3 ReX in Nov 2015 on PCP, it was €58k with all the options before rebates etc. Due to personal circumstances I now need a 5 seater. I asked BMW Finance for the settlement options. They said I could hand it back with no additional payments or trade it in against another car if I wanted as I should have equity in the vehicle, they said they thought it would be €4/5k.

So my local BMW dealer, where I bought the i3, asked me to come in and have a chat. They said I owed €26k on the car and that they would give me €22k for it.... :eek

I was a little confused as they seemed to want €4K from me on a car I could just hand back, but apparently that’s what they wanted......

So Wilson Auctions collected my i3 ReX this morning and I’m looking at a Mercedes today.

Really sad end to one of the most amazing cars I’ve ever owned and really disappointing service from BMW.

Dude! That's a tough one.

thierry14

Dont be at yourself wrote: »

It's not PCP that's then issue here; it's the high price/rapid depreciation.

Thats basically it

Few months old i3's can be had for under 30k Inc vrt from the UK

22k for OP`s 3 year old one was very generous from BMW

Anyone that buys a brand new car is mad, depreciation is just killer

https://www.autotrader.co.uk/classified/advert/201711241547154?advertising-location=at_cars&advertising-location=at_cars&year-from=2017&postcode=m52ty&model=I3&page=1&make=BMW&onesearchad=Used&onesearchad=Nearly%20New&onesearchad=New

Gumbo

This it?


https://www.donedeal.ie/view/17915056

spyderski

Presuming it is, it’s a 3 yr old niche model car with a **** load of scrapes and a Cork reg. Judging by the photos there’s at least €1k worth of work to be done to get that car into showroom condition.

Basically, You paid too much for a high spec niche model car, didn’t look after it, and are looking to get out. In fairness, that’s what you’d lose on any prestige car % wise over the time. A new i3 has similar % depreciation to a 7 series, so no big shock really.

Maybe stay away from €58k (?) EV’s for a while...

thierry14

kceire wrote: »

This it?


https://www.donedeal.ie/view/17915056

Would they take 15k for it I wonder?

What will it go for?

Depreciated like crazy and not even driven

Its pretty sad, as its a nice car

spyderski

€15k is about right, given it’s a no-warranty auction and the car needs money spent. It’s a car which a dealer will advertise at €25k, with a warranty and a bit of profit. If it breaks €16k at auction I’d definitely be surprised.

spyderski

Now that I think of it, how does someone put so many scrapes on such a small car in such little mileage? With parking sensors and a reversing camera...

jhegarty

kceire wrote: »

This it?


https://www.donedeal.ie/view/17915056

Nice spec. With rex , ccs , self parking and the upgraded satnav it covers the options most people want.

jhegarty

spyderski wrote: »

€15k is about right, given it’s a no-warranty auction and the car needs money spent. It’s a car which a dealer will advertise at €25k, with a warranty and a bit of profit. If it breaks €16k at auction I’d definitely be surprised.

Should still have 10 months left on the BMW warranty.

spyderski

jhegarty wrote: »

Nice spec. With rex , ccs , self parking and the upgraded satnav it covers the options most people want.

Self parking must need a software update given the state of the bumpers..

Soarer

spyderski wrote: »

Presuming it is, it’s a 3 yr old niche model car with a **** load of scrapes and a Cork reg. Judging by the photos there’s at least €1k worth of work to be done to get that car into showroom condition.

Basically, You paid too much for a high spec niche model car, didn’t look after it, and are looking to get out. In fairness, that’s what you’d lose on any prestige car % wise over the time. A new i3 has similar % depreciation to a 7 series, so no big shock really.

Maybe stay away from €58k (?) EV’s for a while...

Are you sure they're scrapes, and not just the reflections from the lights?
How do you know the OP didn't look after it?
And how do you know the OP "paid too much"?

Top patronising btw. Very classy.

Yo people, I got hailed here I am !

Yes very expensive car from new with all the extras that's why I got a 9 month old ex Demo (9,500 Kms) if I were to buy it outright it would cost 37,500 + interest. That's a huge saving straight away. I got lucky !

I'm still a fan of PCP even after the Leaf, I got no surprises and everything was as I predicted.

This time around it will cost me more but because the interest is much lower even giving the extra cost of the car the total repayments will be about 6 K more than the 24 Kwh SVE Leaf. And boy will it be worth it, amazing car !

You can spec up a Golf or A3 to crazy money and loose a lot on depreciation.

PCP don't do it ? nonsense, whether you pay via PCP or finance you will pay depreciation you just pay a lot more per month on regular finance and take on the full cost of depreciation and will most likely have to live with it for 5 years as a result paying even more in interest.

Del2005

Soarer wrote: »

Are you sure they're scrapes, and not just the reflections from the lights?
How do you know the OP didn't look after it?
And how do you know the OP "paid too much"?

Top patronising btw. Very classy.

The 1st picture is reflection on the lights but there are a few close ups of damage, on a low mileage car that's not a good sign.

The damage is old so they didn't repair damage on a €60k car.

Anyone who tops out the specs on a car pays too much. Extras make a 2nd hand vehicle easy to sell, very few ad money to the sale price.

OldMrBrennan83

This post has been deleted.

spyderski

Patww79 wrote: »

Needs? It's only cosmetic, you'd swear it wasn't running something.

You’re right. Nobody should worry about cosmetic damage to a 3 year old €58k car. As long as it runs, that’s the main thing.

OldMrBrennan83

This post has been deleted.

Widdensushi

spyderski wrote: »

You’re right. Nobody should worry about cosmetic damage to a 3 year old €58k car. As long as it runs, that’s the main thing.

Will you be bidding?

Soarer

Del2005 wrote: »

The 1st picture is reflection on the lights but there are a few close ups of damage, on a low mileage car that's not a good sign.

The damage is old so they didn't repair damage on a €60k car.

Anyone who tops out the specs on a car pays too much. Extras make a 2nd hand vehicle easy to sell, very few ad money to the sale price.

You might point out the ones with the damage, 'cause I genuinely can't tell.

spyderski

Soarer wrote: »

Are you sure they're scrapes, and not just the reflections from the lights?
How do you know the OP didn't look after it?
And how do you know the OP "paid too much"?

Top patronising btw. Very classy.

Yes I’m sure, because I have functioning eyes, and so does the Auctioneer who took the photos.

Because it’s scraped to shyte (but sure it’s only cosmetic).

Because he paid €58k for an i3.

Thanks.

Any other questions?

spyderski

Widdensushi wrote: »

Will you be bidding?

As it happens, I might. Not a great colour combo though. Will have a look early next week and let ye know.

Soarer

spyderski wrote: »

Yes I’m sure, because I have functioning eyes, and so does the Auctioneer who took the photos.

Because it’s scraped to shyte (but sure it’s only cosmetic).

Because he paid €58k for an i3.

Thanks.

Any other questions?

You might have functioning eyes, but it's obviously in lieu of brain function.

He didn't pay €58k for an i3.

Don't try be clever. It doesn't suit you.

spyderski

Soarer wrote: »

You might have functioning eyes, but it's obviously in lieu of brain function.

He didn't pay €58k for an i3.

Don't try be clever. It doesn't suit you.

OK. He bought a €58k i3. And by the fact that this thread exists, the OP has experienced more depreciation than he anticipated, when in fact the value of the car is pretty much exactly where I’d have anticipated it would have been given condition and vehicle type.

If he’s surprised and unable to live with the depreciation, he should have spent less on his EV. I’ve no problem with people blowing their money on cars, I’ve done it plenty myself, but a bit of research before purchase would prevent people blaming PCP for massive depreciation on a prestige EV.

The method of paying for the car has precisely ZERO to do with the problem the OP has encountered. In fact, I’d he wasn’t on a PCP he’d be feeling the pain much more.

thierry14

Soarer wrote: »

You might have functioning eyes, but it's obviously in lieu of brain function.

He didn't pay €58k for an i3.

Don't try be clever. It doesn't suit you.

58k before rebates OP said, which is insanity

PCP does hide that with clever low repayments

Aren't you so clever judging peoples intelligence btw

Everyone with an EV is a genius it seems

That i3 looks rough, you must be blind if you can't see that

Heres Johnny

So if I have this right now the car was purchased for 47k and 25 months later (albeit 3 years on a reg plate) it was worth 22k. So it's 1k depreciation a month?

Fine. It's savage depreciation. Devalued British pound. Technology increasing at a dramatic rate. The quest for new reg plates by consumers. All contributory factors.

It wasn't really the fact that it was on pcp that caused this. If the op bought in cash and handed over a suitcase of 50 euro notes it would still have depreciated by 1k a month. Which is more than my mortgage.

However, what is also fuelling depreciation is the fact it enables people to drive away in new cars they can't afford while ignoring the second hand cars they can afford and should really be looking at instead.

Demand for new cars goes up, demand for used cars goes down, used prices go through the floor. Especially prevalent on premium brands. Especially bmw judging by this forum.

It's not the fact that op bought on pcp that's the problem, it's that pcp exists at all. At the same time as brexit and a devaluing pound.

Although now that I think of it premium cars have always tanked in value.
In 2008 I bought a 2001 530i sport low mileage for 8k. Original invoice was in the car and it was 74k new with options. So my 7 year old car was 11% of the new value.
In 2013 I bought a 2004 525i sport for 2.5k. I don't think it would have been as pricey as the 530i but would have been a 60k car anyway. So my 9 year old car was about 4% of it's new value.
Finally I bought a 2006 e60 sport 525i last year for 4k. It was 67k list price but it has options on it so that represented about 6% of new value after 11 years.

Thread title just should be don't buy a premium car new at all if the resale value is important to you and is likely to financially impact you adversely. Or indeed any car if it stretches you too much. Forget about the reg plate and just look back the years a bit. Loads of beautiful expensive cars came on the market in last decade that can be picked up for peanuts now. In a few years buy the car you want to buy now but can't really afford or would prefer the money for something else.

Repeat process every few years. Don't get duped in by promises it's much more fuel efficient that outgoing model. In a lab, yes maybe but not in reality. And low monthly repayments. If you want a 50k car and can't afford to buy it traditional way, you can't afford pcp either.

However if you can afford new, then go for it. A new car is a wonderful thing. Just dont end up resenting it.