PCP refinance at end of contract

sailing

Have a nice BMW M Sport shadow edition under PCP. It’s my second car under PCP. Contract will be up later in the year. I predict I’ll be more than 25000km under the contract mileage. As we have a little fellow since it was taken out and my priorities have changed I’m not really interested in changing again. The car is still practically like new as we have a second larger car for family traveling. Question is can I simply refinance with BMW for another number of years at the end of the contract and keep the car or would I need to finance externally? Will give them a call but just wondering if anyone has gone down this road before.

Thanks

Telly

When I was buying my new car they were pushing PCP on me and I said no way would I have the money to buy it out after 3 years and they told me I could refinance the difference with them if I wanted to keep it.

van_beano

Would the refinance interest rate be higher than the PCP interest rate though? It may be cheaper refinancing with a Credit Union or other financial institutions.

bazz26

sailing wrote: »

Have a nice BMW M Sport shadow edition under PCP. It’s my second car under PCP. Contract will be up later in the year. I predict I’ll be more than 25000km under the contract mileage. As we have a little fellow since it was taken out and my priorities have changed I’m not really interested in changing again. The car is still practically like new as we have a second larger car for family traveling. Question is can I simply refinance with BMW for another number of years at the end of the contract and keep the car or would I need to finance externally? Will give them a call but just wondering if anyone has gone down this road before.

Thanks

Yes you should be able to refinance the balloon payment but it will be standard Hire Purchase finance as opposed to PCP. With Hire Purchase the APR will probably be higher so my advice is shop around the various banks and lending institutions too for the best rate. You don't have to stay with BMW.

James Bond Junior

Been there done that. Balloon payment was about 66% of the equity for our car. A CU loan over 3 years came in at roughly the same as the PCP payments but we cleared it in full after 6 months when we sold it and got way more than what we had paid off. Just call BMW finance and tell them you want to pay your balloon about a month before the final PCP is due.

ShadowHearth

Not sure how it's with BMW, but I am sure very similar.
You can refinance balloon payment with them. Most likely it will be higher apr then pcp, but lower then personal loan from bank in credit union.
You don't need to refinance whole sum. If you want you can put some of your own amount and refinance rest. There might be a minimum limit though. Seat for example has 5k minimum.

nkay1985

ShadowHearth wrote: »

Not sure how it's with BMW, but I am sure very similar.
You can refinance balloon payment with them. Most likely it will be higher apr then pcp, but lower then personal loan from bank in credit union.
You don't need to refinance whole sum. If you want you can put some of your own amount and refinance rest. There might be a minimum limit though. Seat for example has 5k minimum.

I had the same experience in May of last year. The re-finance rate that they had was about 2% less than the best I could get elsewhere but that's with VW bank (Seat) so not sure how BMW will work out but worth asking the question anyway. You can finance the remaining amount whatever way you choose.

U_Fig

Shop around, banks, credit unions, that dodgy fellow down the road who gives personal loans and go with the lowest rate. You are under no obligation to refinance with BMW but if their rate is competitive then use it.