How did PCP work out in the end?

bazz26 · 27-04-2020 10:22PM

Lots of people with way too much spare time at the moment being locked up. Online sale inquiries are at their mercy and gone the way of adverts.ie

L-M · 27-04-2020 10:35PM

This has nothing to do with Covid unfortunately.

The amount of them we get from the manufacture from various sources. Ring them then

“Hello? What? Who’s this? What car? No.... I don’t want a new car. Have you any car for 5000? Where are you located again?”

L-M · 27-04-2020 10:37PM

Toyotafanboi wrote: »

You think that's bad, you'd want to see some of the service enquiries :pac:

Oh don’t worry, some of the stuff I’ve been CC’d in makes our emails look 10 times more normal

fifth · 06-05-2020 05:48PM

So I'm thinking of getting a new car for the first time and using PCP to finance it, in 2021.

I'm looking at a BMW 530e (or 545e if the rumours are true they will be adding this variant), M Sport, lci/facelift model.

Does anyone know if BMW's GMFV values have been adjusted to give a better chance of having some residuals left in the car when it comes time to trade in? I've read on here people who took low monthly PCP deals from 2016 onwards with BMW were left high and dry.

JoeA3 · 06-05-2020 09:53PM

fifth wrote: »

So I'm thinking of getting a new car for the first time and using PCP to finance it, in 2021.

I'm looking at a BMW 530e (or 545e if the rumours are true they will be adding this variant), M Sport, lci/facelift model.

Does anyone know if BMW's GMFV values have been adjusted to give a better chance of having some residuals left in the car when it comes time to trade in? I've read on here people who took low monthly PCP deals from 2016 onwards with BMW were left high and dry.

I'm not sure it makes that much difference what the GMFV is in the overall scheme of things, someone correct me if I'm wrong...

I think the reason they set them high is to keep the monthlies as low and as attractive/affordable as possible. Lower monthlies means you are kicking the can down the road and the final payment at the end is larger! Lower GMFV means you're monthly payment will be much higher. VW can set the GMFV lower while still having affordable monthlies, because their product is cheaper (Golf R's etc aside).

The problem is, the residuals on used BMW's are appalling, so you after 3-4 years your car isn't worth that much, if anything, above the GMFV, so not much equity for a trade in and the customer perceives he's been shafted.

What they might do is lower the APR's, they always tend to be higher than VAG or offer big deposit contributions.

bazz26 · 06-05-2020 10:14PM

Yep, BMW went after new customers to the brand by offering attractive low monthly PCP payments but higher GMFV balloon payments. In turn they offer poor trade in values which gave returning customers little or no equity and resulted in sending those returning customers to other brands for better deals.

mickdw · 06-05-2020 10:28PM

fifth wrote: »

So I'm thinking of getting a new car for the first time and using PCP to finance it, in 2021.

I'm looking at a BMW 530e (or 545e if the rumours are true they will be adding this variant), M Sport, lci/facelift model.

Does anyone know if BMW's GMFV values have been adjusted to give a better chance of having some residuals left in the car when it comes time to trade in? I've read on here people who took low monthly PCP deals from 2016 onwards with BMW were left high and dry.

Yes bmw figures show up everything that is bad about pcp but its their inflated pricing and poor residuals thats are the problems not the pcp.
You are right in that a lower gfv would give a more realistic deal and allow some equity at the end and being real, if someone couldnt afford the higher monthly, they couldnt afford the car anyway.
Still, i dont think there is a benefit to you in taking a lower gfv. Just go with the highest gfv they will allow and keep the saved monthly money in an account for end of the term.
This puts you in same position re being able to get into another car as if they had gone with a lower gfv but the added benefit to you is that if things go tits up, you have the walk away option. If you pay in far more to suit the lower gfv, walking away will be costing alot of money.
Finally, if you are hell bent on the lower gfv, you could just sign up for a high mile deal. All they do then is lower the gfv making your monthly higher and meaning you owe less at end as they expect your high mile car to be worth less. If you then arrive at year 3 with your pristine low mile car, you should have more equity but still much more sensible to keep the money to one side yourself and have more options at end.

carsfan2 · 06-05-2020 10:35PM

This is BMW's current pcp offer on the 5 series

https://discover.bmw.ie/bmwoffers/bmw-5-series/

I haven't a clue if that is good or bad GFV but I do know that the hybrids are very cheap to import due to high UK depreciation, cheap sterling and low vrt here.
That makes pcp on a new one tricky. Might be better to buy a slightly used one and go for a traditional loan, you might end up spending similar money and own it at the end of three years as opposed to owing a GFV.

mickdw · 06-05-2020 10:44PM

Yes, much more sensible to buy a slightly used one in uk if a private buyer.

fifth · 06-05-2020 11:09PM

Cheers all.

I'll be doing low mileage and mostly urban driving so the hybrid works and a low mileage plan suits me, I would do around 10,000km a year as I work from home.

Deposit wise, i'd kick in around 10/11k - so somewhere in the middle between min/max deposit. I'd have the cash in savings to buy it outright at the end but not sure I'd want to buy/roll into another or walk away yet. So having a higher GFMV doesn't bother me too much, and having the cash there if needed is preferable.

As regards to buying a slightly older/used model, I'm waiting for the LCI / facelift due in Jan 2021 (it'll likely result in slightly better residual come when the 3 years is up) I am hoping the interest rates might drop a little lower than 2.9% by the time and maybe there'll some decent deposit contributions to get sales going after the economic slump.. also hoping the SEAI grants remain in place.

bazz26 · 06-05-2020 11:14PM

I think the LCI model is due in the next few months. I wouldn't hold my breath on BMW offering 2.9%, I think the lowest they normally go is 3.9%.

fifth · 06-05-2020 11:27PM

bazz26 wrote: »

I think the LCI model is due in the next few months. I wouldn't hold my breath on BMW offering 2.9%, I think the lowest they normally go is 3.9%.

Before 2021?

Oh yeah ..just saw it's 3.9% on that link. I was looking at an older brochure from 2019 where it lists 2.9% APR https://www.discoverbmw.ie/191/wp-content/uploads/2019/04/191-5-Series.pdf

bazz26 · 07-05-2020 12:06AM

fifth wrote: »

Before 2021?

Oh yeah ..just saw it's 3.9% on that link. I was looking at an older brochure from 2019 where it lists 2.9% APR https://www.discoverbmw.ie/191/wp-content/uploads/2019/04/191-5-Series.pdf

https://www.autoexpress.co.uk/bmw/5-series/107482/new-2020-bmw-5-series-facelift-spotted-testing

07-05-2020 09:25AM

fifth wrote: »

Cheers all.

I'll be doing low mileage and mostly urban driving so the hybrid works and a low mileage plan suits me, I would do around 10,000km a year as I work from home.

Deposit wise, i'd kick in around 10/11k - so somewhere in the middle between min/max deposit. I'd have the cash in savings to buy it outright at the end but not sure I'd want to buy/roll into another or walk away yet. So having a higher GFMV doesn't bother me too much, and having the cash there if needed is preferable............

PCP on a 530e will be approx €40k over 3 years with €20k+ balloon payment.

I'd not pay €13k/annum in depreciation to drive 10k kms a year for 3 years and then have effectively nothing to show for it except an option to buy at €20k+.

L-M · 07-05-2020 09:36AM

Augeo wrote: »

PCP on a 530e will be approx €40k over 3 years with €20k+ balloon payment.

I'd not pay €13k/annum in depreciation to drive 10k kms a year for 3 years and then have effectively nothing to show for it except an option to buy at €20k+.

Then you probably shouldn’t buy a new car... lol

ELM327 · 07-05-2020 09:48AM

fifth wrote: »

So I'm thinking of getting a new car for the first time and using PCP to finance it, in 2021.

I'm looking at a BMW 530e (or 545e if the rumours are true they will be adding this variant), M Sport, lci/facelift model.

Does anyone know if BMW's GMFV values have been adjusted to give a better chance of having some residuals left in the car when it comes time to trade in? I've read on here people who took low monthly PCP deals from 2016 onwards with BMW were left high and dry.

That would be a poor choice.
Get a used one from the UK, they depreciate heavily in year 1 and 2.

carsfan2 · 07-05-2020 11:13AM

5 series LCi is due to start production in July.
As others have said including me, buying one new on pcp is not the cheapest option but may suit you.
There is going to be a 520e and 320e too apparently.

This is a great source of future BMW info including start and end of production dates of all the models.

https://f87.bimmerpost.com/forums/showthread.php?t=901686

bazz26 · 07-05-2020 11:22AM

Buying a brand new 530e makes very little sense as depreciation is steep due to cheaper ones coming in from the UK. I do get it though that access to a brand new one via PCP is probably easier though.

fifth · 07-05-2020 11:43AM

If production on the LCI model is starting in July then possibly end of 2020, or Jan 2021 could look at importing a 2019 LCI from the UK either. I've enough to mull over now and I'll get some PCP figures as well from the dealership when they reopen.

sdevine89 · 07-05-2020 11:56AM

Seems to be a lot of knowledge in this thread so might as well ask. I am driving a 182 3 Series BMW. PCP deal ends in July 2021. I pay €757 a month and paid a deposit of €5,000. GMFV of €16k (can't dig out the exact number down to the euro right now on my phone).

I have no problem continuing with the payments thankfully at the moment but my question is more so is this a time to be looking to upgrade early and roll in to another PCP, or what would your game plan be? I still like the car etc but will want to certainly chance it in 12 months time.

That said, if I have made a mistake and been burned on depreciation etc, I will just finance the remaining 15k over 3 years with a bank loan, would be a lower monthly repayment and just keep driving the car. Ultimately I'm trying to make the best financial decision this time.

Lantus · 07-05-2020 12:45PM

Well car sales are crippled and over the next 6 months I would expect to see multiple dealers close for good. If you want to buy new you will need a new deposit. Your equity as is nearly everyone's is zero.

You may have an option to hand the car back and buy the same age for less or a newer car for same if prices drop far enough. Food for thought. Bar that I would pay off and keep.

Edit, just seen its next year. I would try to save 200 to 300 each month or more if possible to take a chunk out of gmfv or use as deposit on next car. But its a long way off. No one can predict the state of global economy let alone the car segment.

bazz26 · 07-05-2020 01:00PM

sdevine89 wrote: »

Seems to be a lot of knowledge in this thread so might as well ask. I am driving a 182 3 Series BMW. PCP deal ends in July 2021. I pay €757 a month and paid a deposit of €5,000. GMFV of €16k (can't dig out the exact number down to the euro right now on my phone).

I have no problem continuing with the payments thankfully at the moment but my question is more so is this a time to be looking to upgrade early and roll in to another PCP, or what would your game plan be? I still like the car etc but will want to certainly chance it in 12 months time.

That said, if I have made a mistake and been burned on depreciation etc, I will just finance the remaining 15k over 3 years with a bank loan, would be a lower monthly repayment and just keep driving the car. Ultimately I'm trying to make the best financial decision this time.

I'd say a BMW dealer will want very strong cost to change money as your 182 3 Series is probably the old model. The new model jumped significantly in price over the old model plus BMW dealers are not known for being charitable when it comes to pricing trade ins so you might not have much equity in your current car.

At the end of the day you need to work out how much the new car is actually costing you over the 3 years as these costs can easily be hidden in monthly figures which most people only focus on.

carsfan2 · 07-05-2020 01:03PM

sdevine89 wrote: »

Seems to be a lot of knowledge in this thread so might as well ask. I am driving a 182 3 Series BMW. PCP deal ends in July 2021. I pay €757 a month and paid a deposit of €5,000. GMFV of €16k (can't dig out the exact number down to the euro right now on my phone).

I have no problem continuing with the payments thankfully at the moment but my question is more so is this a time to be looking to upgrade early and roll in to another PCP, or what would your game plan be? I still like the car etc but will want to certainly chance it in 12 months time.

That said, if I have made a mistake and been burned on depreciation etc, I will just finance the remaining 15k over 3 years with a bank loan, would be a lower monthly repayment and just keep driving the car. Ultimately I'm trying to make the best financial decision this time.

Can you be more specific on what model 3 series you bought?
Also, are you someone who likes to change cars every few years or are you happy to keep a car for a long time? Do you like cars or is it just a way to get from A to B?

mickdw · 07-05-2020 02:09PM

If its an old model 3 series, you wont be doing well by trading now or at end of term. If you bought the old model that late in its life, this is what is going to cost you money. If you have the new model (not sure when first available), you should do ok at end of term.

07-05-2020 02:10PM

L-M wrote: »

Then you probably shouldn’t buy a new car... lol

oh lol, we/ve a real smart arse don't we.
I'd say you'd not be buying much new yourself either .........
There are countless new cars that don't cost 40k over the first 3 years in depreciation BTW, I'd have thought a car sales professional would have realised that the 530e on PCP was appalling value. It mustn't have been in your training manual.

sdevine89 · 07-05-2020 02:14PM

carsfan2 wrote: »

Can you be more specific on what model 3 series you bought?
Also, are you someone who likes to change cars every few years or are you happy to keep a car for a long time? Do you like cars or is it just a way to get from A to B?

182 BMW 318i 1.5litre. Black Sapphire & Black Dakota Leather. Automatic.

Professional Media Package (professional navigation system and digital cockpit), 17inch wheels, Reversing Camera, electric folding mirrors, sports seats, Park Distance Control (front and rear), Adaptive LED Headlights, High-Beam Assistant, Apple Car Play.

30,000km on the clock. (20,000km per year allowed)

This was my first car as it happens but generally with most things I'd like to keep pace when it comes to technology etc. I like my car, I like to keep it in good nick etc but I'm not the type who goes to Cars & Coffee etc. Being honest the tech and user interface in the car is probably more important to me than it's engine size or 0-100kmp/h time.

It has to have its first service soon so I'm going to ask Frank Keane what they think. Tbh I'm leaning towards just keeping it and financing the remaining 15,500. If I keep paying off at 800 a month I'd own it outright in no time.

Lantus · 07-05-2020 05:08PM

sdevine89 wrote: »

This was my first car as it happens but generally with most things I'd like to keep pace when it comes to technology etc. I like my car, I like to keep it in good nick etc but I'm not the type who goes to Cars & Coffee etc. Being honest the tech and user interface in the car is probably more important to me than it's engine size or 0-100kmp/h time..

Most cars allow a smart phone to be plugged. The other stuff is flourish but doesn't change the car fundamentally. Car sounds great. I would drive and enjoy for many more years. If you want to change then start saving now to prepare for all eventualities. Whatever you do a pot of cash will ease the process considerably.

carsfan2 · 07-05-2020 06:30PM

sdevine89 wrote: »

182 BMW 318i 1.5litre. Black Sapphire & Black Dakota Leather. Automatic.

Professional Media Package (professional navigation system and digital cockpit), 17inch wheels, Reversing Camera, electric folding mirrors, sports seats, Park Distance Control (front and rear), Adaptive LED Headlights, High-Beam Assistant, Apple Car Play.

30,000km on the clock. (20,000km per year allowed)

This was my first car as it happens but generally with most things I'd like to keep pace when it comes to technology etc. I like my car, I like to keep it in good nick etc but I'm not the type who goes to Cars & Coffee etc. Being honest the tech and user interface in the car is probably more important to me than it's engine size or 0-100kmp/h time.

It has to have its first service soon so I'm going to ask Frank Keane what they think. Tbh I'm leaning towards just keeping it and financing the remaining 15,500. If I keep paying off at 800 a month I'd own it outright in no time.

Sounds like a lovely nicely specced car.
the new G20 is a big improvement on the f30 and a lot more tech in it.
If post lockdown , to promote sales BMW were offering deposit contributions and lower apr and you could get the 5k deposit back out of the car as equity it might be a good time to pounce on a deal and get into the current model.
Otherwise hold on to what is a good car.

sdevine89 · 07-05-2020 06:38PM

Really appreciate the feedback, thanks for taking the time to respond. I'll post up here if they make me an offer of a new car etc, in the mean time I'll get my saving boots on.

L-M · 07-05-2020 10:20PM

Augeo wrote: »

oh lol, we/ve a real smart arse don't we.
I'd say you'd not be buying much new yourself either .........
There are countless new cars that don't cost 40k over the first 3 years in depreciation BTW, I'd have thought a car sales professional would have realised that the 530e on PCP was appalling value. It mustn't have been in your training manual.

I wasn’t trying to be smart I was more having a go at the depreciation rate of any new car and it’s relative. Someone who can afford a 30k car to lose 15k is as much as someone who have afford a 60k car to lose 30.

How did PCP work out in the end?

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