[225_AB]

I know that this topic has been discussed before but I am looking for some views. I pick up my new m235i tomorrow having had a 640d on a contract hire lease. I was going to set up a pcp 4.9%apr. I was going to do this as it gives me a gfv at 4 years of 16k and so more flexibility to change cars at 4 years but now I think this car might be a keeper. This makes me wonder if I should pay cash and thus save the interest charges as I will be earning a pitiful interest rate on my cash. Dealer is trying to get me to stick to pcp as they will make money out of it. Any thoughts?

[phil200tdi]

Pay Cash and order via Drivethedeal or other site..

[doughboy]

+1 pay cash and get it cheaper via a broker (from a dealer in the end though).

Ohh, too late, you're collecting tomorrow!

Finance is rarely cheaper than cash, as you said, too many other people making money on the finance.

In my experience, the GMFVs are always low to reduce their risk exposure, so you pay more then they will try to shaft you again at trade in.

I always bought mine at balloon, then sold privately for more (50% more than GMFV both times)

Actually wth the 335i, I sold it at 4.5yrs for 50% more than the GMFV / ballon at 3yrs! Robbers

At present rates anyway, cash if you have it and are happy to risk the future value.

[225_AB]

Thanks guys. Bought it from the dealer who got close to DTD price but with very quick delivery. Might well pay cash.

[Dannyrado]

Pay cash. I've never managed to bring myself to pay interest when I have the money, and as you say it's doing nowt in the bank these days.

[225_AB]

Agree mate with current interest rates think I am going to pay cash. Dealer won't like it.

[gangzoom]

Interest rates are due to go up though, so your £40k lump sum might start earning half decent returns again or could clear a bit of mortgage (if you still have one)....

We were planning on getting a new XF to replace the Civic in the next 6-12 months but I think for us at the moment the cash is better spent help clearing the mortgage before rates start rising....Every time I see my mortgage payment I want to cry...60% of the payments each month is pure interest/profit for the bank....surely that as bad as any pay day loan company

[225_AB]

Here what you are saying but I think the rate rises will be modest

[gangzoom]

Originally Posted by doc_ab

Here what you are saying but I think the rate rises will be modest

2% by end of 2015 or something like that? So yeah still much lower than previous....I think am just tight, I hate giving money to people for doing no work, hence hate loans....Enjoy the M235i, the review for it sound amazing

[bungleaio]

A bit late but it might help someone else.

If the dealer is offering a good contribution take the PCP then paying it off within 14 days looks like the best way to me.

[gangzoom]

Originally Posted by bungleaio

A bit late but it might help someone else.

If the dealer is offering a good contribution take the PCP then paying it off within 14 days looks like the best way to me.

I've wondered about doing this before, is there nothing written in the contract about early settlement figures etc?? Seems like a very easy way to get a good discount if you can good deal because your buying on finance, and than just clear the finance without ever paying a £ of interest?

[225_AB]

Well I told them that I would take the PCP originally but nothing down on paper as they just wanted to get the deal done as they had a very early build slot and wanted to boost their quarter end figures. I e mailed them a few days ago to say I was thinking of paying cash and they didn't sound very happy. Due there this afternoon so will go with the cash unless they come up with a deposit contribution which I doubt as I received a pretty good discount and delivery within 4 weeks as the lead time on these is now about 12 weeks. I will let you know how I get on.

[gangzoom]

Originally Posted by doc_ab

Well I told them that I would take the PCP originally but nothing down on paper as they just wanted to get the deal done as they had a very early build slot and wanted to boost their quarter end figures. I e mailed them a few days ago to say I was thinking of paying cash and they didn't sound very happy. Due there this afternoon so will go with the cash unless they come up with a deposit contribution which I doubt as I received a pretty good discount and delivery within 4 weeks as the lead time on these is now about 12 weeks. I will let you know how I get on.

Keep us updated, have a good look at the small print for the PCP, I've read an Nissan one that does seem to suggest you can sign on the dotted line, and than phone up with in 14 days, cancel the deal and instead pay the full amount in cash....I presume if you did that your keep the dealer happy (and their 'contribution'), and save a decent amount of paying no interest ?

[225_AB]

Collected the car, they didn't offer any extra incentive so just paid cash. Went for a short drive, it's great fun!

[rufnekfatboy]

Did "ONE" get a stirring in the nether regions when "ONE" pulled away???

Get some pics up son!!!

[gangzoom]

Any pics? For some reason I find the M235i to be more appealing than the M135i....Did you look at LSD option? I had a look at the BMW website and it doesn't list it any where