Thread: UK Orders
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      12-07-2012, 02:29 AM   #2308
Squadron Leader

Drives: X3 2.0d M Sport - DSB Manual
Join Date: Nov 2012
Location: Cumbria

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To BMW PCP or not?

Hi - has anyone got any experience of this please....?

I'm debating my options, but basically want to pay as little as possible in the way of interest charges. If I take the PCP, my intention is to pay a 40% deposit (maximum allowed). Over a 2yr period, I'll have 23 x 262 a month + the GFV / balloon payment of nearly 21k to pay. This will be front end loaded with the APR @7.5% with interest of ~3.3k.

The Dealer Business Mgr. and Sales guy both say that I'll be able to pay off chunks (without penalty) of the outstanding balance to reduce the term and the impression i get is that the interest is calculated on a daily basis, therefore the theory is that I'll reduce the interest loading if i pay off some big chunks of the balance early on. Though it appears that this doesn't happen that often for them to have much experience. The BMW UK site does not cover this scenario or anything close to it.

Has anyone done this with the PCP? If so, how did it pan out in practice?

Must add that i have no intention of changing the car after 2 years. I'm thinking about a (3 Yr) personal loan (at 5.4% APR) will be the cleanest method, but not necessarily the cheaper in terms of interest paid. (If i wanted to pay off extra - these payments would attract a penalty)

Also - got all the excel calculators thanks!

- F25 2.0d M Sport manual, DSB, black leather with fineline wave wood, Pan Sunroof, 368 M alloys, exterior trim and rails in matt aluminium, reversing camera, sun protection glass, windscreen with grey shade band, heated front seats, extended storage, powered tailgate, Xenon's, bluetooth c/w USB, DAB.