New Car

[Mudball]

I just realised the next wave of customer lock-ins. The PCP balloon payment these days now seem to be much higher than residual value. At the point of sale, the sales talk is all about how you will get a high residual value, but the reality is that a new car depreciates very quickly. So my old BMW run around had about 9.5k balloon after 4 years. Took it around to the dealers and online valuation and it all comes between 8-9k (It has all the normal wear and tear).
Non BMW dealerships wont use it as part exchange as it is negative equity. So ended up taking it to BMW which did a good deal on the new 1-series. Now really looking forward to seeing a new wheels when they get delivered next month (I hope there are no queues at the border).

Looked thru the paper work of the other car and looks very similar balloon-residual argument can be made there.


PS: The new 1-series now comes with indicators as standard

 

[Imurg]

I just realised the next wave of customer lock-ins. The PCP balloon payment these days now seem to be much higher than residual value. At the point of sale, the sales talk is all about how you will get a high residual value, but the reality is that a new car depreciates very quickly. So my old BMW run around had about 9.5k balloon after 4 years. Took it around to the dealers and online valuation and it all comes between 8-9k (It has all the normal wear and tear).
Non BMW dealerships wont use it as part exchange as it is negative equity. So ended up taking it to BMW which did a good deal on the new 1-series. Now really looking forward to seeing a new wheels when they get delivered next month (I hope there are no queues at the border).

Looked thru the paper work of the other car and looks very similar balloon-residual argument can be made there.


PS: The new 1-series now comes with( intermittent) indicators as standard

Fixed that one for ya!!

 

[Mudball]

Fixed that one for ya!!

Good one.. The funniest experience was while i was sitting in the demo car in the forecort. As i was about to pull out, i got cut by a 5-series. Evidently there is a pecking order in the beemer world..

BTW. it still comes with the big circular dial in the middle.. formally called iDrive but better know as iKnob..

 

[larmen]

PS: The new 1-series now comes with indicators as standard

They always have. If you put both sides on at the same time you can stop wherever you want ;-)

Sorry, nothing proper to contribute. Enjoy your new car. Does it fit a golf bag?

 

[drdel]

The whole momentum in Car Sales is moving the tin and so monthly payments are the 'headline' numbers. GFV used to be the target end of lease number: no more. Dealers realise most people are totally ignorant about interest rates, residual values, refurbishment cost and additional mileage charges etc.

The UK has a £16bn debt on new cars (av. about £21k each) and about £19bn on used cars (av £12K each) most payments aren't enough to cover the debt so the balloon figure is where it catches up. Forces buyers into a new deal and roiling up the debt. OK until income flow falters !!!

 

[Mudball]

They always have. If you put both sides on at the same time you can stop wherever you want ;-)

Sorry, nothing proper to contribute. Enjoy your new car. Does it fit a golf bag?

Not in the boot.. apparently it has the biggest boot among the hot hatches. Mostly because they moved to a front wheel drive. However it wont fit a golf bag. It will have to go on the back seat. Also, the back seats now fall down as standard, so you could load thru

 

[BristolMike]

I’m amazed it doesn’t fit a golf bag. My sisters got an m140i and I’ve borrowed it and it fits in there. I thought the new boot was bigger. Drivers had to go on back seats but the bag should def fit

 

[Mudball]

I’m amazed it doesn’t fit a golf bag. My sisters got an m140i and I’ve borrowed it and it fits in there. I thought the new boot was bigger. Drivers had to go on back seats but the bag should def fit

Tbh.. I did not check it since I don’t use the 1 series for golf.. apparently the new 1 is wider and taller profile but is shorter between the wheels. So if it fits the M140, can’t see it not fitting the new 118

 

[Blue in Munich]

The whole momentum in Car Sales is moving the tin and so monthly payments are the 'headline' numbers. GFV used to be the target end of lease number: no more. Dealers realise most people are totally ignorant about interest rates, residual values, refurbishment cost and additional mileage charges etc.

The UK has a £16bn debt on new cars (av. about £21k each) and about £19bn on used cars (av £12K each) most payments aren't enough to cover the debt so the balloon figure is where it catches up. Forces buyers into a new deal and roiling up the debt. OK until income flow falters !!!

Same with motorbikes, ridiculously low monthly payments & stupidly high ballon payments. The high take up is probably helped by the amount of pushing the bike press (particularly the weekly newspaper) does. Personally would never touch PCP, either a bank loan or HP but at the end of the term I'm going to own it.

 

[Mudball]

Same with motorbikes, ridiculously low monthly payments & stupidly high ballon payments. The high take up is probably helped by the amount of pushing the bike press (particularly the weekly newspaper) does. Personally would never touch PCP, either a bank loan or HP but at the end of the term I'm going to own it.

that’s the fundamental question.. I had the beemer for 4 years.. good for run around. The interior is dated and tech has moved on.. so would I pay same amount to keep it or get new shineys for it. Same concept as in phones

 

[BristolMike]

Tbh.. I did not check it since I don’t use the 1 series for golf.. apparently the new 1 is wider and taller profile but is shorter between the wheels. So if it fits the M140, can’t see it not fitting the new 118

Yeah it should definitely fit if you need it for it every now and then. Can golf clubs and trolley fit is my first question looking at cars now.

 

[Blue in Munich]

that’s the fundamental question.. I had the beemer for 4 years.. good for run around. The interior is dated and tech has moved on.. so would I pay same amount to keep it or get new shineys for it. Same concept as in phones

I may or may not keep it, depending on how I feel, but I will have a deposit for a change of bike, or a bike I'm happy to keep, but the one thing I won't have is negative equity or the need to take out another loan if I don't want to.

And as far as I'm concerned there's a limit to the amount of tech you need in a car or bike; current car is 12 years old and has more than enough tech for me.

 

[BristolMike]

I may or may not keep it, depending on how I feel, but I will have a deposit for a change of bike, or a bike I'm happy to keep, but the one thing I won't have is negative equity or the need to take out another loan if I don't want to.

And as far as I'm concerned there's a limit to the amount of tech you need in a car or bike; current car is 12 years old and has more than enough tech for me.

I suppose it depends on what you want from a car/bike really. I’ve got a 66 plate m4 comp and it already feels like interiors have moved on with the more modern cars. The way I see it, why does it make any difference how you pay for it, if it loses 20k it loses 20k no matter how you pay it. If it’s worth less that the balloon payment just hand it back and close the agreement off.

 

[fundy]

that’s the fundamental question.. I had the beemer for 4 years.. good for run around. The interior is dated and tech has moved on.. so would I pay same amount to keep it or get new shineys for it. Same concept as in phones

a cars interior is dated in 4 years? best you dont see inside my 10 year old one lol

you want a spaceship in there?

 

[BristolMike]

a cars interior is dated in 4 years? best you dont see inside my 10 year old one lol

you want a spaceship in there?

Its not horrific in there, don’t get me wrong, people would still get in and think it looks nice, It’s just behind a lot of the other cars in its class, I suppose it will be rectified in the new m3/m4 next year. It’s little things like the digital dash in the new mercs which makes it seem even more premium. Things do move on quickly with cars, it just depends if that bothers you or not.

 

[fundy]

Its not horrific in there, don’t get me wrong, people would still get in and think it looks nice, It’s just behind a lot of the other cars in its class, I suppose it will be rectified in the new m3/m4 next year. It’s little things like the digital dash in the new mercs which makes it seem even more premium. Things do move on quickly with cars, it just depends if that bothers you or not.

do they really? cars havent really changed much in 30 years have they? plenty of new gimmicks to separate people from their hard earned, plenty of them on finance that they cant afford

no different to buying the latest TM driver I guess

caveat I do less than 5k miles a year, functionality plenty for me

 

[Blue in Munich]

I suppose it depends on what you want from a car/bike really. I’ve got a 66 plate m4 comp and it already feels like interiors have moved on with the more modern cars. The way I see it, why does it make any difference how you pay for it, if it loses 20k it loses 20k no matter how you pay it. If it’s worth less that the balloon payment just hand it back and close the agreement off.

Just looked at the finance arrangements on an 11k bike from Triumph. 7.9% APR, you'll end up paying 50% more to own the bike via PCP than you will via HP. Or you can go to the bank and get the loan at about 3%. No contest.

 

[Blue in Munich]

Its not horrific in there, don’t get me wrong, people would still get in and think it looks nice, It’s just behind a lot of the other cars in its class, I suppose it will be rectified in the new m3/m4 next year. It’s little things like the digital dash in the new mercs which makes it seem even more premium. Things do move on quickly with cars, it just depends if that bothers you or not.

It's to be driven, which involves more looking out of the windscreen than at the dash. A working speedometer & fuel gauge is fine, don't need much else. A gear indicator is helpful on the bike.

 

[BristolMike]

do they really? cars havent really changed much in 30 years have they? plenty of new gimmicks to separate people from their hard earned, plenty of them on finance that they cant afford

no different to buying the latest TM driver I guess

caveat I do less than 5k miles a year, functionality plenty for me

Some people notice it, some don’t, it all depends on what you value and what you can afford I suppose. Ive not got kids atm and house is almost paid off so in the stage where being in the nicest place possible is important; I know it will change eventually.

Some people have different priorities and that’s ok. I would say if you went to look at the new c63 and looked in my m4 you would def see what I mean about the interior being a step up

 

[BristolMike]

It's to be driven, which involves more looking out of the windscreen than at the dash. A working speedometer & fuel gauge is fine, don't need much else. A gear indicator is helpful on the bike.

It just shows the environment in the car doesn’t matter. That’s fine, people value different things. I want luxury in the cars I’m driving, so notice little things which set others apart. We like different things and that’s fine. And the other comment about the fugues purely depends if you intend on keeping it. Pcp just means I don’t have to tie large amounts of money up in a depreciating asset. If you use that money properly you can generate more return than you pay in interest