bmw finance

[simemus]

What abody's views on this select deal thing that bmw do?
I been offered 6 n half grand for my bike of which i get 5 thousand back in my pocket, 1500 goes for a deposit an i pay 180 quid a month over 2 years. At the end of which i can either pay the balance off or start again with another brand new bike...
All seems a wee bit too good to be true but i've never had finance in my life and wouldn't know a good deal if i saw it..

 

[Borderraider]

or start again with another brand new bike...

If you don't pay the outstanding balance at the end of the two year deal does that mean you are left with nothing?

Deposit + payments = £5820..a big hit in two years

 

[skyenet]

When I bought my R1200GS back in 2007 I used the sale of my bikes (F650 & R1100RS) for deposit and a 5 year bank loan of £7,000 at just over 6% interest for the balance. Worked out at £135.89 a month, total payable £8153.40. (less than £20 a month interest).

This was cheaper than BMW Finance could offer and meant the bike was mine from the start. Buying by Hire Purchase (HP) rather than by bank loan, means the vehicle is not your till the last payment has been made.

I have never been a fan of the Select type of vehicle purchase as I don't think it represents as good value as buying a bike by bank loan.

 

[skyenet]

All seems a wee bit too good to be true but i've never had finance in my life and wouldn't know a good deal if i saw it..

Check out the following guidance on Money Saving Expert, its about cars but a lot relates to buying a motorbike

http://www.moneysavingexpert.com/shopping/cheapest-new-cars

 

[simemus]

Thanx guys!
I've always been a if i can't afford it i don't get it kinda guy. Just thought with way things are my money would be better in my bank account than theirs. Think i'll just keep my bike just now and save up a bit...

 

[simemus]

Those figures were just rough but think at the end of two years the balance was around 4500. Was never told what would happen if i didn't pay the balance but surely the bike would still be worth more..
Whatever i'm sure the dealer would always be the winner!!

 

[Robbo1200ADV]

i used to do the same thing with Harley's Deposit £199 a month for 3 years then start again ,the residual value at the end was always less than it was worth so it became a deposit for the next bike.If you need to know how much you can afford a month it works ok.For me now If I havent got the cash I keep the current bike!!

 

[yalcrabm]

If you don't pay the outstanding balance at the end of the two year deal does that mean you are left with nothing?

yes that is right. it is like a personal lease agreement. when the term is up you get another new car or bike or you pay the balloon payment to keep your existing machine. i have done it for years instead of geting a company car (mondeo) i take the cash and get the car that i want instead. and at the end of the term you just hand it back just like a company car. if you stay with the same dealer you can get some extras free when you are sorting out your new deal as they dont want to loose your custom.

 

[Uinneag]

Also don't forget that the dealers will screw you down on the trade in price if you change after the two years

 

[Deleted account rno]

Remember also that many fo these deals have a maximum annual mileage involved and you'll face a heavy penalty per mile for any increase over the agreed total.

 

[cunning fox]

Remember also that many fo these deals have a maximum annual mileage involved and you'll face a heavy penalty per mile for any increase over the agreed total.

mileage is agreed by purchaser & dealer over 3 years. so if you agreed to 18,000 over 3 years but ended up doing 20,000 over the 3 years the extra
2000 miles based at 5.9p per mile would cost £118 ish(average prices)

 

[yalcrabm]

Remember also that many fo these deals have a maximum annual mileage involved and you'll face a heavy penalty per mile for any increase over the agreed total.

i agreed mine at the start of the term at 22000mls a year as i was doing a lot of miles in the first year. and you agree the minimum trade in you will get at the end of the term so if you do less miles and look after the car the better trade in price you get.

 

[Deleted account rno]

i agreed mine at the start of the term at 22000mls a year as i was doing a lot of miles in the first year. and you agree the minimum trade in you will get at the end of the term so if you do less miles and look after the car the better trade in price you get.

The problem sometimes is though that to make the monthly finance figures look attractive, it seems to me that they set a ridiculously low annual mileage limit

 

[Montrose Sun]

This is how ive financed my GS. The security of knowing that if i have to, i can just hand the bike back is good for me. Also, i dont consider what im paying to be too much and there is the attraction of a new bike every 18-36 months.

My mileage limit is set to 10k PA but i can live with having to spend a little on excess mileage if i need to.

 

[yalcrabm]

i have done it this way with the car but the company car allowance pays for the car and if there was any problems ie paid off you simply hand it back to bmw with a small penalty, then you dont have the worry of looking for an hp payment every month when your unemployed. just the same with the company car when you get made unemployed you hand it back. i havnt done it this way with the bike as i want to keep it for a good few years and own it out right. PLUS BMW FIANANCE IS A LOT DEARER THAN ANYONE ELSES