An Overview of BMW PCP
The BMW Personal Contract Purchase (PCP) is a fantastic way of being able to afford your new or used BMW. A lot of people are unfamiliar with the term PCP but the premise of these ever increasingly popular contracts is actually very simple, stress free, and quick to turn around so you can start enjoying your new toy as quickly as possible.
PCP in a nutshell
- WE WILL BEAT ANY DEALER QUOTE, GUARANTEED
- AFFORDABLE – fixed low monthly payments, zero deposit (if required), fixed low interest rates
- PERFECT CONTRACT – With the Guaranteed Future Value (GFV, see below) of the car at the end of the period, you will never be in negative equity (provided you stay within the agreed terms of the contract)
- PROTECTION – we can supply you with market leading gap and tyre insurance to give you protection you need with your new motor…both are very affordable.
- CAR – Finance can be applied to NEW or USED BMW’s
BMW PCP – The Ins and Outs
In a nutshell BMW PCP is great! If you know what car you want then we can taylor a contract to fit your personal circumstances. IF you don’t know what car you want but you have a specific budget then we can advise you on what you can and can’t afford. If you have a deposit to put down then great, if not, it’s no problem. You have flexibility over the mileage you take out and the term for which the contract will run. Each of these factors will affect your fixed monthly payment for the BMW PCP agreement.
Why is BMP PCP the best way to get your hands on a BMW?
The cleverness in this contract is what makes it so appealing. It’s not complicated but it just makes you go “ohhhh riiiiight, that makes sense!”
It’s all to do with the Guaranteed Future Value (GFV) mentioned earlier. This is the agreed value of the car at the end of the contract by the financier. At the end of the period there are different options, which will be explained in more detail later, but the long and short of it is that the car can be bought back by the financier, or you, at the GFV. So in essence the monthly payments you make are on the value of the car when new minus your deposit and the GFV and agreed fixed interest rates. This is essentially taking finance out on the cars depreciation.
Does BMW PCP have to be used to get a new car?
No. We do BMW PCP for any used BMW up to the age of 3.5 years and / or 60,000 miles, whichever happens first, and providing the car is bought from a franchised dealership. For example if you wanted to by a 3 year old BMW M3, we would provide BMW PCP finance for 6 months.
How can I ensure I get the lowest monthly repayments?
BMW’s are extremely good cars! They don’t depreciate much, which is perfect for that all-important GFV. But there are other ways you can ensure that the fat is trimmed off your monthly repayments such as the following:
- Work out how many miles you are likely do as accurately as possible. Don’t be too conservative as there are financial penalties for over mileage cars but don’t do too many as you will be paying for depreciation that isn’t happening to the car.
- Go for a longer contract. BMW PCP over 48 months will see a lower rate of depreciation over the period in comparison to 24 months so bear that in mind.
- The larger the deposit you can afford, the smaller the monthly repayments.
- Finally, if you can’t afford a 5 series, don’t push yourself, go for the 3 series, it’s a beautiful car and it won’t have you awake worried at night wondering how you’re going to afford the repayments.
When a BMW PCP contract ends
You have a whole number of options:
a) Give the car back to the lender in a good state and walk away. Seriously, they will take care of the rest!
b) Maybe you’d like to take the car? That’s fine, we can refinance for you or you can simply pay the GFV.
c) Part Ex – not a problem if you want to part exchange the car for another. Providing the value of the car is higher than the GFV then this is no problem, we can arrange finance on this.
d) Sell the car privately and if you get more than the GFV then you get to keep the winnings. Simple.
So as you can see, BMW PCP is a really nice and easy way to get your hands on a prestige motor but at affordable bite size repayments. We can find the car for you if you like, we have 1000’s in stock or if you’d prefer you can hunt the car down yourself but just remember, WE WILL BEAT ANY BMW DEALERSHIP QUOTE so make sure you speak to us!
BMW PCP made simple!