BMW Finance Deals (UK)
 

Just about to take delivery of My New X5 3.0 D Sport in September and am trying to get a good deal from BMW on the finance.

Currently here in the UK they charge 10.9% APR, how does that compare to everywhere else? Anyone have any idea

Banks in the UK can offer personal loans upto £25000 at around 7% APR which is pretty good.

I have been speaking to the finance manager at my BMW dealer, and he tells me if i wait till mid august BMW are looking to lower their finance deals also to around the 7%. Has anyone else heard if this is true??

That's way too high! In the UK you should try going to Northern Rock for just 5.7% (APR).

http://www.northernrock.co.uk/

Nice thinking.. the advertised rates does not mean you will be gauranteed to get that rate. You have to apply, depends on how much you borrowing, term and your credit score.

5.7% is advertised, and its used to get people to apply, and once you apply they will say ok you have been approved at a rate of 5.7 - 12% can be anything, depending on above factors. i was quoted 9% thereabouts.
Varies from person to person etc.

BMW finance use a flat rate as apposed to a standard %APR to calculate borrowings. but the conversion of the flat rate 6.06% is 11.49% APR in the UK. Personal loans use APR when they quote and BMW finance use 6.06 Flat. Are they trying to confuss us!!
they seem to be making it conmplicated to work out the deal you are getting. Not impressive sales tactics for people who know there way around numbers.

I normally get around 6-7% APR from BMW Finance (and yes I do mean APR and not the flat rate which is nearer 4% IIRC), which is around 1% over FHBR, you just need to negotiate hard. It also helps if you have a track record of buying other BMW's via BMW Finance before. You need to be financing more than around £22k so it doesn't work with lower priced cars such as the Mini. Each dealer will price their finance offers differently since it depends on how successful they are (as an agent of BMW Finance) and what room they have to be flexible.

Thats great Steve. Considering they not giving any sort of discount on the X5, would only be fair for them to look after me on the finance. This is the second new car that i am buying with this dealer so should be expecting better.

Spoke to BMW again, and they said if i waited till august the rate would be down to 7%. Said that BMW are lowering their rates.

So am i right in saying based on what you have said, BMW have the flexibility to alter the amount, and they can give some people better rates than others?

Precisely. I've been getting less than 7% for the past 3-4 years, but then I have bought 13 new BMW's in the past 5 years. The fundamental parameter is the FHBR (i.e. the cost of money), any finance house who wishes to compete for your business 'can' still make a reasonable profit on 1-1.5% over FHBR, you just have to persuade them. The more you 'know' the greater your bargaining power, they will tell you what they would prefer and dress it up as a 'rule', in my experience you have to do your homework, find a few more competitive deals then 'tell' them what kind of deal you want.

For example, you might tell them that you want a Leased Purchase Balanced Payments Deal - that you will put down £5,000 with a baloon payment of 45% of purchase price (the standard agreed to by BMW Finance) and that you will finance the remainder of the cash at 1.5% over FHBR in a 48 month period. Then bear in mind that it's against the Financial Services Act for them to quote you a Flat Rate and pretend it's the same as APR. It's worth using any number of loan calculators just to check their figures (Microsoft Money is pretty accurate) and make sure what you pay over the 48 month term is competitive (as well as the monthly payments). Telling them what you want usually cuts to the chase and saves all the unnecessary hassle.

Thats Great. Just had a Look at The FHBR for May and it is currently 5%. so 1.5 percent above this equate to 6.5% which is good. I dont even mind 2% above.

Just one more question. Is this a sort of variable loan? or is it fixed for the term of the loan. I would rather have it fixed and dont mind paying the extra 0.5% for it!

Dont want the FHBR jumping up to say 7% next month. :dunno:

Do you really don't get any discount on the X5 ? :wow: I got Navigation Professional for free (€2700) and an aditional discount of nearly €2500 on the car (2005 X5 3.0d for which the waiting is killing me). Buying a car in the UK must really s*ck big time if you can't even negotiate the price. That's part of all the fun!! :D

Totally agree. I asked around several different dealerships and no one was willing to budge on price.
I might have got an unfair deal, but hey i think i have ordered a great Car.

That's for sure!!! :thumbup: :dancing: