[badgerbrock72]

Evening all,

thinking of potentially making the move to an F30 340i on a PCP whilst the decent deals are still available, however - never having taken a PCP before I thought i'd ask you guys and girls a couple of questions to set my mind straight...

I have a decent (good) credit score, but a chunky mortgage, no c.cards etc

Between the wife and I we bring in a decent wage.

If i were to go for the car i'd like (and why wouldnt i!!) then after discount it would be virtually a full years salary for me, before deductions.

Does anyone know how BMWFS would view this, as I believe (??) with a PCP the whole amount of the car (including the GFV) goes on credit file even though you may never buy it at the end.

Could afford the payments, but just not sure how the finance people would view car finance that is probably 95% of my annual income.

dont get me wrong, in terms of joint income its totally insignificant, but if they based it on my income alone....

Cheers for any advice, and im probably worrying about nothing as usual!

Garry

[RENT-A-GOAT]

Tying that much of your income up in a car is a bit crazy yes you can afford it and your both on good wages but what if something was to happen and either of you couldn't or were out of work that is a big noose around your neck if it all went wrong. As I have only ever paid cash for my cars and have no understanding of PCP there might be protection for instances like that but as I've never looked I don't know. Even still that's a crazy % amount of income just for a car.

[dm2583]

This is nothing, I know of people who drive around in financed cars worth well over their annual incomes. It seems to be the norm these days, taking out finance on big cars to keep up with your mates or the crowd on instagram!

As for the op's situation, I wouldn't have thought it would be an issue. I've never had car finance myself but I didn't think they looked at your income figures like they would for a mortgage. I'm sure they just run a credit check and if you pass, its a done deal.

Maybe someone can correct me if I'm wrong...

[doughboy]

It's the monthly amount that matters to the lender, not the total amount of credit because the debt is secured against the car. With PCP you only effectively pay off the depreciation, the residual value remains as a debt until you return the car to clear that.

Income matters not, they won't even ask you your salary! I've had numerous PCPs/Leases etc and never had one even asked my income. I'm run my own firm anyway so officially my wages aren't even £200 / week.

Even on my current £100K M6 lease, no questions asked. Its purely based on your credit score. I found that quite bizarre, signed 1 piece of paper and they gave me a £100grand car!

Remember it is a secured finance, secured on the car, so if you don't pay they just take the car back and pursue you for any losses.

Just get GAP insurance (not from the car seller) to cover the uninsured debt if the car is nicked / written off.

[RajB]

I wouldn't worry about it tbh from my understanding.

You are not actually paying out your salary each year to cover the car and it's spread like anything over a number of years with a balloon payment at the end.

It's the monthly payments that go into affordability just like any personal loan tbh.

[doughboy]

If going to BMW make sure you get at least the 22% discount on offer from brokers before you sign, and 0% finance at a push. If not, just use the brokers. You shouldn't pay over 30k or £400/m for that car.

http://www.broker4cars.co.uk/Buy/New...0i+M+Sport+4dr

Or you could lease a 340i for £361/m inc vat.

https://www.contracthireandleasing.c...ries/94403940/

[djgandy]

Originally Posted by dm2583

This is nothing, I know of people who drive around in financed cars worth well over their annual incomes. It seems to be the norm these days, taking out finance on big cars to keep up with your mates or the crowd on instagram!

As for the op's situation, I wouldn't have thought it would be an issue. I've never had car finance myself but I didn't think they looked at your income figures like they would for a mortgage. I'm sure they just run a credit check and if you pass, its a done deal.

Maybe someone can correct me if I'm wrong...

Agree with you on that, that is the modern way for everything. Finance up to the eyeballs to keep up with the Jones'. I'm only paying £400pm and I feel that's a lot! I guess if you already have / don't have any plans for a mortgage £700+PM on cars when you have nothing else to spend it on is not an issue.

When I bought mine I thought they asked my salary though.

Originally Posted by doughboy

If going to BMW make sure you get at least the 22% discount on offer from brokers before you sign, and 0% finance at a push. If not, just use the brokers. You shouldn't pay over 30k or £400/m for that car.

http://www.broker4cars.co.uk/Buy/New...0i+M+Sport+4dr

Or you could lease a 340i for £361/m inc vat.

https://www.contracthireandleasing.c...ries/94403940/

^^ Yeah don't pay too much for these. The RRP is hugely inflated. They are a steal TBH at £30k, but you'll want some spec too as base spec is a pretty dull place to be.

[Kerr]

It appears most of the offers are on the 35 diesel. I've seen 25% off the 435d with some nice options.

There is still over 20% off the 340i.

The attitudes towards credit has changed a lot in recent years. Normally your finances were a personal matter, now topics of finance are really common on forums.

There is loads of people up to their eyeballs in debt. They've slowed up a bit to who they hand mortgages out to, but there's loads of people now got expensive cars with lots of finance and no security.

Reading some of the comments about people having to delay £50,000 cars as they need to wait until pay day so they have £1000 to pay the deposit I find bonkers.

A nice car is obviously very desirable to own, but don't spend too much on a car that you can't afford a good lifestyle.

[gangzoom]

^^ The next recession is going to make the last one look like X-mas party time. 1.6% APR interests are driving up house prices and I know of firiends who now don't think twice about comitting to a 90% mortgage on a £500k+ house.

It's totally crazy state of affairs, sooner or later some one is going to realise printing fake non-existent money (Quantative easing) is not the magic bullet everyone thinks it is.

I'm doing my damn best to clear all the mortgage whilst rates are so low. Our net house hold income see us live comfortably whilst saving a decent amount evey month, yet I still find it hard to even part with £356 on a new iPhone SE....My iPhone 5's battery is dying but replacing the battery for £60 is most likely the way I'll go.....Was amazed to find though these days you can even buy an iPhone one finance, APR of 14%....Maddness.

[Kerr]

I don't understand what is going on in the car market. New cars sales are on the up with more people realising you can PCP or lease expensive cars for not that much money.

The magazines appear to be playing their part too. Every new release is the best car ever and the previous best car now has all these faults that they never noticed a few months ago.

They kick up a fuss and artificial waiting lists are created. I don't think many of the waiting lists are genuine, just a way of making people desire something more.

I have a chuckle at the amount of people on forums who are so desperate to buy the latest and greatest cars. Loads have small deposits placed on cars that'll probably never exist.

So now you've got more people buying new cars and less people buying used cars. There's got to come the point where used cars slump in price and cars on PCP aren't worth the balloon payment at the end.

How many cars now have 25% off? I remember people used to ridicule Vauxhall for artificially high prices, then huge discounts. Now all the mainstream brands do it.

Remember the days where Ford and Vauxhall were the two main cars to own? How many new Focus STs or Astra VXRs do you see for every Golf R, Audi S3 or even the BMW M135i?

Remember the days where McDonald's car park was full of old Corsas, Novas, Fiestas and Saxos as that's all the boy racers could afford? Now loads of young guys can suddenly get their hands on £30,000+ cars.

Just wait until there is a slump in the prices and VW decide to check and see how many leased Golf Rs have been remapped, then try to recover their money for cars that have invalid warranties.

It no longer feels as special to have a nice car when everyone else can so easily access one now too.

[djgandy]

Originally Posted by gangzoom

^^ The next recession is going to make the last one look like X-mas party time. 1.6% APR interests are driving up house prices and I know of firiends who now don't think twice about comitting to a 90% mortgage on a £500k+ house.

It's totally crazy state of affairs, sooner or later some one is going to realise printing fake non-existent money (Quantative easing) is not the magic bullet everyone thinks it is.

I'm doing my damn best to clear all the mortgage whilst rates are so low. Our net house hold income see us live comfortably whilst saving a decent amount evey month, yet I still find it hard to even part with £356 on a new iPhone SE....My iPhone 5's battery is dying but replacing the battery for £60 is most likely the way I'll go.....Was amazed to find though these days you can even buy an iPhone one finance, APR of 14%....Maddness.

You're a smart man. It shocks me that people think that low rates are a good time to just pay less on their mortgage! No no no, pay more as you are actually clearing the capital! It's a great time to shave years off a mortgage.

It's a sad state of affairs that a 2% rate rise would wipe out so many people.

[RENT-A-GOAT]

Gangzoom & Kerr cant really add to what you have bought ot the table on this subject both are spot on with this.

[imy]

Originally Posted by gangzoom

^^ The next recession is going to make the last one look like X-mas party time. 1.6% APR interests are driving up house prices and I know of firiends who now don't think twice about comitting to a 90% mortgage on a £500k+ house.

It's totally crazy state of affairs, sooner or later some one is going to realise printing fake non-existent money (Quantative easing) is not the magic bullet everyone thinks it is.

I'm doing my damn best to clear all the mortgage whilst rates are so low. Our net house hold income see us live comfortably whilst saving a decent amount evey month, yet I still find it hard to even part with £356 on a new iPhone SE....My iPhone 5's battery is dying but replacing the battery for £60 is most likely the way I'll go.....Was amazed to find though these days you can even buy an iPhone one finance, APR of 14%....Maddness.

90% ltv is still alot better than 120% pre crises!


Edit: Whoops just seen Barclays have launched a 100% LTV mortgage (albeit with your parents savings in their account). There goes the neighbourhood.

[tbenn1]

Get on the f30 uk section and find trl's contact details. He can get you very good discounts.

I've got a f31 335d there are a much more modern car, although do lack the feed back the e92 gave