[Lightsab3r]

Hi guys

I was hoping to gain some of your advice. I currently have a 60 reg 320d ED which is a company car but am moving to a new company with a car allowance.

I am keen to stick with BMW but am realistic about my budget - I can probably afford up to £450/month or a 2 year old 320D listed at approx £20k.

A couple of things in particular that I am unsure about:

(1) What is a realistic haggling position with a BMW dealer? I've read that 10% is a relatively common reduction on list price but do you guys have any experience of agreeing servicing deals too with BMW?

(2) Are there any pitfalls I should look out for? I've never bought my own car before from a dealer (usually inherited 2nd hand or bought cheap for my wife whilst I've always had a company car)?

My feeling is that with the new 3 series, prices should be dropping. I've seen 3 series' with leather, Bluetooth, pro/business nav with 10k on the clock (58-60 reg) for anywhere between £16-£20k).

Thanks and sorry if this is in the wrong place/inappropriate. I could do with the advice though!

[rich1068]

Buy used or lease new?

£450 pm would certainly see you in eg an F30 ED.

[Lightsab3r]

Is there more risk in leasing new vs going to a dealer and using, what is it, PCH?

If I lose my job as a worst case, I'm stuck with a 3 year lease. With PCH, can I not sell the car?

Sorry. I genuinely don't know.

[davyk31]

No difference between leasing and personal contract hire except the later is geared to personal purchase. Yes for your monthly amount you could certainly get into a new 3 and there are exceptional deals on new Mercedes. You can get a new C or even E class for 300 per month.

The downside to these deals is the fixed term, they are very rigid. An alternative would be the PCP type of finance like BMW select. This sets the final payment due after the two or three years. These can be got out of early but potentially at a cost.

I would go for contract hire i reckon, yes it's a fixed term but if you go for standard hire purchase you may not be able to sell the car for what you need in an emergency.

[Lightsab3r]

Hi Davy

Thanks. Just to be clear, you're suggesting personal contract hire which is where you pay a deposit up front (say 10% min.) and there is an agreed final payment at the end of 36 months? At which point you either pay up or swap?

Cheers

[rich1068]

That's Personal Contract Purchase. Deposit + payment term + balloon/deposit for a new one/walk away. I've done this a couple of times and it works well for us. My wife's current car is on a PCP with Volkswagen. It's called Solutions. All manufacturers offer something similar.

I originally referred to leasing but specifically I meant Personal Contract Hire. Usually 3 or 6 payments down and then 23, 35 or 47. Your £400 pm will get you in some nice cars but as already mentioned look out for some of the deals on metal they can't shift (the recent 730d/530GT offers), new models or stuff that's due a refresh/new version. I've never personally used contract hire but have used it many times through the business. Effectively the same thing but without the VAT.

[phil200tdi]

Contract hire deals are getting silly.

Brand new Merc c63 AMG coupe 6+23 for £450 per month. 10k miles per year.

Seriously tempting!

Merc is the way to go right now.. What is your annual mileage going to be?

[Lightsab3r]

Will be at least 20k a year

[Lightsab3r]

A Merc deal like that from the dealer?

[davyk31]

I would think you could get a Merc C diesel for about £300 per month with perhaps 6 months deposit ie. £1800.