Which makes the most financial sense for me?
1. A 2015 F02 at around £32-£34,000 - Purchased cash.
2. An used G11 at around £45 -£46,000 - Cash
3. A brand new G11 with 0% finance, on PCP.
I am trying to find an easy way to work this out in my head. I like both cars.
0% financing is always tempting. It's free money. However, buying new, you take the initial hit of depreciation. I would venture to say at least 10% value as soon as you drive it off the lot. Buying a gently used, super low mileage car could keep that 10% in your pocket as the previous owner took the hit. And you still get a nearly brand new car.
ASE and BMW Master Certified Technician
Well - thanks for taking the time White.
Here that might be the VAT AND the depreciation VAT is 17.5%
BUT...
BMW give you a deal - so that the deal looks like this and this MIGHT mitigate loss and depreciation.
Purchase - £72,000
Price after Manu discount - £60,000
Deposit - £5,000
£600 a month
Total cost over 3 years £21,600
Does seem like a lot to spend on a hire car essentially!?
Whereas a nearly new - would have to be cash. Because rate of interest is 10%
A nearly new is around.
£46,500
The future value is around the same so equates to between £600 - £700 as a loss if the car is worth £21,000 in 3 years.
Noting that it would more likely be worth around £28,000 ( looking at 3 year old F02 car prices today) then the loss is only £16,500 over 3 years making a monthly loss only £500 a month.
A used F02 today might be around £32,000 with low-ish miles and arguably be worth around £19,000 in 2 years. Not 3 because one would not wish to keep an F02 that long with the newer ones coming in cheaper by 2019. With that equation being fair that loss would be £13,000 or a loss of £541 a month
Over 3 years so that the F02 would be 5 years old in 2020 the value might be around £16,000 and thus a monthly loss of £444.00
My other theory is that a G11 - may be easier to sell in 3 years, due to tech, emissions and perception.
I have dyscalcula so I need a boffin to argue my theories - as both cars are good.
G11 - More tech - looks newer - soft steering - more dynamic drive.
F02 - 20% quieter, bigger seats, potentially! better value. But it is potentially.
Here is the colonies, the used car market is flooded so that the car companies are lowering the residuals (making the lease rate higher) on the new leases to make up for that. Double check your residuals plus the PITA of selling a used car is a non-monetary hassle. How much is your time worth?
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