UK - how to buy: lease, PCP or cash & how long to own?

[SanSerif]

My car-buying modus operandi is to pay cash for a new car and own it for donkey's years.

However, I'm wondering if I ought to be more cautious with this new tech machine. If it really doesn't cut the mustard then the ability to hand it back at known cost after 2 or 3 years might be attractive. Trouble is, the UK BMW site only seems to describe lease finance and not PCP (which would give the option of handing back or paying a known sum to take full ownership).

Couldn't persuade my company to add it to their company car lists (well, they still might - just not very soon!) which would have made it an absolute bargain for a 40% or top rate tax-payer!

I'll probably just pay cash as usual and take comfort in the 8 year drive train warranty.

Wondering what others may be doing.

 

[Bunter]

My car-buying modus operandi is to pay cash for a new car and own it for donkey's years.

However, I'm wondering if I ought to be more cautious with this new tech machine. If it really doesn't cut the mustard then the ability to hand it back at known cost after 2 or 3 years might be attractive. Trouble is, the UK BMW site only seems to describe lease finance and not PCP (which would give the option of handing back or paying a known sum to take full ownership).

Couldn't persuade my company to add it to their company car lists (well, they still might - just not very soon!) which would have made it an absolute bargain for a 40% or top rate tax-payer!

I'll probably just pay cash as usual and take comfort in the 8 year drive train warranty.

Wondering what others may be doing.

I would ask the dealer because I did discuss such a finance deal where you have a buy or buy out option after an agreed time. Whilst it clearly must benefit the dealer, like you, I am a bit tentative about outright ownership and this could provide some insurance should it not turn out as expected. Or if the country develops the tendency for significant power outages

Bill

 

[Lemonypye]

I've also traditionally gone the PCP route. However, I'm not certain what the market will be in 2 or 3 years time for an i3. Not because it's a bad car (quite the opposite) but because technology will be advancing at such a rate, it's difficult to imagine where battery tech will be in 3 years.

I think for the first time I'll go the lease route and not worry about depreciation, and let BMW carry the risk.

Only question, what mileage to set the lease rates at. I traditionally do about 36k miles per year, but have a feeling we may use the i3 more in preference to the family oil burner. The excess mileage rates don't seem to exhorbitant, so probably nothing to worry about too much.

Chris.

 

[Davidfromdigswell]

Just to confirm that BMW Financial Services PCP finance is available on the i3 as I have just returned from my dealer having signed the papers for a 3 year BMW iSelect deal. Like you I am a little worried about residuals and so decided in the end to go for PCP. The option to purchase price is based on a 42% residual. I decided to go for a PCP over a straight forward lease for two main reasons:

- flexibility to end PCP early which might be handy if new sportier iClass vehicle is available then
- car can be traded in rather than having to be returned to BMW FS. This brings with it the possibility of some equity (not convinced there will be any on my BEV) but also avoids having to pay BMWFS charges for dings and dents which can be quite high

 

[Bunter]

Can anyone point me to a site which explains the pros and cons of various UK purchasing options please? I'm a noob at buying a new car although I've bought new motorcycles before and always owned them outright, without any finance. I assumed owning outright would be the most economical option and was going to buy my i3 outright (again without finance) but I'm not sure I understand the true costs and the benefits of the other options. The dealer kept telling me that PCP would be economical because it costs around 3 % in interest and I should be able to make 10 % on the lump sum I would save by not buying outright. I though "if it's so easy to make 10 % on a lump sum, why are they lending me a lump sum to make 3 %!".

Any help or advice would be gratefully received.

Regards

Bill