True.
That's interesting, that puts a different light on it.Are you sure about that, I recall the Finance Guy talking about the 50% (but for pushing the opportunity to swap out to a new BMW) and I'm sure he was giving week numbers that couldn't possibly have included the GMFV.
Also I'll have to dig the papers out but I recall doing the interest calcs myself when I was playing with a spreadsheet when deciding on 36 or 48 months and I was only using the loan amount and it was matching the interest payable quoted by BMW.My GMFV is over half the loan amount so if that were being included it would make a big difference to the interest.
Cheers,
Nigel
This might be useful:
PCP Personal Contract Purchase Balance Calculator
I stand corrected, looked at my finance documents and although it is absolutely clear it does look like interest is being charged on the balloon.Fortunately I have a fairly low rate.
It also makes sense now why the Finance Guy said that paying of extra would not have much affect - he made out that it was because of the low rate - but I see now that it is because the balloon is making up 58% of the total interest payable - so there is only 42% that I can work with.
Looks like I hit 50% on month 29.
Cheers,
Nigel
Another question with some made up numbers.
Say this is my agreement
Term - 48 months
Loan Amount - £21,000
Balloon - £11,000
Cost of Credit - £1,900
What would happen if I made over payments and reduced the outstanding loan to zero after 36 months so there is just the balloon left.
At this point could I just pay the balloon (plus a years worth of interest on the balloon if they demand that) and take the car.
Or can I only pay the balloon after 4 years?
Cheers,
Nigel
Just out of curiosity why do you hate it so much ?
I had the same feelings about 5 years ago when I had a 520d but in actuality there was nothing really wrong with it.
You can overpay to reduce the payments or term length, the most they can charge is 1 months interest if you settle early.
The Consumer Credit Act does allow for this option. But on a PCP, it usually means the value of the rentals may be paid, and by that stage, what is the point of terminating the contract, since you could just hand the car back anyway?
Example
Optional Final Payment £8,077.50
On The Road Price £19,935.00
Total Amount Payable £21,384.78
24 monthly payments of £391.97
Total Deposit £3,900.00
So once you have paid £9,967 you can return the car under the 50% rule, but in 5 payment more you have paid the rental element in full. Depending on the deposit and interest rate it could 1 payment or less payments
I'd ask the same thing - What's wrong with it??
I like my cars but at the end of the day, if it drives well, doesn't cost you anything in terms of fixing etc - It's simply a vehicle to get you from A to B in a nice manner.
Mostly it is to do with poor driving position, lack of visibility and not being able to tell where the front corners of the car are relative to obstacles.Terrible dashboard/steering wheel design - I can't find a position where you can see the dashboard properly.
Next is about handling.I'm really surprised because I have heard so much about this being a driver's car.But on anything other than a straight line (in which it is excellent) I find it heavy, large, wallowing and sluggish.On paper it is the fastest, most responsive car I have ever owned, in practice, my previous car (a Golf 150PS Diesel) would run rings round it and even my wife's car (a Focus 120PS Diesel) is much more fun to drive and will get me from A to B faster unless A and B happen to be connected by a straight stretch of road.
I don't like run flats.
A more of a niggle I don't like some of BMW's petty idiosyncrasies (but most companies have something I don't like, they are just adding salt to the wound).
Cheers,
Nigel