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Costs after year 3

2K views 11 replies 6 participants last post by  Cw16 
#1 ·
I currently have a 2 year old m235 and am looking ahead to the decision of what to do after 3 years.
Option 1. Pay the gfv and keep it
Option 2. Trade in for something else (m240, s3, etc?) hopefully with some equity as a deposit although the m240 will have a price rise in march which by default will push it over £40k with auto and pro media plus a few options.

Obviously year 4 has a fair few costs associated such as major service etc. What are the costs for that 4 and 5 year ownership?

Major service- £600? Year 4
Extended warranty -£600? Annually
Tyres- £600
Connected drive £? Annually
Brakes? £? Not sure when on average

Just trying to weigh up the options in a geeky spreadsheet, obviously not accounting for any unforeseen at this stage.
 
#2 ·
With BMW setting the GTV the way they do you'll be lucky to have any +ve equity and the end of your 3 year term, but I'm sure this will depend on what mileage deal you are on and how close you are to that on the odometer. BMW maximize the GTV to help keep the monthly payments low.

I just got out of my M135 LCI while in -ve equity of around £1800 (end of year 2 of a 4 year PCP deal). Looking at it in "man maths" mode, it felt a better option trade in and take the a hit. This was based on First service due and the due to some spirited driving, the brakes needed doing which could have been £1200 (with discs).

Push for the right deal and you might find you can net of your costs or at least minimalise them to something acceptable. You also do not have the hassle of servicing, extending warranty, renewing subscriptions etc..

I appreciate my view is skewed and probably not widely shared. I just fully accept that all a car does is cost me money, and I have an amount per month that I'm happy to spend on an item that I enjoy.
 
#5 ·
Depreciation is always going to be the biggest cost. A 3 year old car is past the worst of it and I don't think the values of the M235i will go too low.

I doubt many people will get 3 years out a set of tyres unless doing tiny mileage. That's still a cost you'll likely face buying another new car.
 
#6 ·
Gfv is around £16500. Tyres I was thinking my 2nd set to be fair. It's probably the brakes that is the biggest cost. My logic was that year 4 and 5 would be fairly depreciation free and it might still be worth around £15-16k after 5 years with approx 50k on the clock.
 
#7 ·
Cw16 said:
Gfv is around £16500. Tyres I was thinking my 2nd set to be fair. It's probably the brakes that is the biggest cost. My logic was that year 4 and 5 would be fairly depreciation free and it might still be worth around £15-16k after 5 years with approx 50k on the clock.
16.5k gfv after 3yrs? If so there should definitely be a bit of equity in the car.
 
#8 ·
kylemacca01 said:
Cw16 said:
Gfv is around £16500. Tyres I was thinking my 2nd set to be fair. It's probably the brakes that is the biggest cost. My logic was that year 4 and 5 would be fairly depreciation free and it might still be worth around £15-16k after 5 years with approx 50k on the clock.
16.5k gfv after 3yrs? If so there should definitely be a bit of equity in the car.
Yes after 3 years. I was planning to just get another 240 originally until the price hike which means higher monthlies + double tax per year.
 
#9 ·
Cw16 said:
kylemacca01 said:
Cw16 said:
Gfv is around £16500. Tyres I was thinking my 2nd set to be fair. It's probably the brakes that is the biggest cost. My logic was that year 4 and 5 would be fairly depreciation free and it might still be worth around £15-16k after 5 years with approx 50k on the clock.
16.5k gfv after 3yrs? If so there should definitely be a bit of equity in the car.
Yes after 3 years. I was planning to just get another 240 originally until the price hike which means higher monthlies + double tax per year.
A 3yr old m235i with a fully known history assuming its specced to your liking is a cracking car for £16.5k. The m240i is marginally better but its really not going to feel much different.
 
#10 ·
robsta555 said:
With BMW setting the GTV the way they do you'll be lucky to have any +ve equity and the end of your 3 year term, but I'm sure this will depend on what mileage deal you are on and how close you are to that on the odometer. BMW maximize the GTV to help keep the monthly payments low.

I just got out of my M135 LCI while in -ve equity of around £1800 (end of year 2 of a 4 year PCP deal). Looking at it in "man maths" mode, it felt a better option trade in and take the a hit. This was based on First service due and the due to some spirited driving, the brakes needed doing which could have been £1200 (with discs).

Push for the right deal and you might find you can net of your costs or at least minimalise them to something acceptable. You also do not have the hassle of servicing, extending warranty, renewing subscriptions etc..

I appreciate my view is skewed and probably not widely shared. I just fully accept that all a car does is cost me money, and I have an amount per month that I'm happy to spend on an item that I enjoy.
£1200 for new brake pads / discs? Seriously? :O
 
#11 ·
RickN55 said:
Cw16 said:
I currently have a 2 year old m235 and am looking ahead to the decision of what to do after 3 years.
Option 1. Pay the gfv and keep it
Option 2. Trade in for something else (m240, s3, etc?) hopefully with some equity as a deposit although the m240 will have a price rise in march which by default will push it over £40k with auto and pro media plus a few options.

Obviously year 4 has a fair few costs associated such as major service etc. What are the costs for that 4 and 5 year ownership?

Major service- £600? Year 4
Extended warranty -£600? Annually
Tyres- £600
Connected drive £? Annually
Brakes? £? Not sure when on average

Just trying to weigh up the options in a geeky spreadsheet, obviously not accounting for any unforeseen at this stage.
£600 warranty what excess is that at? I currently pay 310 for my 4 year old 22k (at the time I took it out) M135i with a £250 excess
That's better numbers than what I had seen previously. Is that annual or paid monthly?
 
#12 ·
RickN55 said:
Cw16 said:
RickN55 said:
£600 warranty what excess is that at? I currently pay 310 for my 4 year old 22k (at the time I took it out) M135i with a £250 excess
That's better numbers than what I had seen previously. Is that annual or paid monthly?
Annual mate paid out all in one sum.. It makes a difference in price if you start the warranty as soon as your original 3 year one finishes if you leave it they charge more
Thanks that's great info.
 
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