Sanity check - new vs used

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duckson
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Sanity check - new vs used

Post by duckson » Fri Mar 09, 2018 10:11 am

Just confirm the following for me.....and that my brain is in gear!

Buying used
If I part finance a used M2 via a bank loan (remaining amount would be via own cash) and it costs me 359 a month in loan costs and I also add on the cars depreciation over say 36 months (worth 25k at 4 year old or so) I could then compare costs with a 3 year pcp?
(PCP = monthly cost for 3 years plus deposit I put down)
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Gone - M135i LCI

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napes5
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Re: Sanity check - new vs used

Post by napes5 » Fri Mar 09, 2018 10:27 am

it depends how much you put in really. The comparator is the % rate on the finance either way. PCP just offsets half the cars value in terms of payments that keeps the monthly down, but you still pay interest on it! Depreciation will be the same regardless of finance method.

But monthly cost with PCP will be significantly less I'd imagine, but you still have the balloon at the end that will leave you in the same position total cost-wise.
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CarlosFandango
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Re: Sanity check - new vs used

Post by CarlosFandango » Fri Mar 09, 2018 10:28 am

At the end on the loan you would own the M2 with no finance on it.

At the end of the PCP, you would own nothing, but have the option to buy the M2 is you spend 25k on it.

Very different outcomes, so you can't compare the monthly amounts directly.

duckson
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Re: Sanity check - new vs used

Post by duckson » Fri Mar 09, 2018 10:43 am

Actually think I’m looking at it wrong.

PCP would be 14k exc interest over 3 yrs.
used would be about 11k exc interest over 3yrs assuming car is worth 25k at nearly 4yr old

PCP would be more expensive but new car is sheltered from depreciation risk(I would be handing back), also have a sum of 5 figures in my account for any emergencies from selling my M135i. Pros and cons really.
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napes5
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Re: Sanity check - new vs used

Post by napes5 » Fri Mar 09, 2018 11:12 am

You'll always pay more in depreciation with a new car regardless of whether you hand it back or not. Basically the PCP payments are depreciation + % ie no equity.
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