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10062017, 04:43 PM  #23 
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JNW1 TheLiverBird If you are keen to change cars, then VTing is a reasonable option but it’s a very very expensive way to rent a car for a few years. If it all works with your budgeted cost per month (if indeed you need/ want to budget) then all is well.

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10062017, 05:39 PM  #24  
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I?m perfectly happy with the ?relative? freedom of a PCP and the options I have throughout and at the end, compared to a lease. I accept the deposit is gone, but I?m happy to put a big chunk in and see my monthlies reduced as keeping the money for the deposit in a savings account still won?t earn me what it?s stopping me losing in interest by reducing the balance on the PCP. About 5 years ago I took out a personal loan for an 18 month old A5 at Â£27.5k. Paid a Â£2.5k deposit and was paying Â£555 per month over 5 years. I traded it in after 2 years with a little equity and at the time was quite happy with those figures. Then I went all PCP, put Â£6k down on the 435D and am paying Â£480 per month. Soon, with a PCP, I?ll be putting down a Â£5k deposit and getting to drive a new S5 for 2 years at Â£399 a month (and yes I realise that with the deposit it?s actually just over Â£600 per month roughly but who?s counting) and I?m quite comfortable with those figures too! Although having just reread that last paragraph I?ve realise I?ve spent a bloody shed load feeding my habit of changing cars far too frequently, but my manmaths means it doesn?t matter because I?m happy. Ultimately it comes down to personal choice and what works for you / your family at any given point. If I had a spare Â£50k to buy the car outright and interest rates are as low as they are for savers at the moment I probably would  but I haven?t, so for me, a PCP gets me a nice car, at a rate I can comfortably afford. 

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10062017, 06:16 PM  #25 
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Exactly. Everyone has their own budgets but for me when the monthly car cost started going North of £500 a month, I was thinking, I could get another property to let.....and then a more expensive car ;)

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10062017, 06:38 PM  #26  
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https://listers.co.uk/Used/Cars/BMW/...n_Coupe/246612 

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10062017, 07:12 PM  #27  
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Actually, I'm wrong, that's only true if you put in zero deposit. If you put in £4800 on a 48 month pcp it's costing you £100 a month on top of your monthly payment, if you VT after 36 months it's costing you £133 a month on top. I don't put any deposit in at all, not even £500, therefore unless I was planning on buying it after 4 years, which I'm not, it isn't more expensive to VT. My VT point comes up at 31 months into a 48 month pcp. With this car I'm going to try and get past it, especially if I throw £1750 at the MPPSK. But, I know what I'm like. It'll be 2 years after I bought the exhaust and the money spent will be ancient history, I'll probably still end up going for something new. 

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10062017, 08:27 PM  #28  
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When you VT, you have to pay 50% regardless. It doesn’t matter if, on a £40k car, you put in £10 or £10000, at VT point it’s 20 grand gone. Buy putting in a smaller deposit, all you are doing is increasing the monthlies, increasing the interest and increasing the period before you an VT. The earlier you VT, the higher the cost per month. It’s the cost per month I’m taking about being more expensive. 

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10072017, 02:26 AM  #29 
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10072017, 07:42 AM  #30  
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We fund depreciation after all, however we finance a car. Good deals/best part exchange offers may lower the costs a little. VT may work in a few instances to dodge a bullet, but when we stand back and look at the real costs, most would benefit financially by keeping a car until depreciation levels off a bit. 

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10072017, 11:26 AM  #31  
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If you put no deposit down and if you're not intending to buy at the end, VTing as soon as you can is categorically no more expensive per month. My monthly payment is £606 per month and I don't choose that amount it is defined by my mileage, I cannot pay less. If I keep it 31 months and VT it costs me £606 a month, if I keep it 48 months it still costs me £606 per month. There is zero difference. It really is pretty simple. If you put a deposit in then that is spread over the full term reducing every single monthly payment. So if you VT early you are losing the deposit that would have been reducing your remaining payments. At no point have I ever said anything about making optional extra payments to reach the VT point. That would be wasted money. I am just referring to the minimum payments defined by BMWFS. 

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10072017, 12:32 PM  #32  
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Look for BMW specialists and phone up for a bid on yours.
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10072017, 12:53 PM  #33  
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As RalphyBMW suggests, you could get a similar spec new 440i GC for about £45k less than than that used one! TRL had some available at around £37k I believe 

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10072017, 01:30 PM  #34 
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Thanks all  yes the TRL ones put it into perspective I feel.
Nice looker though in SRB!! Saw same without the M performance bits in Heathrow this morning  rather tasty. 
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10072017, 02:08 PM  #35  
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My monthly cost is £325 per month and my GFV is £22k. Cost of ownership at month 36 (end of pcp) is around £530pm assuming I hand the car back. If I VT’d at say month 30 the cost per month would be around £700. And the deposit is not lost. It is in the cost you have to pay either by VT or end of pcp term. 

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10072017, 03:29 PM  #36  
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10072017, 04:13 PM  #37  
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10072017, 06:17 PM  #38  
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Let’s say you VT a £40k car. £40k /2 = VT amount (£20k) If you do this in month 2, your monthly cost of ownership is £10k per month. ( £20k/ 2 months). VT in month 20 = £20k/ 20= £1k per month. I think you are confusing the cost of ownership per month with your contracted monthly payment. 

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10082017, 03:49 AM  #39  
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You are also confusing what most people call the VT point. It is not paying it off early, it is terminating with no penalty after paying the payments set by the finance company, up to the point you have paid half the purchase price plus interest. My point comes at 31 months, where it will have cost me £606 per month. At 48 months it will still have cost me £606 per month. I accept that if I terminate at 20 months that I will have to pay the balance up to £20k ish, therefore increasing my cost of ownership. But, it is just irrelevant, as as far as I can see, no one has talked on here about VTing before the zero balance to pay off point. The VT point is always at that half way mark. No one apart from you is talking about paying an extra balance payment to get to it. 

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10082017, 04:32 AM  #40  
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Payments of £600 per month set by BMWFS gets you to £20k in 34 months. £600 x 34 = £20,400 From that point on, the payments still stay at £600. You don't just stop paying once you reach £20k. Therefore, between 34 months and 48 months the monthly payment and cost of ownership are identical. No one has talked about VTing before this point is reached. 

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10082017, 06:32 AM  #41  
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10082017, 09:51 AM  #43  
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Anyway, leaving that aside, if you've put down a sizeable deposit and choose to VT I can see the argument that says to get to the effective monthly cost of ownership you need to spread the deposit over the months you've actually kept the car (and fewer months obviously equates to a higher monthly cost). However, in the zero deposit example Alex describes I think he's right, there's no additional monthly cost associated with VT. Surely in that scenario the cost of ownership per month and the contracted monthly payment are one of the same or am I missing something? Last edited by JNW1; 10082017 at 12:30 PM. 

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10082017, 11:16 AM  #44  
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How does the interest sit in the VT debate. I could work it out, but I'm sure some forum members have it at their finger tips. 

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