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Originally Posted by ZeroFx

45000 miles per year rules me out of PCP. That and the interest is more than it earns in the bank. I only keep my cars for a year now. I aim to buy them with 10-20k miles on them and run them for a year and i get £12,000 after tax and costs are taken out. Should only depreciate about 5-6k max in that year and i get to put 6k towards a better car next year.

The higher the MPG the more profit on the milage. the 330d RWD is a perfect balance for me between MPG and power. But next year i think a 435d is on the cards.

That is barking mad mileage btw.

With the way BMW residuals are going, you may find it could be time to jump ship to another make.

[EvilDrPorkChop]

Originally Posted by Brigand

That is barking mad mileage btw.

With the way BMW residuals are going, you may find it could be time to jump ship to another make.

No matter what make you buy you will always lose money, it's a no win situation. Whether you buy on PCP or cash I don't think it makes much difference.

If you don't want to lose huge amounts of money buy a 8k Corsa then the most you'll ever lose is 8k. Buy a 40k car be prepared to lose 40k eventually....

[....,,,,..,,..]

Originally Posted by DrEvilPorkchop

No matter what make you buy you will always lose money, it's a no win situation. Whether you buy on PCP or cash I don't think it makes much difference.

If you don't want to lose huge amounts of money buy a 8k Corsa then the most you'll ever lose is 8k. Buy a 40k car be prepared to lose 40k eventually....

Yep exactly,however with some you loose more faster.

I guess it comes down to how much a person is prepared to loose.

[EvilDrPorkChop]

Originally Posted by Brigand

Yep exactly,however with some you loose more faster.

I guess it comes down to how much a person is prepared to loose.

True, when I was in the motor trade a guy got what he paid new for his Range Rover 8 months later when Part-Ex'd for a 740d.

Don't think you ever really know though until you've bought the car. You can't ever truly predict the depreciation of a car (Unless you've got a guaranteed price on a PCP 36months down the line - even then it can be way out)

[ZeroFx]

Originally Posted by Brigand

That is barking mad mileage btw.

With the way BMW residuals are going, you may find it could be time to jump ship to another make.

I can pick up a 530d with 21k miles for £25k 2 years old. Good spec too.

Run it for a year and bank about £11,500. 45,000 miles on the car will have 65,000 on the clock and be worth about £17k-£20k depending on trade in or private sale.

seems that 2 years old is the perfect time to buy them if you can find them

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Originally Posted by ZeroFx

I can pick up a 530d with 21k miles for £25k 2 years old. Good spec too.

Run it for a year and bank about £11,500. 45,000 miles on the car will have 65,000 on the clock and be worth about £17k-£20k depending on trade in or private sale.

seems that 2 years old is the perfect time to buy them if you can find them

It's early morning maths, however where does that 11.5k getting banked come from?

Also that works out about £5k per year hard cash needed for each car.

Working on loosing 5k per car swap (purchase £25k, sell £20k) - so over 4 years is £20k in actual cash required.

As I said it's early morning so may have figures wrong

[happycow6171]

My formula is quite simple I use discount and chassis support, I have got my head round the idea that I only rent the cars, to write of neg equity after 4 to 6 months I will pay more a month than average but I dont put my own cash in to write of neg equity.
I like my cars so my dealer goes that extra mile so I have no pain financially.

[Ti Rich]

Originally Posted by Brigand

It's early morning maths, however where does that 11.5k getting banked come from?

Mileage allowance I suspect.


First 10k at 45p
Remaining mileage at 20p

But that isn't taking into account the cost of the file used of course.

[mactrack]

Originally Posted by happycow6171

My formula is quite simple I use discount and chassis support, I have got my head round the idea that I only rent the cars, to write of neg equity after 4 to 6 months I will pay more a month than average but I dont put my own cash in to write of neg equity.
I like my cars so my dealer goes that extra mile so I have no pain financially.

What sort of monthly "rent" amount does this method give you and are there any other costs which need to be factored in like a lost deposit?

[Pablo68]

Cars cost money simple as. It all depends on how much you are prepared to fork out, but in the end there's no way to get around it.

[ZeroFx]

Originally Posted by Brigand

It's early morning maths, however where does that 11.5k getting banked come from?

Also that works out about £5k per year hard cash needed for each car.

Working on loosing 5k per car swap (purchase £25k, sell £20k) - so over 4 years is £20k in actual cash required.

As I said it's early morning so may have figures wrong

£6800 allowance
45p per mile for 10k
25p per mile next 35k.

Less insurance and servicing and tyres etc

Gives me £12500 per year after tax. ( allowance is going up )

Its either going to be a 330d or 530d while i wait for reasonable 435d prices.

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Originally Posted by ZeroFx

£6800 allowance
45p per mile for 10k
25p per mile next 35k.

Less insurance and servicing and tyres etc

Gives me £12500 per year after tax. ( allowance is going up )

Its either going to be a 330d or 530d while i wait for reasonable 435d prices.

What does 45k miles per year work out at for actual fuel costs.

I get allowance as well (bit more), however with 25% discount and relatively low business miles (if it's a long trip I fly or get train lol), so at moment pcp works best rather than 2nd hand.

[ZeroFx]

Originally Posted by Brigand

What does 45k miles per year work out at for actual fuel costs.

I get allowance as well (bit more), however with 25% discount and relatively low business miles (if it's a long trip I fly or get train lol), so at moment pcp works best rather than 2nd hand.

£6400 per year at 46mpg

[gtsussex]

Originally Posted by Pablo68

Cars cost money simple as. It all depends on how much you are prepared to fork out, but in the end there's no way to get around it.

I hate to say it (as once again I'm agreeing with him) but he's right.... Cars cost money so deal with it.

I've stopped us losing a whole heap more on our bought new Disco but buying the wife a Mini Cooper S Conv secondhand. Sounds all very flash but once you take into account depreciation on a £60k Disco, it's actually a no-brainer - way way cheaper to put the miles on the Mini as we want that Disco to last for at least 8 years.