[225]

I've noticed today all the more recent used m340s no longer have an example PCP and are all now HP examples. Its not for nearly new ones either its for really anything on a 20 plate or newer. A couple of weeks ago they showed the example PCP rate so you could see the GFV etc.

Anyone think why? Are BMW reviewing GFV rates or something so they cant be shown on the site? Or dealers wanting to show some stupidly high HP rate so when they come back with a PCP quote it looks cheaper?

[JustChris]

No idea but a good observation. It's always so random the AU finance and the crazy10% APR's in the calculator. Often on cards that have in the picture 4.9%APR available...oh really well update the crappy finance calc or example then!

[MashinBenzin]

Originally Posted by 225

I've noticed today all the more recent used m340s no longer have an example PCP and are all now HP examples. Its not for nearly new ones either its for really anything on a 20 plate or newer. A couple of weeks ago they showed the example PCP rate so you could see the GFV etc.

Anyone think why? Are BMW reviewing GFV rates or something so they cant be shown on the site? Or dealers wanting to show some stupidly high HP rate so when they come back with a PCP quote it looks cheaper?

The worst thing about your post is that you just told me that my 5.5 month old, 2k mile, 20 plate car is no longer nearly new. This forum sets dangerous expectations

Could be that the GFVs are undergoing a radical overhaul. I've heard that LR have upped theirs on new deals and the sheer lack of new volume over a sustained period must have a knock on effect into the second hand market.

ETA I was driving yesterday, musing that 21 plates are just around the corner and thinking that there must be fewer 20s than any other plate since the system changed.

[Steve_M_Sport]

Originally Posted by MashinBenzin

The worst thing about your post is that you just told me that my 5.5 month old, 2k mile, 20 plate car is no longer nearly new. This forum sets dangerous expectations

Could be that the GFVs are undergoing a radical overhaul. I've heard that LR have upped theirs on new deals and the sheer lack of new volume over a sustained period must have a knock on effect into the second hand market.

ETA I was driving yesterday, musing that 21 plates are just around the corner and thinking that there must be fewer 20s than any other plate since the system changed.

There are even fewer 70 plates that I can see around where I live

[isleaiw1]

Originally Posted by Steve_M_Sport

There are even fewer 70 plates that I can see around where I live

9 houses on my close and there are 4 70 plates...

(Mind we have 3 of them...)

[MashinBenzin]

Originally Posted by Steve_M_Sport

There are even fewer 70 plates that I can see around where I live

Quite a few 70s I see, I think sales and deliveries picked up in q4 versus Q2/3, but could be wrong.

My 20 plate registered 30/7 was ordered back in Feb and had been expected to be a late March/early April delivery prior to covid.

[335d Rocco]

Not too sure but it might have something to do with the recent change that BMW say they’ve had to do with the AUC finance set up, the FCA have told BMW that they have to offer the same APR rate to everyone rather than having lower rates for people who bargain harder than others, this month dealers had to choose a rate between 5.9 & 9.9 and stick to it rather than lower it to get a deal done.

I bought an AUC on New Year’s Eve & was told about it & the rate I was being offered wouldn’t be available in the new year due to the above reasons, I’ve checked the AUC website & the 10.9 rate seems to have been replaced & most have gone 7.9 to 9.9

[M2Andy]

It’s true I’m afraid regarding BMW FS telling the dealers to choose one and stick to it.

As some of you know I’m a serial changer and have been through this a couple of weeks ago. I used to start the negotiations at 5.9% to which you’d only get a select few franchises that could oblige however, it was a useful stick to level up the deals elsewhere if they had higher apr’s.

My old philosophy was I thought it great when dealers used to spout off about the 10.9 or 11.9% on their standard deals, my answer was “great, the fact you have customers willing to pay those rates helps subsidise the lower rate and margin you’ll have to offer me if you want a deal”.

[isleaiw1]

Originally Posted by M2Andy

It’s true I’m afraid regarding BMW FS telling the dealers to choose one and stick to it.

As some of you know I’m a serial changer and have been through this a couple of weeks ago. I used to start the negotiations at 5.9% to which you’d only get a select few franchises that could oblige however, it was a useful stick to level up the deals elsewhere if they had higher apr’s.

My old philosophy was I thought it great when dealers used to spout off about the 10.9 or 11.9% on their standard deals, my answer was “great, the fact you have customers willing to pay those rates helps subsidise the lower rate and margin you’ll have to offer me if you want a deal”.

so what is it this time Andy and will it last till the end of lockdown...?

[225]

Originally Posted by M2Andy

It's true I'm afraid regarding BMW FS telling the dealers to choose one and stick to it.

As some of you know I'm a serial changer and have been through this a couple of weeks ago. I used to start the negotiations at 5.9% to which you'd only get a select few franchises that could oblige however, it was a useful stick to level up the deals elsewhere if they had higher apr's.

My old philosophy was I thought it great when dealers used to spout off about the 10.9 or 11.9% on their standard deals, my answer was "great, the fact you have customers willing to pay those rates helps subsidise the lower rate and margin you'll have to offer me if you want a deal".

Ok I get the apr rate but they are all now quoting Hire Purchase and not PCP which is odd?

[ZedsRedBaby]

Originally Posted by 225

Ok I get the apr rate but they are all now quoting Hire Purchase and not PCP which is odd?

I would guess it's because they're reviewing the GFVs. On the HP, the interest rate is the same but it's all monthlies and no final payment. Because of that, the total amount payable is actually a bit lower on the HP deals, but obviously the monthlies are considerably higher.

Something else to bear in mind, if you're not planning to keep the car for the full term, the VT point is a lot earlier on the HP because you're chipping away at the 50% a lot faster.

[Wills2]

The FCA rule changes are around the commissions paid by the lender based upon the rate charged, the lender can set the rate where they want to the FCA are not stopping BMWFS offering lower rates.

[ZedsRedBaby]

Originally Posted by Wills2

The FCA rule changes are around the commissions paid by the lender based upon the rate charged, the lender can set the rate where they want to the FCA are not stopping BMWFS offering lower rates.

I was going to make the same point. The FCA haven't prevented them from offering different rates to different customers, but now there is no incentive for the dealer to go with a high rate, BMWFS want to avoid the dealer making all the concessions on the finance, which would only hit FS, rather than on, say servicing deals or trade-ins, which would hit the dealer.

[Wills2]

Originally Posted by ZedsRedBaby

I was going to make the same point. The FCA haven't prevented them from offering different rates to different customers, but now there is no incentive for the dealer to go with a high rate, BMWFS want to avoid the dealer making all the concessions on the finance, which would only hit FS, rather than on, say servicing deals or trade-ins, which would hit the dealer.

Some people also seem to think that they have no other option than BMWFS but they can go to any funder offering a product and most mainstream finance houses will offer 5.9% on a car, you can also refinance the car at any time should a better product come out etc...

[225]

Speaking to someone who knows these things apparently a lot of dealers are choosing high APRs for the PCPs to try and make some cash. Only showing example HP means that potential punters don't have GFV etc figures to work with and the dealers can then work the figures to suit them whilst not letting on to the buyer.

I rang one today and it was the usual what monthly figure do you want to pay and we will work with that. Very very reluctant just to send me a pcp quote with Xk in 48 months on 8k miles.

[ZedsRedBaby]

Originally Posted by 225

Speaking to someone who knows these things apparently a lot of dealers are choosing high APRs for the PCPs to try and make some cash. Only showing example HP means that potential punters don't have GFV etc figures to work with and the dealers can then work the figures to suit them whilst not letting on to the buyer.

I rang one today and it was the usual what monthly figure do you want to pay and we will work with that. Very very reluctant just to send me a pcp quote with Xk in 48 months on 8k miles.

Not sure I follow that. How can they not let on to the buyer? Whatever figures they come up with have to be provided in a detailed quote.

Anyway, I believe the ban on discretionary commission takes effect tomorrow so it will be interesting to see if the behaviour changes.