Refinancing car at end of PCP

McBride · 02-10-2022, 10:18 AM

My current pcp is due to end later this year and in the current market I have no desire to get a new car for what will be a massive increase in monthly payment compared with my current deal.

Anyone have any experience with purchasing the car through another means of finance to avoid paying the full balloon payment?

Ideally would like to take out another PCP but third party Finance companies seem to have high APR? Not sure if this is something BMWFS offer?

slinkyjynx · 02-18-2022, 01:44 PM

Why not just take out a loan to cover the balloon payment?

McBride · 02-19-2022, 04:21 AM

I could do and likely will end up doing that. I’m just exploring available options.

A £20k loan over 3 years is £500+Pm, whereas if you assume the car would be worth circa £10-12k in 3 years time a PCP type arrangement would only be half that. There’s interest to consider, but it’s quite a big difference.

I certainly wouldn’t want the car longer than 7 years so the extra 10k of borrowing seems a bit unnecessary.

BMW and me · 02-19-2022, 05:57 AM

BMW Finance can extend PCP , not sure how long but one year for sure. The same payments and final payment.

Bc2005 · 02-19-2022, 06:57 AM

I don’t know about the UK and how PCP works, but BMW finance in the US seems very ready to provide financing at very good rates if you have good credit. They often have lower interest rates than most credit unions. I would call or email them and ask for current rates. If the balloon payment is lower than current resale value it seems like an easy deal.

02-10-2022, 10:18 AM	#1
McBride First Lieutenant 132 Rep 364 Posts Drives: G31 M Sport + Join Date: Feb 2016 Location: Leeds, UK iTrader: (0)	Refinancing car at end of PCP My current pcp is due to end later this year and in the current market I have no desire to get a new car for what will be a massive increase in monthly payment compared with my current deal. Anyone have any experience with purchasing the car through another means of finance to avoid paying the full balloon payment? Ideally would like to take out another PCP but third party Finance companies seem to have high APR? Not sure if this is something BMWFS offer?
	Appreciate 0 Tweet Quote

02-18-2022, 01:44 PM	#2
slinkyjynx Private 50 Rep 75 Posts Drives: 2018 M240i Join Date: Dec 2016 Location: UK iTrader: (0)	Why not just take out a loan to cover the balloon payment?
	Appreciate 1 Grumpy514641.00 Quote

02-19-2022, 04:21 AM	#3
McBride First Lieutenant 132 Rep 364 Posts Drives: G31 M Sport + Join Date: Feb 2016 Location: Leeds, UK iTrader: (0)	I could do and likely will end up doing that. I’m just exploring available options. A £20k loan over 3 years is £500+Pm, whereas if you assume the car would be worth circa £10-12k in 3 years time a PCP type arrangement would only be half that. There’s interest to consider, but it’s quite a big difference. I certainly wouldn’t want the car longer than 7 years so the extra 10k of borrowing seems a bit unnecessary.
	Appreciate 0 Quote

02-19-2022, 05:57 AM	#4
BMW and me Private 39 Rep 61 Posts Drives: X6 Join Date: Dec 2021 Location: UK iTrader: (0)	BMW Finance can extend PCP , not sure how long but one year for sure. The same payments and final payment.
	Appreciate 0 Quote

02-19-2022, 06:57 AM	#5
Bc2005 Lieutenant 408 Rep 469 Posts Drives: 2021 M340i Join Date: Jun 2021 Location: Virginia iTrader: (0)	I don’t know about the UK and how PCP works, but BMW finance in the US seems very ready to provide financing at very good rates if you have good credit. They often have lower interest rates than most credit unions. I would call or email them and ask for current rates. If the balloon payment is lower than current resale value it seems like an easy deal.
	Appreciate 0 Quote