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Welcome to car finance simplified folks jd here again um on today’s episode we’re going to compare bmw m340 new versus used so first and foremost thank you again for your continued support subscribers or subscriptions i should say are going through the roof not literally obviously but uh in my world they are um i think i’ve picked up about 140 in the last week

So that’s fantastic um if you haven’t yet subscribed please do so interestingly the channel views are going up but because of that the ratio of subscribers to non-subscribers is drastically going down and i think i’m on about eight percent of anybody currently watching these videos is a subscriber so if you haven’t yet subscribed i would really appreciate it if

You do make sure you also hit that bell icon so that you are notified as and when a new video is released so this video today down to business um one of my facebook contributors suggested this so thanks very much i did a video probably quite a while ago on the bmw m340 it had only been recently released at the time so there weren’t many used examples out there

What i want to do today is just to see how it compares buying new or used is it still better to buy used or is it still better to buy new and i’m also going to throw something that’s quite exciting into the mix in terms of a possible apr which i may be able to get for subscribers on the channel so stay tuned until the end for that bit of good news okay so let’s

Just have a look so i did a quick search today excuse me um and again no affiliation with strat stone but this came up bmw bmw 3 series m340i x drive four-door step auto and they are saying personal contract purchase offer a 579 a month with 1999 deposit so what we’ll do for comparison purposes we’ll base our deposit on 1999 for each of them the three examples

We’re going to go through is this example which is brand new with bmw we’re going to go through bmw we’re going to find a used m340 and look at bmw’s headline finance and then we’re also going to use another finance company which i will talk more about at the end of you get the idea so um if we have a look at this now this is assuming no options obviously it’s

A standard car although the bmw m340 is pretty heavily specced anyway if we have a look down at the finance offer they are quoting 47 months so this is 47 equal payments month 48 being where your guaranteed future value lies just remember again i can’t emphasize this enough if you do get any finance quotes make sure they are the exact same length of term so if

You are asking for a 48-month quote make sure that both quotes if you if you’re trying to make a comparison are both 48 months and are they 47 equal payments are they a month are they 48 equal payments so just make sure they’re the same don’t compare one like this which is 47 equal payments with another one that might be 48 equal payments obviously it could skew

Your results so they are saying customer deposit of 1999 dealer deposit contribution of seven eight six five so this particular car has got a recommended on the road cash price of forty nine eight four five but actually if we whack this into the old spreadsheet so let me just try and see what i’m doing here so forty nine eight four five deposit hour deposit of one

Nine nine nine and they are throwing in a deposit contribution of seven eight six five they have a guaranteed future value of eighteen four two two seventy six and an apr of four point nine on the spreadsheet lock on 47 remember if it’s a 48 month agreement but it’s 47 equal payments always put in the spreadsheet the number of equal payments some people have been

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Questioning why the results they’re getting on the spreadsheet are slightly out and it’s usually down to the fact that they are putting in the incorrect amount of equal months in that box there actually while i remember if you would like a copy of this current spreadsheet as always do just fling me an email here and i will get back to you with details of how you

Can obtain a copy so that’s coming out on the spreadsheet at 57904 bmw coming out at 579 so that’s reassuring we know we’re pretty close on the old spreadsheet this is on 8 000 miles a year as well um that’s going to skew things slightly because the quote i’ve got is on 10 000 um excuse me but we’ll carry on anyway um so that’s going out at five seven nine now

What we’re gonna do is look at a used one now there’s there’s loads of used examples out there some cheaper than this one but this is kind of the first one i came across this is an m340ix drive it’s done seven and a half thousand miles it’s coming up to a year old december 2019 um it’s probably got a few more options on it i don’t know whether it’s got a lot more

On it i think it’s got they’ve got some pro glass it’s got some pro glass there’s probably a couple of options on it but it’s pretty similar to the new version here so the new model here so let’s have a look at what they say on their finance so um we want to put in the same finance deposit so 1999 48 months now this is interesting let’s just see oh okay good i

Just want to make sure it is 47 equal payments so look at this if you were to go with the headline rate that bmw are offering on this used car because they are quoting 10.9 apr it’s going to come out with the same deposit of 688.53 versus 579 so over a hundred pounds nearly 110 pounds a month cheaper to go new if you were gonna go on a four-year pcp with the

Same deposit okay now let’s just break it down let’s just whack it into the spreadsheet so on to this second tab 38 000 pound cash price deposit we’re going to put in as 1999 now the guaranteed future value in this example is 14 382 is that right eight two thirty three fourteen three eight two thirty three um and the quoted api is 10.9 and 47 equal payments

There you go not bad six 90 50. is that all right 38k 1999. okay that’s good no that’s good actually i am okay i wondered why i’d done 10 000 miles on my previous quote which i’m going to show you in a minute it’s because the used example defaults at 10 000 miles a year the new defaults to 8 000. that’s fine so that’s coming out at uh let me just double check

This see i put that in wrong 14 3 8 2 33 great that’s better so the spreadsheet’s saying 688 80 they’ve got 688 53 so pretty close right let me just show you another example based on the same car and the same terms but i will show you what you might be able to get this car for because i’ve got my contact who i will be discussing more on the channel hopefully

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Very soon i can’t really diverge anything at the moment but essentially i asked them for a quote on this particular car and it came out at same deposit they had a guaranteed future value of is he gonna let me paste this in no it’s not right hang on a minute bear with me folks i’ve just got to find the quote fourteen nine four three fifty that’s higher than bmw

Fourteen nine four three fifty okay there was ten 000 miles a year 48 month agreement so let’s put this in at 10.9 because i just want to show you something 47 equal payments going out at six seven nine eighteen versus six eight eight eighty why is it different same deposit same apr obviously it’s because the guaranteed future value from bmw is 14382 and from

This other finance house is 14943 so again if you’re going to keep the car full term and you look after it that that final end value is guaranteed if you want to get out of it earlier obviously you’re building slightly less equity in because you’ve got a higher end value so that might skew things i’m assuming we’re going to run all of these for the full four year

Term now what if i was to say to you that i could potentially get you guys 5.9 look at the difference so from going from 10.9 on this particular used car at 6 7 9 18 if we go to 5.9 you think that’s only five percent look at the difference five seven four a hundred and five pounds a month cheaper let’s look at the total cost so the total cost at 10.9 actually

We’ll have a look at the 10.9 on the on the bmw so this is the used finance 10.9 from bmw 688.80 total cost for a 38 000 pound car is 48 700 if you were to run it full term and pay it off at the end effectively look at this example with 5.9 so not only is our guaranteed due to value slightly higher so we’re going to pay a tiny bit more interest there because

The because the interest is so much lower we’re not only going to save 105 pounds a month but this is the important bit i hope you can see this let me just zoom in a little bit on excel can you see this here we go look at this so the total cost is three nine three seven so let’s say forty four thousand so forty four thousand at five point nine versus forty eight

Seven hundred and let me just zoom in again so hopefully you can see this 48755 versus 43937 so if you were to buy if you wanted this used car hopefully i will be able subject to your individual circumstances be able to point you in the right direction of 5.9 apr and on this particular car you can see that you could save effectively 105 pounds a month compared

To bmw’s headline rate now yes bend over you might haggle you might be able to get it down a little bit but i doubt you’d get it down to 5.9 so what’s this space i’m gonna put something out about this hopefully soon but what i’m saying is hopefully for viewers of this channel for subscribers of this channel providing you know subject status obviously you may be

Able to get 5.9 so that is a massive saving however the other interesting thing is even if you can get 5.9 even if you can get a higher guaranteed future value than bmw are offering on this particular used car look how much a brand new one is 57904 with the same deposit and i’m just going to zoom in again so yes the overall the is it’s interesting look the overall

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Cost on this brand new car is 4763 and on on the bmw used finance is 48.755 so it’s cheaper still overall because they’ve got 10.9 on the used it’s cheaper to buy new it’s not cheaper to buy new if you consider the total cost over the period so 43 937 this is on the used car at 5.9 with the same deposit versus 47636 for a brand new one however because the

Guaranteed future value is so much higher on the brand new one we are talking 18422 versus in bmw’s case 14382 or 14943 from the other finance house because it’s so much higher because the guaranteed future value is so much higher and we’ve got 4.9 on the new on the new car the monthly payment is what 579 versus 688 with bmw versus 574 with the other finance

House so it’s difficult isn’t it um i suppose if you wanted to whack the desk there i suppose if you wanted to own this car eventually you know say you got to the end of the four years and you wanted to pay it off and you got a you know a very good low-cost personal loan obviously you’ve paid 574 pounds a month over the four years versus 579 pounds over the four

Years but if you want to settle on the new one yes it’ll be a year newer in that time but you’ve got to find 18 and a half with this one you’ve only got to find 15. so it’s horses for courses isn’t it but it’s still if you’re only interested in a monthly payment which i know i say is always a bad thing and you want a brand new car with all the things that comes

With so no mileage you know three years warranty etc it’s still cheaper or it’s still nearly as cheap to buy brand new the only thing we need to remember obviously is the used one has probably got a few options on it yeah it’s got the sunpro glass it might have a few other bits so you might find you’ve got a thousand pounds or so of options on there having said

That an interesting comparison i hope that was remotely useful um i’ve just got him from work so i’m probably rambling a little bit but let’s just summarize again one more time brand new one um standard spec one nine nine nine one nine nine nine deposit five seven nine a month with an n value of eighteen four uh uh used with bmw coming out six eight eight eighty

At 10.9 with a final value of fourteen three eight two and with the other finance house more details to come in the future five seven four thirty six with a slightly higher end value but a much better very competitive 5.9 apr which is excellent on a used car and just to confirm that is a guaranteed future value it’s not a balloon payment so it’s not a lease hp

It’s a guaranteed future value pcp arrangement just the same as you would get with bmw okay thanks very much for watching as i say please do email me here if i can find my finger for anything you’d like to know and also if you’d like to buy a spreadsheet obviously and i will see you next time thank you very much for watching please do continue to watch please do

Continue to comment and please do subscribe if you haven’t already done so i’ll see you next time take care

Transcribed from video
BMW M340 NEW VS. USED 48 MONTH PCP AND LOW RATE FINANCE !! By Car Finance Simplified