BMW 50-50 purchase scheme

[snipez999]

Was offered the 50-50 scheme when ordering my X6M50d.  I usually change cars every 3 years, do around 12k miles a year, and pay cash.  I could not quite get my head round the concept of the 50-50 deal - where I have effectively paid for half the car with my p'ex and have 2 years (at 10k miles a year) usage before either paying the other half or just giving the car back minus any small adjustments either way on trade value at that time.  Seems fine if they continue with the programme, and I get to climb into another BMW on the same deal afterwards, but somehow does not compute in my mind; I am looking too hard for the small print I think?!
Funny bit was when dealer said I would have to drop 2.5k of options to secure the deal, but that I would enjoy the 2 years' bank interest on the 35k.  I pointed out that this would effectively be around 1750 GBP, so I am screwing myself out of 750 quid of options!
If the did not continue the deal afterwards, I would be left with cash but no p'ex and having to arrange something fast to prevent extended use of public transport too. Seems like too much hassle but am I missing something??

[pvr]

What is the charge for the miles between 10k and 12k which is what you do per year?

It sounds like a hire purchase deal of some sort where the cost to you is 50% of the value of the car. I would not have really thought that the car would depreciate 50% in 2 years though. What valuation tool is used for the valuation at the end of the 2 years?

[IvanG]

I was offered this deal on a 40d M Sport in August 2011. With options the car was £59k but I negotiated a discount down to 52k with 5 years free servicing and the 50/50 offer over 2 years. For me it was an excellent deal and I love the car!

[davyk31]

Deal is fine but you need to be saving for your next deposit otherwise you hit 2 years and only have tiny equity in the trade in at best. However at that stage you could lease using a small deposit.

[snipez999]

Sounds like a good deal Ivan.  I also got a total of nigh on 12% discount, which is not bad on a new model.  3 year service inclusive plan included, but that's all I need to cover my ownership period.  Hastily added the voice control option as I read that Apple are going to broaden the compatibility of Siri to some marques.

[webber]

I was looking at this deal for a new M6 cab. I was going to pay cash until BMW mentioned this 50/50 thing and it does seem to make a lot of sense.

Assuming the M6 is £100k I could trade in my 650, pay £25k and settle the rest at the end of the term, or more likey just hand the car back. However I've been reading up on this http://www.car-tyres.org.uk/articles/bm ... inance.asp and my concern is whether or not you'd get the same discount and the same trade in deal as you would with a normal finance deal.

Has anyone signed up for this deal, did you get a good discount?

[snipez999]

I almost did, and that was offered at signature stage so included the discounts but I would not be able to have the options I wanted and would effectively have lost a few more 00 GBP on the overall deal.  Also are they even offering it on the M6?  Could be worth a punt on one of those for 2 years.  Again, it all depends on whether you are guaranteed to be able to step into another BMW after those 2 years.  If they decide to end the offer you could end up with 50% to pay, or no car and nothing to p'ex against a new one (ie. ends up costing you full cash price anyway).  One for you to ponder m8.

[webber]

Well I didn't specifically mention the M6 to them. This was a few months ago and I was talking to them about another 650 cab. I just assumed they were offering this on all their high end cars, I'll have to check.

I'm not too worried about what happens at the end, we're running 3 cars at the moment and this would just replace the 650 cab, which has always just been a fun car rather than something I really needed. I usually buy cars following the same pattern. I buy a new model and then 3 years later (pissed off with the depreciation) I swap it for a nearly new one of a similar spec with a big discount.

However if I can't have full control of the options it could be a non-starter. I'll have to check back with my dealership, thanks for the info.

By the way, I know this is a BMW forum, but have you seen the PCP deals Mercedes are doing? They work out cheaper than paying cash. Problem is I can't find a Merc I really like enough, SUV or GT.

[Don Coffey]

[quote="webber"]
Well I didn't specifically mention the M6 to them. This was a few months ago and I was talking to them about another 650 cab. I just assumed they were offering this on all their high end cars, I'll have to check.

I'm not too worried about what happens at the end, we're running 3 cars at the moment and this would just replace the 650 cab, which has always just been a fun car rather than something I really needed. I usually buy cars following the same pattern. I buy a new model and then 3 years later (pissed off with the depreciation) I swap it for a nearly new one of a similar spec with a big discount.

However if I can't have full control of the options it could be a non-starter. I'll have to check back with my dealership, thanks for the info.

By the way, I know this is a BMW forum, but have you seen the PCP deals Mercedes are doing? They work out cheaper than paying cash. Problem is I can't find a Merc I really like enough, SUV or GT.
[/quote]

A couple of interesting quotes there Webber.  Firstly I had looked at a ML250 but the dealer didn't offer me a very good deal, either on discount or finance.  So that was the end of that enquiry!  Secondly, I, in the past have had always bought new BMWs and traded in within 6-24 months and always been pissed with the depreciation.  This time I went for the X6 that was 20 months old.  I set a budget and then went for youngest car, lowest mileage and highest spec.  So the first guy took the big hit.  With over a years warranty, three years plus service pack and a spec far higher than I could have went for new, I'm really pleased.

Don