[SimonB]

So, I got an email from Stratton Finance this morning and then a followup call and, as I hadn't heard back from the dealer's finance person, I completed their form over the phone and they're going to shop around for a good rate for me.

So, I told the dealer I'd gone out to a broker...

5 minutes later, their finance person rang ...

"We quoted you 6.75% on Full Circle, it's now 7.2%, but we'll honour the 6.75%..."

"Well, you'll recall I don't want Full Circle, I don't want only 4 years...."

"Okay, no worries, normal 5 year consumer finance rate will be 6.3%"

"Please let me know what rates you get from the broker and I will be happy to go back to BMW and negotiate a better one if possible for you..."

So, now we'll see what Stratton come back with, allowing for comparing apples with apples (extra payments, early payout etc). This is exactly why I tried to do this, several times, some time ago!

[KT_F31_EBII]

I am on 6.5 full circle. Stratton is cheaper.

[SimonB]

Originally Posted by KT_F31_EBII

I am on 6.5 full circle. Stratton is cheaper.

I just keep beating you, don't I?

I haven't heard back about Opticoat price, will let you know.

[AMJAM]

Depends on what you want. You may get a cheaper rate but you will have to roll the dice when you want to upgrade. Given how poor resale value is on used car full circle can be better

[SimonB]

Yes, AMJAM, fair point. I also need to make sure I compare apples with apples. Extra payments and early payout is a benefit of BMW Finance too. If I get them below 6%, I'll be happy.

[BMarmy]

well there is 1% interest currently offered for delivery before 31 Dec.

[SimonB]

Yes, and we talked about that a while ago :-) Obviously there are catches and it's not 1%...

[AMJAM]

Also with BMW finance if you decide to get out of the car early they don't chuck on all the interest you should of paid it's what you owe on the day. It's for this reason that I have just stayed with BMW (Alphera) for so many years they are really helpful and reward customer loyalty

[SimonB]

I just spoke to Stratton about that AMJAM, it's because the principle is paid off earlier in the loan period, so there's less risk to them and it's because of that that their rate is slightly higher. TANSTAAFL, as they say (Google it). But, it comes down to convenience in the end.

If Alphera (who I only found out 30 mins ago were behind BMW Finance) offer me the same rate or very close to Macquarie's, then I will probably stay with them, yes. We will see.

[AMJAM]

I have been with Macquarie when I got out early the payout figure was eye watering never again the customer service was bad too although it was quite a few years ago they may have improved

[SimonB]

Originally Posted by AMJAM

I have been with Macquarie when I got out early the payout figure was eye watering never again the customer service was bad too although it was quite a few years ago they may have improved

I doubt it I was told that Alphera was better to pay out early or make excess payments with. We'll see what happens next week.

[pmunger]

I believe that the most important decision point is the term of the loan and residual.

If you don't mind me asking, what term and residual are you planning on Simon?

PS: I used Alphera for the my last two cars, this time through BMW

[SimonB]

pmunger, 5 years and between 30% and 40%...

[pmunger]

Originally Posted by SimonB

pmunger, 5 years and between 30% and 40%...

I would advise going 30% as your car is highly optioned- unfortunately the purchase cost of the options isn't always reflected in the sale or trade-in price.

Might be wise to see what residual BMW offer on 5 years full circle with the KM PA you intend to do - they should have a good idea of resale value, then go a bit lower if you don't use full circle.

FYI - I went full circle - residual 43% - term 4 years, 20 KM PA allowance

You should also consider GAP insurance, or make sure vehicle insurance is adequate to cover payout in the first few years (often higher than market value), or provide a new car in event of write off.

Finally - compare the actual repayments, the interest rate doesn't tell the full story.

Good luck - hope you enjoy driving it as much as planning for its arrival.

[jctg]

Actually I was with Macquarie (through a broker) and asked for an early payout this time last year and the payout was only a little above what I owed (I think the difference was less than $200 which I thought was fair enough).

Wouldn't know about customer service since I didn't deal with them directly.

[SimonB]

Originally Posted by pmunger

Good luck - hope you enjoy driving it as much as planning for its arrival.

All good info, thanks. Unfortunately they won't do 5 years on full circle, but I will adjust the balloon to fit the repayments that I am comfortable with and drop the balloon down accordingly.

Hopefully, all will be sorted next week and then it's only 2 weeks from today before I can play, play, play

Thanks for your advice.

[SimonB]

Originally Posted by jctg

Actually I was with Macquarie (through a broker) and asked for an early payout this time last year and the payout was only a little above what I owed (I think the difference was less than $200 which I thought was fair enough). .

Thanks jctg, I learnt a long time ago that companies don't do things for you out of the goodness of their heart.s If there's no early payout penalty, it's probably because it's factored into the loan already . So, potentially, you're paying for something that you may not use.

Anyway, all good info here, thanks again all.