Finance deals BMW

[Pud2]

In the past I’ve always saved and bought my cars outright. This time I’m considering a finance deal. I wondered if anyone had any advice, particularly for BMWs. Do they do a deal where you can pay monthly and upgrade every few years? Does it end up costing you much more in the long run?

I’ve just taken out my first lease deal. It’s not for a BMW but the way it works is still the same.

When you lease, you can get a new car but you don’t actually ever own it. You set a limit on the number of miles you will do per year and the number of years you want to keep the car for. The monthly payments are then worked out to pay for the depreciation of the car. So say the car is £20k new (numbers all made up here), and you lease for three years, and at the end of the three years the car is estimated to be worth £12k. The monthly payments over the term will cover this loss in value over the three years. You then give the car back and the company sells it on.

We’ve used a company called leasing options and they’ve been great. Like you, we’ve always bought outright but giving this a whirl as with a new car you get warranty, no MOT for three years and just generally more peace of mind.