Alpina on balloon payment plan

che · Post by **che** » Mon Jan 14, 2008 4:11 pm

Hi All,

Had a standard Z4 for a couple of years now and really fancy a Alpina D3 to replace it.

My local dealer (sytner Notts) has a couple in but there asking for list prices for Sept 2007 pre reg cars. Is this a normal Alpina thing due to limited numbers? Are there deals to be done with there stock getting that old?

I was considering doing the finance package where you have a final payment but was suprised to hear that they work out the retained value of the D3 based on the price of a 320d SE after 3 years, I have been told that the car would be worth much more than that but never having done one of those ballon finance packages before am highly sceptical. Has anyone any experience of these deals? I cant imagine for a minute there going to give you back anything but the minimum unless you buy a new car from them again, if at all.

Any help or advice appreciated.
Many thanks
Che

Post by **Charles** » Mon Jan 14, 2008 7:05 pm

The balloon is what you are left to pay (either as a lump sum or to be refinanced if you intend to keep the car longer) at the end of the finance period.

If you believe the D3 will be worth more than the equivalent 320d at this point then you will be left with (say) Â£10k to pay on a car worth (say) Â£15k.

As such, by using the 320d as the benchmark, it is likely (but no guarantees) that your D3 will be worth more than the balloon. If you chop the car in for a new one, the price achieved will be offset against the balloon value and any surplus cash is yours.

Alternatively, if the value is higher than the ballon and you are getting a new car, then the increased value = increased deposit and less to finance next time around.

What sort of figures are they quoting you and over what period?

Dunk · Post by **Dunk** » Tue Jan 15, 2008 12:22 pm

My main worry with a balloon scheme on a D3 is that prices of Alpina's (and indeed normal BMWs) tend to plummet once they leave the dealer network.

If you're buying a two year old car on a three year scheme, it may be that Sytners (or any other dealer chain for that matter) wouldn't actually want the thing in p/ex - normally main dealers express disinterest by offering under book price. (remember also that used sales are pretty flat at the moment, as so many manufacturers offer crazy deals on new stuff. My local BMW dealer chain, with 5 dealerships, has over Â£2.5million used stock they're unable to shift.)

Once they out of the dealer network, the value tends to correct itself quite sharply. (seriously, look in the classifieds, there's only two types of used Alpinas - bloody expensive nearly new in the dealer network, and sensibly priced examples which are too old to be main dealer forecourt fodder)

So you could be left with a car which isn't quite valued at what you expect it to be. Whilst it probably wouldn't be less than a 320d M-Sport, you have to remember that the D3 is a effectively an unoptioned car, and you could be pitching against well spec'd examples.

The only comfort is if the dealer is offering GFV (guaranteed future value) on the car, and it's more than the balloon payment.

The final consideration, and I've just ruled out a new 335d M-Sport for this very reason, is that you normally end up paying a huge amount of money to effectively rent a car.

A 335d for me on PCP, @ 35K miles a year, worked out at Â£9000 deposit, 36 x Â£900, and balloon of Â£12,000. If I chose to give the car back at 36 months, I'd have paid Â£41,400

Value of the car is Â£41,000

So Â£41,000 to not own a Â£41,000 car, or Â£41,000 to still owe Â£12,000 on a Â£41,000 car.

ALPB1033 · Post by **ALPB1033** » Tue Jan 15, 2008 3:47 pm

Don't forget they charge you the interest on the car. In you case Dunk they charge Â£12000 for Â£32000 purchase in three years. So you can work out the precentage what it is.
For my B10, I was charge 6.5% for Â£15000 i.e. I only paid about Â£1200 interest for Â£15000 for three years. At the end of it I own the car straight away but the hire-purchase payment was only slightly higher than the that personal contract hire payment.

che · Post by **che** » Mon Jan 21, 2008 11:03 am

Thanks for the help guys, I drove the car at the weekend and loved it. The BMW finance is not an option though, just too uncompetative, personal loan is the way to go. Got this week to think about it. Ive never spent this much on a car before so a little nervous about its value in the future, its a head v heart decision lol, watch this space!

Cheers
Che

ALPB1033 · Post by **ALPB1033** » Mon Jan 21, 2008 8:05 pm

Che,

I had the same situation 4 years ago. But I had a good deal from Sytner when I bought mine as I made the deal just at the last few days of Jan 04. So they needed to achieve their quota at the end of the month. i.e. 6.5% from BMW finance for 3 years. I only paid about Â£1200 interest for a Â£15000 loan for three years. I just told them the amount I was going to pay for the loan per month if they could not do it I went to somewhere else for the money. So that is it.
So far no regret for the car and still enjoy every minute of driving it after 4 years. This time the heart won not the head for me.

che · Post by **che** » Wed Jan 23, 2008 12:53 pm

Thanks for all the advice guys, Ive decided against it, I love the car but Sytners wont give any discount on it and are offering me bottom book price on my car which is in top condition with some nice options.
I am going to save some more cash and look around later in the year, maybe consider the D3s if its around the same price as the D3?

Cheers
Che

Peter&Janet · Post by **Peter&Janet** » Wed Jan 23, 2008 9:36 pm

Hi Che, dont feel isolated it's the same for all of us.
Have to agree with you, Ive bought 4 cars from Sytner now and never part exchanged (although I wanted too). the last two I've sold on E-Bay and made at least 2-3 K on both over what Sytner offer. I actually like the sales men to deal with but just accept they give a price take it or leave it, (when they pi55 off to the back room you know it's curtains)most like me leave it. Unless money is no object best to sell then go to Sytner.

peter

pete · Post by **pete** » Thu Jan 24, 2008 11:13 pm

for anyone who is interested there is a financial option i found .My workmate used a company for his demonstrator A8 3ltr diesal.New It was Â£53000 he paid Â£39000,what depreciation!Anyway Abbey finance in manchester did some kind of lease purchase type deal.Unlimited mileage(he does 40000+)No deposit 60 months at Â£600 then he hands it back or he pays the baloon.I know you need to be an economist professor to work all the deals out there but i think for that mileage its very good.