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Hi guys,

BMW are offering 50/50 finance over two years and limited mileage of 10k per annum. Thats nothing new but they also said after two years if they value the car over the 50% that's remaining after the term, then they would refund the difference. Now I know that this probably won't happen due to depreciation but I was curious to see if that's correct? I also worked out the depreciation at 350pw based on another members thread on the forum, I can't remember who it was. Hence if the cars worth 80k with my spec and I make a deduction of 350pw x 104 weeks = 36,400 hence remaining 43,600 - so BMW would refund 3,600 in this case, or I can exchange the car for something new or just give it back (which I wouldn't).

Before Ppl say this is a pointless question, I am not saying that i would sell the car after two years but I wanted to make sure I understand this product properly as the BMW guy doesn't really get it himself. Thanks!
 

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Hi guys,

BMW are offering 50/50 finance over two years and limited mileage of 10k per annum. Thats nothing new but they also said after two years if they value the car over the 50% that's remaining after the term, then they would refund the difference. Now I know that this probably won't happen due to depreciation but I was curious to see if that's correct? I also worked out the depreciation at 350pw based on another members thread on the forum, I can't remember who it was. Hence if the cars worth 80k with my spec and I make a deduction of 350pw x 104 weeks = 36,400 hence remaining 43,600 - so BMW would refund 3,600 in this case, or I can exchange the car for something new or just give it back (which I wouldn't).

Before Ppl say this is a pointless question, I am not saying that i would sell the car after two years but I wanted to make sure I understand this product properly as the BMW guy doesn't really get it himself. Thanks!
It may be worth getting if BMW considers the sticker price as the base to compare with.

Even more to support the theory:
More likely than not, you or most peoples specs are closer to 110K with all the 'must have' options. Then if you apply the same depreciation per week (110k - 36.4k) , your remaining value (73.6k) is 66.9% of the 110K original price vs 54.5% in your example above.

Sounds like a good deal even if considering depreciation after 1 year is over 30%...after 2 years, I believe your residual value should still be greater than 50%.

Plus it would be sweet if at the end of 2 years, you pocketed the difference in value that BMW would pay as part of this program and buy the 2015/2016 M and possible start the process all over again...

Interesting option.
 
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