Can I get car finance on a BMW?
Getting a BMW is a dream for many, and understanding the various finance options available can help make this dream a reality. Whether you're considering a new or used BMW, we’re here to help answer any questions you’ve got.
Can I get car finance on a BMW?
Yes, you can get car finance on a BMW. You can get a BMW directly through BMW Financial Services. However, the likelihood is, we’ll be able to find you a more competitive deal than if you go direct! We help people in all kinds of financial situations, including those with a less-than-perfect credit score.
You can choose from various car finance options like hire purchase (HP), personal contract purchase (PCP), and personal loans. Your financial position, credit rating, and the BMW model you want will determine the best car finance option for you.
How does BMW finance work?
BMW finance works by providing various financial products to help you purchase a BMW. The primary options include:
Hire Purchase (HP): You pay a deposit, followed by fixed monthly payments. Once all payments are made, you own the car. This is a straightforward option for those who want to eventually own their vehicle outright.
Personal Contract Purchase (PCP): Similar to HP, but with a lower monthly payment. At the end of the term, you have three options: pay a balloon payment to own the car, return the car, or trade it in for a new one. This option provides flexibility and can be beneficial if you like to change cars frequently.
Personal Loan: With a personal loan, you borrow the money to buy the car outright and then pay it back bit by bit. It gives you flexibility since you own the car right away, but the interest rates might be higher than with other types of loans.
Each of these options has its advantages and disadvantages, and the best choice depends on your financial situation and personal preferences.
Is it hard to get finance for a BMW?
The difficulty of getting finance for a BMW depends on several factors, like your credit score, income, and employment history.
If you have a good credit score and a stable income, getting finance for a BMW is typically straightforward. Lenders view them as low-risk borrowers and are more likely to offer favourable terms and lower interest rates.
However, if you have a poor credit score or a history of financial instability, getting finance can be more challenging. Lenders may consider you a higher risk, leading to higher interest rates or stricter terms. To improve your chances of getting approved, you can:
Check your credit report: Ensure there are no errors and address any negative marks.
Increase your down payment: A larger down payment can reduce the amount you need to finance, making you a more attractive borrower.
Show proof of stable income: Showing consistent income can reassure lenders of your ability to make regular payments.
Consider a co-signer: A co-signer with good credit can improve your chances of approval and secure better terms.
Have you been declined for BMW finance?
If you have been declined for BMW finance, it can be disheartening. But understanding the reasons behind the rejection can help you take steps to improve your financial situation and reapply successfully in the future. Common reasons for finance denial include:
Low credit score: Lenders use your credit score to assess your creditworthiness. A low score can indicate a higher risk of default.
Insufficient income: Lenders need to ensure you have a stable income that is sufficient to cover the loan repayments.
High debt-to-income ratio: If you have a lot of existing debt compared to your income, lenders might worry about your ability to manage additional debt.
Lack of credit history: If you have a limited credit history, lenders might find it difficult to assess your creditworthiness.
To improve your chances of getting approved in the future, you can work to better your credit score and pay off debts. Make all payments on time and cut your credit card balances. A larger down payment may also help you look more favourable to lenders. It reduces the amount you need to borrow and shows lenders your commitment.
If you’ve been refused car finance before, don’t worry. We work with lenders who specialise in helping people find a great deal even if they’ve been refused elsewhere.
Can I get BMW finance with bad credit?
Yes, it is possible to get BMW finance with bad credit, but it can be more challenging.
There are things you can do to make your application more successful. Offering a larger down payment can reduce the amount you need to borrow and show lenders that you are committed and capable of managing your finances.
It's also essential to take steps to improve your credit score before applying for finance, such as paying off outstanding debts and ensuring timely payments. Considering a less expensive BMW model can also make financing more affordable and increase your chances of approval.
Don’t be put off if your credit rating isn’t perfect. At Car Finance 247, we work with lenders who specialise in providing bad credit car finance, and look at more than just your credit rating when assessing your application.
Can I get used BMW car finance?
Yes, you can get finance for a used BMW! Many lenders offer financing options for used cars. Financing a used BMW can be a cost-effective way to own a high-quality car.
The same payment options for new cars usually work for used ones too. But with used cars, the interest rates might be a bit higher, and you might have to pay back what you owe sooner because the car loses value as it gets older.
BMW HP or PCP car finance, what is best for me?
Choosing between BMW Hire Purchase (HP) and Personal Contract Purchase (PCP) depends on your personal preferences and financial situation.
BMW Hire Purchase (HP):
Ownership: You own the car outright after making all the payments.
Payments: Fixed monthly payments over the term of the agreement.
Deposit: Typically requires a higher deposit.
Flexibility: Less flexible as you are committed to the full purchase of the car.
End of term: Once the final payment is made, you own the car.
BMW Personal Contract Purchase (PCP):
Ownership: You have the option to buy the car at the end of the term by making a balloon payment.
Payments: Lower monthly payments compared to HP.
Deposit: Lower deposit compared to HP.
Flexibility: More flexible, as you can return the car, pay the balloon payment to own it, or trade it in for a new model.
End of term: Choose to pay the balloon payment, return the car, or trade it in.
Which is best for you?
Choose HP if you want to own the car outright at the end of the finance term and prefer fixed monthly payments without the need for a large final payment.
Choose PCP if you prefer lower monthly payments, want flexibility at the end of the term, and don’t mind the possibility of not owning the car outright.
Both options have their pros and cons, so consider your financial situation and long-term plans before making a decision.
Can I get BMW van finance?
Yes, you can get finance for a BMW van too. We offer:
HP (Hire Purchase) - With Hire Purchase, you finance your BMW van through your lender, making fixed monthly payments until the end of the agreement. Once all payments are made, you own the vehicle outright. This option typically results in higher monthly installments compared to other finance options, but it ensures you own the van at the end of the term.
PCP (Personal Contract Purchase - Personal Contract Purchase offers more flexibility than Hire Purchase. You pay a fixed amount each month, but at the end of the contract, you have the option to return your BMW van, trade it in for a new one, or make a balloon payment to keep it. This allows you to decide based on your needs at the end of the term.
The best van finance option for you will depend on your needs and financial circumstances.
Can I get BMW motorbike finance?
Yes, similarly, you can get finance for a BMW motorbike. At CarFinance 247, we require you to be over eighteen and have more than three years’ address history in the UK to finance any motorbike.
The process for financing a motorbike is very similar to financing a car. Simply apply for loan and if you’re approved in principle, we’ll give you a call and talk you through your options.
Can I pay off my BMW finance early?
Yes, you can pay off your BMW finance early. This is known as early settlement or early repayment. The process and terms for early repayment can vary depending on your finance agreement and lender. Here are the steps to pay off your BMW finance early:
Contact your lender: Inform your lender of your intention to settle the finance early. Request a settlement figure, which is the amount required to pay off the remaining balance.
Understand the terms: Review the terms of your finance agreement to understand any potential early repayment fees or penalties. Some agreements may include an early settlement fee.
Make the payment: Once you have the settlement figure, arrange to make the payment. Ensure you receive confirmation from the lender that the finance agreement is settled.
Update your records: Keep all documentation related to the early settlement for your records.
Paying off your BMW finance early can save you money on interest, but it’s essential to understand any fees involved. Contact your lender for specific details and advice on early repayment.
Apply for a quote now to get started! Or, if you have any questions, give us a call.