Personally having worked for BMW for 10 years in a previous life I would look at an Audi or Mercedes Benz and would also consider only putting in a deposit which would be equal to your projected equity at the end of the term.

Don't pay more than 3 - 3.5% as a flat rate on either HP or PCP or you are either using the wrong finance company or are being ripped off.

In either instance you never own the car until you have paid you final payment, if you go down the PCP route and hand the keys back at the end then be prepared for charges for excess mileage or stuff over fair wear and tear which could cost you hundreds extra.

If you buy a new car then price check on carwow but also consider that car wow are also earning from the supplying dealer so there is always a bit more in it for you to negotiate, typically on a new car up to circa £30,000 carwow will be earning up to £400 intro commission.

Surprised you think w 2-year old BMW will have lower maint costs. In my experience of owning one as a company car, two years was when it started to feel a bit in need of extra attention - suspension bushes etc. Mind you, I was probably up to 60,000 miles by then.

Generally, the more sporty the ride, the more the suspension bushes will need replacing.

If, like me, you buy new to avoid unforeseen maintenance costs, a PCP is fine as long as you don't intend to hand the car back at the end of the contract. If you do, they charge you a lot if you go over the mileage set out in the contract and go over the car with a fine toothcomb for dents, scratches etc.

But if you're likely to change it for a new one or pay the balloon payment and keep the car, PCPs have a lot going for them.

One car I wouldn't buy new is a Ford: they lose their value too fast (faster then they deserve to), or anything French for the same reason. Ideally the car should hold its value well enough so that at the end of the contract it's worth more than the guaranteed value (= the balloon payment) and if necessary provides someor all of the deposit for a new car.

Rightly or wrongly, the German marques hold their value best.

Edited by Avant on 23/02/2015 at 11:45