Best BMW Finance Deals

Trying to track down the best PCP deals on a new BMW? Then you've found the right page...

Despite high list prices, BMW often offers competitive PCP deals which have been successful in attracting buyers to the brand with deals that compete with mainstream brands such as Volkswagen and Ford.

As with its premium rivals like Audi, almost all BMWs can be bought using some kind of finance product, and the first offers its own PCP and PCH deals, plus a tailored insurance product that's designed specifically for BMWs.

Electrification is a big deal for BMW too, with the firm currently offering a growing range of all-electric cars in its line-up including the BMW i4 and the BMW iX1 and BMW iX3. BMW tends to offer a lower APR on its electric car lineup.

Best BMW PCP Offers

BMW Select is BMW’s version of PCP, where you put down a deposit, pay an agreed number of monthly payments and then have the option to pay off the finance to own the car at the end of the term or give it back.

A second option is BMW Hire Purchase, where you put down a deposit and pay a higher monthly fee that means you pay off the whole car cost in order to own the vehicle by the end of the agreement. This agreement also has no mileage limits and can last between 24 and 60 months.

Do most people buy or lease a BMW?

Personal Contract Purchase, or PCP, is by far the most common way people buy new cars in the UK, and that goes for BMW, too. The firm doesn’t quote a specific number, or reveal what percentage of people opt for PCP, leasing or buying outright, but industry-wide estimates state that over seven in ten new cars are bought on PCP in the UK. Another two in ten are leased.

Most people use a finance product of some kind, rather than paying outright, to get behind the wheel of a BMW. As a result, if you're buying your new car direct from BMW you have the option of buying your car outright, using BMW Select, which is its PCP product, or using Hire Purchase or Personal Contract Hire.

What is the biggest advantage of leasing a car?

There are a number of advantages of car leasing. One of the biggest is that you'll be driving a brand new, fully warrantied car during what should be its most trouble-free time, making for plenty of peace of mind.

Road tax is also included, and your monthly price is fixed, making budgeting easier. There are also no commitments once the lease ends, and PCH generally works out cheaper than other finance deals as you aren't worried about owning the car at the end of the agreement.

It should be noted that a PCH deal won't work for everyone. Make sure you know the positive and negative aspects of PCH, PCP, HP and more before you sign any deal.

Should I buy my BMW at the end of the PCP agreement?

The short answer to this is 'it depends.' If you can afford the balloon payment that you have to settle in order to take full ownership of the car, then it's worth considering if the car fits your needs and you want to forget about paying a chunk of money each month.

For example, when you signed your PCP deal, you agreed on a balloon payment, which is officially called the car's GFV, or Guaranteed Future Value. As the name suggests, it guarantees what the car will be worth at the end of your PCP.

However the car could be worth more than that - perhaps it's a type of car that's particularly popular, or you drove considerably fewer miles than you thought over the course of your agreement. This could leave you with some extra equity if you decide to pay the balloon payment. Sell the car on afterwards, which you are entitled to do, and you could end up pocketing the difference.

Why is a BMW lease so expensive?

BMW competes in the premium end of the market, rivalling cars from the likes of Audi, Mercedes and Tesla. As a result, BMW's cars are priced accordingly, with reassuringly expensive recommended on the road prices to help reinforce the buyer's perception that they're buying a top quality product.

When you lease a car, you’re effectively paying to cover the depreciation that the car would experience over the length of the rental term, which is usually 24 to 48 months. These months are when the depreciation curve is steepest, so while BMW’s hold their value quite well, there’s still a significant cost to cover, hence why the leases are expensive.