Specialist
Best ways to finance a BMW car purchase in the UK
High quality BMW finance solutions for UK & international clients.
We can deliver enhanced, bespoke or exclusive terms through our market knowledge.
Call us on 0203 900 4322 to discuss your requirements.
With a rich history spanning over 100 years, BMW has earned its reputation as one of the most prestigious and iconic automotive brands worldwide. What truly sets BMW apart is its unwavering focus on engineering excellence, innovation and driving performance.
However, buying a BMW is not a cheap affair. The upfront cost of a new or used BMW can be quite high, and you also have to consider the depreciation, maintenance, and insurance costs that come with owning such a premium vehicle. That’s why many people opt for financing their BMW instead of paying cash.
But how do you finance a BMW in the UK? What are the different options available, and how do they compare? How do you find the best deal for your needs and circumstances? And what are the popular types of BMW that you can buy on finance?
If you want to buy a BMW in the UK, you have several finance options to choose from. Each option has its own features, advantages, and disadvantages. Depending on your personal and financial circumstances. In this section, we will explain the main differences between the different types of finance available for buying a BMW in the UK, such as:
Asset finance is a form of leasing, where you pay a monthly fee to use the BMW, but you do not own it. The monthly fee is based on the depreciation of the BMW over the lease term, and the residual value at the end of the lease. The residual value is the estimated value of the BMW at the end of the lease, which is agreed upon at the start of the contract.
The advantage of asset finance is that you can enjoy driving a new BMW without having to pay the full purchase price upfront. You also have lower monthly payments than other finance options, as you are only paying for the depreciation of the BMW.
At the end of the lease, you have three options, you can either:
Hire purchase is a form of credit, where you pay a deposit and then monthly instalments to buy the BMW over a fixed period of time. The monthly instalments include both the principal and the interest, and the interest rate is usually fixed. The BMW is the security for the loan, which means that if you fail to make the payments, the lender can repossess the BMW.
The advantage of hire purchase is that you can own the BMW at the end of the contract, and you can choose the deposit and the duration of the contract to suit your budget. You also have the option to settle the loan early, by paying the outstanding balance and a small fee. The disadvantage is that you have to pay interest on the loan, and you do not own the BMW until you make the final payment.
The final payment is usually the same as the monthly instalment, plus a £10 option to purchase fee. This fee is a legal requirement, and it transfers the ownership of the BMW from the lender to you.
Hire purchase with balloon payment is similar to hire purchase, but with a twist. Instead of paying equal monthly instalments, you pay lower monthly instalments and a larger final payment, known as the balloon payment. The balloon payment is usually 25% to 50% of the purchase price of the BMW, and it is agreed upon at the start of the contract.
The balloon payment is usually the same as the agreed percentage of the purchase price, plus a £10 option to purchase fee. This fee is a legal requirement, and it transfers the ownership of the BMW from the lender to you.
Balanced payments is a credit option, where you pay a deposit and monthly instalments, including principal and variable interest, to buy the BMW over a fixed term. You can own the BMW at the end of the contract, and benefit from low interest rates when the base rate is low.
You can also settle the loan early, by paying the balance and a fee. The drawback is that you have to pay variable interest, and may have higher payments when the base rate is high. The final payment is the same as the monthly instalment, and there is no fee.
Contract purchase is a leasing option, where you pay a deposit and monthly instalments, based on the depreciation and the GFV of the BMW. You do not own the BMW, but you can buy it for the GFV, return it, or part-exchange it at the end of the contract. Contract purchase has lower monthly payments and less upfront cost than other finance options, but no equity and possible extra charges for exceeding mileage limit, or any damage or wear and tear.
At the end of the contract, you have three options: you can either buy the BMW for the GFV, return it to the lender and walk away, or part-exchange it for a new one or use any equity as a deposit.
PCP is a flexible leasing option, where you pay an initial payment and lower monthly instalments, based on the depreciation and the GFV of the BMW. You can own, return, or part-exchange the BMW at the end of the contract, by paying, avoiding, or using the GFV as a deposit. PCP has lower monthly payments and more options than contract purchase, but higher interest and a large final payment.
To help you compare the different options, we have prepared a table that shows the key criteria of each option, such as total cost, deposit, duration, and final payment. You can use this table as a reference, but remember that the actual figures may vary depending on the lender, the model, and your credit score.
|
Option |
Total Cost |
Deposit |
Duration |
Final Payment |
|
Asset finance |
Depends on the monthly fee and the residual value of the BMW |
Usually 10% to 20% of the purchase price |
Usually 2 to 5 years |
Depends on whether you want to own, sell, or extend the lease |
|
Hire purchase |
Purchase price + interest |
Usually 10% to 20% of the purchase price |
Usually 2 to 5 years |
Usually the same as the monthly instalment + £10 option to purchase fee |
|
Hire purchase with balloon payment |
Purchase price + interest |
Usually 10% to 20% of the purchase price |
Usually 2 to 5 years |
Usually 25% to 50% of the purchase price + £10 option to purchase fee |
|
Balanced payments |
Purchase price + interest |
Usually 10% to 20% of the purchase price |
Usually 2 to 5 years |
Usually the same as the monthly instalment |
|
Contract purchase |
Depends on the monthly instalment and the guaranteed future value (GFV) of the BMW |
Usually 10% to 20% of the purchase price |
Usually 2 to 4 years |
Depends on whether you want to own, return, or part-exchange the BMW |
|
Personal contract purchase (PCP) |
Depends on the monthly instalment and the guaranteed future value (GFV) of the BMW |
As you can see, each option has its pros and cons, and the best one for you will depend on your preferences and goals. For example, if you want to own the BMW at the end of the term, you might prefer hire purchase or balanced payments.
If you want to have lower monthly payments, you might prefer hire purchase with balloon payment or PCP. If you want to have more flexibility at the end of the term, you might prefer contract purchase or PCP.
Get in contact with Clifton Private Finance to help make your decision easier – we can guide you to the right finance option, when considering your situation.
Now that you have an idea of the different ways to finance a BMW in the UK, you might be wondering what types of BMW you can buy on finance. The good news is that you can find almost any model of BMW on finance, as long as it is within your budget and meets the lender’s criteria.
However, some models are more popular and available than others, depending on the demand, supply, and market trends. Here’s a brief overview:
|
Model |
Features |
Price Range |
Monthly Payment Range |
|
1 Series |
Compact hatchback, petrol, diesel, or plug-in hybrid engines, sporty and agile performance, spacious and premium interior, digital cockpit, advanced safety and infotainment features |
£20,000 to £30,000 |
£250 to £450 |
|
3 Series |
Mid-size sedan, petrol, diesel, or plug-in hybrid engines, M Sport version, dynamic and efficient performance, elegant and comfortable interior, leather seats, adaptive LED headlights, cutting-edge safety and connectivity features |
£30,000 to £45,000 |
£350 to £550 |
|
X5 |
Large SUV, petrol, diesel, or plug-in hybrid engines, M Sport version, powerful and versatile performance, luxurious and spacious interior, leather seats, panoramic roof, advanced safety and infotainment features |
£50,000 to £70,000 |
£600 to £900 |
|
i8 |
Plug-in hybrid sports car, electric and petrol engines, futuristic and aerodynamic design, exhilarating and eco-friendly performance, high-quality and innovative interior, leather seats, digital cockpit, advanced safety and connectivity features |
Asset finance is a type of finance that allows you to use the BMW as an asset for your business, while paying a fixed monthly fee to the lender. Asset finance can be either a finance lease or an operating lease, depending on whether you want to own the BMW at the end of the term or return it to the lender.
At the end of an asset finance plan, you have different options depending on the type of lease you have chosen. Here are the possible scenarios:
The option that you choose will depend on your preferences and circumstances. For example, if you want to own the BMW at the end of the term, you might prefer a finance lease. If you want to have a newer and more efficient BMW, you might prefer an operating lease.
If you are interested in financing a BMW car in the UK, you might want to consider using a finance broker to help you with the process. A finance broker can help you find the best asset finance option for your needs and budget, as well as negotiate the best deal with the lender. A finance broker can also advise you on the different types of asset finance available for buying a BMW car, such as cash flow matched repayments, CBILS facilities, and bespoke terms.
At Clifton Private Finance, we have a team of specialist finance brokers who can help you finance a BMW car in the UK. We can work with BMW to arrange your car finance plan and finalise your purchase. We can also help you finance new, used, or auction-bought BMW cars, and offer the most competitive asset finance service for you.
To find out more about our finance broker service, don't hesitate to contact us today. We offer a free and no-obligation telephone consultation at a time that suits you.
Call us today to discuss your requirements on 0203 900 4322
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
James M
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
William W
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Chantelle S
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
Myr B
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
C Jefferey
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
Mr Morris
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
Charles N
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.
Rowena C
