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R K

"set Your Sights Higher And Your Payments Lower"

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Flyer in post from BMW:-

"Set your sights higher and your payments lower"

Example:-

BMW 318d M sport saloon.

There's NO rrp mentioned on the example for the car so it's impossible to compare BMW Economics to a cash purchase.

£289 per month (plus deposit)*

*Deposit £5,414

48 month contract hire 40,000miles

That's a reasonable reflection of the type fonts used in the advert btw.

So, over 48 months cost = £19286 / 48 months = £401 per month

These are credit contracts which are (presumably) covered by the auspices of Mr Carney and yet these car finance companies posing as manufacturers are replicating the heady days of the banks pushing credit card cheques and debt to anyone who could fog a mirror pre 2007.

Why does the BoE permit them to get away with adverts where the headline repayment figure is a straight up misrepresentation?

Criminal.

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Flyer in post from BMW:-

"Set your sights higher and your payments lower"

Example:-

BMW 318d M sport saloon.

There's NO rrp mentioned on the example for the car so it's impossible to compare BMW Economics to a cash purchase.

£289 per month (plus deposit)*

*Deposit £5,414

48 month contract hire 40,000miles

That's a reasonable reflection of the type fonts used in the advert btw.

So, over 48 months cost = £19286 / 48 months = £401 per month

These are credit contracts which are (presumably) covered by the auspices of Mr Carney and yet these car finance companies posing as manufacturers are replicating the heady days of the banks pushing credit card cheques and debt to anyone who could fog a mirror pre 2007.

Why does the BoE permit them to get away with adverts where the headline repayment figure is a straight up misrepresentation?

Criminal.

Not sure, I think it is long term rental, but having said that renting your car insurance by paying monthly does require a credit agreement for the years premium.

But I suspect long term contract hire needs a credit check though.

Edited by aSecureTenant

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Flyer in post from BMW:-

"Set your sights higher and your payments lower"

/SNIP/

Why does the BoE permit them to get away with adverts where the headline repayment figure is a straight up misrepresentation?

Personally, I can't see anything wrong with the advert as I would be my usual cynical self - perhaps I am conditioned.

The monthly payment and need for a deposit are both in large print. No less disengenuous than a shop sale sign saying SALE - 50% OFF on selected items

My calculation would be to multiply 289 by 48, add 5,414 and decide that I would be paying over well the odds for a 'car'. I wouldn't back calculate the monthly payment.

A fool and his money etc...

I guess that the only problem is that when fools are parted from their money I seem to bear the consequences. - perhaps I should learn from that :lol:

Edited by LiveinHope

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When I tried to buy a new car in cash last year the salesman would not give me a price.

He just kept telling me the car was £250 a month.

Eventually he gave me a price which was list price. If I took finance he'd knock £3k off (but it would cost me list price plus about £2k eventually)

I walked away and ended up buying a used car instead.

He couldn't understand why I wouldn't take finance (at 12%) and I couldn't understand why he didn't understand that if I am getting 1% on the cash in the bank I'd be better buying the car outright.

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Personally, I can't see anything wrong with the advert as I would be my usual cynical self - perhaps I am conditioned.

The monthly payment and need for a deposit are both in large print. No less disengenuous than a shop sale sign saying SALE - 50% OFF on selected items

My calculation would be to multiply 289 by 48, add 5,414 and decide that I would be paying over well the odds for a 'car'. I wouldn't back calculate the monthly payment.

A fool and his money etc...

I guess that the only problem is that when fools are parted from their money I seem to bear the consequences. - perhaps I should learn from that :lol:

Sure, my main point is that these are supposedly regulated credit contracts and that the finance companies involved (it doesn't really matter which car pusher, they're all the same) are now effectively financial institutions with access to the central bank 'discount window' (dependent upon country).

We saw in 2008 how they all rushed to the ECB for funding for instance.

All these car finance adverts are deeply misleading and clearly designed as such. In this case the actual equivalent monthly repayment figure is nearly 40% higher than the headline figure. So it's not trivial.

Can't see any difference between this as a bank advertising a mortgage headline figure as £289 when it's really £401. It's exactly a re-run of the noughties and the same central banks are wilfully turning the same blind eye.

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Sure, my main point is that these are supposedly regulated credit contracts and that the finance companies involved (it doesn't really matter which car pusher, they're all the same) are now effectively financial institutions with access to the central bank 'discount window' (dependent upon country).

We saw in 2008 how they all rushed to the ECB for funding for instance.

All these car finance adverts are deeply misleading and clearly designed as such. In this case the actual equivalent monthly repayment figure is nearly 40% higher than the headline figure. So it's not trivial.

Can't see any difference between this as a bank advertising a mortgage headline figure as £289 when it's really £401. It's exactly a re-run of the noughties and the same central banks are wilfully turning the same blind eye.

:lol:

That's exactly how the housebuilders are marketing Help to Buy part 1

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Sure, my main point is that these are supposedly regulated credit contracts and that the finance companies involved (it doesn't really matter which car pusher, they're all the same) are now effectively financial institutions with access to the central bank 'discount window' (dependent upon country).

We saw in 2008 how they all rushed to the ECB for funding for instance.

All these car finance adverts are deeply misleading and clearly designed as such. In this case the actual equivalent monthly repayment figure is nearly 40% higher than the headline figure. So it's not trivial.

Can't see any difference between this as a bank advertising a mortgage headline figure as £289 when it's really £401. It's exactly a re-run of the noughties and the same central banks are wilfully turning the same blind eye.

Sorry yes, missed the point of your post and yes, just remembered. A TSB tv advert now refers to a 'teaser rate' on its mortgages, which I would have thought was the last thing they would have wanted to use.

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I expect nothing less of the digraceful old bitch of threadneedle street to carry on debt whoring for any that will pay her and her interests.

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I guess that the only problem is that when fools are parted from their money I seem to bear the consequences. - perhaps I should learn from that :lol:

At least with car sales you get the advantage of more second hand cars on the market.

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When I tried to buy a new car in cash last year the salesman would not give me a price.

He just kept telling me the car was £250 a month.

Eventually he gave me a price which was list price. If I took finance he'd knock £3k off (but it would cost me list price plus about £2k eventually)

I walked away and ended up buying a used car instead.

He couldn't understand why I wouldn't take finance (at 12%) and I couldn't understand why he didn't understand that if I am getting 1% on the cash in the bank I'd be better buying the car outright.

Some places don't even put the new car prices on the windscreen any more - they used to but they don't now. The windscreens are blank.

Just a huge monthly payment stuck on the side of the car.

When the full price is being disguised like that then it's usually not a good deal.

Edited by billybong

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At least with car sales you get the advantage of more second hand cars on the market.

Was going to say, the deposit alone would get you a decent motor and is more than I've ever paid for a car (even a new one).

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At least with car sales you get the advantage of more second hand cars on the market.

Good point. It is at least increasing supply, unlike houses.

I'm wondering if BMW Economics (:lol:) are missing a trick here.

They ought to be selling their product with a £1 per month *

* deposit £25,000 48 monthly repayments.

Edited by R K

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Good point. It is at least increasing supply, unlike houses.

I'm wondering if BMW Economics (:lol:) are missing a trick here.

They ought to be selling their product with a £1 per month *

* deposit £25,000 48 monthly repayments.

I expect BMW calculated quite carefully just how much 'loan' the average hard-working BMW purchaser could secure from their bank/loan shark etc for a deposit. The rest is then divided among the monthly payments.

The car costs £0.50 per mile. When you add on insurance, fuel, running costs, it'd be cheaper to have a personal chauffer taxi

Edited by LiveinHope

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I expect BMW calculated quite carefully just how much 'loan' the average hard-working BMW purchaser could secure from their bank/loan shark etc for a deposit. The rest is then divided among the monthly payments.

BMW owners get bigger than average ppi payouts. Natch.

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Was going to say, the deposit alone would get you a decent motor and is more than I've ever paid for a car (even a new one).

Most we ever paid was £4500. Clearly I'm not setting my sights high enough.

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Most we ever paid was £4500. Clearly I'm not setting my sights high enough.

One of the many reasons why 'cash is king' - it is spent far more wisely than electronic credit.

Edited by LiveinHope

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I';ve been hearing these adverts for a while....it's all very appealing till you realise how much it costs rolleyes.gif

Mentioned them a few times.

They are selling credit not the cars, they are all at it. When the best that "quality" marks have to sell is the price of their monthly contracts they must have some damned unappealing/expensive shite to flog off about which they have absolutely nothing else to say.

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£1200 for me.

In January 2012 I paid £1420 for a 2000(X) BMW 520i SE, one owner, FSH etc.....

Its performance since has been excellent.

For me, BMW have never bettered the build quality of the e39 5-series. :)

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I';ve been hearing these adverts for a while....it's all very appealing till you realise how much it costs rolleyes.gif

That's the point and most people won't realise what the cost is. The cost of new cars now means the only way to sell is to get people to rent. When people can no longer afford to rent it will be interesting to see what they come up with next.

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So renting a house is fine, but renting a car isn't?

Paying over the odds and being conned by slick marketing isn't fine.

Strangely, the exact opposite argument could be found here...

The people most likely to be renting these cars 'own' (huge mortgage) their housing.

So (for them) renting cars is fine, but renting housing isn't.

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