PCP ON NEW BMW CAR - WHAT IS IT?

[funkylad20]

The dealer has produced a monthly payment figure , inital deposit amount, and final value (baloon payment) When i add the total of these things together the final amount paid for the car is way over the original price of the car - even though they say the price includes for all sorts of discounts.
Am i not working things out correctly - as surely a personal loan would be better ??

[Postdog]

A loan may be cheaper for total cost but the payments may be higher assuming you could get one. It's just a dealers way of selling the car, and if I'm correct in what I'm thinking it's a sort of lease purchase - the car isn't yours until the final payment.

[Count-A-Strong]

How do you think car companies and garages who are often franchised make money?

[vodkancoke]

From what I understand of PCPs, you have the option at the stage of the balloon payment, to either hand back the car and pay for any excess mileage and any damage to the car and walk away or continue to pay it off until it's cleared. I don't know if I have that totally correct though!

[funkylad20]

I'm just in two minds. Dream car, around 30k, deposit of about £10k from me, final value in 42 months around the £14k mark, after 42 months payments of £321. BMW are offering £5,123 off the car price initially as a deposit almost to shift their existing stock...but am just struggling with the final figures I'll be out of pocket by. I could buy the car outright now, but then it wouldn't qualify for this £5,321 plus £2k's worth of additional stuff coming off the lost price, so would have to pay that if I was to pay the actual full cost of the car now.
Confused!