Getting out of a PCP deal?

[Martin_M]

Hi folks,

I bought an M135i in September of last year on a 4 year PCP deal. I paid £400 up front and £399 per month for 4 years. If I kept it for the full 4 years I can then return the vehicle or pay £12500 to BMW finance and keep the car.

Obviously, I can sell the vehicle at any point over the 4 year period, pay what I still owe on the car and keep any profit (which would be unlikely until year 4 I reckon).

This is probably a silly question but I'm just curious to find out if there is any way of changing cars earlier than this or am I essentially 'stuck' in this deal for the time being?

When all is paid at the end of the 4 years I'll have paid around £32k. Taking off my payments so far and I still owe £29600 which I can't see me getting on my car at present.

Any advice would be great.

Cheers

Martin

[Martin_M]

Fire away Rehab - and thanks to both of you for your replies - in all honesty, I love the car but given some of the lease deals for performance cars (which are a bit slower granted) I feel I could be just as happy for £100 less a month!

Rehab - 5 door M135i in white. September 2013 registered.

Options:

Tints
Automatic
Comfort pack
Leather

I think that coveres it - I believe I've done about 4k miles so far.

Cheers

[Martin_M]

TheLordJohn said:

You've hit the nail on the head.
If anyone wants a car less than 2 years old, they'd be stupid not to do some real research into lease deals.

At the time I had just returned a Corsa VXR which was leased and it proved to be such a hassle that when the deal on the BMW arose, I thought I would go down the PCP route for a change. I'm the impatient type though - I'll most likely just get on with it and enjoy the car for at least a couple of years - maybe then I'll be able to trade it in for what I will still owe...hopefully.

[Martin_M]

Yup - a while back I wrongly thought 2 years would be the 50% mark but then remembered about the final payment at the end - I believe I'll be well into year 4 by that point.

Is it possible to transfer a pcp deal to an interested party?

[Martin_M]

I've heard that you can often expect them to call you after a couple of years but I don't think I'll stay with BMW...quite fancy something different...

[Martin_M]

I have heard of people who have actually been offered improved deals around half way through their term.

[Martin_M]

If I tried that Rich I reckon I'd be in negative equity right now.

[Martin_M]

I have no plans to but can you modify a PCPa car? I can't see there being a problem if you sold it privately or traded it in to another dealer but what if you wanted to hand it back and you had changed the exhaust system? etc.

[Martin_M]

Buying outright doesn't interest me as I'll sell it before the end of the term.

Mods are a mindset - of course you could save the money for something else but on that basis, I could have bought the base model and saved even more. There are lots of modifications such as performance exhausts and brake upgrades which I like the look of - for me, it isn't about adding value to the car but about maximising my enjoyment of driving it for the time I have it.

[Martin_M]

Folks, just wondering - if I decided to lease my next car, what are my options for selling my current car outwith a private sale? Do lease companies or dealers buy cars from joe public?

[Martin_M]

Thanks, just curious.