BMW PCP (canceling it early/buying it out)

[Welshbeef]

Im nearly 19 months into a 45 months PCP or 42% of the way through it.

I would like to know if I wanted to buy out the remaining "loan" how is it done, what are the rough early repayment charges etc.

Basically I want to see if after all the costs I'd be still miles better off financially than carrying on as is.


This isnt a I cannot afford it and need to get out of it nor do I need to sell it and yes I accepted the costs at the time and still do. But I now want to know if its possible and if it is financially viable then how much could I save then make a judgement call.

[hornetrider]

Ring the finance company and ask.

[rich_vw]

Just give them a call 0870 5050 150 and they will provide you with a settlement figure...you can even fill in your details on their website (finance section) and they will email the numbers.

[snorkel sucker]

Sounds like you are after a voluntary termination figure rather than a settlement figure. The latter will be larger and would mean you own the car outright, the former is a figure you need to make the total amour you have paid up to 50% of the total finance agreement.

If you do a VT you just hand the car back, subject to fair wear and tear.

It is the rule of halves an thirds, and you should check your finance agreement to make sure it applies to you, and then speak to your finance co for a figure etc

[andy-xr]

I've been in this position, I took out a loan to buy the car out then sold it. That was the best thing for me at the time, guess it depends whats right for you. They'll probably tell you that you can hand it back but you might not get approved as easily with them for finance in the future, though no black marks that I'm aware of

[Welshbeef]

I think the last two posters got the wrong end of the stick.

I want to keep the car and can easiy afford to on the existing terms. However Im pretty sure I could now get finance notably less than the existing finance. So it wouldnt be VT it would be Settlement.



Or another question IF say I wanted another BMW now but already have my current one all done through the same dealership and finance house would they take the car in and allow me to take a newer car (clearly of greater value) and basically morph the old finance deal into a new one without the costs of ending one and starting another?

[rich_vw]

Would all depend what 'vlaue' is left in your existing car...they will look at a settlement figure and the re-sale as you'd do yourself I'm afraid. I'm sure there would be a little movement in there though.

[DavidHM]

Run the figures through here - leave the interest rate blank though (it'll calculate it) and enter the balloon payment, monthly payment, principal etc. (i.e., don't include the deposit).

http://www.bretwhissel.net/amortization/amortize.h...

This will give you an idea of what is left on the loan, though there may be small fees to add (a couple of months' interest probably, plus maybe a couple of hundred of admin fee).

A PCP (unlike contract hire) is a hire purchase agreement and very much easier to get out of.

[Welshbeef]

I use credit expert and have seen that BMW finance is on there and the amount changes every month (decreases).

Would it be logical that this amount is what the settlement amount would be?

[iphonedyou]

Welshbeef said:

I use credit expert and have seen that BMW finance is on there and the amount changes every month (decreases).

Would it be logical that this amount is what the settlement amount would be?

Honestly, I would just ring them.

When I had my PCP with Renault, I just rang RCI and got a settlement figure. This accounted for everything, including any fees that would have been payable. It's the only real way to tell what your exact figure will be, because it's the figure they'll have on file, and expect you to pay.

[andy-xr]

Welshbeef said:

I think the last two posters got the wrong end of the stick.

I want to keep the car and can easiy afford to on the existing terms. However Im pretty sure I could now get finance notably less than the existing finance. So it wouldnt be VT it would be Settlement.

So you want a settlement figure? Just ring up BMW Finance and they'll give you one over the phone. 2 mins

Welshbeef said:

Or another question IF say I wanted another BMW now but already have my current one all done through the same dealership and finance house would they take the car in and allow me to take a newer car (clearly of greater value) and basically morph the old finance deal into a new one without the costs of ending one and starting another?

I did this from E60 to E46, local dealer arranged everything, px and finance. You're lumping in some negative somewhere though I think

[DavidHM]

Welshbeef said:

I use credit expert and have seen that BMW finance is on there and the amount changes every month (decreases).

Would it be logical that this amount is what the settlement amount would be?

Not necessarily. My car finance annual statement shows the amount remaining if I take the finance to the term, so *all* the outstanding monthly payments and interest, not the settlement figure.

[Welshbeef]

Gave them a call.

If atwhat ever point I choose to part x my car in a BMW dealership and get a new car what would happen is the initial PCP would be settled first and a new agreement drawn up. There is no Vol Termination impact.

I also got some numbers. APR is 12.8% curretly.....0uch (and I have easy access t low 3%'s from my offset mortgage).

The thing is I have calculated that given the curret settlment figure the interest saved on PCP vs the interest charged on the mortgage works out to be c£1k p.a. Question is of course is that a reasonable premium to pay for the ability to hand it back without the hassle of selling it (should I ever need to).

Also has anyone got valuations for my vehicle?

2 owners
E90 "56" Sept 2006
330d M Sport
Le Mans Blue
Auto
Pro Nav
Bluetooth
Leather
Rear Parking sensors
Milage 83k
Full BMW S/H
Condition - immaculate.

Per I drive
40k remaining for Discs
Oil change due in a 2k
Micro Filters Jan 2012
Brake Fluid next summer
Particulate Filter 60k
Inspection 2013
Mot Jan
Tax Jan

[Deva Link]

Welshbeef said:

Question is of course is that a reasonable premium to pay for the ability to hand it back without the hassle of selling it (should I ever need to).

How are doing against the contracted mileage?

[DavidHM]

Guess of a p/x figure around £9k, retail £11k - £12k (a lot for a five-year-old E90 but it's the best spec possible) and private maybe £10,500.

[edo]

Welshbeef said:

2 owners
E90 "56" Sept 2006
330d M Sport
Le Mans Blue
Auto
Pro Nav
Bluetooth
Leather
Rear Parking sensors
Milage 83k
Full BMW S/H
Condition - immaculate.

relatively high miles, looking at Autotrader selling private I would say no more than £11-12k

http://www.autotrader.co.uk/classified/advert/2011...

[Welshbeef]

DavidHM said:

Guess of a p/x figure around £9k, retail £11k - £12k (a lot for a five-year-old E90 but it's the best spec possible) and private maybe £10,500.

That is low.

Would I be right in saying if we take those numbers as a base that the next 3 years would face hardly any depreciation. i.e. the E46 330d M Sport is in the £6-10k range with the 184bhp E46 330d Sport in the £3-6k

So I believe when it was new with options it was near on £38k and I bought c£19k when it was 40 months old 3yrs 4months. So £475pcm depreciation.

If I take the assumed best case of £12k as at now that is 18 months so £388pcm depn


What would its value be in say 3 years when it would be 8 years old?

[edo]

Assuming you keep piling the miles on at the same rate, roughly about f*ck all!

[Deva Link]

Welshbeef said:

So I believe when it was new with options it was near on £38k and I bought c£19k when it was 40 months old 3yrs 4months. So £475pcm depreciation.

If I take the assumed best case of £12k as at now that is 18 months so £388pcm depn

That's why buying new is not necessarily the completely brain-dead thing that some people suggest. If you put a BMW warranty on it then that alone would make up most of the difference.

Welshbeef said:

What would its value be in say 3 years when it would be 8 years old?

£3500 ish

[Welshbeef]

edo said:

Assuming you keep piling the miles on at the same rate, roughly about f*ck all!

Well in its lifetime its averaged <17k a year when the UK average miles is 12k. .


I'll be adding roughly 30k a year onto this going forwards so after 3 years the overall milage of the car will be 173k and its lifetime average will be <22k a year.
Which when all is said and done a logical reason to be buying a diesel - plus Im sure it could easily do 300k++ if its regularly maintained and I continue to drive it as is ie no short trips engine fully up to temp before using all the power and then ensuring the engine is given a good hoon for the DPF burn cycles