BMW PCP finance question.

[ljw2k]

Hi all, just a quick question in regards to paying off a BMW PCP early. ( within 14 Days ) to get a £2000 Discount.

Some dealers are offering £2,000 towards PCP finance so a car marked @ 30k would this become 28k on the Invoice?. If I paid in full within 14 days will it have some sort of penalty or clause to stop me doing this.

[DukeDickson]

Within the 14 days to can withdraw from the agreement and worst case scenario is that you pay the full amount. There may be a clause in the agreement specifying any penalties, but would be a little surprised if finance from the manufacturer.
Not BMW (though know there isn't any difference), but did the same not that long ago and no recourse. Fairly pleasant experience and saved the same plus interest charges, though lucky enough to not need the finance in the first place.
Reality is that 80-90% of people who sign a PCP need it, about 5% no need and just use it to use the money elsewhere and the rest play the system, roughly speaking. I'm sure the take up for now isn't troubling the manufacturer finance houses too much and is looked on as a bit of a marketing cost. Particularly the Germans as they don't like obvious reductions on high list prices.

[truck71]

ljw2k said:

Hi all, just a quick question in regards to paying off a BMW PCP early. ( within 14 Days ) to get a £2000 Discount.

Some dealers are offering £2,000 towards PCP finance so a car marked @ 30k would this become 28k on the Invoice?. If I paid in full within 14 days will it have some sort of penalty or clause to stop me doing this.

Yes you can do this without recourse. Whatever you do don't just take the contribution as the discount, you can negotiate a lot more off a BMW list as well as the deposit contribution.

[ZX10R NIN]

I thought there was normally a stipulation that you carried on with the finance for at least 6 months otherwise the contribution was taken back, but I may be mistaken.

[Venisonpie]

ZX10R NIN said:

I thought there was normally a stipulation that you carried on with the finance for at least 6 months otherwise the contribution was taken back, but I may be mistaken.

Sales bull, nothing more.

[ScoobyChris]

Venisonpie said:

Sales bull, nothing more.

Maybe the minimum term for the salesman to get his commission?

Chris

[truck71]

ScoobyChris said:

Venisonpie said:

Sales bull, nothing more.

Maybe the minimum term for the salesman to get his commission?

Chris

Yes, I'd say that's pretty much it.

[Sheepshanks]

Venisonpie said:

ZX10R NIN said:

I thought there was normally a stipulation that you carried on with the finance for at least 6 months otherwise the contribution was taken back, but I may be mistaken.

Sales bull, nothing more.

Yes - don't tell the salesman you're going to do this as they lose commission.

Did it with VW a while ago and no issues at all, and we kept (as expected) the discounted service package. I'm less clear on what would have happened if it had been free.

It used to be that there were quite high doc and final fees with PCPs and an advantage of Withdrawing is you don't pay those fees - not sure about BMW, but they've mostly been done away with now. So even if you let the agreement run beyond 14 days, and then Settled, the interest charge would still be pretty low as the maximum they can charge is 2 months.

One thing to be aware of is that strictly speaking you've got 14 days from the date of signing the finance docs to Withdraw. Dealers often ask you to sign early.

It does seem an insane system to me, but on the Tiguan it was 3 grand contribution (and we got another 3 grand off too) so I wasn't going to ignore that. The other thing is that salesmen love finance customers so you get treated a whole better than if paying cash.

[Mgd_uk]

I done this, saved £2k, think it cost me about £20 for the 6/7 days interest and that was it.

[ljw2k]

Excellent News guys and the car in mind was a 335D Original Price New £45860 Pre registered Now @ £31500 with a £2000 PCP offer which equates to £29500 in real money.

I doubt the dealer will be giving anything else with the car as in Service packs and so on at the price it is.
I should really get a petrol with the mileage I do but I just want that engine and its characteristics. If i kept the car for 3 years and SOLD it with what would be extremely low mileage I reckon it would still be worth 20-22k which is an acceptable loss for that type of car.

It does have a few options M Sport Plus Package / Innovation Package / Interior Comfort Package / Brushed Aluminium Interior Trim / LED headlights.

AG Specification
Model       8F72 F30 335d xDrive Saloo
Colour      B39   Mineral Grey
Upholstery  LCSW  Black Dakota leather
AG Rule     1CA   Selection of CoP-rel
Sb Pack     2NH   M Sport braking syst
Sb 100%     2PA   Security Wheel Bolts
Sb 100%     2TB   Sport automatic tran
AG 100%     2VB   Tyre pressure monito
AG Pack Alt 21C   19" M Double-spoke s
Series      216   Servotronic Steering
AG 100%     230   EU specific equipmen
Sb Pack     248   Steering wheel heati
Sb 100%     258   Run-flat tyres
Sb 100%     302   Alarm system (Thatch
Sb Pack     4AE   Armrest. front with
AG Pack Alt 4FT   Brushed Aluminium in
Sb Pack     420   Sun protection glass
Sb 100%     423   Floor mats. velour
Sb 100%     428   First Aid Kit & Tria
Sb 100%     431   Rear-view mirror. au
Sb Pack     465   Split-folding rear s
AG Pack     481   Sport seats. front
Sb Pack     493   Extended storage
Sb Pack     494   Seat heating. front
Sb Pack     5AC   High-beam Assistant
Sb Pack     5AS   Driving Assistant
AG Pack     5A1   LED foglights. Front
Sb 100%     5A2   LED headlights
Sb 100%     5DA   Passenger airbag dea
Sb 100%     508   Park Distance Contro
Sb 100%     521   Rain sensor with aut
Sb 100%     534   Automatic Air Condit
Sb 100%     544   Cruise control with
Sb 100%     563   Extended Interior Li
Sb 100%     575   12V power sockets
Sb 100%     6AC   BMW Emergency call
Sb 100%     6AE   BMW TeleServices
Sb 100%     6AK   BMW Online Services
Sb Pack     6AM   Real Time Traffic In
Sb Pack     6AN   Concierge Service
Sb Pack     6AP   Remote Services
Sb Pack     6FV   Online Entertainment
Sb Pack     6NW   Enhanced Bluetooth w
Sb Pack     6WA   Black panel display.
Sb Pack     6WD   WiFi hotspot prepara
Sb Pack     609   Navigation system Pr
Sb Pack     610   Head-up Display
Sb 100%     654   DAB digital radio
Sb Pack     688   Loudspeaker system -
AG 100%     698   Area Code 2 for DVD
AG Pack     710   M Steering Wheel
AG Pack     715   M aerodynamic bodyst
AG Pack     760   Exterior trim. High-
AG Pack     775   Headlining. Anthraci
AG 100%     8KA   Oil-maintenance inte
AG 100%     8R9   Refrigerant
AG 100%     8SM   External Visible VIN
AG Rule     8S2   Coding of alarm sire
AG 100%     8S3   Auto drive away lock
AG 100%     8TG   Dead-Locking Functio
Sb Pack     8TH   Speed limit display
Country     812   UK Specification
AG 100%     850   Add Fuel for Export
Series      853   Instrument Panel Let
AG 100%     880   English Handbook
Ordered     9AA   Bodyshell protection

[ljw2k]

Just to get back to this as I have now found another car as the one mentioned in the thread has been SOLD and the Dealers Sytner Haverfordwest are telling me that I will incur penalties but they can't tell me what penalties will be. I have been advised to ring BMW Finance and ask them to explain.

[SteBrown91]

ljw2k said:

Just to get back to this as I have now found another car as the one mentioned in the thread has been SOLD and the Dealers Sytner Haverfordwest are telling me that I will incur penalties but they can't tell me what penalties will be. I have been advised to ring BMW Finance and ask them to explain.

Why on earth did you tell them that you are going to do this? Just do it. Under FCA rules they can only charge you the interest for the 14 days to withdraw (and sometimes a small doc fee)

You have just got the dealers back up by mentioning this

[ljw2k]

I think you are right and getting to know why people call them the "stealers" and because it will be me and Only me that benefits from this they basically don't want my business unlike if i took a 12.9% APR or PCP they would have been on the dog & bone all day to me mithering me.

I did ring BMW financial Services this afternoon for clarification and like you state I would just pay the interest of how many days or weeks/months I have the PCP. They did say I would have to check back to the business manager to see if any clause on the £2000 contribution if I paid it off early would I loose that £2000 contribution.

[Mgd_uk]

ljw2k said:

I think you are right and getting to know why people call them the "stealers" and because it will be me and Only me that benefits from this they basically don't want my business unlike if i took a 12.9% APR or PCP they would have been on the dog & bone all day to me mithering me.

I did ring BMW financial Services this afternoon for clarification and like you state I would just pay the interest of how many days or weeks/months I have the PCP. They did say I would have to check back to the business manager to see if any clause on the £2000 contribution if I paid it off early would I loose that £2000 contribution.

No clause to claw back the £2000 when I done it last year.

Edited by Mgd_uk on Saturday 2nd September 21:05

[ljw2k]

That's good to hear many thanks and the dealers say the interest is "front loaded" but i suppose if i am paying the car of within the first week I would only get charged Interest on how many days I have had the finance.