PCP &Financial difficulties.

[Furbs]

Took out a new 3 year PCP contract out last Nov. (BMW M2). However our 22 year family busines has been seriously effected by the Covid Pandemic and it's looking unlikely that its going to survive. So have been consolidating our outgoings and looking at the options re the car. BMW finance have offered a 2 month payment holiday or handing the car back and paying off the o/s balance. I guess that's reasonable and kind of what I expected but I am keen to hear suggstions or if there are other options that could be considered. Looking at my earning options as a 55 year old outside of working for the business and financing an M2 on PCP is not a realistic option at the moment.

[Sc0tchland]

Furbs said:

Took out a new 3 year PCP contract out last Nov. (BMW M2). However our 22 year family busines has been seriously effected by the Covid Pandemic and it's looking unlikely that its going to survive. So have been consolidating our outgoings and looking at the options re the car. BMW finance have offered a 2 month payment holiday or handing the car back and paying off the o/s balance. I guess that's reasonable and kind of what I expected but I am keen to hear suggstions or if there are other options that could be considered. Looking at my earning options as a 55 year old outside of working for the business and financing an M2 on PCP is not a realistic option at the moment.

Check WBAC
Arnold Clark https://www.arnoldclark.com/sell-my-car/
Evans Halshaw
https://motorway.co.uk/

There's another one I can't remember the name of, dealers bid for your car..

Hopefully the difference wouldn't be far from the balance.. just a thought?

[England87]

Cars are selling like hot cakes at the moment, i’d advertise quickly if you need to shift it. Or look at voluntary termination but I believe needs to be half the value.

[Blue62]

England87 said:

Cars are selling like hot cakes at the moment, i’d advertise quickly if you need to shift it. Or look at voluntary termination but I believe needs to be half the value.

Would need to go through the small print, you can usually hand the car back if you met half the repayments, but agreements vary. I feel for the OP, must be a lot of people in his shoes.

[Deep Thought]

Blue62 said:

England87 said:

Cars are selling like hot cakes at the moment, i’d advertise quickly if you need to shift it. Or look at voluntary termination but I believe needs to be half the value.

Would need to go through the small print, you can usually hand the car back if you met half the repayments, but agreements vary. I feel for the OP, must be a lot of people in his shoes.

Just for clarification -

• its not half the repayments, its half the total amount of the finance agreement
• also hes only had the car since Nov 19 so hes not likely to be at that point (and if he, via an extraordinarily large deposit he'd be better finding a buyer, clearing the finance and recovered the +VE balance).
• also agreements dont vary with regards to this - its your right under Consumer Credit Act relating to a hire purchase agreement (of which PCP is a form).

And yes, sadly likely a lot of people have had a sudden change of circumstances

Edited by Deep Thought on Sunday 23 August 18:29

[Deep Thought]

Sc0tchland said:

Furbs said:

Took out a new 3 year PCP contract out last Nov. (BMW M2). However our 22 year family busines has been seriously effected by the Covid Pandemic and it's looking unlikely that its going to survive. So have been consolidating our outgoings and looking at the options re the car. BMW finance have offered a 2 month payment holiday or handing the car back and paying off the o/s balance. I guess that's reasonable and kind of what I expected but I am keen to hear suggstions or if there are other options that could be considered. Looking at my earning options as a 55 year old outside of working for the business and financing an M2 on PCP is not a realistic option at the moment.

Check WBAC
Arnold Clark https://www.arnoldclark.com/sell-my-car/
Evans Halshaw
https://motorway.co.uk/

There's another one I can't remember the name of, dealers bid for your car..

Hopefully the difference wouldn't be far from the balance.. just a thought?

I agree with this - WBAC etc are bidding strong money for cars so selling to one of those companies might yield a palatable offer.

Or possibly a private sale. Have the buyer clear the finance directly with the finance company.

It may well be worth talking to the company who originally sold it also, as they will very likely want to buy it back. Also worth checking dealers of similar cars in the area - simply ring and ask to speak to the person responsible for buying used stock. We did this with our A45, and the local Merc dealer we bought it from came back with the strongest price.

[DeWar]

Sc0tchland said:

Check WBAC
Arnold Clark https://www.arnoldclark.com/sell-my-car/
Evans Halshaw
https://motorway.co.uk/

There's another one I can't remember the name of, dealers bid for your car..

Hopefully the difference wouldn't be far from the balance.. just a thought?

Wizzle is probably the one you’re thinking of.

I would add the Sytner buying team to that list - https://www.sytner.co.uk/sell-your-car/

I sold my last car to them which, oddly (on the face of it) they offered me 30% more on than the Sytner dealer I was buying a new car from offered me in part exchange. I told them the state of the car over the phone, then via email; they gave me a price which I liked the sound of so arranged for the buyer to come to my house. A quick cup of tea and a two minute drive round the block later I was singing the paperwork and accepting payment. The car was collected three days later from my drive - I was even allowed to drive it in the interim. Easiest car sale ever. I’d imagine they would be quite interested in a nearly new M2 given what their dealer network sells.

[bunchofkeys]

Sc0tchland said:

Check WBAC
Arnold Clark https://www.arnoldclark.com/sell-my-car/
Evans Halshaw
https://motorway.co.uk/

There's another one I can't remember the name of, dealers bid for your car..

Hopefully the difference wouldn't be far from the balance.. just a thought?

I think you may be referring to Wizzle.co.uk.
OP, I have personal experience of this, and it made selling a car a lot easier as you deal directly with the dealer, and paid a bit more than WBAC.

Or just sell it as a personal ad.
It's a sellers market at the moment and I've noticed that places like WBAC are increasing their offers on a bi-weekly basis (well it is for the car i sold through Wizzle)

[Blue62]

Deep Thought said:

Just for clarification -

• its not half the repayments, its half the total amount of the finance agreement
• also hes only had the car since Nov 19 so hes not likely to be at that point (and if he, via an extraordinarily large deposit he'd be better finding a buyer, clearing the finance and recovered the +VE balance).
• also agreements dont vary with regards to this - its your right under Consumer Credit Act relating to a hire purchase agreement (of which PCP is a form).

And yes, sadly likely a lot of people have had a sudden change of circumstances

Edited by Deep Thought on Sunday 23 August 18:29

Thanks for clarifying, been looking at handing back wife’s car on pcp, only six months left and being told that it’s unlikely we will have any equity in the car at the end of the term.

[Zetec-S]

England87 said:

Cars are selling like hot cakes at the moment, i’d advertise quickly if you need to shift it. Or look at voluntary termination but I believe needs to be half the value.

Agreed. Know someone who works for BMW, they can't get the stock in fast enough. Especially performance models, a lot of people are ditching the TDi in favour of a performance/petrol version as their work/commute patterns have changed.

[ZX10R NIN]

Furbs said:

Took out a new 3 year PCP contract out last Nov. (BMW M2). However our 22 year family busines has been seriously effected by the Covid Pandemic and it's looking unlikely that its going to survive. So have been consolidating our outgoings and looking at the options re the car. BMW finance have offered a 2 month payment holiday or handing the car back and paying off the o/s balance. I guess that's reasonable and kind of what I expected but I am keen to hear suggstions or if there are other options that could be considered. Looking at my earning options as a 55 year old outside of working for the business and financing an M2 on PCP is not a realistic option at the moment.

I hope it turns around for you but if it doesn't make use of the payment holiday & put the car up for sale.

First get a settlement figure from BMW Finance then if that figure is lower than what they're selling for then I'd put it up for sale at a competitive price.

Most buyers will be okay with paying the finance & then paying you the difference I've done this foe a number of clients, it's a win for both the buyer & seller as the former gets a better deal than he would do from the main dealer (& still has all the warranty benefits) whilst the seller ends up with a bit of money in their pocket & no finance company on their back

[Furbs]

Cheers everyone. Will start checking the sites mentioned.