BMW PCP Early Settlement question

[R1 Dave]

A few days ago I signed a finance agreement on a new bike with BMW. I haven't yet collected the vehicle. I only did the finance because BMW are offering £500 towards the deposit if you take out finance. The sales person has said that I can settle early once I've made the first payment meaning I'll only pay a tiny amount of interest but have the benefit of the £500 deposit contribution. Assuming this works, it'll mean I'm about £480 up on the deal. Now, I've started having concerns as I've read some horror stories online about people trying to get early settlement figures and being messed around for weeks and it costing them loads of money. As a result I'm considering cancelling the agreement and just paying the extra £500.

So, my question is, have any of you guys done this? How did it work out?

The agreement is with BMW Financial Services.

Kind regards

Dave

[shurm]

Settle it as soon as you get home if you want nothing they can do, if you ask to do this within the first 14 days you then have 30 days to settle the amount with only daily interest being added.

The Manufacturers make customers do this by offering deposit contributions but not extra discount to cash customers.

[mcg_]

What happens if you pay it off in the 14 day cooling off period?

[R1 Dave]

Yeah that's what I plan to do, I don't need to take finance at all, it's purely for the deposit contribution. Does it actually work out that easily though? Do they muck you about and/or add additional fees to claw their money back?

[R1 Dave]

mcg_ said:

What happens if you pay it off in the 14 day cooling off period?

I've been told there are no penalties if I pay it off once I've paid the 1st payment. I just don't trust finance companies and I'm wondering if it's easier to just bin off the finance before it starts and pay the extra £500.

[shurm]

Ask the salesman for BMWs Finance number (Alphera Finance) and ring them when you get home and just pay it off no daily interest and an easy £500 saved, don't make one payment and do it straight away.

[R1 Dave]

shurm said:

Ask the salesman for BMWs Finance number (Alphera Finance) and ring them when you get home and just pay it off no daily interest and an easy £500 saved, don't make one payment and do it straight away.

Thanks, do you or someone you know have direct experience of this working?

[Anonymous-poster]

Don’t ask for a settlement ask to withdraw from the agreement and you will only pay the interest per day!

[jjones]

As above, you have a cooling off period, ring them up the day after you pick the bike up. Just did this on wife's car to save £1000 (waited until the next day), took minutes and was no hassle.

[shurm]

I've been in the Motor Trade 37 years and sell cars for a living, I've even helped elderly customers settle it up on collection before now as sometimes the contributions can be 2-3k on cars.

[R1 Dave]

Ok thanks. I signed the order for the bike yesterday and collect it on Thursday so I'll sort it when I get home or the following day.

[shurm]

Enjoy the bike

[aponting389]

The dealer has told you to make one payment because the finance company probably claw the dealer incentive it back if it’s cancelled before the first payment is made

[R1 Dave]

shurm said:

Enjoy the bike

Thanks! And thanks for your help

[R1 Dave]

aponting389 said:

The dealer has told you to make one payment because the finance company probably claw the dealer incentive it back if it’s cancelled before the first payment is made

Yeah I suspect that's the case. I was just worried they'd want a ton of interest or fees for early settlement. The sales person said that wasn't the case and seems trustworthy but I'm old and cynical

[UnluckyTimmeh]

R1 Dave said:

aponting389 said:

The dealer has told you to make one payment because the finance company probably claw the dealer incentive it back if it’s cancelled before the first payment is made

Yeah I suspect that's the case. I was just worried they'd want a ton of interest or fees for early settlement. The sales person said that wasn't the case and seems trustworthy but I'm old and cynical

I can assure you after working for a BMW retailer, this is exactly what it is….

I just settled my RR finance, was all done online by the BMW finance login page. No need to call them at all

[R1 Dave]

UnluckyTimmeh said:

R1 Dave said:

aponting389 said:

The dealer has told you to make one payment because the finance company probably claw the dealer incentive it back if it’s cancelled before the first payment is made

Yeah I suspect that's the case. I was just worried they'd want a ton of interest or fees for early settlement. The sales person said that wasn't the case and seems trustworthy but I'm old and cynical

I can assure you after working for a BMW retailer, this is exactly what it is….

I just settled my RR finance, was all done online by the BMW finance login page. No need to call them at all

Brilliant thanks. And it was literally just borrowed amount + small daily interest amount?

[UnluckyTimmeh]

R1 Dave said:

UnluckyTimmeh said:

R1 Dave said:

aponting389 said:

The dealer has told you to make one payment because the finance company probably claw the dealer incentive it back if it’s cancelled before the first payment is made

Yeah I suspect that's the case. I was just worried they'd want a ton of interest or fees for early settlement. The sales person said that wasn't the case and seems trustworthy but I'm old and cynical

I can assure you after working for a BMW retailer, this is exactly what it is….

I just settled my RR finance, was all done online by the BMW finance login page. No need to call them at all

Brilliant thanks. And it was literally just borrowed amount + small daily interest amount?

Tbh I settled mine with about 2 months to go as I sold my RR to buy my new Triumph. But yes, essentially - register online (you’ll need your agreement number) then request a settlement figure. At the bottom of that will be a link called part payment and from that you can select to settle in full. If you want to call them it’s 0370 50 50 150

[R1 Dave]

Brilliant, thank you.

[Anonymous-poster]

R1 Dave said:

Brilliant, thank you.

NO, you don’t want a settlement figure!

You want to WITHDRAW within the first 14 days and you will only pay daily interest plus the borrowed amount.