Cancelling personal contract hire order
Discussion
Hi,
I'm hoping somebody will be able to give me a bit of advice on this. I placed a personal contract hire order for a BMW M135i on the 2nd December, and was quoted an 8-10 week delivery time. They emailed me a contract which I signed and photographed, emailing it back to them.
Since ordering, I've now been told that no delivery date can be confirmed as the order has fallen out of quota. Some BMW dealers are now quoting a May delivery for new 3 door orders. I've also been told that these lease deals were based on a £3000 contribution being made by Leaseplan on orders registered before the end of March. As there are no build slots, I don't think that contribution will happen and I can see affected orders being cancelled completely.
I have the opportunity to purchase a pre-reg 5 door car from BMW at a higher cost than the lease, but still a good deal. Where do I stand legally with cancelling the lease order? The one page piece of paperwork I signed states the following:
4. The price may be subject to change only in the event of a manufacturer price movement.
5. Due to unforeseen circumstances delivery dates may be subject to change.
6. All rates quoted are indicative and do not constitute a contractual obligation to supply.
Agency Contract and Supply Contract - by signing this form you are entering into an Agency Contract (for the supply of services) and a Supply Contract (for the supply of goods). xxxxxxx Vehicle Leasing will act on your behalf to source the vehicle described above. You will not have the right (under the Distance Selling Regulations) to cancel the Agency Contract once we have begun to source the vehicle. In the event of cancellation of an order, a cancellation fee of 3 months rental is payable.
However, the lease company still haven't posted out the paper contracts for me to sign. As the order doesn't actually have a quota yet, and a car hasn't been secured, is this clause of 3 months rental legally enforceable? If the lease company could confirm I will receive the car at the price quoted, I'd just wait, but they don't seem willing to do this. From the paperwork it seems they could cancel the agreement at any time and leave me without a car.
Thanks
I'm hoping somebody will be able to give me a bit of advice on this. I placed a personal contract hire order for a BMW M135i on the 2nd December, and was quoted an 8-10 week delivery time. They emailed me a contract which I signed and photographed, emailing it back to them.
Since ordering, I've now been told that no delivery date can be confirmed as the order has fallen out of quota. Some BMW dealers are now quoting a May delivery for new 3 door orders. I've also been told that these lease deals were based on a £3000 contribution being made by Leaseplan on orders registered before the end of March. As there are no build slots, I don't think that contribution will happen and I can see affected orders being cancelled completely.
I have the opportunity to purchase a pre-reg 5 door car from BMW at a higher cost than the lease, but still a good deal. Where do I stand legally with cancelling the lease order? The one page piece of paperwork I signed states the following:
4. The price may be subject to change only in the event of a manufacturer price movement.
5. Due to unforeseen circumstances delivery dates may be subject to change.
6. All rates quoted are indicative and do not constitute a contractual obligation to supply.
Agency Contract and Supply Contract - by signing this form you are entering into an Agency Contract (for the supply of services) and a Supply Contract (for the supply of goods). xxxxxxx Vehicle Leasing will act on your behalf to source the vehicle described above. You will not have the right (under the Distance Selling Regulations) to cancel the Agency Contract once we have begun to source the vehicle. In the event of cancellation of an order, a cancellation fee of 3 months rental is payable.
However, the lease company still haven't posted out the paper contracts for me to sign. As the order doesn't actually have a quota yet, and a car hasn't been secured, is this clause of 3 months rental legally enforceable? If the lease company could confirm I will receive the car at the price quoted, I'd just wait, but they don't seem willing to do this. From the paperwork it seems they could cancel the agreement at any time and leave me without a car.
Thanks
Hi, the lease company can't guarantee the delivery date - this is completely down to BMW of course and yes it's possible that they won't be able to honour the deal if it's not registered by the end of March.
It won't cost you anything to cancel it, particularly if you have yet to sign the finance agreement (you'll usually have a cooling off period after you sign the contracts where you can cancel anyway.). Best thing to do if you want to cancel is just to advise the broker, it's no skin off their nose.
It won't cost you anything to cancel it, particularly if you have yet to sign the finance agreement (you'll usually have a cooling off period after you sign the contracts where you can cancel anyway.). Best thing to do if you want to cancel is just to advise the broker, it's no skin off their nose.
- Edit* have just read your full post - so they're suggesting a 3 month cancellation charge if you cancel? This is not something levied by Leaseplan but the broker involved. In your situation I would just advise them that if they cannot guarantee the price you have agreed for the vehicle then you will not continue any further with the order and leave it their court. You have no obligation to proceed with the vehicle if they cannot supply on the terms you agreed to.
Edited by rfoster on Monday 16th December 16:36
Well, BMW will be able to cancel / amend the order at this stage for another customer so there wouldn't be a problem with cancellation at the dealer, it's just a bit inconvenient for the broker. Best thing to do is speak to the broker and get their view on it. But, like I said, they can't expect you to pay a higher price than you've agreed to and you certainly wouldn't have to pay a cancellation fee if they can't agree to the original terms. So the ball's in their court really, to get the car for the price agreed.
I have read that BMW are having problems with supply of the N55 35i engine, probably due to recent introduction of 435i & 235i and hence orders for M135i are not as quick as they were only recently before the mentioned car launches.
The information about recent car orders are for May next year although some cars are filtering through a little quicker.. probably due to cars which are already destined to dealers which are spec changeable, rather than fresh orders.
Good luck with getting it sooner
The information about recent car orders are for May next year although some cars are filtering through a little quicker.. probably due to cars which are already destined to dealers which are spec changeable, rather than fresh orders.
Good luck with getting it sooner
ctid said:
Since ordering, I've now been told that no delivery date can be confirmed as the order has fallen out of quota. Some BMW dealers are now quoting a May delivery for new 3 door orders. I've also been told that these lease deals were based on a £3000 contribution being made by Leaseplan on orders registered before the end of March. As there are no build slots, I don't think that contribution will happen and I can see affected orders being cancelled completely.
It would be useful to know when you ordered via the leasing broker, & when you were told this info re: quota as ALOT of PHer's may be in a similar position to you. I have read on BabyBMW about the delays, but not a specific 'you wont get your car' from a broker before.I originally ordered my car on the 2nd December. It seems that it's only 3 door orders that are affected beyond March, but I've noticed that no brokers are committing to a leadtime until the new year now.
I have cancelled my order, and am due to pick up my pre-reg 5 door on the 30th December. Thanks for the advice you've given, I thought I would have had to pay the cancellation charge if I'd just gone with what the paperwork said.
I have cancelled my order, and am due to pick up my pre-reg 5 door on the 30th December. Thanks for the advice you've given, I thought I would have had to pay the cancellation charge if I'd just gone with what the paperwork said.
I had the same issue with a 640d and a delayed delivery date. I cancelled with broker and they asked me to pay a 3 month cancellation charge because of the agency contract.
They don't really have a leg to stand on to be honest. I spoke to BMW dealer they were ordering from and no build slot had been confirmed. I just asked the broker to confirm what services I was paying for and he hoisted himself by his own petard.
They don't really have a leg to stand on to be honest. I spoke to BMW dealer they were ordering from and no build slot had been confirmed. I just asked the broker to confirm what services I was paying for and he hoisted himself by his own petard.
jontysafe said:
I had the same issue with a 640d and a delayed delivery date. I cancelled with broker and they asked me to pay a 3 month cancellation charge because of the agency contract.
They don't really have a leg to stand on to be honest. I spoke to BMW dealer they were ordering from and no build slot had been confirmed. I just asked the broker to confirm what services I was paying for and he hoisted himself by his own petard.
This.They don't really have a leg to stand on to be honest. I spoke to BMW dealer they were ordering from and no build slot had been confirmed. I just asked the broker to confirm what services I was paying for and he hoisted himself by his own petard.
If they can't supply a car in a reasonable timescale, they shouldn't be advertising the deal.
I have been in this situation twice, with 2 different leasing companies, and both times they asked for 3 months payment to cancel.
When I challenged them, they backed down quick enough.
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