PCP Voluntary Termination

[Lozw86]

Hi there,

I would like to VT my BMW PCP 12 months early (To enable saving for a property purchase) and just wanted to check my understanding..

My HP agreement states "You will have to return the vehicle and pay (i) any arrears and any other sums which have become payable under the agreement before the termination, including any excess mileage charges plus (ii) the amount (if any) by which one half of the total amount payable exceeds the aggregate of the advance payment and repayments you have paid, plus(iii) if you do not return the car in good repair and condition, the sum required to compensate us for this."

So given that I have not exceeded the excess mileage for the period I have had the car, and it is in good condition, I just have to pay half the Total Amount Payable

Total amount payable = £34,477.84 Half of which is £17,238.92

I have paid 36 x £400 = £14,400, My advance payment was £3,476.91, Total paid by me is therefore £17,876.91

My payment has exceeded half of the Total Amount Payable, I can VT if I wish. Is this correct?

Thank you

[jimi]

Yes - half of the total amount payable (including interest).

[mcflurry]

It's half of the amount borrowed.
If you paid a deposit, AFAIK that wouldn't count, as you're borrowing the balance.

[Sheepshanks]

mcflurry said:

It's half of the amount borrowed.
If you paid a deposit, AFAIK that wouldn't count, as you're borrowing the balance.

That's wrong. Previous poster is correct.

Normally the amounts are detailed in the agreement.

[JB8]

Remember, the mileage allowance is usually pro-rated, depending on when you terminate.

So for a 12 month agreement, with a 10K p.a. allowance, you may be charged if you voluntary terminate at 6 months, and have exceeded the pro-rated mileage allowance (5k miles).

[Sheepshanks]

JB8 said:

Remember, the mileage allowance is usually pro-rated, depending on when you terminate.

That, and damage charges, are a grey area with VT. The point of the law if that you're supposed to be able to VT after paying half with nothing further to pay. I've seen comments that's been the case even with excess miles and some damage but also others where the finance company has threatened court action.

[Lozw86]

Thanks all. I spoke to BMW FS and they are willing for me to VT and are sending out a form to complete. This will help the savings pot

[N8CYL]

I always do this. Sixth VT coming up. It doesn't matter how many miles you do....you have nothing more to pay. I have been twice the contracttract mileage before. Fair wear and tear is usually rigourously enforced as is legal tyres.
The figures are always clear in the agreement. I always get another car agreed on finance before terminating. Then it's too late for them to decide no finance but I've never had an issue with further finance.

[sidicks]

N8CYL said:

I always do this. Sixth VT coming up. It doesn't matter how many miles you do.... you have nothing more to pay. I have been twice the contracttract mileage before. Fair wear and tear is usually rigourously enforced as is legal tyres.
The figures are always clear in the agreement. I always get another car agreed on finance before terminating. Then it's too late for them to decide no finance but I've never had an issue with further finance.

Are you sure about that? That might be your experience, but not sure that's legally correct?

[red_slr]

Take lots of pics - up close on the day they collect at the time they collect.
If they ask you to sign anything make sure you read the small print.
If you are unsure sign VC.

The reason is they will inspect the car some time later in a bright room with sun lamps and pick up every scratch.

[Mercury00]

red_slr said:

Take lots of pics - up close on the day they collect at the time they collect.
If they ask you to sign anything make sure you read the small print.
If you are unsure sign VC.

The reason is they will inspect the car some time later in a bright room with sun lamps and pick up every scratch.

I bought a four year old car from a franchised dealership on pcp. When I washed it for the first time I noticed someone had scraped the bumper and painted it with a paintbrush. I'd get screwed for this if VT-ing, even though it was there when I bought it?

[battered]

Mercury00 said:

I bought a four year old car from a franchised dealership on pcp. When I washed it for the first time I noticed someone had scraped the bumper and painted it with a paintbrush. I'd get screwed for this if VT-ing, even though it was there when I bought it?

Probably. Just like you would if you went on holiday and hired a car with a scrape and didn't document it at the start. You wouldn't be the first hirer to get screwed on that one.

[skeeterm5]

I found BMW very helpful when i asked about this in the past. No real questions about why, or hard sell at all.

[Patch1875]

If you VT say BMW finance would you be able to get finance from them again?

[Mattt]

Patch1875 said:

If you VT say BMW finance would you be able to get finance from them again?

Yes, as you're only exercising a legal/contractual right.

[N8CYL]

sidicks said:

N8CYL said:

I always do this. Sixth VT coming up. It doesn't matter how many miles you do.... you have nothing more to pay. I have been twice the contracttract mileage before. Fair wear and tear is usually rigourously enforced as is legal tyres.
The figures are always clear in the agreement. I always get another car agreed on finance before terminating. Then it's too late for them to decide no finance but I've never had an issue with further finance.

Are you sure about that? That might be your experience, but not sure that's legally correct?

Yes, nothing more to pay means just that. They may try but for me never had. I took some advise and it's clear in the agreement. Nothing more to pay.