BMW PCP finance early termination

[northandy]

So we have a 118d bought on PCP, coming up 3 years ago.

Bought with a 1k deposit, on 25k per year annual mileage. Car has done 83k ish at the moment and we have requested a voluntary termination (trade in offer 7k, outstanding finance 10k).

I have read the T&C over and over and there is no mention of pro rata(ing) mileage allowance for early termination, and 2 dealers have told me that it isnt taken into account for early termination.

So my question is, has anyone early terminated a BMW PCP deal recently, and what was the score regarding being over the agreed mileage ?.

I have no problem settling up if thats whats required, just wanted to see if anyone else had come accross it ?.

[northandy]

mikem7709 said:

If you don`t reach the end of the term, mileage doesn`t come into it. Car has to be in a condition appropriate to its age/mileage tho.

Have you ever done it ?. A lot of people seem to think this (me included), but BMW have mentioned it today.

Just been out and polished it today, considering its done 83k its in very good nick, no wheel damage, a handful of stone chips, and one tiny door ding, but other than that it looks very well.

[northandy]

dodgym3 said:

mileage doesn`t come into it. Car has to be in a condition appropriate to its age/mileage tho.


hi mate the above info from the other guy is totally in correct if that was the case people would be declaring the min miles then early terminating just before the car went back.

finance companys charge and excess miles to cover the residual value at the end of the agreement

p.s i work for yourfleet check out the site 2 largest car broker in the UK

2 BMW dealers have told us that they dont discourage people from putting lower miles than they intend. as the miles dont come into account. I am going to call in at the local one tomorrow and ask again.

The excess mileage charge is only 2.4p per mile, so its not a huge amount anyway, £180 ish

Thanks for the advice so far.

[northandy]

gizlaroc said:

Hold on, BMW and yourself will agree a price at the start based on duration and mileage, if you go over you will have also agreed a price per mile that you will pay extra, to say mileage doesn't come into it is nonsense.

What if he had done 200k in it?? You saying if he returned it a week early they would ignore that?? Of course not.



How long was the PCP deal over?? If it was over 36 months you may find it cheaper to pay the remaining months rather than settle, if that makes sense??

You owe £10k and they have said they will give you £7k, that is £3k you need to pay plus the £180 for excess mileage.

If you only have 4 months left at say £300 then just pay the 4 months and the excess mileage, a friend just got caught out like this, the GFV is no longer valid if you end early, so be careful how you word your return.


BMW kept trying to get my old man into a newer 7 series recently, they have given a £20k future value on his car at 3 years old, it is a 2007 56 plate 730d sport with 30k miles on it, and it is trading at around £18k now, they really don't want to give £20k back in another 10 months with 40k on it, but if he doesn't swap they are going to have to.

Edited by gizlaroc on Tuesday 28th July 01:10

It was a 4 year deal.

So we have 14 months payments and the final balloon (IIRC was about 6.5k).

The car is about to be out of warranty, so we'd be shelling out to extend that, etc etc etc.

So cars worth currently 7k, in 14 months we'd have to pay 6.5k to keep it or give it back, car will have 110k by then, doubt its only going to drop 500 in that time.

Like I said I have no problem paying the £180 excess mileage, however BMW dealers say that it doesnt count for vol termination, I repeat BMW dealers say that (2 different ones), i'm happy to pay it if its legit, however if they are just trying it on to recoup losses then they can swivel !.

[northandy]

ray951 said:

There is no 'correct' answer to this question as it is something that needs to be clarified by the courts/parliament.

Your agreement will state something like 'Once you have paid 50% of the amount owed you can hand the item back without any more to pay'.

The crucial bit is 'without any more to pay', it is unclear whether this wording gives BMW (or any finance company) the right to charge excess mileage, it has never been tested in court and I suspect that finance companies won't want it tested in court in case they lose. This wording is defined by the Consumer Credit Act and not the finance company, therefore because it is not specfic to any type of item financed it doesn't mention excess mileage.

So if BMW ask you to pay Excess Mileage quote the wording from the agreement and see what they see. I would also put this writing.

Thank you for that, that now makes a lot of sense, your right I was hung up on the "without anything further to pay".

We've recieved the pack for termination from BMW finance and it mentions, excess mileage etc, We'll just quote the agreement wording back and leave it at that.

Many thanks

[northandy]

rich_vw said:

ray951 said:

There is no 'correct' answer to this question as it is something that needs to be clarified by the courts/parliament.

Your agreement will state something like 'Once you have paid 50% of the amount owed you can hand the item back without any more to pay'.

The crucial bit is 'without any more to pay', it is unclear whether this wording gives BMW (or any finance company) the right to charge excess mileage, it has never been tested in court and I suspect that finance companies won't want it tested in court in case they lose. This wording is defined by the Consumer Credit Act and not the finance company, therefore because it is not specfic to any type of item financed it doesn't mention excess mileage.

So if BMW ask you to pay Excess Mileage quote the wording from the agreement and see what they see. I would also put this writing.

Is this the case with a PCP??? I knew that half way through a straight finance you can do this but didn't know on a PCP.

yes ours is a PCP and has the voluntary termination clause.

[northandy]

Soovy said:

If you have paid 50% of the TOTAL AMOUNT PAYABLE UNDER THE AGREEMENT INCLUDING DEPOSITS AND FEES AND INTEREST, you can hand the car back and walk away.

There is NO DAMAGE TO YOUR CREDIT RATING despite what the shytes at the finance company will tell you.

If you've paid 50%, ring them up, and tell them to come and collect it.

Already done, just waiting for the collection date, and it obviously has no effect on credit rating as we have just got a new finance agreement from BMW. I wasnt convinced they would do that, but they have.