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  • FIRST POST
    DavidGMiles
    BMW Select Agreement - Voluntary Termination
    • #1
    • 24th Oct 08, 4:36 PM
    BMW Select Agreement - Voluntary Termination 24th Oct 08 at 4:36 PM
    Hi all, I purchased a car in September 2006 on a BMW Select Agreement - I asked and was told at the time of voluntary termination details, I have not been using the car in the last 3 months, so I have decided to take advantage of this - have been told that although I have paid more than 50% of the agreement, so I would be eligible, that I am not eligible, this is due to being on an unregulated agreement.

    So I am being told that I have to see the car agreement out.

    I was not made aware at the time of the difference between a regulated and an unregulated agreement and was certainly not aware of the fact that I was waiving my rights under the consumer credit act. I wish to get out of this agreement, but BMW Financial Services are saying that it is nothing to do with them, but that instead it is to do with the dealership, who are not in existence any longer. The parent group of the dealerships are telling me that it is nothing to do with them.

    BMW Financial Services have just told me that they will only speak to me if I put the complaint in writing to them to their "Quality Standards Department"

    Any and all help is appreciated

    David
Page 1
  • jaysta10k
    • #2
    • 25th Oct 08, 11:39 AM
    • #2
    • 25th Oct 08, 11:39 AM
    Hi I have got the same problem I was miss advised when I took out my hire purchase agreement with BMW. Its the same as yours select unregulated. I am seeking advise in this matter let me know how you get on regards.
    Jay.
  • standupguy
    • #3
    • 25th Oct 08, 8:39 PM
    • #3
    • 25th Oct 08, 8:39 PM
    Ok,so in both cases I assume your amount of advance was over 25k?

    That being the case the agreement was indeed unregulated and outside the consumer credit act.

    With the dealer no longer in existence it is going to be difficult to challenge this.

    It is your word against the dealer that is no longer trading.

    Can you prove what was said at the time- do you have written confirmation or witnesses?

    If so, it is worth making a written complaint to the finance company that under section 56 of the consumer credit act the dealer was acting as agent for the Finance company and as the dealere is no longer tradinng the onus to resolve this complaint lies with them.

    If you cannot prove or have witnesses then there is probably little you can do.
  • woots
    • #4
    • 26th Oct 08, 11:10 PM
    • #4
    • 26th Oct 08, 11:10 PM
    Thought I was the only one with this problem but it looks more wide-spread than I imagined.

    My lease with BMW was over 25k and I was told it was unregulated. However, the salesman only said the difference this made was that I would not be able to hand the car back when I had paid more than 50% of the agreement.

    I asked for an agreement which would let me hand the car back at the end (as this is the agreement I had on my previous 2 cars) and no mention was made of the fact that I would not be able to do this. In fact, the salesman actually talked about bringing it back before the end of the agreement as "I would almost certainly want a newer one before then". The finance paperwork is not clear at all and actually refers to BMW writing to you with the options at the end of the agreement.

    I have written to BMW finance (and found out I have no option but to buy the car). They said if they think I have been mis-sold the agreement to write to the dealer which I am about to do. I will let you know how I get on but would be interested to hear from others.

    If there was more wide-spread mis-selling from BMW, it may get a bit of press/Watchdog interest that may make them give some ground.
  • petermb
    • #5
    • 27th Oct 08, 9:48 AM
    • #5
    • 27th Oct 08, 9:48 AM
    Was PPI, Gap insurance or Breakdown cover included in these agreements?
    There may be an angle to challenge
    I am a former Broker, former IFA and former compliance officer, for my sins.

    However, I have since seen the light.
  • matt83uk
    • #6
    • 27th Oct 08, 9:54 AM
    • #6
    • 27th Oct 08, 9:54 AM
    Also you might look at the outstanding balance of the agreement when you come to the end, if the finance company has been cautious in the residual you might be able to sell it privately for more than the outstanding end balance or at least part-exchange for the outstanding balance, which would be the same almost as "handing it back" albeit a little more work/stress.
  • DavidGMiles
    • #7
    • 27th Oct 08, 10:28 AM
    • #7
    • 27th Oct 08, 10:28 AM
    The arrangement is that I can hand the car back in September 2009 - or pay a balloon payment which is already 10k more than a dealer will give me for the car - so it will be handed back if there is no joy between now and then - the depreciation on the Z4M range of roadsters and coupes is vicious

    I do have both PPI & Gap insurance as part of my package - on what basis may I be able to challenge?
  • woots
    • #8
    • 27th Oct 08, 11:18 AM
    • #8
    • 27th Oct 08, 11:18 AM
    David

    I would be careful presuming that you can hand the car back in Sept 2009. That was the deal that I was "sold" back in 2005 but having now checked with BMW finance, it appears that is not what I have got (my payment is due in April 2009).

    With an unregulated lease, it appears that you have to make the balloon payment (or agree a re-finance with BMW I guess) - no option to just give the car back (as with a regulated lease). Guess you may have been able to negotiate this when you bought the car but I would double check as that is what I thought as well!

    I resisted PPI and gap insurance (despite a bit of pressure at the time)!!

    I am still going to challenge my dealer on the grounds of mis-selling a finance product. I was going to go back to them and get a new car from them and I will make clear to them that is unlikely if they stick to their grounds.
  • DavidGMiles
    • #9
    • 27th Oct 08, 12:15 PM
    • #9
    • 27th Oct 08, 12:15 PM
    Just had mine confirmed - I am on the agreement type that allows for hand-back of the vehicle

    Woots - which is your dealer - can you tell me via private message or email? I have put my complaint in writing about not having sold the product that I asked for in the form of the financial agreement - but would be interested to compare notes
  • applewhite
    Hi all,

    We have just found out that we cannot hand back our car on the 50% rule because we have a lease agreement with BMW. Our payments are over 500 pounds per month. We have paid over half and my hubby is due to start a new job in Nov with a company car. We are now stuck with a car for the next 2 years!! then theres the ballon figure at the end of that!! What are we going to do with it??

    We are so devasted. My hubby doesn' remember the salesman saying anything about having the car for 4 years and no return!!
    I think it is disgusting. The terms and conditions are a joke. They are totally unclear. How do companies get away with it. We are so desperate now, not only with my hubby pay alot more tax for his company car but we will be paying out for a car we are not using for 2 years - this equates to 12k!!

    Anyone got any ideas - we are desperate!
  • andynic
    Hi all,

    I have just started the ball rolling to VT my BMW contract, can anyone tell me if you have to of serviced the car at BMW or can it be an independant garage? Non of the services i have had done since buying the car have been done at BMW (they charge too much!) however the car was already 4 years old when i bought it and had been serviced by BMW up until that point.

    Cheers

    Andy
  • cmjham40
    In November 2006 I bought my vehicle from what I thought was a repeputable BMW Dealer in the South side of Glasgow. I bought the car for 67K and put down 10K deposit. The deal I asked for and was told verbally that I had, was for 4 years and the choice of buying or handing back at that time. I was told that I would owe 27K and that I could hand it back or trade it in for a new one. I was even told that there would most probably be enough additional value to use as a deposit for my next car. Today just over 2 years into the deal, I visited the showroom with a view to buying a new car earlier than antisipated. I was offerred 18K as a trade in? I asked how this was possible when I would get 27K if I keep it for another 2 years. At this point I was informed that My deal did not have a garunteed future value at all. I still owe just over 40K for my car which they say is only worth 18K today. I have checked my agreement and I have a Balanced Payment Hire purchase Agreement, unregulated and Uncancellable. Clearly I have signed this without reading the small print and there appears to be no way to end it.
  • jplatton
    Hi,

    I have the same problem with an unregulated Lease Purchase Agreement. The problem is that I approached a salesman from Vehicle Consulting, Stockport to lease a car only. I was told it was 48 month leasing contract with an option to buy and pay a balloon payment or give the car back after 48 months with no penalties or balloon payment. I also had the option to give the car back without penalties after 15 months. Unfortunately, the salesman was lying and I now find that this is not the case. I have an email off the salesman stating that we can give the car back after 15 months without penalty, but Vehicle Consulting say we have signed an agreement and it is binding. The salesman no longer works for Vehicle Consulting, I suspect he was sacked, although they deny it. Lombard also no longer deal with Vehicle Consulting, which again is a bit suspect, so I think this problem might be more widespread then I thought.

    At least 5 other people that I know of have been caught in this scam, where we all thought we were leasing cars. It only came to light when one of them was sent details to renew the car tax.

    I emailed a local solicitor with the details and he replied he couldn't do anything because of a conflict of interests. This makes me think that he may be representing Vehicle Consulting re another case of the same nature.

    I have sent a letter to Lombard finance, but haven't received a reply as yet.

    Any idea's as to where to go from here? and does anyone think we have a chance of getting out of this contract?

    One thing it's taught me is to read a contract no matter what the salesman tells you!!
  • jplatton
    Hi,

    I have the same problem with an unregulated Lease Purchase Agreement. The problem is that I approached a salesman from Vehicle Consulting, Stockport to lease a car only. I was told it was 48 month leasing contract with an option to buy and pay a balloon payment or give the car back after 48 months with no penalties or balloon payment. I also had the option to give the car back without penalties after 15 months. Unfortunately, the salesman was lying and I now find that this is not the case. I have an email off the salesman stating that we can give the car back after 15 months without penalty, but Vehicle Consulting say we have signed an agreement and it is binding. The salesman no longer works for Vehicle Consulting, I suspect he was sacked, although they deny it. Lombard also no longer deal with Vehicle Consulting, which again is a bit suspect, so I think this problem might be more widespread then I thought.

    At least 5 other people that I know of have been caught in this scam, where we all thought we were leasing cars. It only came to light when one of them was sent details to renew the car tax.

    I emailed a local solicitor with the details and he replied he couldn't do anything because of a conflict of interests. This makes me think that he may be representing Vehicle Consulting re another case of the same nature.

    I have sent a letter to Lombard finance, but haven't received a reply as yet.

    Any idea's as to where to go from here? and does anyone think we have a chance of getting out of this contract?

    One thing it's taught me is to read a contract no matter what the salesman tells you!!
  • DebtBeeta
    Hi all,
    I'm hoping that one of you knowledgeable folks can advise me?

    I signed a "Hire Agreement Regulated by the Consumer Credit Act 1974" for 3+35 lease with "Bank of Scotland Vehicle Finance". I'm pretty sure it was termed as a "Personal Contract Hire" over 3 years.

    I'm currently 21 months into the agreement and want to hand the car back 15 months early. BoSVF said that I can VT but I might be charged any shortfall in resale value. Another option is to pay them £5,500 and let them collect the car - No thanks!

    Can I get out of this agreement without additional expense? I'm seriously considering cancelling the Direct Debit and just telling them to collect...

    Any suggestions or advice would be great.
    Thanks
  • oliveoyl0123
    hi i'm hoping someone out there can help. we went to a ford dealer for a lease purchase on a van, we are now 12 months in on a 36 month lease and as our business is about to come to a close we were hoping to make a deal onpurchasing the van early only to find that what we were sold was a lease hire agreement!!! and to confuse things a little more we also have two different agreement numbers. i believe something very underhand is or was going on at ford as the sales person is no longer there and when my van was supposed to arrive in jan and it didn't i called to ask why and they said they had no paperwork regarding theorder of a van and they sent me another copy to sign. I called the finance company (RBS) and they said the agreement no that is on all the documents that ford hold which is also the agreement that the deposit was paid to doesnt even exist, however the one that were paying on ford have no record of at all? where do i start sorting out this mess????
  • savingtips2
    Hello can someone advise me please
    I am about to hand my BMW back within the next week via VT. They have emailed me the form which states that the car has to be in good condition and if not they will invioce me for the damage, the thing is there are some scratches on the bumper. My sister has also handed her BMW back last year and her car was scratched but she wasn't charged. Are they allowed to do this? It would be just my luck I'd be sent a big bill.
  • PNPSUKNET
    they have every right as they own it
  • North Star
    Hi , I know this is a little after the conversation but I found this thread by typing "Voluntary Terminations of a Car" into google and stumbled upon your troubles , my agreement states I can give the car back once I have reached a certain figure in payments but you all seem to state that after 50% of the payments you can give it back yet mine shows that it will be at least 34/60 payments before I hit the total sum required before a VT can be done , is this right ? Also my friend did a VT a few months ago and his agreement stated the car "must be in reasonable condition" which to me or you would indicate "decent or good" would it not ? surely not showroom class...well he took his for a wash n valet before handing it back and he got billed for a scrape on the front bumper , paint only no deeper , now I think these companies need to clarify what REASONABLE means because if i bought a pair of trainers off eBay stated as reasonable I would expect them to have been used and a little worn , not almost brand new ! Car salesmen need to be released in a field and hunted down by a pack of rampant bunny rabbits for the lies and stress they cause people , sorry to hear about all your problems all of you this country stinks at times.
  • foolishboy
    Hi , I know this is a little after the conversation but I found this thread by typing "Voluntary Terminations of a Car" into google and stumbled upon your troubles , my agreement states I can give the car back once I have reached a certain figure in payments but you all seem to state that after 50% of the payments you can give it back yet mine shows that it will be at least 34/60 payments before I hit the total sum required before a VT can be done , is this right ? Also my friend did a VT a few months ago and his agreement stated the car "must be in reasonable condition" which to me or you would indicate "decent or good" would it not ? surely not showroom class...well he took his for a wash n valet before handing it back and he got billed for a scrape on the front bumper , paint only no deeper , now I think these companies need to clarify what REASONABLE means because if i bought a pair of trainers off eBay stated as reasonable I would expect them to have been used and a little worn , not almost brand new ! Car salesmen need to be released in a field and hunted down by a pack of rampant bunny rabbits for the lies and stress they cause people , sorry to hear about all your problems all of you this country stinks at times.
    Originally posted by North Star
    I recently VTd a Bank of Scotland car .. it was easy, and fair.

    You have to have repaid 50% of the original loan. So if you borrowed 20k, you have to have repaid 10k. You can get the total outstanding amount from them easily enough by asking for a settlement figure.

    My contract said that I was liable for anything beyond normal wear and tear. A few stone chips and a little wear on the seat is exactly this. A parking ding/scratch is not wear and tear - an incident of some kind caused this and you'd have to rectify that before return or get charged. I had a mobile repair guy come over and take care of any such damage before the collected mine to minimise any comeback the lease company had.

    With used car values being as they are (my optional balloon payment to purchase was way more than it's true value) all the companies are taking a hit when people VT so they'll (understandably) be pretty strict when they take the car back.

    HTH
    FB
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