BMW Select Agreement - Voluntary Termination

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
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Comments

  • 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.
  • 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
    woots Posts: 8
    First Post
    Forumite
    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_2
    petermb_2 Posts: 1,565 Forumite
    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
    matt83uk Posts: 79 Forumite
    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.
  • 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
    woots Posts: 8
    First Post
    Forumite
    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.
  • 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
  • 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!
  • 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
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