Voluntary Termination - Unregulated?

craigluff

Hello all,

new to the site and after some help!!

i bought a car from BMW back in Dec 2007, i had a 3 year deal and it is up in 4 months time, the problem is the balloon payment is more than the car is worth so i would ideally like to go down the Voluntary Termination route ASAP.

i have rang BMW Finance and they tell me that because the amount borrowed was over £25k the agreement becomes "unregulated" and so is not covered by the consumer credit act and i can not go down the VT route.

can someone please confirm this is the case, i have searched through the act and can not find anything stating this.

Thanks in advance.

Tixy

Hi

If its over £25k then it isn't covered by the consumer credit act - see point 11 and point 14.6 of this http://www.opsi.gov.uk/acts/acts2006/en/ukpgaen_20060014_en_1.htm

Whether you can still VT I wouldn't know. I guess it would be in your original agreement if you could.

Apples2

I would hazard a guess that a company like BMW has got this angle quite well covered.

laurel7172

Are you absolutely sure that it's a compulsory payment? My ex had cars from BMW Finance and the deal was that you either paid the final lump sum, or handed back the car. I haven't seen any agreements as recent as 2007, though.

nelly12

Does the agreement say "Personal Contract Purchase" or Hire Purchase?

If it's PCP the balloon will be what they call a GMFV (Guarenteed Minimum Future Value), in this case you will be able to hand the vehicle back (subject to mileage and condition this will be penalty free). If it is a Hire Purchase plus balloon then unfortunately the balloon is not guarenteed and that payment needs to be made.

Please check your agreement and let us know if you've any questions.