Bmw pcp vt help

macdaddy_uk

Hi guys, I got a quick question regarding VT ( voluntary termination ) on my PCP with BMW.

I have one and a half payments left until I reach 50% of finance / VT point, I called BMW finance to find out if I go past my VT point can I still use it say come February next year. They said yes thats fine as long as your past you VT point, but they don't have any paper work on VT do's and don'ts.

Can any one shed any light on this.


Many thanks in advance

Leon

alx33277

They wont mention VT (nor do any finance companies as far as I know) as it drastically reduces the amount of £ they make.

The first step is to ask them in writing for information on VT to be absolutely sure of where you stand, but ordinarily you can end an agreement regulated by the CCA at any time with the maximum liabilty being 50% of the agreement (provided you're not in default)

In your case, provided 50% as been paid (anywhere from 50% to 99%), then you'll have no liability whatsoever, subject to the car not being in a sh*t state. There are normally some conditions around mileage and condition, but these will be BMW specific. And don't listen to anyone who warns you about your credit rating being negatively impacted by doing this - this will not happen. When you VT you are settling your agreement and finance companies are not allowed to make any note (postive or negative) of the reasons for settling on your credit file if you follow the rules.

HTH

alx33277

Sorry, a couple more things to mention. Most finance companies will require you to Voluntary Terminate in writing, so dont just phone up or drop the car back. Also, you must use the words Voluntary Terminate and not Voluntary Surrender or anything similar.

http://www.legislation.gov.uk/ukpga/1974/39/section/100

Scuttsy

A VT will not cause any negative mark on your credit file. However it might impact your chances of getting another HP agreement with specifically the same finance company again. When they get a fresh application they review your previous history with them as well as your credit file.

macdaddy_uk

many thanks for the info guys, I'm not worried about the possible review of application using them again as BMW cars suck.

I will however try and get more literature on going past the VT termination etc.

Cheer again.