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Voluntary Termination With BMW
Comments
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To further illustrate this the BMW PCP finance document is indeed entitled a Hire Purchase Agreement, as I imagine all other PCP finance agreements are called.It doesnt matter what you personally consider them as - they are a form of Hire Purchase and therefore are subject to the Consumer Credit Act, an effect of which is that you can Voluntary Terminate the contract.
Lease contracts are entirely different0 -
Thats a giant leap you've made there to suggest the O/P ran his car on a shoestring budget to the point of potentially causing problems to subsequent owners.
Under a PCP deal they are not required to even have the car serviced by the franchised garage, so i dont know why you're even trying to make that relevant.
Reread what I posted, you have added your own conclusions.
Read all the way to the end of the post.
Would you buy a three year old car when the first owner had decided to save a couple of quid going outside of the dealer network?
I would look at it on a case by case basis.
I wouldn't if it was a premium make like BMW, Jaguar or Merceded.
With other makes I wouldn't unless it was cheaper. Once the Warranty period was up main dealer servicing is less important of course, but again not on something like a Mercedes, Jagaur or BMW.
The 116D I owned for a few months last year was 5 years old and had full BMW History for example, does that show more diligent ownership than somebody that used a mixture of Halfords, Grays and the local tyre shop doing a quick annual oil change?
The Picanto I just bought has had one service at 2500 miles, it is getting its second next week at Kia.
I suspect that is why it ended up at CG rather than the Kia dealer network and was £1000 less than one a year older with full Kia History at a Main Dealer in Essex.
In my opinion I have saved a fortune because the first owner wanted to save £10/15, a service with Kia is only £99 and I doubt the independant garage did the service for much less than £80.
It is your money at the end of the day so you can fill your boots.0 -
Reread what I posted, you have added your own conclusions.
Read all the way to the end of the post.
Would you buy a three year old car when the first owner had decided to save a couple of quid going outside of the dealer network?
I would look at it on a case by case basis.
I wouldn't if it was a premium make like BMW, Jaguar or Merceded.
With other makes I wouldn't unless it was cheaper. Once the Warranty period was up main dealer servicing is less important of course, but again not on something like a Mercedes, Jagaur or BMW.
The 116D I owned for a few months last year was 5 years old and had full BMW History for example, does that show more diligent ownership than somebody that used a mixture of Halfords, Grays and the local tyre shop doing a quick annual oil change?
The Picanto I just bought has had one service at 2500 miles, it is getting its second next week at Kia.
I suspect that is why it ended up at CG rather than the Kia dealer network and was £1000 less than one a year older with full Kia History at a Main Dealer in Essex.
In my opinion I have saved a fortune because the first owner wanted to save £10/15, a service with Kia is only £99 and I doubt the independant garage did the service for much less than £80.
It is your money at the end of the day so you can fill your boots.
It was the intimation.
Again, you dont know if the O/P did or didnt service the car with BMW when still under manufacturers warranty.
And again - its irrespective and getting away from the point in hand.0 -
As motorguy has mentioned many times, a pcp is a form of hp and the right to vt when 50% has been paid is absolute with the only previso in the act about fair wear and tear
The problem the car finance companies have is that the act which gives the buyer rights to vt a car was written before the idea of pcp type finance deals had been thought of. If the act was written now or revised I can imagine that a clause would be added regarding mileage but as things stand the act doesn't
Exactly.
And finance companies HATE it.
And as per the link that bigjl gave us, its common practice for finance companies to use smoke and mirrors and the threat of legal action to intimidate people into paying.0 -
Some may find the following useful - http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp0
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Some may find the following useful - http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp
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Thats the same link as bigjl posted in post #25?0 -
Reread what I posted, you have added your own conclusions.
Read all the way to the end of the post.
Would you buy a three year old car when the first owner had decided to save a couple of quid going outside of the dealer network?
I would look at it on a case by case basis.
I wouldn't if it was a premium make like BMW, Jaguar or Merceded.
With other makes I wouldn't unless it was cheaper. Once the Warranty period was up main dealer servicing is less important of course, but again not on something like a Mercedes, Jagaur or BMW.
The 116D I owned for a few months last year was 5 years old and had full BMW History for example, does that show more diligent ownership than somebody that used a mixture of Halfords, Grays and the local tyre shop doing a quick annual oil change?
The Picanto I just bought has had one service at 2500 miles, it is getting its second next week at Kia.
I suspect that is why it ended up at CG rather than the Kia dealer network and was £1000 less than one a year older with full Kia History at a Main Dealer in Essex.
In my opinion I have saved a fortune because the first owner wanted to save £10/15, a service with Kia is only £99 and I doubt the independant garage did the service for much less than £80.
It is your money at the end of the day so you can fill your boots.
The effect on value of whether the car is serviced by BMW or a non franchised garage ( but to manufacturers specs) is irrelevant. We are specifically discussing VTing a vehicle and the only clause that is relevant is whether 'fair wear and tear' has been incurred. If there was a clause in the CCA about market value or mileage this would be relevant, but there isn't.
The letter written by BMW is typical of the type written by lawyers when they know they don't stand a chance in court. Indeed, I imagine they would avoid a court case like this in case it sets a precedent that others could use to undermine PCP agreements. A judge could easily rule that 50k rather than 30k miles on a modern well serviced cars is neither hear no there as concerns wear and tear. Indeed a car that does 800 miles a year comprised of a 1 mile commute and dropping home for lunch is likely to be in much worse condition.
When I worked for a large employer that had a mobility clause in their contract of employment, they made various threats reminding people of their obligation to move for work, but they never took a case to court as they were concerned about losing and setting a precedent that all staff would cite in refusing to move.
BMW use these tactics to frighten people into paying up, when in reality it is a bluff as they daren't follow through with legal action unless the mileage overrun is ridiculous and obviously invokes the wear and tear clause such as a minicab racking up 50k a year on a 10k contract.0 -
Does the mileage count applies when you change the car after 2 /3 years on PCP ?
Or only when you hand the car back ?
I am on PCP, and I have 10000miles per year. And want to change the car after 2 years.0 -
Theres no "ruling" to be got. But i would certainly be reporting it to the FOS.
Wholly wrong what they are trying to do.
Someone has already taken it to the FOS.
The FOS concluded that "Section 100(4) of the Act merely says that reasonable care must have been taken of the goods; I consider that in addition to damage beyond wear and tear, mileage limitation is also a fair measure of what is ‘reasonable care’ of a car. Therefore, it follows that I do not consider excess mileage charges to be contrary to the Act."
http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=65660
Thus the FOS has concluded that it is perfectly fair to charge excess milage on a VT.
Whether or not it is legal would be something else. Opinions differ. There are indeed some lawyers who believe that it is not, and some that argue that it is. There is a lot of debate on the interweb on the subject.
But as a previous poster mentioned; there does not appear to have been any test case fought that provides a definitive ruling as to which one of these opinions is correct.0
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