PCP with BMW - Any way to get out?

foxy-stoat

pvt wrote: »

The car depreciated significantly the moment you drove it away from the dealer. You are the one who is going to pay that depreciation - it's already gone. You bought a £34k car which is now worth about £25 to £27k, at best.

If you cannot afford to keep up the payments I would suggest your best option would be to sell the car and make up the shortfall. If you have no savings then I'm guessing you'll have to get a personal loan for about £7k-£8k to pay for this.

This is the main reason why you should always put down a BIG deposit when you sign up for a PCP deal like this. This type of PCP is designed to put people in nice new cars they cannot afford.

Herzlos

pvt wrote: »

The car depreciated significantly the moment you drove it away from the dealer. You are the one who is going to pay that depreciation - it's already gone. You bought a £34k car which is now worth about £25 to £27k, at best.

If you cannot afford to keep up the payments I would suggest your best option would be to sell the car and make up the shortfall. If you have no savings then I'm guessing you'll have to get a personal loan for about £7k-£8k to pay for this.

This is it really. You can try and sell it privately for a bit more, but most people buying a £25k+ car are probably going to want dealer finance.

You can always go back to the dealer and see what the deal would be regarding trading it back in for a much cheaper (used) model, which might minimize your losses somewhat, but you're still going to be handing over a lot of money.

As mentioned, your 50% giving it back point is nearly at the 4 years anyway, so it's probably cheaper to keep it for the whole term. Is there any allowance for overpaying to reduce the interest?

pvt

Herzlos wrote: »

You can always go back to the dealer and see what the deal would be regarding trading it back in for a much cheaper (used) model, which might minimize your losses somewhat, but you're still going to be handing over a lot of money.

I'm not sure this will help a great deal. The finance they would give on the cheaper replacement car would never exceed the value of that car - so the OP will still have to find that £7k-£10k shortfall from somewhere.

Herzlos wrote: »

Is there any allowance for overpaying to reduce the interest?

As the OP has already said he will struggle to afford the current monthly repayments, I can't see where he's going to find the dosh to make that overpayment with.

pvt

foxy-stoat wrote: »

This is the main reason why you should always put down a BIG deposit when you sign up for a PCP deal like this. This type of PCP is designed to put people in nice new cars they cannot afford.

^^This - exactly^^

And I would go further and suggest you should either have, or save and plan to have, the final balloon payment for the end of the contract - otherwise you're at the mercy of the dealer regarding trade-in value and whatever outrageous additional charges are levied for the dust on it when you try to hand it back in anything less than showroom condition.

Cornucopia

Can we sum up exactly what the OP's options are? It might help, and help others in a similar position.

1. Take the 50% option, which is that the car can be handed back with nothing more to pay once 50% or more of the total payments for the car have been paid. Getting to this point can arise through continuing the payments (possibly over-paying) or paying a lump-sum.

2. Something that hasn't been mentioned is to ask for a settlement figure. I assume that this is still an option with a PCP? This will be the total amount of finance outstanding, assuming you keep the car. You can then readily compare that figure with what the car is worth, and could conceivably re-finance it over a longer term to reduce the payments.

3. Obtain a settlement figure and sell the vehicle, paying-off any short-fall.

4. Approach the dealer for a trade-in, which may allow for some of the profit in the new car to be bundled in to the settlement deal.

co-op_lover

It is half of the total amount payable this is assuming it is hire purchase (pcp can be a form of hire purchase).

Oakdene

Did you buy Gap insurance??

burlington6

Oakdene wrote: »

Did you buy Gap insurance??

Where are you going with this? :rotfl:

Oakdene

burlington6 wrote: »

Where are you going with this? :rotfl:

Just an honest question....:rotfl:

HiToAll

burlington6 wrote: »

Where are you going with this? :rotfl:

Surely wouldn't be suggesting pushing it off a cliff?