Dealer not offer GFV

mini_lidi

I have a PCP agreement with bMW that ends in the next few months. So I popped in to look about upgrading and starting a new finance agreement. But they have told me that my car is worth less than the settlement figure. Even though the agreement had a guaranteed final value!

Therefore can I voluntary terminate the agreement, but get snall charges for chipped alloys. Or can I just hand the keys back at the end of the agreement and walk away?

Also when I took the agreement out, I was doing 18k miles a year. But soon changed jobs and reduced Milage massively. It's just clocked over 48k compared to the 72k it should be nearly at.
Help?!

neilmcl

mini_lidi wrote: »

I have a PCP agreement with bMW that ends in the next few months. So I popped in to look about upgrading and starting a new finance agreement. But they have told me that my car is worth less than the settlement figure. Even though the agreement had a guaranteed final value!

Therefore can I voluntary terminate the agreement, but get snall charges for chipped alloys. Or can I just hand the keys back at the end of the agreement and walk away?

Also when I took the agreement out, I was doing 18k miles a year. But soon changed jobs and reduced Milage massively. It's just clocked over 48k compared to the 72k it should be nearly at.
Help?!

That's not how a GMFV works. The GMFV is essentially the balloon payment that you need to pay to keep the car. If it the car is worth more than this then clearly you're quids in but inevitably the car will end up valued at or below this value. How long exactly is left on the PCP and what are your monthly payments?

facade

At the end of the agreement, you hand the car back, and owe nothing (except £500 for the damage to the alloys- I'd get them refurbished if it really is more than a chip)

If the dealer offers more than the GFV, the difference becomes your positive equity, if it is worth less, then that is BMWs problem.
The dealer normally offers more than the GFV to hook you into another deal by letting you use the extra as part of a deposit, I've never known anyone get the difference as cash.

If it would actually sell for more than the GFV, you give BMW the GFV and keep the car, then sell it yourself.

To get rid now, provided you have paid back more than half of the total credit agreement (including the GFV, you actually borrowed this money, but didn't- they still charge you interest on the GFV, you are only paying back the difference between what the car cost and the GFV which is why you still owe the GFV at the end), you can VT (voluntary terminate) and hand the car back, owing nothing except what it costs to bring it back into the condition they expect a car to be in, following the agreed "fair wear & tear" rules.

cte1111

The OP has done fewer miles than on the lease agreement, so will not need to pay an excess mileage.

motorguy

k3lvc wrote: »

Normally you're good Motorguy but in this case OP's mileage has gone down, not up presumably hence why they expect trade in value to be close to GMFV

Oops - i'll get my coat....



Post removed.

almillar

Get your alloys fixed at, say £60 per wheel locally, then had the car back to the dealer at the end of the term. With your massive drop in mileage, that should have really helped the value of the car, but it looks like they're playing hard ball. See what numbers the have AT the end (they don't like looking months ahead) and if they're trying to get you to put extra money in, just hand the car over and start again at another dealership.

neilmcl

Might be worth getting a quick online quote from webuyanycar, if nothing else it'll give you some indication of your car's current value to trade, then see how that matches up with your GFV.