PCP - Chance in circumstances

[Deleted User]

I'll try and keep this short and to the point.

Last August I entered into a PCP agreement for four years/8k miles PA and took delivery of my M140i Shadow edition.

For multiple reasons, my circumstances have completed changed and I now commute 80 miles a day/400 miles a week.

You don't have to be a maths expert to figure out the issue here.

The way I see it I have a few options -

Use the car, rack up the mileage and as soon as the voluntary termination point arrives sell it privately and settle the finance whatever that may cost me in terms of negative equity.

Park it in the garage and use it for pleasure at the weekends. Buy something cheap and used and run it into the ground on my commute.

Park it in the garage and use it for pleasure at the weekends. Buy something new, but cheap, that's much more economical. Possibly hybrid!?!?

Rather than lots of "this is why PCP is bad etc etc" replies does anyone have any real-world experience where their circumstances changed and/or suggestions on what they believe the most fiscally responsible solution is please?

neilmcl

I think you misunderstand what voluntary termination is. When you VT a car, you hand it back. You can "settle" the finance anytime you choose to but the nearer you are to the beginning of the finance period the higher you''ll likely be in negative equity territory.

As good as the M140i is it's not really a car for commuting larger distances, at the very least the cost in petrol is likely to be quite high. You could always ring up BMW FS to see what they'll do for you, I know for a fact that in the past they've allowed you to increase your allowance for no extra cost.

You've also missed an option, eg, use the car and pay the mileage fees should you choose to hand it back. Also don't forget the fees are only chargeable if you hand the car back at the end of the agreement, you could always pay the balloon and keep the car.

[Deleted User]

Thanks. BMW FS will increase the milage, albeit for an increase in the monthly amount. Plus they said the VT point would be "reset" if I chose that option.

boliston

surely when you vt it then it must simply be handed back in reasonable condition and as long as you have paid 50% of the payments you can simply walk away - i can't see what effect the millage would have on vt

neilmcl

boliston wrote: »

surely when you vt it then it must simply be handed back in reasonable condition and as long as you have paid 50% of the payments you can simply walk away - i can't see what effect the millage would have on vt

Legally yes, but I know of at least two cases where this has gone to court and the decision has been different in both cases. You'll be in for a fight regardless as the finance co. is not likely to let it go.

[Deleted User]

boliston wrote: »

i can't see what effect the millage would have on vt

It seems like a "grey area" from what I've researched.

It would appear some people have been hit with excess mileage fees when they handed the car back at the VT point.

EDIT - See post above.

boliston

.Griff. wrote: »

It seems like a "grey area" from what I've researched.

It would appear some people have been hit with excess mileage fees when they handed the car back at the VT point.

EDIT - See post above.

Surely vt is a statutory way of ending an agreement and the mileage clause is purely contractual. Statute law always trumps contract law.

neilmcl

boliston wrote: »

Surely vt is a statutory way of ending an agreement and the mileage clause is purely contractual. Statute law always trumps contract law.

Yes and the law is interpreted by the courts, and as I said this isn't cut and dry by any means.

And you statement " Statute law always trumps contract law" doesn't actually make any sense.