PCP Voluntary Termination

Evesham_mar

Hi guys
My first post and would like some thoughts please.
I have just called BMW Finance to voluntary terminate my PCP as I have paid over 50% of the finance outstanding. They confirmed this was fine, however stated that they would not process it until they had signed forms from me.
My understanding was that a notification was enough and I was under no legal obligation to sign their forms, and when I stated this they told me that this was not the law and nothing would be processed or acknowledged until after they had received the signed forms and the next payment/s would continue to be processed and until the forms were returned.
Do I have it wrong?
Thanks!

DUTR

Any reason why you don't want to sign the forms and return them, I've never had a car on lease but the request doesn't seem unreasonable to me.

neilmcl

Just send them a formal letter of termination. Templates can be found here: https://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues/97804-voluntary-termination-letter-templates

neilmcl

DUTR wrote: »

Any reason why you don't want to sign the forms and return them, I've never had a car on lease but the request doesn't seem unreasonable to me.

There's a very good reason. The forms that the finance companies send will add additional terms which by signing you will have to abide by.

Also, and I wish people will get this message, PCP/HP is not a lease!

DUTR

neilmcl wrote: »

There's a very good reason. The forms that the finance companies send will add additional terms which by signing you will have to abide by.

Also, and I wish people will get this message, PCP/HP is not a lease!

Telling off accepted.
I've never purchased a car other than outright, but I can see your point on additional T&Cs (which may or may not have been there in the original agreement).

neilmcl

lostinheaven wrote: »

I've heard that there is a test case going through the courts at the moment with a large motor insurer arguing to have a PCP agreement reclassified/treated as a lease agreement industry wide.

Where did you hear that, a mate down the pub?

If it were true their argument really doesn't hold any water, whether it's PCP/HP or full ownership the insurer is always going to benefit in a new for old replacement, plus most PCP customers should have GAP insurance anyway which should pay out any shortfall. At the end of the day the insurer isn't obliged to offer new for old cover anyway so why don;t they just do that.

neilmcl

lostinheaven wrote: »

If this particular insurer are actually trying to set a precedent for having PCP agreements treated as Lease agreements then I expect you and I share the view that they're chancing their arm but... It'll be interesting to see how it plays out all the same - the ramifications are fairly wide-ranging.

If it is true then the likelihood it's being contested by the policyholder in the county court and therefore they'll be no precedent set. If it was in a higher, appeal court judgement then I'm sure they'd be news of it available somewhere, I can't find any.

sheslookinhot

Forum police up early today I see.

Mercdriver

lostinheaven wrote: »

On a somewhat-related basis I just stumbled across this:



https://www.am-online.com/news/finance/2019/03/01/hmrc-s-pcp-car-finance-vat-changes-could-lead-to-pch-dominance

Looks like those with less than perfect credit history should back completely away from PCP with higher interest if they will be subject to 20% VAT on the interest also...