Pcp

guinylad

Hi..... i purchased a nearly new BMW motorcycle 1 year ago over 4 year pcp deal with minimum deposit and a guaranteed vechile value of £1800 at the end of term. I have just checked the value of my bike and it is at £1750 now but i have 3 years of payment left before its return . Will this be a problem on return its not going to be worth value to buy at end of term. Is there any clause where i can return bike now due to massive depreciation?

Thanks in advance 

[Deleted User]

guinylad said:

Hi..... i purchased a nearly new BMW motorcycle 1 year ago over 4 year pcp deal with minimum deposit and a guaranteed vechile value of £1800 at the end of term. I have just checked the value of my bike and it is at £1750 now but i have 3 years of payment left before its return . Will this be a problem on return its not going to be worth value to buy at end of term. Is there any clause where i can return bike now due to massive depreciation?

Thanks in advance 

You can voluntarily terminate a PCP deal when you have repaid at least 50% of the total finance amount back to the finance company.  As you are only 1 year into a 4 year deal then you won't have repaid anywhere near 50% of the total finance amount.

At the end of the PCP term you will have the option of handing the bike back and walking away or making the balloon payment.  If you choose to hand the bike back then that's it.  You won't have any more money to pay but equally you'll have no bike.

DrEskimo

Valuations now are likely to reflect the current market conditions. The value now is utterly irrelevant unless you are planning on changing bike. Is there a reason you want to change?

No, it won't be a problem. At the end of the term you can decide to pay the final £1,800 still owed, or can hand it back (effectively it guarantees a trade in price of £1,800 at the one single day exactly 4yrs after your got it).

No there is no clause to hand the car back early due to it's value. You can only hand back on that 1 single day after the 4yr contract, or you can exercise your right to voluntarily terminate the contract after you have paid 50% of the total amount payable. This is on your contract agreement.

Out of interest, who valued it at £1,750? What is it's value as a private sale or from a garage?