PCP MILEAGE

bmreynolds

Hi folks, hopefully someone can point me in the correct direction. In April 2017 I signed up for a 40+ month PCP with BMW for a new car. My estimated mileage was 15,000 per year (therefore, 15,000 * 3 = 45,000 + extra months 5,000 (total 50,000 + miles)) and my payment reflected this high mileage. Anyway, in June 2018, I changed my job and my wage dramatically decreased. I decided to contact BMW via the dealership and asked them if I could reduce the mileage agreement as this would hopefully, reduce my monthly payments as I was struggling to meet the payments, mortgage and household bills. I was informed by one of the staff after a telephone call with BMW financial services they do not allow PCP customers to reduce the mileage but I could increase the milage if needed.  BMW recently called to collect the car and it’s mileage was 30,370 a total of 19,630 less miles than agreed at the initial stages of the agreement. 

My question is very simple:
Should BMW refund me the extra marriage costs paid over the contract period. I have asked and they have totally refused. What if any legal argument would I have to support my case. Thanks all 

couriervanman

What do the t&c say in the contract you signed

DrEskimo

So you just requested BMW finance to collect the car?

Did you check the value of the car with dealers/garages or online buyers like WBAC? If they were to offer more than your final balloon payment you would have been able to reclaim the additional value in the car from the reduced mileage that way.

If the car has been collected and is gone, then no there is no refund.

bmreynolds

couriervanman said:

What do the t&c say in the contract you signed

couriervanman said:

What do the t&c say in the contract you signed

Thank you for the reply. I’m having to request a copy from BMW due to moving home and everything stored in boxes. 

Thank you for the reply. I’m having to request a copy from BMW due to moving home and everything stored in boxes. 

bmreynolds

DrEskimo said:

So you just requested BMW finance to collect the car?

Did you check the value of the car with dealers/garages or online buyers like WBAC? If they were to offer more than your final balloon payment you would have been able to reclaim the additional value in the car from the reduced mileage that way.

If the car has been collected and is gone, then no there is no refund.

Yes, as the car has come to the end of the agreed time. I did check and glasses guide was £13500 to £14000 in excellent condition (mine was and agreed with the guy who collected) 
BMW wanted another £11000 final payment including the admin fees 

DrEskimo

bmreynolds said:

DrEskimo said:

So you just requested BMW finance to collect the car?

Did you check the value of the car with dealers/garages or online buyers like WBAC? If they were to offer more than your final balloon payment you would have been able to reclaim the additional value in the car from the reduced mileage that way.

If the car has been collected and is gone, then no there is no refund.

Yes, as the car has come to the end of the agreed time. I did check and glasses guide was £13500 to £14000 in excellent condition (mine was and agreed with the guy who collected) 
BMW wanted another £11000 final payment including the admin fees 

So the final payment was £11,000, and you had a car with a value of around £14,000, probably more?

Then I'm afraid you just threw away thousands of pounds....

If the car is worth more than the final payment then you can trade the car in to the garage or car dealer offering the highest amount and they will settle the remaining finance (i.e the £11,000) and then you keep the surplus (e.g. £3,000).

By handing it back to the finance company, you essentially agreed to trade the car in to them for just £11,000, which was agreed at the start. This is usually the last resort though. Typically most trade or sell the car (this could be against another car purchase or just as a straight sale), particularly if the car has done less mileage and therefore expected to be worth more.

neilmcl

I have to agree with @DrEskimo, at the end of a PCP you have one of three options - pay off the balloon and keep the car, trade the car and start a new PCP or hand the car back and walk away. All three options depends on what the car is worth and whether you have any equity, most of the time there isn't any or may even by negative equity in which case you hand the car back and the finance provider takes the hit. In your case you had some equity because of the lower than expected mileage but you've chosen to ignore this and basically gifted this to the provider.

You have no legal recourse to insist on a rebate due to lower than expected mileage or indeed a refund of the equity, this is not how PCPs work.

DrEskimo

neilmcl said:

I have to agree with @DrEskimo, at the end of a PCP you have one of three options - pay off the balloon and keep the car, trade the car and start a new PCP or hand the car back and walk away. All three options depends on what the car is worth and whether you have any equity, most of the time there isn't any or may even by negative equity in which case you hand the car back and the finance provider takes the hit. In your case you had some equity because of the lower than expected mileage but you've chosen to ignore this and basically gifted this to the provider.

You have no legal recourse to insist on a rebate due to lower than expected mileage or indeed a refund of the equity, this is not how PCPs work.

Just to clarify, there is no obligation to start a new PCP when you trade a car in.

You can sell it to any garage, dealer, trader or broker as a straight sale with no onward purchase just as you can with a car with no finance on it.

Likewise you can part exchange it towards any new or used car as a outright purchase or using any finance you like, just as you would with a car without PCP.

The options are really no different to when you have a car with no finance, other than it's a bit more nuanced if you want to go down the private sale route.