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PCP MILEAGE
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bmreynolds
Posts: 4 Newbie

in Motoring
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
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
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Comments
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What do the t&c say in the contract you signed1
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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.0 -
couriervanman said:What do the t&c say in the contract you signedcouriervanman 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.
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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.
BMW wanted another £11000 final payment including the admin fees
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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.
BMW wanted another £11000 final payment including the admin fees
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.1 -
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.
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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.
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.0
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