Car rejection accepted, but what a poor offer. Where do I stand legally

Nik263

Hi all, thanks for your help in advance. 

I don't want to bore you with all faults the car had, but the last was it needing a engine replacement. The manufacturer's warranty declined to replace the engine due to missing service prior to my purchase. For that reason it was not an approved used car as I thought I purchased, and have accepted my rejection of the car. 

I purchased the car Nov 2019 value of £30k but on a PCP 
paid £3,381 deposit and so far 20 months of £501.00 a month. 

They have offered 
"Good news we will support your request to reject RO64KKN, this action means we must return you to your original position at the time of purchase.
This means we will purchase RO64KKN from yourself at the current settlement figure plus the original deposit of £3,381 that went into the agreement."

So this means I get my deposit back but loose just over £10k that I have paid over the last 20 months. That doesn't seem fair to me. 
I thought if a car rejection is accepted they pay me the full purchase price £30k and I pay the Settlement figure roughly £21k and the remaining £9k is mine. 

If anyone can help clear things up for me. 
Thanks
Nik

JJ_Egan

Cars depreciate in value .

Grumpy_chap

AIUI, you should get back what you paid for the car less a fair amount for the beneficial use you gained during the period of ownership.
I think you also suffer the interest charges.
If you had leased a $30k car what would it have cost you?

neilmcl

Seems reasonable to me. You've had use of the car for around 20 months, why should you get that money back?

Take the car finance aside, if this was a cash purchase do you think you would be entitled to a full refund, of course you wouldn't so why are you assuming you would get the full purchase price back now to then settle the finance.

Jenni_D

£30k retail price for what was then a 5 year old BMW M5?

What would a 6.5 year old version of that same car retail for now?

Soot2006

OP, in your figures you'd be making a profit on the car, which is impossible. They are returning you to the same position you were in: you will have no outstanding financial liability for the car, you will have your deposit back to put on a new car and start again. the monthly payments were due at the time, so that is spent money in exchange for which you had use of the car. That money can't be turned into your profit.

Nik263

Jenni_D said:

£30k retail price for what was then a 5 year old BMW M5?

What would a 6.5 year old version of that same car retail for now?

Near enough the same money, maybe 1-2K more, webuyanycar are offering £25k that's trade value.

DrEskimo

As I understand it you would get a full refund only if you reject within the first 30-days. Beyond that the dealer has every right to deduct costs based on the time and mileage it has covered. Within 6-months you can negotiate this, given yours is after 20-months I think you are going to have a hard time trying to lower it....

AdrianC

You were paying £500/mo to have use of the car - £10k for 20 months...
At the end of the term, you would have given the car back and walked away.

You are getting all of your money back - except for an allowance for use of it during the time it was in your possession. Starting from the monthly payments seems an utterly reasonable place to start.

Effectively, they are paying you £24.5k (£21k settlement plus £3.5k deposit) for it - and there are several fully working 2014 M5s on the market for around that money. You are getting out of the deal in a better place than if the car was still working.

Would you have even got a full engine replacement on a now-7yo car under the approved used warranty? Unlikely. If the engine failure happened post-November, there was no warranty anyway, as the BMW AUC warranty is only 12 months.

k3lvc

Nik263 said:

Jenni_D said:

£30k retail price for what was then a 5 year old BMW M5?

What would a 6.5 year old version of that same car retail for now?

Near enough the same money, maybe 1-2K more, webuyanycar are offering £25k that's trade value.

In which case rather than rejecting it then sell it and make some money

AdrianC

k3lvc said:

Nik263 said:

Jenni_D said:

£30k retail price for what was then a 5 year old BMW M5?

What would a 6.5 year old version of that same car retail for now?

Near enough the same money, maybe 1-2K more, webuyanycar are offering £25k that's trade value.

In which case rather than rejecting it then sell it and make some money

But that would require replacing or rebuilding the engine... which, in an M5, will probably be not far short of the value...