Voluntary Termination of a PCP car deal - any experiences?

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MikeH

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Hi all
Happy New Year and all that jazz
Has anyone ever been down the route of a Voluntary Termination on a PCP deal.
I'm 2.5 years into a 4 year deal and keen to get out early as want to reduce outgoings and don't want to stay with BMW
Anyone any experience of this?
thanks in advance
Mike
 

GreiginFife

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@MikeH Yes, my wife did this two years ago.
You need to be 50% of the original total finance to VT.
We had 2 payments to make. A date for hand over was agreed at the dealership and the car was inspected by a finance company rep. Just like at the end of a lease really. They looked for everything.
Also mileage was taken in to account, we were about 600 miles over at 13.5p per mile so had £80 odd to pay.

Any scratches over a certain size, or dents over a certain size were chargeable (luckily we didn't have any) and tires were checked for min 3mm tread.

They also demand that service hostory has been maintained or it wipes value off the car that you have to make up.

All in all it was just like handing back a lease car.
You then get a finance termination letter along with DVLA notification of change of keeper.

Easy enough, but we were told that it may then affect the companies decision to lend to you again. Not problematic if you don't want to deal with them again.
 
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D

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I had similar to Greg although mine was a lease not PCP. I'm fighting with the finance company right now over an extra payment they took after returning the car. If you do end the agreement make sure you cancel the DD straight away!

Ps.... You've had 2 replies from diehard BMW fans, why are you changing? 🤔
 

GreiginFife

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I had similar to Greg although mine was a lease not PCP. I'm fighting with the finance company right now over an extra payment they took after returning the car. If you do end the agreement make sure you cancel the DD straight away!

Ps.... You've had 2 replies from diehard BMW fans, why are you changing? 🤔
To be honest Gordon, I wouldn't class myself as diehard BMW fan, I had shocking service from them last year and if it wasn't for the fact that the M340 is just an absolutely fantastic car, I'd probably go back to Merc.

Mike, you need to check your finance position first as it's not the time/duration that matters, it's when you hit the 50% of finance that matters. Unless you paid a big deposit and are paying high monthly payments 2.5 years might be early early. Usually around the 3 to 3.25 year point.
 
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MikeH

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thanks for the replies gents - very useful to hear the feedback
I hit 50% in September so a bit of a way to go but will definitely consider it as not sure PCP is the best route for me any more. Was the right option when I did my first one with BMW 5 years ago but probably no longer. And, while I do like my car 520D Touring Sport think there's better value out there. My wife hassling me about monthly cost and 16 yer old daughter wants us to go more green so looking at Skoda Superb IV or the Octavia VRS IV (both estates)
 

Blue in Munich

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thanks for the replies gents - very useful to hear the feedback
I hit 50% in September so a bit of a way to go but will definitely consider it as not sure PCP is the best route for me any more. Was the right option when I did my first one with BMW 5 years ago but probably no longer. And, while I do like my car 520D Touring Sport think there's better value out there. My wife hassling me about monthly cost and 16 yer old daughter wants us to go more green so looking at Skoda Superb IV or the Octavia VRS IV (both estates)
If you are going to drive that properly Mike, the last thing it will be is green! :D
 
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I had similar to Greg although mine was a lease not PCP. I'm fighting with the finance company right now over an extra payment they took after returning the car. If you do end the agreement make sure you cancel the DD straight away!

Ps.... You've had 2 replies from diehard BMW fans, why are you changing? 🤔
If you don't mind me asking, how far into the lease did you terminate? I am midway through a 4 year contract and would like to terminate maybe in a year or so. I had assumed I would have to pay pretty much all the remaining lease payments to get out, so haven't investigated it. Did they just accept what you had paid to date? Mine is, unsurprisingly, well within the mileage limit!
 
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MikeH

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If you are going to drive that properly Mike, the last thing it will be is green! :D
ha! know what you man although being the PHEV version seems like you get the best of both worlds in that could do all the short range tootling about (of which there is a lot) on electric and then the longer stuff on petrol... and having not that long ago done a driver awareness course I'm pretty good on driving sensibly
 
D

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If you don't mind me asking, how far into the lease did you terminate? I am midway through a 4 year contract and would like to terminate maybe in a year or so. I had assumed I would have to pay pretty much all the remaining lease payments to get out, so haven't investigated it. Did they just accept what you had paid to date? Mine is, unsurprisingly, well within the mileage limit!
I had 6 months left on a 4yr lease, quoted me 50% of the remaining balance to terminate early 👍
 

Beedee

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You have to check the mileage. It will be pro-rated against the length of the contract. If you're over the expected mileage there will be an extra charge. I.e. If you take a 4 year 10K per annum deal and want to hand the car back after 2 years, the mileage must be about 20K or less. If you're comfactortably over that, there will be a charge. If you're under that, then no idea I'm afraid.
 
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Sadly there is no refund on 'unused' mileage. I was 6k under my allowance due to working from home because of covid.
 
D

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You have to check the mileage. It will be pro-rated against the length of the contract. If you're over the expected mileage there will be an extra charge. I.e. If you take a 4 year 10K per annum deal and want to hand the car back after 2 years, the mileage must be about 20K or less. If you're comfactortably over that, there will be a charge. If you're under that, then no idea I'm afraid.
In my experience there's no refund or discount if your mileage is less than the pro-rata figure e.g. 17k rather than 20k.
 

GreiginFife

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thanks for the replies gents - very useful to hear the feedback
I hit 50% in September so a bit of a way to go but will definitely consider it as not sure PCP is the best route for me any more. Was the right option when I did my first one with BMW 5 years ago but probably no longer. And, while I do like my car 520D Touring Sport think there's better value out there. My wife hassling me about monthly cost and 16 yer old daughter wants us to go more green so looking at Skoda Superb IV or the Octavia VRS IV (both estates)
Bear in mind that you have still have the option of paying up to the 50% mark of you are dead set on getting rid.
No discounts on that though, would be 9 or 10 months at your current rate.
 

Mudball

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Slightly different question and not wanting to hijack the thread ...

I wanted to do a one off overpayment of £500 with the idea that I would reduce the monthly pay on the PCP. BMW finance sent a note saying it would be more expensive for me to make an 500 quid overpayment!! WTF!!
haven’t called them back to try and understand their logic. Anyone had a similar experience?
 
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No experience of this, but looks like I will find out around the same time as yourself - my 50% point is also September. Currently getting trade in offers several £k below settlement amount for my Audi so will likely be VTing this one and might rethink the type of finance going forward (currently PCP)
 

Bunkermagnet

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My eldest daughter has this problem, which whilst she got out of the PCP, it did cost her. What is obvious is that BMW deliberately price their PCP‘s cheager to make their car more affordable but all it does it tie you in much more And for longer.
 
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I’m about to start proceedings. Car in for minor chip and dent removal today and wheel refurb in two weeks by then I’ll be sending the letter.
It’s my understanding that mileage should not be an issue. They cannot charge for extra mileage but they do try it on and obviously people pay.
 

chrisd

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I've never done a PCP and now at my time in life never will but I was told that PCP's will become one of the next "selling scandals" sometime soon, similar to mortgage misselling, bank charges etc
 

KenL

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No experience of this, but looks like I will find out around the same time as yourself - my 50% point is also September. Currently getting trade in offers several £k below settlement amount for my Audi so will likely be VTing this one and might rethink the type of finance going forward (currently PCP)
My last car (Audi A3) was into the last month of a 3 year PCP before half was paid.
This was due to an artificially high residual value. This meant that I couldn't trade the car in at anytime. An annoyance as I had to keep it to the end and hand it back.
No charges as it was in great condition.
 
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