Thread: I want to VT a BMW

I am looking to VT a BMW HP contract but the HP agreement doesn't state the 1/3 and 1/2 values I expected to see as to what I had already/needed to pay before I did a VT.

The contract is headed as "BMW Select Hire-Purchase Agreement - Unregulated". Surely the adding of the word "unregulated" doesn't allow them to circumvent the CCA rules governing HP contracts?

Well what I'm now led to believe is that the HP protection of being able to give the car back when you have paid 50% of the value (which I have) is that this only applies up to £25,000, after that the agreement becomes "unregulated" so doesn't have this option attached.

I just can't believe that simply by spending more than 25K means the consumer doesn't get any of the protections within the HP agreement that someone spending <25K does. We need them just as much as the less spending consumers do. I'm being told my car is worth around 12K now, yet I still owe about 15K on it, which should never have been the case this far into the agreement which is why I (understandably I hope) want out.

You could try offering the Finance Company a short settlement.
What company is it?

Put yourself in their shoes, they have a 15k debt and understandably they want it all back so if Joe Blogs comes on the phone and says I want to settle for 12k just because thats what the car will sell for then they most likely will say no thanks you can get a loan for the difference.

However if a customer comes on the phone with a scenario that indicates he can only make a single one off payment now but then future payments will be a struggle (eg due to redundancy or long term sickness etc) then that changes things. The finance company then consider is it worth the hassle of months/years chasing this customer when we could just take 80% of the debt now and be done with it.

Give them a reason why its in their interest to short settle and sometimes they will take the bait!

The finance is through BMW Finance themselves. I want out of it because, contrary to all the sales pitch when you are buying these high class marques that they hold their value and should never leave you in a negative equaty situation, it is worth around 12K with a debt of over 15K.

I'm in the same boat with an unregulated agreement with BMW, how did you get on in the end ???

I had to take the hit on the loss as a trade-in. As I was taking a new BMW the garage were as helpful as they could be to limit the depreciation and carried the balance (which I think was about £1,000) over on to the new car as "negative equity".

the good news overall is that this can no longer occur as they changed the HP rules in about May 2008 to remove the £25,000 cap. I presume, therefore, your agreement is pre May 2008?