[Herr Dreier]

Originally Posted by 73henny

Bigger deposit = lower interest charges. Deposit counts towards the 50% so it is not 'deposit and then 50%'

No it doesn't. It's 50% of the finance, not the cost of the car you VT at. Bigger deposit means less finance required, but deposit not included in calculation. VT is a finance rule, nothing to do with the car.

[stevei]

Originally Posted by teaston

Something else to add to this debate, if not receiving excess mileage charges is such a hit for BMWFS then why around 3 years ago did they offer mileage allowance increases for free?

I was one who did it, I ordered my 335d with 10k pa allowance, and a few days after I picked it up I rang them and asked to increase it to 25k, which they did for free, and sent me a letter confirming it!

do they still offer that?

[teaston]

Originally Posted by stevei

do they still offer that?

Unfortunately not.

[Tengocity]

Originally Posted by Herr Dreier

No it doesn't. It's 50% of the finance, not the cost of the car you VT at. Bigger deposit means less finance required, but deposit not included in calculation. VT is a finance rule, nothing to do with the car.

I'm pretty sure it does. It's 50% of the price paid.

[Rukka]

Originally Posted by Tengocity

I'm pretty sure it does. It's 50% of the price paid.

You're right. The VT point is when 50% of the "Total Amount Payable" from your finance agreement has been reached.

To work out the VT point it's;

Total Amount Payable / 2; minus deposit; Divided by monthly payment = Months to VT point.

[Alice Coupe]

Originally Posted by Tengocity

I'm pretty sure it does. It's 50% of the price paid.

It's 50% of the total amount payable including interest and fees.
You can PCP again once your initial PCP has completed. The VT point then moves to 50% of the new amount payable.

[Herr Dreier]

Originally Posted by Tengocity

I'm pretty sure it does. It's 50% of the price paid.

Ok, I was sure I was right, but it seems that I'm wrong

[Steces]

OK, so I get the VT point being 50% of the total of fees, interest etc but what exactly happens with a discounted car, this one for example available from TRL:

BMW 340i M Sport Shadow Edition Saloon
Spec +++
List Price £49,150 OTR
Less Dealer contribution £6650
Less BMW contribution £5500
Customer balance £37,000

Customer deposit £500 then 47 x £450.41 plus GFV £15,330.73
APR 0% and 8000 miles pa

Is the VT point half of £37k or half of £49,150??
Theres quite a difference........

Ive never had a clear answer when asking dealers and there appears to be some knowledge on this thread

Cheers

[ByTheSea]

It's worth clearing up one myth that has been expressed here.
You do not require a court judgement against you to get an adverse entry on your credit file. Any industry recognised finance company can put an entry there and it's up to you to dispute it and disprove it. You can see your credit report via Noddle and it shows every loan you have taken out and the monthly status, including any defaults put there. It also shows industry searches/enquiries against your file. For example, every time you get a quote for car insurance a search will show up on your report, and an adverse item will impact your quote.

[Herr Dreier]

Originally Posted by Steces

OK, so I get the VT point being 50% of the total of fees, interest etc but what exactly happens with a discounted car, this one for example available from TRL:

BMW 340i M Sport Shadow Edition Saloon
Spec +++
List Price £49,150 OTR
Less Dealer contribution £6650
Less BMW contribution £5500
Customer balance £37,000

Customer deposit £500 then 47 x £450.41 plus GFV £15,330.73
APR 0% and 8000 miles pa

Is the VT point half of £37k or half of £49,150??
Theres quite a difference........

Ive never had a clear answer when asking dealers and there appears to be some knowledge on this thread

Cheers

Looking back on my finance agreement to confirm how it works, your example would be based on the 37,000, i.e. after the dealer/BMW discounts are taken into account.

They would start with 37,000 and then add the amount of interest and any finance fees on top, and that would be the Total Amount Payable. 50% of that would be your VT amount.

[aquazi]

Originally Posted by Herr Dreier

Looking back on my finance agreement to confirm how it works, your example would be based on the 37,000, i.e. after the dealer/BMW discounts are taken into account.

They would start with 37,000 and then add the amount of interest and any finance fees on top, and that would be the Total Amount Payable. 50% of that would be your VT amount.

Depends how they put it on the finance agreement.

In my case one was part of the deposit (so added to my deposit contribution) the other was taken off the list price.

[HiBee]

Originally Posted by teaston

Something else to add to this debate, if not receiving excess mileage charges is such a hit for BMWFS then why around 3 years ago did they offer mileage allowance increases for free?

I was one who did it, I ordered my 335d with 10k pa allowance, and a few days after I picked it up I rang them and asked to increase it to 25k, which they did for free, and sent me a letter confirming it!

I remember that it didn't last long though.
The time I got round to change my mileage it was no longer on offer.

VT'd the car anyway & the expected excess charges were paid.
I have VT'd my past two cars from BMW & have paid the excess, not a large amount, for my peace of mind.
What I have noticed at both times that there was no acknowledgement from BMWFS to say they received the excess payments.

The excess mileage charge is now greater on the F80 that I have at the moment, which will most certainly be over the agreed mileage by the time the G80 is out. Don't think I will bother paying this excess charge.

[AlRex]

Just out of interest if the GFV is more than half the total amount payable does this mean there would be no VT point within the 4 year PCP? As you would never reach the 50pc mark?
Been looking at a pcp with the above and just checking everything at the moment . Thanks in advance.

[teaston]

Originally Posted by AlRex

Just out of interest if the GFV is more than half the total amount payable does this mean there would be no VT point within the 4 year PCP? As you would never reach the 50pc mark?
Been looking at a pcp with the above and just checking everything at the moment . Thanks in advance.

The total amount payable is price of car plus interest minus deposit minus gfv.

[hanahana]

I think it is just a new quick way...

[Alice Coupe]

Originally Posted by teaston

The total amount payable is price of car plus interest minus deposit minus gfv.

Don't think that's right. I think GFV is in the amount owe.

[AlRex]

Bit confused......

I am considering swapping my 3 series for a Range Rover Velar 180D R-Dynamic SE on the below offer.

Just seems very cheap for what it is, would I have a VT point on this offer? Still not 100pc what numbers I would use and how I would work it out.

Finance Options
Personal Contract Purchase
Only £439 per month with a £439 customer deposit and 3.9% APR on PCP
No of Payments 48
Monthly Payment£438.38
Customer deposit £439.00
Term of Agreement (Months) 49
On The Road Cash Price £50,100.00
Credit Arrangement Fee £0.00
Option to Purchase Fee £10.00
GMFV - Option to Purchase Payment £35,274.00
Total Amount Payable £56,765.24
Rate of Interest (Fixed) 3.9%
Representative APR 3.9%
Total Amount of Credit £49,661.00

[Steces]

Originally Posted by AlRex

Bit confused......

I am considering swapping my 3 series for a Range Rover Velar 180D R-Dynamic SE on the below offer.

Just seems very cheap for what it is, would I have a VT point on this offer? Still not 100pc what numbers I would use and how I would work it out.

Finance Options
Personal Contract Purchase
Only £439 per month with a £439 customer deposit and 3.9% APR on PCP
No of Payments 48
Monthly Payment£438.38
Customer deposit £439.00
Term of Agreement (Months) 49
On The Road Cash Price £50,100.00
Credit Arrangement Fee £0.00
Option to Purchase Fee £10.00
GMFV - Option to Purchase Payment £35,274.00
Total Amount Payable £56,765.24
Rate of Interest (Fixed) 3.9%
Representative APR 3.9%
Total Amount of Credit £49,661.00

VT point would be half of the total payable which is therefore 28k which you would never reach with those monthlies

To be honest I didnt believe your figures but just double checked and a 50k Velar really is worth 35k at 4 years!! The APR on the configurator is significantly worse than yours though so go for it. Hell Id even be interested myself, its a decent PCP deal

Cheers

[SilverGrey]

I took a PCP deal on a VW a few years ago. There was a clause in the contract that explicitly stated when the VT point was i.e in terms of amount paid. I'll see if I can dig it out.

I'm not sure if the BMW ones do as I've not gone down that route with this car.

[Steve_M_Sport]

This explains it well

https://www.thecarexpert.co.uk/car-f...nation-pcp-hp/

You can VT when you have paid 50% of the Total Amount Payable

The Total Amount Payable is the total amount borrowed plus interest and fees. It also includes the Guaranteed Future Value (GFV) on a PCP. This means that you usually don’t reach the voluntary termination point until very late in a PCP agreement. It is not simply the halfway point of your agreement, as that is unlikely to be anywhere near the 50% repayment point on a PCP.

[Steve_M_Sport]

@ALRex

In your case you would need to pay approx £25,000 which is 50% of the amount of credit before you can VT

[teaston]

Originally Posted by Alice Coupe

Don't think that's right. I think GFV is in the amount owe.

If that were the case you'd never reach VT!

The gfv is just an optional balloon payment at the end, so it's not part of the amount owed.

The gfv is included in the debt recorded on you credit file though, as obviously you would be liable for that if you don't give the car back at the end, so maybe that's what you're thinking of.