[g9icy]

Genuinely curious as to why people deliberately VT their cars.

How does this work out financially?

Is it just a quick way to get in a newer car?

[NotGotABimmer23]

Because you want a new car however your car is worth less than the money you owe on it. So you vt and get rid for free.

[Oceanic]

Does this not fuck your credit rating or at the very least your credibility with that manufacturers finance division? Seems like you're welching on a deal

[Randolph13]

If you buy another car through bmw finance you have to clear the old loan first, so you VT - which is what I’m about to do

[g9icy]

I'll look into doing this when the M440i is available then. (should be within the next 3 years right?)

[ziggys101]

On the VT question, I'm about to VT and have a brake service indicator at 1200 miles at the moment am I OK if its still above zero at the point of VT?

[2CRO4TV]

Originally Posted by g9icy

Genuinely curious as to why people deliberately VT their cars.

How does this work out financially?

Is it just a quick way to get in a newer car?

To avoid excess mileage charges due to low mileage pcp taken out to afford the car.

[teaston]

Originally Posted by 2CRO4TV

To avoid excess mileage charges due to low mileage pcp taken out to afford the car.

Exactly!

And because 4 years is too long to keep a car, but 4 year PCP is cheaper than a 3 year one.

[E60MKF]

BMW seriously need to re-consider the final payments on their PCPs. This surely can't be great for business with BMWFS bearing most of the cost.

That said, BMW valued my F10 for £2.5k below the final payment based on the fact I had exceeded the mileage by 20k. But when I took the car to another car dealership they said their part-ex value would put the car into £2k of equity and a private sale would have made me about £3.5k. I imagine the dealers offering low ball offers isn't helping the matter either.

[six]

Originally Posted by 2CRO4TV

To avoid excess mileage charges due to low mileage pcp taken out to afford the car.

How does this work? Don't they make you pay the excess miles pro rated for the time you've had the car before you VT? They'd get rinsed if they let people get away with handing a car back with 1000's more miles than expected whether at the end of the term or at VT when more than 50% repayed

[six]

From the BMW website....

"If you choose to voluntary terminate your agreement you must also pay for any excess mileage or damage deemed to be outside of fair wear and tear.

For full details of the fair wear and tear guidelines, and the process should you choose to return your BMW, please go to Returning your BMW.

If you are thinking of voluntarily terminating your Finance Agreement please call our Customer Services Centre."

[stefan4]

pretty much. Either stump up 2k of neg or vt, tough decision ............

[teaston]

Originally Posted by six

From the BMW website....

"If you choose to voluntary terminate your agreement you must also pay for any excess mileage or damage deemed to be outside of fair wear and tear.

For full details of the fair wear and tear guidelines, and the process should you choose to return your BMW, please go to Returning your BMW.

If you are thinking of voluntarily terminating your Finance Agreement please call our Customer Services Centre."

Yes they may try to charge you for it because it’s in the contract that you have to, but it says in legislation that when you VT there is nothing more to pay, and in law, legislation law overrides contract law.

It’s been discussed to death on legal beagles.

[six]

Originally Posted by teaston

Yes they may try to charge you for it because it’s in the contract that you have to, but it says in legislation that when you VT there is nothing more to pay, and in law, legislation law overrides contract law.

It’s been discussed to death on legal beagles.

Interesting! Makes sense as if you are in financial difficulty and want / need to VT, which is what it's there for really, you won't be able to stump up the extra cash.

I guess if you stuff them you'll never get BMW finance again?! Perhaps good if you are going to cut and run to another manufacturer...

[teaston]

Originally Posted by six

Interesting! Makes sense as if you are in financial difficulty and want / need to VT, which is what it's there for really, you won't be able to stump up the extra cash.

I guess if you stuff them you'll never get BMW finance again?! Perhaps good if you are going to cut and run to another manufacturer...

Exactly.

I think the opposite, apparently if you VT to get another BMW on PCP they’re more likely to leave you alone as they’re still making money out of you. If you VT and don’t buy another then they will persue you hard and threaten court, but it is all blank threats.

[six]

Originally Posted by teaston

Exactly.

I think the opposite, apparently if you VT to get another BMW on PCP they leave you alone as they’re still making money out of you. If you VT and don’t buy another then they will persue you hard and threaten court, but it is all blank threats.

Bit like those letters from private parking companies pursuing fines and the like

[teaston]

Originally Posted by six

Bit like those letters from private parking companies pursuing fines and the like

Yes, with the “parking tickets” they put on your car, that are actually just invoices.

[isleaiw1]

Not at all like that - one is a parking scam and the other is a legitimate company being fleeced by individuals who have no intention of paying what they owe and are abusing a law there to protect people who can't pay.

[teaston]

Originally Posted by isleaiw1

Not at all like that - one is a parking scam and the other is a legitimate company being fleeced by individuals who have no intention of paying what they owe and are abusing a law there to protect people who can't pay.

As long as BMW has more money than me I’m quite alright with that! And they’re still making shit loads of money from me so my guilt levels are way into minus figures!

[isleaiw1]

Originally Posted by teaston

As long as BMW has more money than me I’m quite alright with that! And they’re still making shit loads of money from me so my guilt levels are way into minus figures!

Unfortunately I was brought up with morals so it doesn't work for me...

[teaston]

Originally Posted by isleaiw1

Unfortunately I was brought up with morals so it doesn't work for me...

If your morals are to further line the pockets of very rich, to your financial detriment, when there is no legal reason to, then they are very strange morals indeed!

[JNW1]

Originally Posted by isleaiw1

Not at all like that - one is a parking scam and the other is a legitimate company being fleeced by individuals who have no intention of paying what they owe and are abusing a law there to protect people who can't pay.

Have to say I view it on similar lines and if BMW see people taking PCP contracts for 8k miles/annum - and they then look to VT after 3 years having done 75k miles - I'd be surprised if they let that go. In the first place 50k of excess mileage probably equates to £6k to £7k on a lot of their cars (so not to be sniffed at!) but more significantly if the word got around that you could just take a PCP contract for 8k miles/annum regardless of your actual mileage profile it would tempt more people to do exactly that.

Would the courts back them if they took it to court? Who knows but, as you say, the intention of the law is to protect those who can't pay and that being the case I can't see a court looking favourably on someone who's perfectly able to pay but just thinks they've found a clever way of avoiding doing so. To me it's a very clear pre-mediated abuse of the law and if someone fell flat on their face doing it they'd have no sympathy from me!