Finance Question

[Montydoesdallas]

Hi all, has anyone ever handed back their GS or bike while on finance ?
Or even sold it back to the dealer and payed the difference between what they'll give you for it and the outstanding finance ?

The reason i ask is i'm not doing as much touring if any at all anymore and works out expensive to keep the GS on finance,
and i'd sooner get something else (Yamaha MT-07) where there is a big difference in price. As i do more "bombing around" locally now.

Your views...

 

[bobsnew]

I bought mine on BMWs finance deal as they were giving £800 deposit towards the new bike, as a carrot, cancelled it the following week and paid £112 admin fee, my only experience. I imagine you have to apply for a settlement figure.

 

[Robbo1200ADV]

! did it with a Harley .I got the Equity in the bike back minus what I owed . Depends what kind of finance you have . Give BMW Finance a ring for a settlement figure it'll be either positive or negative !

 

[Montydoesdallas]

I did, because i've only had it a year they said if i handed it back i'd have to pay £3200 !, yet i could hand it back next year and as i'd of had it 2 years it would be free.
I owe £10800, currently pay £200pm...not sure how it would work if i sold it back to bmw i could pay the difference between what they'd give me for it and my outstanding amount.
Done just over 9000 miles...probably worth £10k at a dealer ?

 

[bobsnew]

Swings & roundabouts comes to mind, you have the add on running costs if you keep it, maybe the best get out option is to sell it yourself & pay off the finance, seems expensive biking for a year, what ever way you move, presumably there was a deposit as well

 

[JohnnyBoxer]

If you want to end the agreement, mid term - you will have to ask for a settlement figure now and repay it

Something like this

Balance owing £11800, for example

Bike worth £10,000 and you sell it to a dealer for that amount

The difference you will need to stump up will be £1800, from your own pocket

I would expect that the dealer will want you to pay him the £1800 and he settles the £11800 back to BMW finance



Conversely the bike is worth £10000 and you sell it to a dealer for that figure

BMW want £8000 to clear the agreement and the dealer gives you a cheque for £2000

A settlement figure from BMW finance, is your starting point and then you need to find out realistically what you can sell the bike for

Simple as ABC

 

[DC]

I would expect that the dealer will want you to pay him the £1800 and he settles the £11800 back to BMW finance

if you do it this way you are still liable for the repayments. so If the dealer does not pay off the settlement ,the loan is still gaining interest, to which you are legally liable for this. A reputable dealer should pay straight away , but they dont, they hold on till the last minute.

 

[Montydoesdallas]

I'm going to pop into a dealer this weekend and see what they offer, probably have to sell it privately and get the buyer to pay BMW directly...doubt there will be anything left in the pot for me.

 

[Titto]

Don't think you can do that?
Its not just yours to sell. plus I think the terms of the arrangement are that you cannot privately sell it.
JB any knowledge? I'm going from memory here!

 

[JohnnyBoxer]

Don't think you can do that?

Its not just yours to sell. plus I think the terms of the arrangement are that you cannot privately sell it.

JB any knowledge?

I'm going from memory here!

Technically you can't, but you can and the bottom line is that as long as BMW get paid their settlement figure, from their settlement letter by whoever, than they will release their interest

If no monies are forthcoming from the prospective purchaser, they will seek to recover the bike

The original owner, by way of the finance agreement will still be liable for the debt

 

[JohnnyBoxer]

if you do it this way you are still liable for the repayments. so If the dealer does not pay off the settlement ,the loan is still gaining interest, to which you are legally liable for this.

A reputable dealer should pay straight away , but they dont, they hold on till the last minute.

Chicken and egg, the dealer won't give you his £10,000 and hope you pass it onto BMW finance on his behalf, will he?

It's a case of who blinks first

The dealer will only agree to take the bike and your £1800, to clear the bike, as he can't resell it until the bike's original finance is settled ....d'oh

 

[Matty589]

Given the stock of GSes at most dealers you'll probably find they'll sell it on your behalf but you'll have to keep paying the finance until someone buys the bike. Dealers are unlikely to want to take on the finance. You could try to sell it privately but the seller would have to pay BMW directly and trust that they hand out a release letter and the buyer gets the bike. The person who signed the agreement is legally responsible for the repayments until BMW confirms the finance has been settled.

 

[Montydoesdallas]

Yes i did state that the buyer would have to pay BMW directly and not me and any shortfall would have to be covered by me, i would state that when i sold it.

Didn't think dealers would do that sale or return thing ?

"The dealer will only agree to take the bike and your £1800, to clear the bike, as he can't resell it until the bike's original finance is settled"
Yes obviously, IF the dealer gave me £10000 !, probably only get £9k for it...then their mark up to sell it etc.

 

[JohnnyBoxer]

Yes i did state that the buyer would have to pay BMW directly and not me and any shortfall would have to be covered by me, i would state that when i sold it.

Didn't think dealers would do that sale or return thing ?

"The dealer will only agree to take the bike and your £1800, to clear the bike, as he can't resell it until the bike's original finance is settled"
Yes obviously, IF the dealer gave me £10000 !, probably only get £9k for it...then their mark up to sell it etc.

Looks like you're a bit tied in knots, with this one

 

[Montydoesdallas]

yeah i know what you mean.....trip to the dealer just to get some details...probably keep it for one more year then reassess, i was told by BMW finance that i can hand it back and walk away next March with nothing to pay.
So that might be easier just to do that, i do like the bike very much, but.... it's a waste just to bomb round town on it and not do any touring....an expensive toy.

 

[WindyChuffer]

Suggest you ring up BMW Finance to discuss options.