GSA LC PCP

[Stevemoid]

Not sure if this is the right section but it's about my GSA LC so close enough I guess.

I'm currently half way through a pcp contract for my current bike. Now it seems my bike is an utter lemon. Whilst Big Mans Wanger eventually fix the issues, new ones arise just as often. As such my love hate relationship with the bike needs to come to an end as I've simply lost confidence with it.

Now I'm not really clued up on the ins and outs of PCP (first time I've used it) but for voluntary termination, I believe you have to have paid 50% of the amount. Now the question is, is it 50% of your pcp deal or is it 50% of the total value? 50% being the pcp and the remaining half being the balloon payment.

I've read a few conflicting articles on this, so does anyone have any experience with this?


Cheers in advance.

 

[JJH]

I don't think a PCP could do anything to your rights as a consumer. I would think it would strengthen them. You don't own the bike merely rent it. I assume it's up to the owner to rectify it or replace it. JJH

 

[ninjarich1971]

When I traded my car in early I had to pay the outstanding amount of payments to get you to the original termination date.
It was however possible to change dealers and let them sort it all out for you. If after the time is up you want to just walk away then you can but I believe that if you terminate early then you are still committed to the original cost of your payments.
If I was in your situation then I would be causing holly fucking chaos at the dealers until they replaced the bike or I would be doing everything possible to reject it as unfit for purpose. The dealer owes you a duty of care to supply you with a roadworthy vehicle. Failing that I would be onto Bmw directly.

 

[crotchrocket]

The trade in value of the bike would need to exceed the outstanding credit wouldn't it? If not, that would be the amount you have to pay to settle it. Thats the trouble with PCP, if you want to opt out early, you often find you're in negative equity. Regarding the 50% i would imagine its 50% of the total amount borrowed as they calculate their interest rate on the total amount loaned, even though they never really lend you that final payment as you have to pay it back or hand the bike back at the end of the term.

 

[Duraace]

It's 50% of the total amount payable. NOT 50% of the number of payments!

 

[Stevemoid]

Cheers for the info folks. Duraace's reply was the bottom line of what I was looking for.

Looked at the trade in route, be looking at forking out around £3.5k just to square things off.

Thanks again.

 

[Stevie4scoops]

Write to the PCP company saying you are rejecting the bike because of all the problems you've encountered. You are renting the bike from them and have not been provided with a reliable fault free bike so they are in breach of contract.

My thoughts are that you'll have more clout with the PCP provider who will also have leverage over BMW

 

[SM46]

Have butchers at this http://www.mslmagazine.co.uk/the-best-way-to-pay-for-your-next-car-or-motorcycle/ some useful info

 

[crotchrocket]

Have butchers at this http://www.mslmagazine.co.uk/the-best-way-to-pay-for-your-next-car-or-motorcycle/ some useful info

Very interesting!! Especially since BMW use BMW finance for the PCP.

 

[Moose]

Now I'm not really clued up on the ins and outs of PCP (first time I've used it) but for voluntary termination, I believe you have to have paid 50% of the amount. Now the question is, is it 50% of your pcp deal or is it 50% of the total value? 50% being the pcp and the remaining half being the balloon payment.

According to that useful MSL article, if you have reached the 50% mark, you can initiate the Voluntary Termination option. Of course, you end up with nothing to keep.

 

[Stevemoid]

According to that useful MSL article, if you have reached the 50% mark, you can initiate the Voluntary Termination option. Of course, you end up with nothing to keep.

That sounds intriguing. Do you have a link to the article?

 

[autogs]

op, if your bike is such a lemon go back to your dealer and insist they sort it all out including helping you terminate and get a sweet deal on another bike,i assume you have already talked to them havnt you?

 

[ninjarich1971]

A friend of mine had trouble with his dealer not returning calls and generally being unhelpful so he parked himself and his pickup outside the dealer at a weekend and generally told everyone going in what a shower of shit they were. Manager stepped out to see how he could sort the problem. When it gets to this stage I don't think you're so bothered about what happens it's about making a point.

 

[JohnnyBoxer]

Write to the PCP company saying you are rejecting the bike because of all the problems you've encountered. You are renting the bike from them and have not been provided with a reliable fault free bike so they are in breach of contract.

My thoughts are that you'll have more clout with the PCP provider who will also have leverage over BMW

BMW are the finance provider (or a division of)

 

[B11RGER]

Did you buy your bike from BMW Inverness or Dundee ? You should be able to get a settlement figure from the company supplying the money. Hopefully it will be similar to the value of the trade in value of your bike. If it is, then try to get this figure from the dealer for your trade in. In the mean time look for a cheap loan for your next purchase.. 2.9% is what many banks are offering at the moment. Then way up if you want to buy or PCP it. Good Luck

 

[Stevemoid]

Nah as it stands at the moment settlement is close to 3k-ish more than the bikes trade in value.

I did a personal loan for my car and it's so much cheaper. Lesson learned.

 

[JohnnyBoxer]

Nah as it stands at the moment settlement is close to 3k-ish more than the bikes trade in value.

I did a personal loan for my car and it's so much cheaper.

Lesson learned.

That's the danger of ANY PCP (if you want to settle early)

Selling points = low deposit and low monthly rental, which draws the punter in like moths to a flame

Danger = not much of the capital is repaid (a lot of your monthly payment's make-up is interest in the first year or two)

Bike depreciates at a given value (depending on mileage/use/age/condition), irrespective whether you Lease/PCP/Bank Loan/Pay Cash

Therefore because you're not repaying a lot of the capital value of the PCP Lending, due to a low original deposit (cash back anyone, dealer doesn't want you to put a high deposit in at the front end) and low monthly payments

Hence negative equity for probably 2/3rd's of the PCP term, you only get back into break even or positive equity in the last 9 months of a 3 year PCP

It's carefully calculated, for a reason

 

[Deleted account Aberdeen GS]

That's the danger of ANY PCP (if you want to settle early)

Selling points = low deposit and low monthly rental, which draws the punter in like moths to a flame

Danger = not much of the capital is repaid (a lot of your monthly payment's make-up is interest in the first year or two)

Bike depreciates at a given value (depending on mileage/use/age/condition), irrespective whether you Lease/PCP/Bank Loan/Pay Cash

Therefore because you're not repaying a lot of the capital value of the PCP Lending, due to a low original deposit (cash back anyone, dealer doesn't want you to put a high deposit in at the front end) and low monthly payments

Hence negative equity for probably 2/3rd's of the PCP term, you only get back into break even or positive equity in the last 9 months of a 3 year PCP

It's carefully calculated, for a reason

Crystal clear ... why on earth do so many buyers think they are getting " a free lunch".
Naive fools....

 

[Neil W]

What I would say is that if it is on a PCP raise holy f*ck with BMW via your dealer, when I was having bother with mine the dealer asked if it was on finance or more importantly PCP (it wasn't I'd payed cash), they said if it is on PCP that BMW would waive payments for each month that the bike had to go back to the dealers for warranty work

Not sure if this is the right section but it's about my GSA LC so close enough I guess.

I'm currently half way through a pcp contract for my current bike. Now it seems my bike is an utter lemon. Whilst Big Mans Wanger eventually fix the issues, new ones arise just as often. As such my love hate relationship with the bike needs to come to an end as I've simply lost confidence with it.

Now I'm not really clued up on the ins and outs of PCP (first time I've used it) but for voluntary termination, I believe you have to have paid 50% of the amount. Now the question is, is it 50% of your pcp deal or is it 50% of the total value? 50% being the pcp and the remaining half being the balloon payment.

I've read a few conflicting articles on this, so does anyone have any experience with this?


Cheers in advance.

 

[chasbmw]

My local dealer is offering 10% interest on PCP deals at the moment, which is ridiculously high.

PCP also "hides" the total cost of the vehicle from the punter so makes it easier for the dealer to add on full price accessories and resist efforts of the punter to bargain down the cost of the vehicle.

What sort of discount do people get from a brand new GSWC?

Normally I would just buy a 2-3 year old vehicle and avoid the initial depreciation hit, but with current range of BMWs you are taking a bit of a gamble on major very expensive components failing.


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