settling BMW finance deal

[technicalfoamboy]

Hi

I'm considering purchasing a new BMW car and researching various websites (who offer special deals) mention, in the terms and conditions, that the discounted RRP price quoted is with BMW finance, and at X% over x years. blah blah blah.

Am I well within my rights to sign up for the discounted deal but pay off the outstanding discounted finance in full within a certain period without receiving a financial penalty? i.e., pay off the discounted price in full, no quibbles?

Thank you in advance.

TFB

[Sheets Tabuer]

It's what I did. Car was about 5k cheaper that way.

[alscar]

Once you have signed the deal you are then free to pay off the balance pretty much as soon as you like.
Some dealers get a bit arsy about it but I wouldn’t worry about that.
From memory within 14 days may carry a lower quantum of interest ie virtually nothing than say terminating after 30 days where the agreed rate will be as the contract.
There might also be an early termination fee but that will be again be in the contract.
I’ve done this where both a dealer discount has been given and also a manufacturer promotion.

[shtu]

technicalfoamboy said:

Am I well within my rights to sign up for the discounted deal but pay off the outstanding discounted finance in full within a certain period without receiving a financial penalty? i.e., pay off the discounted price in full, no quibbles?

Yes, you can do that.

Within 14 days you can cancel the finance and, provided you pay the financed amount plus a tiny amount of interest, it will be as if the finance never existed.

I've done it a couple of times, and the cost has been under a tenner for a day or so's interest. All the discounts, service plans etc were kept in place. (VWFS)

A dealer may try and persuade you to keep finance in place for <a period of a few months>, this is because they want their commission payment. It's up to you if you like them enough to give them that.

[thr32]

Agreed — where manufacturers set the incentives up in that way it’s a no brainer to take finance if you don’t need it, as long as it won’t have an impact on credit scoring for anything else you’re imminently trying two do.

Two caveats to be aware of:

1. Certain larger-value PCP deals may opt out of regulation (think credit amount >~£60,000). Your cooling-off period is a regulated feature, so it’s only a right if your agreement is regulated

2. Requesting to use the cooling-off period often starts a 30-day period in which no interest accrues — you get a settlement quote and have 30 days to pay it. This may help with cashflow management

TH

[The Gauge]

I don't know the in's and outs of BMW finance, but here's my experience of VW finance...

I once bought a 2nd hand Skoda Yeti from a Skoda dealer, I was in a position to pay outright but the salesman obviously wanted me to take out VW finance, the selling point being I got 3yrs free MOT, service and breakdown.

I already knew of a trick to receive all of this without being stuck with the finance. I put £3k on VW finance ( I could have put less £) and paid cash for the remainder. A couple of days later I rang VW finance and 'withdrew' from the contract. All I had to pay was two days interest and settle the balance. By doing this I maintained the 3 years free MOT, service and breakdown.

The important thing here was to 'withdraw' from the contract, not cancel or settle. Only withdrawing ensured I kept the 3 year offer. Wording was crucial.

Edited by The Gauge on Thursday 20th August 08:50

[duff]

I did this recently with BMW. Took the finance and then settled (I believe the term was withdrew) within a few days. No issue whatsoever although I only had a small deposit contribution from them and no ongoing service plans etc but from what I’d read, those would have remained in place.