BMW 320i E92 2007 - Handing car back to finance company

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Thu 23 Aug 2012 12:04
BMW 320i E92 2007 - Handing car back to finance company - PhilDS

Hi All

I have a private PCP deal with Santander that is due to end in Feb 2012. I wish to end the deal and return the car to them to avoid the balloon payment. Based on my calculations I will have paid back 50% of the whole loan in Dec this year.

I am due an MOT in November and will need to spend around £500 on maintenance elements by then - tyres, brakes, etc. I don't see any point in spending this amount of money when there is potentially only a couple of months to go and I don't wish to refinance the value of the balloon payment.

In practice am I able to over pay my finance payments in order to hit 50% before November and thus hand the car back early or will Santander see what I am doing and block it in some way.

Thanks

Phil

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Thu 23 Aug 2012 21:53
BMW 320i E92 2007 - Handing car back to finance company - brettmick
I did a voluntary termination in 2009 when the market was on the floor and the balloon on my Saab was 7k and a lower mileage better spec car was 3.5k at a local supermarket. The strange thing is that even tho this is legal/within my rights it seems to have resulted in every finance deal since being referred, including my recent remortgage who told me it was this that was the cause. I have a perfect history and did a credit expert check to make sure that showed 999 points.
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Thu 23 Aug 2012 22:10
BMW 320i E92 2007 - Handing car back to finance company - Falkirk Bairn

If the car needs tyres and brakes you could be billed for this after the lease company examines the car.

Mammoth bills for dings,scratches, minor tears in interior, tyres, omission of a service all adds up! Often cheaper to get the scuffs and scrapes done by the dentman / touch-up [aint etc before the return of the car.

50% payment and handing back an HP car can harm your credit standing

I do not know whether you can walk on a Lease - is it privately leased or leased through a business?

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Fri 24 Aug 2012 12:44
BMW 320i E92 2007 - Handing car back to finance company - PhilDS

It's a standard HP deal rather than a lease so I am able to exercise my rights to terminate once 50% has been paid off. But I take your point that it will show up on my credit history which may unnecessarily slow down any potential credit applications in the future - although technically it shouldn't.

And as you point out, doing more digging on the internet reveals the potential of further charges if the car doesn't meet the fair wear and tear criteria as determined by the BVRLA.

The car is in very good condition - full service history, average miles, no exterior damage (bar the odd stone chip) and clean interior - but the alloys have deteriorated. I have assumed the cost to refurbish them to be around £250 to £300. So if I get hit with tyre, brake and alloys charges, I am no better off.

I'm tempted to let the finance run its course and then cover the balloon via a personal loan.

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Fri 24 Aug 2012 14:00
BMW 320i E92 2007 - Handing car back to finance company - tony g
Hi phil ,previous posts have confused a vt with the lease purchase deal that you have ,
A vt will add a negative, though legal marker to a credit file .If you return your car at the 50% paid marker ,you have completed Your side of the transaction .The finance company shouldn't mark your experian account with any negative comments .

With regard to bvrla guidelines ,you can download these from thier websites .Because they tend to support leasing companies ,I would have a written car inspection done by a BMW dealer to counteract any attempt by Santander to charge for unnecessary work .Basically the lease agreement will state that the car must be in reasonable condition for its age and mileage ,no bald tyres ,bodywork damage etc .

Finally ,do you think you could sell your car for more than the 50% outstanding.Check autotrader for the selling price of cars the same age as yours ,with similar mileage ,you can start advertising it now before the agreement ends ,of course you must settle the whole of the agreement if you sell the car .

One issue if you do decide to sell the car ,if it's a lease where vat is added to your payments as a seperate charge ,you have a lease ,not a lease purchase .

Thier are added complications in selling a car that's on lease ,you will need to check with your finance company if you decide to sell the car .

Regards


Tony g
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