BMW HP Agreement Regulated - Interest rebate and Early Termination

[Pocket]

I am attempting to terminate my BMW agreement early and return the vehicle. The starting point for this was contacting BMW Finance for a settlement figure who advised me that I owed £41,000 less an interest rebate of £2000 bringing the total owed to £39,000.

Based on my agreement the half way point to return the vehicle is £36,000 therefore BMW said it was fine for me to make a £3,000 payment to get the agreement to this level.

I have today tried to move this forward but BMW FS are now asking for £5,000 as opposed £3,000 as apparently by terminating the agreement early as per my rights I am not entitled to the interest rebate. My contract makes no mention of this.

Any guidance would be appreciated.

Thanks

[DrSteve]

Re: BMW HP Agreement Regulated - Interest rebate and Early Termination

That is correct as far as I know. You get an interest rebate if paying off a finance agreement early but VT is different. With VT you need to pay up to the 50% value of the total payable under the agreement. You don't get any interest reduction with VT

[R0b]

Re: BMW HP Agreement Regulated - Interest rebate and Early Termination

DrSteve is correct. When you terminate early, you get an interest rebate which is the interest from the date you terminate to date of final payment under the agreement.

When you VT, it includes the total amount payable including the option to purchase and interest.

[Pocket]

Re: BMW HP Agreement Regulated - Interest rebate and Early Termination

That is correct as far as I know. You get an interest rebate if paying off a finance agreement early but VT is different. With VT you need to pay up to the 50% value of the total payable under the agreement. You don't get any interest reduction with VT

Thank you Drsteve and R0b for your guidance with this, appreciated.