BMW finance Early settlement fee

[murali]

Hi Guys,

I financed my vehicle through BMW finance, now i am selling my car and they tell me there is an early termination fee off 7k due to my vehicle being over 250k.

Does anybody know of this?

BMW is full of shit really, i had numerous vehicles not once have i been charged an early settlement fee.

Thanks

 

[UpNcOmiNg!]

All the finance houses do this. Stupid, but it's how they work.

 

[msm]

Check your original contract. There is usually a high early settlement in the first year only on something like that. Also R7k sounds excessive.

 

[murali]

Cool, thanks guys

I will check the contract when i get home.

 

[M3KW]

I believe that is correct. If the vehicle is still under finance, there is a clause in the documents you would have signed that states there is a penalty fee which will be paid should you terminate the vehicle finance earlier than the determined time.

Every financial institution has this somewhere in their T & C's.

 

[MikeR]

:thumbs: thats the way they all roll mate. :sorry:

 

[murali]

I was reading up on it, they say u need to give notice off settlement like 2 or 3 months in advance in order to to waive the fee, it is usually 2 or 3 months interest that is charged as the fee.

I will check the contract later and let u guys know.

 

[dvst8]

I was reading up on it, they say u need to give notice off settlement like 2 or 3 months in advance in order to to waive the fee, it is usually 2 or 3 months interest that is charged as the fee.

I will check the contract later and let u guys know.

If you financing the next vehicle with BMW Finance, you wont pay the fee and get a Special Settlement figure also.

:thumbs:

 

[zaleonardz]

NCA allows for penality interest on finance over 250k, its fact and law so no amount of fighting will get past it.

However, what you can do, is contact the bank and ask them to consider a special settlement, particularly if you are refinancing with the particular bank, and they don't have to be, but they may be nice to you..

 

[murali]

Can only BMW vehicles be financed through BMW finance or any vehicles?

 

[dvst8]

Can only BMW vehicles be financed through BMW finance or any vehicles?

Under certain conditions they will finance other vehicles. As an existing client, they may offer this to you.

:thumbs:

 

[murali]

Sweet, thanks will speak to them

 

[pimpassdaddy]

All the finance houses do this. Stupid, but it's how they work.

Thats news to me... I normally finance my trucks and settle them within 12months. Never been charged a cent by the finance house.

 

[///M_Diesel]

7K seems to high...

BMW is really pissing ppl off lately :tease:

BMW Insurance is a rip off as well....

 

[murali]

I have asked if i can give 3 months notice of settlement to waive the fee, as they told me that it is 3months interest charge.

So waiting to see what they say......

 

[murali]

So the outcome is, if i make my next 3 installments the settlement drops to 241k which is a 5k saving so i shall be going that route :rollsmile:

They have also extended the settlement date to 04/04/2013

Thanks for the help guys....