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Has anyone sold their bike which is still under a PCP agreement

Discussion in 'General R1200RS Discussions' started by Drew52, Apr 13, 2018.

  1. Drew52

    Drew52 New Member

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    Hello All
    I was just wondering if anyone had sold their bike privately while still under a PCP contract. Not sure if it is legal to do so as I have read conflicting views.

    My situation is I moved house recently and my PCP agreement was fine for where I originally lived but now my commute is much longer and I will go way over the agreed mileage. I don't want to pay extra per month because I don't think it is worth it or pay the additional mileage charge at the end. What makes it worse is I am not sure I will be getting another bike and will simply continue using my car :-(
    I am only looking to get back the loan amount and will give any potential buyer a copy of the letter to say it has been paid off.

    Is it possible or am I going to have to keep the bike until the end which is a shame as I am not using it very much now.

    Thanks for any words of wisdom in advance.
     
  2. Tony101

    Tony101 Well-Known Member

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    My gut feeling is that a bike on PCP only becomes yours if / when you pay the balloon payment. Until that is paid, you're effectively renting it. You would need to settle up to legitimately sell it and an HPI check would probably flag it up to a prospective buyer.
     
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  3. Bravo

    Bravo Plenty in the tank Contributor

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    How much will you go over agreed mileage?
    As Tony says..... it's not yours til it's paid for.
     
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  4. Drew52

    Drew52 New Member

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    Ok thanks both.
    Looking at a minimum of 6000 miles that's if I don't use it at weekends or when I am on holiday from work. I know its only a few hundred quid at 6000 miles but not money I want to pay really.
     
  5. Steve S

    Steve S Member

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    I bought mine from a member on here while still on PCP, I paid him an agreed sum and he paid the settlement figure to BMW Finance
     
  6. Bravo

    Bravo Plenty in the tank Contributor

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    I did n mine 8000 anything over 24000 I've got to cough up 8 pence a mile.
     
    Last edited: Apr 13, 2018
  7. Bravo

    Bravo Plenty in the tank Contributor

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    I stand corrected.
     
  8. Tony101

    Tony101 Well-Known Member

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    And if he hadn't paid the money to BMW.................?
     
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  9. Steve S

    Steve S Member

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    You've got to have faith in your fellow motorcyclists Tony, I never went to see the bike and trusted him to deliver it 200 miles and guess what?, he did
     
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  10. Tony101

    Tony101 Well-Known Member

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    I which case he didn't sell you a bike on PCP. Before you took possession of the bike, you gave him the money he needed to settle his agreement, and he did so. If he had chosen not to settle his agreement, I believe that BMW finance would be within their rights to repossess the bike from you because it wasn't his to sell. Caveat emptor.
     
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  11. Leon.P.

    Leon.P. Well-Known Member

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    The best way to treat this situation is that you walk into BMW and pay the bike out and give the owner the balance.All above board and no future headaches. IMHO.:)
     
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  12. Steve S

    Steve S Member

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    Correct, it would be safer to pay the settlement directly to BMW
     
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  13. folagana

    folagana Well-Known Member Contributor

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    I'm really curious if a PCP contract could be done also with a wife!
     
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  14. Leon.P.

    Leon.P. Well-Known Member

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    Speak to your wife and let me know how it works out for you.LOL:)
     
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  15. Bravo

    Bravo Plenty in the tank Contributor

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    You beat me to it:)
     
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  16. Tony101

    Tony101 Well-Known Member

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    Is that the one where she holds on to your testicles as security?
     
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  17. wessie

    wessie Well-Known Member

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    What was your intention when you took out the PCP? Hand the bike back or keep it by making the balloon payment?
    You only pay the excess mileage if you hand the bike back. If you keep the bike and make the balloon payment then there is no mileage penalty to pay. With this, you take the hit with depreciation, not BMW, as the value of the bike may be less than the guaranteed final value due to higher mileage. Your loss not theirs.
    Why not keep the bike to end of term and then see which is the best option to take once you know what the odometer reads? If the bike is worth peanuts due to the mileage then the excess mileage charge may be the lowest penalty. Either way, you will have had the benefit of using an RS for the full term.
     
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  18. Stick Rockwell

    Stick Rockwell Active Member

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    There you go wessie. You don't drop back 15 and punt if your on the opponents 30 yard line. Keep driving for the touchdown and settle for a field goal if you run out of downs! Now, someone translate that into rugby speak.........:D Stick.
     
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  19. Keasden

    Keasden Member

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    This question popped up on an Audi forum I'm on. It can be difficult to attract a private buyer who will rightly be wary of any outstanding finance, as technically the bike is not yours to sell until the finance is paid off. They could pay you the sale price, but if you don't pay the finance company, the bike gets recovered from the new purchaser!

    The solution they came up with was be open with the prospective purchaser and if you agree a price of say, £8000 but there is still £6000 owing on finance, they call the finance company in your presence and pay them the £6000 direct and give you the £2000 balance. They then ride away on their new bike. Needs a bit of trust on all sides unfortunately, but if I was purchasing something that had outstanding finance this is the only way I'd consider doing it for my own peace of mind.
     
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  20. Drew52

    Drew52 New Member

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    Thanks for your input everyone. I'm going to get it serviced in June when its due and then try and sell it. I will just be open about the outstanding finance and hopefully get a buyer. If it doesn't sell I will keep it to the end of term, keep the mileage in check and hand it back.
     

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