If your BMW finance agreement feels unreasonable, you could be entitled to a substantial refund.
Did you know that nine out of 10 customers opt for BMW financing loans when purchasing new or used BMWs? However, not all BMW finance journeys are straight forward. Some BMW buyers find themselves in situations where they’ve been sold finance packages beyond their means or at inflated interest rates. With potential compensation reaching into the thousands of pounds for affected individuals, it’s crucial to review your BMW finance history – whether it’s ongoing or settled – to determine if you’re eligible to make a BMW finance reclaim.
In Our Guide:
- What is car finance?
- Types of BMW finance, in detail?
- How to find out if you were mis-sold BMW finance?
(1) What is car Finance?
BMW finance offers a convenient way to drive a new or used BMW without paying the entire cost upfront. Essentially, it allows you to enjoy a shiny new BMW without paying for it outright.
There are various BMW finance options available, such as Personal Contract Purchase (PCP), Hire Purchase, and Leasing, each with its own terms and outcomes. The industry is substantial, with figures from the Finance & Leasing Association revealing that its members facilitated new consumer BMW finance agreements totalling £37 billion in the UK in 2021. Last year alone, over two million agreements were signed, covering both new and used BMWs.
(2) Types of BMW Finance:
If you’re exploring this guide, you’re likely familiar with BMW finance types, but let’s briefly outline them:
- Personal Contract Purchase (PCP): The most common form of BMW finance, resembling a loan to facilitate your BMW purchase. It offers flexibility at the end of the term, with options to own the BMW outright or return it.
(3) How to Find Out if You Were Mis-sold BMW Car Finance?
Ensuring your BMW finance was transparent, and fair involves checking for potential mis-selling signs. Many individuals have seamless experiences with their BMW finance agreements, but some encounter issues due to unclear terms or insufficient affordability checks during the sale. If you find yourself affected by these concerns or face problems with the BMW post-financing, you have grounds to file a complaint.
Here’s a breakdown of the three common complaint for mis-sold car finance by BMW:
- Lack of clarity on costs, commission, or the contract.
- Absence of proper affordability checks.
- Issues with a faulty or unsatisfactory vehicle.
Whether your BMW finance is ongoing or settled, you retain the right to make a mis-sold BMW Car Finance claim. Initiating a case within six years of the agreement’s conclusion is recommended, but even if it exceeds this timeframe, the Financial Ombudsman Service (FOS) is open to considering cases where customers discovered mis-sold BMW finance within the last three years.
(1) Lack of Clarity on Costs, Commission, or the Contract:
When delving into any financial commitment with BMW, thorough scrutiny of the fine print is crucial. BMW finance holds the responsibility of ensuring the agreement’s details are transparent and comprehensible to you.
Instances warranting a mis-sold BMW car finance claim
- Hidden commissions that may have influenced your decision.
- Additional charges or fees that weren’t clearly communicated.
- Unexpected terms that weren’t explicitly clarified, leading to financial losses.
(2) Few, If Any, Affordability Checks:
It’s crucial for your BMW finance provider to conduct affordability checks before granting you the loan. If they neglect this crucial step, you have the right to file a complaint for mis-selling and make a BMW finance reclaim.
Signs that your finance agreement with BMW may have been mis-sold, include:
- Struggling to meet monthly payments.
- Incurring additional debt to prioritize BMW repayments.
- Discovering that you owe much more at the end of the deal than your anticipated.
(3) Faulty or Unsatisfactory vehicle:
While not a case of mis-selling, if the BMW you purchased falls short of the advertised standards or is faulty, your standard consumer rights come into play. If the BMW was bought from an official dealer, it should be covered by the Consumer Rights Act. This Act dictates that a product must be of satisfactory quality, fit for its intended purpose, and as described. If it doesn’t meet these criteria, you may be entitled to a refund or a free repair – refer to “How much can I get?” for detailed information.
Section 75 Protection
In addition to the Consumer Rights Act, if you used a credit card to pay the deposit for the BMW finance agreement, you might have the benefit of FREE Section 75 protection. This makes your credit card provider jointly liable to assist in resolving the issue. To qualify, the goods or service you purchased— in this case, the BMW finance agreement—must have been paid for using a credit card and fall within the £100 to £30,000 cost range.
By understanding your rights and taking appropriate action, you can reclaim what’s rightfully yours and ensure a fair BMW finance experience. Whether it’s reviewing your BMW finance agreement for mis-selling or seeking resolution for a faulty BMW, don’t hesitate to assert your consumer rights and pursue the compensation you deserve.