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I bought a car from BMW in October 2014. The cash price was £74595.02 but there were various dealer and manufacturer comtributions if I bought it on finance. If I took advantage of this then the cash price effectively become £57494.02. I paid a deposit of £6252.46 and since then have made payments of £758.59 each month. To date my total payments are £18,393.10.
I now want to get rid of the car, it is worth about £30k but settlement is £42k. So I decided to explore VT rights.
BMW Finance say that my VT point is £32,374.37, so I am £14k away from this.
I say that my VT point is actually calculated as follows:
cash price + interest /2 = total amount payable / 2 = VT point
So - £74595.02 + £7244.72 /2 = £81839.74 /2 = £40919.87
I say that my total payments to date should also include the £16001 in dealer/manufacturer contributions so I have actually paid £34394.10 which means that either I have passed the VT point on the agreement or I am only £6525.77 away from it the way I work it out. Either way its a lot better than being £14k away from it!
Who is right and who is wrong? It should also be noted that the contributions are not mentioned on the finance agreement at all. I have an email from the salesman advising of the cash price and total contribtion value if I took out their finance though.
I now want to get rid of the car, it is worth about £30k but settlement is £42k. So I decided to explore VT rights.
BMW Finance say that my VT point is £32,374.37, so I am £14k away from this.
I say that my VT point is actually calculated as follows:
cash price + interest /2 = total amount payable / 2 = VT point
So - £74595.02 + £7244.72 /2 = £81839.74 /2 = £40919.87
I say that my total payments to date should also include the £16001 in dealer/manufacturer contributions so I have actually paid £34394.10 which means that either I have passed the VT point on the agreement or I am only £6525.77 away from it the way I work it out. Either way its a lot better than being £14k away from it!
Who is right and who is wrong? It should also be noted that the contributions are not mentioned on the finance agreement at all. I have an email from the salesman advising of the cash price and total contribtion value if I took out their finance though.
