BMW cancels finance on YouTuber's heavily modified M4

JCM

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Hire Purchase is what you would typically associate with finance. IE a loan against the car for its value over a set period to cover the cost of the car with interest and at the end you own the vehicle.

PCP is different where you put down a deposit and then pay a monthly price. However at the end of the set period you either have to return the car, trade it in or pay the balloon payment which will then make it yours.

PCP is cheaper monthlies as you arn't borrowing on the full value of the car and the finance company will provide you with a value of what the car is worth at the end of the deal. At the end of the deal if you wished to own the car you would need to pay that amount to the finance company or if you choose to trade the car in you can use any equity in the car to put towards your next car. For example lets say the final value is set at £9000 but the car is worth £10500 you can use the £1500 towards the next car.

The future value is set on a number of factors which is stipulated in the initial contract such as you will return the car in good condition and will not exceed the miles you stated you would do in the car as a car with 50k miles on it will be worth more than a car with 90k miles on it. And if you told the finance company you will return the car at the end of the deal with 50k on it but it has 90k on it they will apply a penalty at a certain price per mile to make up the difference.

This is where BMW will have the issue as in the PCP contract on that M4 he would have agreed to return the M4 in good condition and with the amount of miles on it they would have agreed when setting up the finance. So for example BMW would expect at the end of the deal a 4 year old M4 with 40,000 miles on it so they can predict what that car will be worth when it is returned.

However due to him modifying it so heavily they now may be faced with being handed a 4 year old M4 with 40,000 miles on it which has had major modifications carried out and would be unclear what stresses that would put on the engine and it is less desirable therefore is worth less than the value they predicted at the start of the agreement

Thanks for this. So while HP/Finance gives you ownership at the end of the contract, it's still technically the financer's car until then.
Whereas, if you were to take out a personal loan, the car is yours right off the bat while you make repayments to the loan company?
 

AlpineF30

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Thanks for this. So while HP/Finance gives you ownership at the end of the contract, it's still technically the financer's car until then.
Whereas, if you were to take out a personal loan, the car is yours right off the bat while you make repayments to the loan company?

Essentially yes, with HP the loan is secured against the car therefore the car isn't deemed yours until the loan is repaid whereas a personal loan wouldn't be secured against the car.
 

pablo

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yeah the other difference is that if you sell the car you MUST clear the finance so the new owner has a clean run. If you take out a personal loan then you can do what you like as the money isnt secured on the car.
 

big_pete

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I modified plenty of cars on finance back in the day (no PCP or leasing really back then)😲 could understand it on PCP or a lease but it wouldn't even have crossed my mind on a straight HP agreement.

Tightener for sure. Surely that's the equivalent of you can't decorate your house or carry out an extension while your paying the mortgage? Don't see the difference on straight HP to this.
 

NickR

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I had the F31 on PCP. I asked the finance company before adding the ACS springs, genuine M Performance kit and detachable towbar. They were happy enough as long as it was stuff that could be easily reversed.
 

Cookies

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PCP and HP are essentially the same - you cant modify the car without the finance company's permission, as you dont own the car until you have paid it off in full. In both HP and PCP you can voluntarily terminate the agreement once you have paid 50% of the loan value - I.e. just hand the car back and walk away. Loads of people have done this with BMW as they put down a very small deposit, so will likely be in negative equity until very late on in the agreement term. This is why BMW Finance are so touchy about cars being excessively modified as this one will likely be handed back. Iirc the guy said he only put down a 3k deposit with 600 quid odd a month.

Cooks
 

Burt2000

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My first car was on finance, a corsa TD. Back in 1999. I had it colour coded, body kit, wheels, exhaust, springs, pump screwed out. I blew it up and had to get its engine rebuilt but I was still able to hand it back after half of the term no questions asked and not a mention of any of the mods. Granted that was 20 years ago but not being able to mod it never crossed my mind the way it would now.
 

pablo

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My first car was on finance, a corsa TD. Back in 1999. I had it colour coded, body kit, wheels, exhaust, springs, pump screwed out. I blew it up and had to get its engine rebuilt but I was still able to hand it back after half of the term no questions asked and not a mention of any of the mods. Granted that was 20 years ago but not being able to mod it never crossed my mind the way it would now.

because they didnt know - you didnt have it plastered all over social media (bebo back then probably lol)
 

richie_mck

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Why do so many take pleasure in his predicament?

I don't take pleasure buts it his attitude. Hes done something he shouldn't, plastered it all over social media, got called out then starts playing the sympathy card that he's been unfairly treated and how dare they question what hes done because he's an ambassador for the brand, apparently.
 
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nobby

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like others have stated ... he should have known better and no sympathies for him at all.
never heard of him or watch his content and likely keep it that way.
ambassador of the brand :laughing: ... like munich gives a toss; this guy is delusional!
 

Nigelo

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I've watched the video, and some of the comments here don't really seem to match up to what I've heard and seen on the video. He doesn't seem outraged or bitter, I'd say more bemused at how it has only been him so far. Wonder will there be a Motech / Joe Achilles video coming just to reassure their followers that they're okay.
 

Chris100

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He's gone beyond "normal" modifications, if there is such a thing. I would be concerned about the warranty more than anything, if something like a M4 goes wrong I would expect it to be serious money to put right.

I think he has to expect ramifications based on how far he has gone with the modifying and the fact he doesn't in theory own the car.
 

AlpineF30

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He's gone beyond "normal" modifications, if there is such a thing. I would be concerned about the warranty more than anything, if something like a M4 goes wrong I would expect it to be serious money to put right.

I think he has to expect ramifications based on how far he has gone with the modifying and the fact he doesn't in theory own the car.

Well when I had mine the gearbox failed on it. Apparently was a ten grand repair bill. Thankfully was under warranty when it failed.
 

cauld1

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Why do so many take pleasure in his predicament? Has nobody here ever modified a car on finance?

Don't necessarily take pleasure in it, but have you seen his videos? He drives about like an utter plum on public roads. I'm not sure the attitude in his video is too bad in fairness, but the comparative shock at what BMW have or are doing is surprising. It's blatantly obvious that they'd take issue with it, given that it's them that will end up with the car back at the end of the lease and having to stand over any warranty work needed.

I've never modified a car on finance, no. No interest in modern stuff so unlikely to be an issue. I have made use of 0% finance on parts though as it makes it easier to stomach some of the spending!
 

brendy

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If he entered into a lease or balloon final payment agreement then the car is no more than a rental. BMW have a right to be furious nevermind just cancel the agreement. If he wanted to own the car then he should have saved the money he splodged on mods and put it towards the actual car instead. He cant complain, especially when he flaunts in online.
 

Gibonz

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Don't necessarily take pleasure in it, but have you seen his videos? He drives about like an utter plum on public roads

Really. I'd be interested in seeing a video of him speeding, so please post one...
 

cauld1

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Really. I'd be interested in seeing a video of him speeding, so please post one...

Did I say speeding? No. Going by the tone of your post you know full well that the Speedo isn't exactly shown.

I said driving like a plum. You don't have to be demonstrably speeding to do that. I'd include driving someone's car with them in it looking horrified in that.
 

Rocko

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I have made use of 0% finance on parts though as it makes it easier to stomach some of the spending!

Imagine if the company said they didn't approve of the use of their parts on your car, or thought you couldn't afford the repayments so wanted full payment for the parts immediately. You'd be a bit pissed off no?
 
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