Voluntary Termination on PCP contract

LandyAndy

forgotmyname wrote: »

The contract was setup based on the mileage. There will be a charge for going over. What do the terms and conditions say?

You cant say i will only do 100 miles a year and then do 100,000 without a charge. If thats the case everyone will only say a low mileage then accidently exceed it.

pgilc1 wrote: »

I personally dont think a mileage charge is applicable if you VT.

I think there would be a charge for the reason 'forgotmyname' gave

motorguy

LandyAndy wrote: »

I think there would be a charge for the reason 'forgotmyname' gave

Thats a fairly extreme example. Also, all charges are only payable under a PCP contract if you hand the car back at the end of the term.

If you had agreed to do 36K miles on a 3 year PCP and handed it back using a VT with say, 39K miles on it, i dont think there is much they can do about it.

The consumer protection law that allows this doesnt make exceptions for PCP based deals, so if they cant enforce it on a higher than average miles car returned under a VT on a normal HP contract, i dont think they can with a VT under a PCP contract.

arcon5

Why cant they enforce it? Ops paying for a certain level of service and has gone over this. Same as if I send a parcel with RM and underpay postage they will charge me or the recipient the difference

fivetide

pgilc1 wrote: »

If you had agreed to do 36K miles on a 3 year PCP and handed it back using a VT with say, 39K miles on it, i dont think there is much they can do about it.
.

I'd be more inclined to see it as the OP hasn't got to the end of the contract but is over 50%

So... Agreed 36k for three years, so 12k per year on average. However, the car has 30k on it at two years.

Assuming the servicing has still been done, I'd have hoped the OP would still be 6k under the total allowed.

Just guessing of course!

Cornucopia

There's a previous thread here: https://forums.moneysavingexpert.com/discussion/comment/2094619#Comment_2094619

Seems like the devil is in the detail.

fivetide

Cornucopia wrote: »

Seems like the devil is in the detail.

Isn't it always!

:beer:

Cornucopia

fivetide wrote: »

Isn't it always!

:beer:

Just once, wouldn't it be nice if something turned out to exactly match your preconceptions.

motorguy

arcon5 wrote: »

Why cant they enforce it? Ops paying for a certain level of service and has gone over this. Same as if I send a parcel with RM and underpay postage they will charge me or the recipient the difference

Your analogy is all wrong.

The residual value is whats being questioned here. Basically, they have set up a finance agreement with a balloon payment and the terms around them taking the car back at that point for that value is that is of good condition and has X,000 miles on it. If it doesnt, then the PCP balloon figure will be incorrect and an adjustment needs to be made. That is part of the finance agreement.

However the voluntary termination is a legal right and is not linked to the finance agreement. The O/P would be exercising their statutory rights in relation the Credit Act of 1974 where in the small print of the contract it states once half the total value of the car had been paid there is 'nothing more to pay', subject to the car being returned in good condition as defined under 'fair wear and tear'. This would probably be a guideline taken from a body such as the BVRLA - https://www.bvrla.co.uk

Relative to excessive milage the exception to that be that they could probably envoke a mileage claim IF the mileage was that high that they felt they could do so under 'fair wear and tear'.

tomspence24

fivetide wrote: »

I'd be more inclined to see it as the OP hasn't got to the end of the contract but is over 50%
!

Thanks. What does OP mean? (forgive me if this is a noddy question!)

fivetide

tomspence24 wrote: »

Thanks. What does OP mean? (forgive me if this is a noddy question!)

OP = Original Poster. Just being too idle to type out tomspence24 every time!